Casey’s Hits All-Time High After Crushing Q4; Consumer Demand for Sandwiches and Beverages Drives Outperformance

Casey’s General Stores (NASDAQ: CASY) surged to a record high Tuesday morning after delivering strong fiscal fourth-quarter results that handily beat Wall Street expectations. Shares jumped to $509 at the open—an all-time high—before pulling back slightly to $485 in afternoon trade. Investors responded enthusiastically to the convenience store operator’s robust inside sales, expanding fuel margins, and upbeat outlook. The quarter capped off a record fiscal year for the Iowa-based chain, which credited strong execution of its three-year strategic plan and healthy consumer demand for key food and beverage offerings.

Casey’s reported fourth-quarter earnings per share of $2.63, up 12.4% year-over-year and well ahead of the $1.93 consensus estimate. Revenue grew nearly 11% to $3.99 billion, topping expectations by about $60 million. Adjusted EBITDA climbed 20% to $263 million, highlighting continued operating leverage despite an inflationary cost environment. Net income rose to $98.3 million, a 13% increase from the prior-year quarter.

One of the quarter’s key takeaways was strength in consumer behavior around the company’s foodservice category. Inside same-store sales increased 1.7% from a year ago and 7.4% on a two-year stacked basis, with total inside gross profit rising 12.5% to $582.4 million. Management called out “strong performance in hot sandwiches, bakery items, and both alcoholic and non-alcoholic beverages” as standout areas of growth. Consumers continued to respond to Casey’s made-to-order food and beverage offerings, signaling resilience in discretionary convenience spending even amid broader macro uncertainty.

On the fuel side, results were steady but still accretive. Same-store gallons sold rose 0.1%, but the real story was profitability: Casey’s grew total fuel gross profit by 21.4% to $307.8 million, driven by a healthy margin of 37.6 cents per gallon—up from 36.5 cents a year ago. The company’s fuel team also managed to grow market share, a notable feat in a highly competitive category. While fuel volumes benefitted from store count expansion, same-store gallon growth remained flattish, aligning with broader industry trends in fuel demand.

Casey’s also raised its quarterly dividend by 14% to $0.57 per share, marking the 26th consecutive year of dividend increases. This payout increase underscores management’s confidence in future free cash flow generation despite rising capital investments and a modestly higher expense outlook. The dividend will be payable on August 15 to shareholders of record as of August 1.

Looking ahead, Casey’s issued solid guidance for fiscal 2026. The company expects EBITDA growth of 10% to 12% and plans to open at least 80 new stores through a mix of M&A and organic expansion, keeping it on pace to hit its three-year target of 500 new locations. Same-store inside sales are projected to grow between 2% and 5%, while fuel gallons are expected to be flat to slightly negative. Management also anticipates operating expenses will rise 8% to 10%, reflecting continued investment in expansion, labor, and technology.

Valuation-wise, shares currently trade at roughly 27x forward earnings—elevated for the convenience retail sector but not unreasonable given the company’s consistent execution, dividend growth, and strong return profile. Casey’s premium is further supported by a defensible business model that blends fuel sales with high-margin in-store offerings, and an operational footprint focused on underpenetrated rural and suburban markets where competition is less intense.

Despite a modest afternoon pullback, Casey’s stock remains near historic highs and is one of the best-performing names in the retail and fuel space year-to-date. The quarter validated the company’s strategy of focusing on foodservice differentiation and disciplined growth, while consumers continue to show a clear preference for its prepared food and beverage offerings. With strong earnings momentum, favorable industry positioning, and healthy unit economics, Casey’s appears well-positioned heading into fiscal 2026—even at a premium multiple.