Casey's General Stores Surges 360% with Focus on Food and Acquisitions

Casey's General Stores has seen its stock surge 360% since 2018 after improving operations, cutting costs, and delivering steady sales growth. The convenience store operator has differentiated itself with freshly cooked food and acquisitions of smaller chains, which it then made more efficient. Prepared food sales have outpaced the broader consumer staples sector over the past year, and its strong reputation for food drives interest in its private-label products.

Casey's General Stores Inc. has witnessed a remarkable 360% stock price surge since 2018, driven by a series of strategic initiatives aimed at improving operations, cutting costs, and delivering steady sales growth. The convenience store operator, once an activist target, has transformed its business model by focusing on freshly cooked food and strategic acquisitions of smaller chains [1].

The turnaround began with the appointment of Darren Rebelez as CEO in 2018. Rebelez introduced centralized procurement systems for both merchandise and fuel, significantly lowering expenses. Prepared food items, including pizza, donuts, breakfast burritos, and a pilot program on chicken wings and fries, have emerged as a key differentiator, with sales growth outpacing the broader consumer staples sector over the past year [1].

The chain's strong reputation for food has also driven interest in its private-label products. Analysts note that about 30% of its gross profit comes from food, compared to just 8% to 10% at most rivals [1]. This focus on food has not only enhanced its bottom line but also made its private-label products more appealing to consumers, leading to increased sales of items like chips, sodas, and granola bars [1].

Casey's has expanded its footprint by acquiring smaller chains, targeting underperforming sites, and integrating them with its food kitchen. This strategy has allowed the company to quickly increase prepared food sales and improve margins. The acquisition of Fikes Wholesale, Inc.'s CEFCO stores for $1.1 billion last year further extended its reach in high-population growth states like Texas and Florida, and provided the company with its first fuel terminal [1].

The company's gradual growth has been steady, with an average of about 100 stores added per year since Rebelez took over. With around 2,900 stores across 19 states, Casey's remains smaller than major competitors like 7-Eleven and Circle K, which operate about 13,000 and 7,000 locations respectively [1]. Despite this, Casey's has been able to maintain a competitive edge in rural markets, where it has a significant growth opportunity due to the financial pressures faced by many small operators [1].

However, the stock's 360% surge since 2018 has led to valuation concerns. Casey's is currently trading at a premium multiple of around 35 times earnings, higher than convenience store rivals and even pizza chains like Domino's Pizza Inc. [1]. Analysts with a hold-equivalent rating have expressed caution, noting that the stock's valuation and higher expectations pose risks [1].

Despite these concerns, some analysts remain bullish on the stock. Melius Research's Jacob Aiken-Phillips, who recommends buying the stock, argues that Casey's deserves the premium for its advantage over restaurants, citing alternate traffic drivers such as fuel, tobacco, and beer sales [1].

Institutional investors have also shown confidence in the company. WealthPlan Investment Management LLC, for instance, increased its holdings in Casey's by 1.7% in the first quarter, owning approximately 38,303 shares valued at about $16.6 million [2]. Other institutional investors, such as Flagship Harbor Advisors LLC and Burns J W & Co. Inc., have also boosted their stakes in the company.

In conclusion, Casey's General Stores has achieved a significant stock price surge through a combination of operational turnaround, strategic acquisitions, and a focus on freshly cooked food. While valuation concerns exist, the company's strong performance and growth prospects continue to attract institutional investors.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-08/casey-s-stock-price-surges-360-by-selling-pizza-burritos
[2] https://www.marketbeat.com/instant-alerts/filing-caseys-general-stores-inc-nasdaqcasy-shares-acquired-by-wealthplan-investment-management-llc-2025-08-07/