Caseys 2026 Q2 Earnings Strong Growth Driven by 14.2% Revenue Increase

Casey's General Stores (CASY) reported Q2 2026 earnings that exceeded expectations, with revenue rising 14.2% to $4.51 billion and EPS climbing 14.2% to $5.56. The company raised its fiscal 2026 guidance, citing robust performance across segments and strategic store expansion.

Revenue

Casey's Q2 revenue growth was fueled by strong contributions from all business lines. Prepared food and dispensed beverage sales surged 12.0% to $467.80 million, driven by demand for hot sandwiches and whole pizzas. Grocery and general merchandise revenue expanded 13.4% to $1.19 billion, bolstered by non-alcoholic beverage sales. Fuel revenue rose 11.3% to $2.69 billion, supported by a 0.8% increase in same-store gallons sold and a 41.6¢/gallon margin. The "other" category, including EV charging and renewable fuels, saw a dramatic 148.2% year-over-year increase to $160.36 million.

Earnings/Net Income

The company’s net income grew 14.0% to $206.34 million, with diluted EPS rising to $5.53 from $4.85. This performance underscores Casey’s ability to maintain profitability amid operational expansion and market challenges. The EPS growth aligns with the company’s long-term strategy, reflecting disciplined cost management and sales momentum.

Post-Earnings Price Action Review

The strategy of buying Casey’s shares on earnings release dates and holding for 30 days yielded an annualized return of approximately 8.5% over three years, though it came with significant volatility, including a 20% peak-to-trough decline. Post-earnings, the stock typically saw a 5% surge in the first five days but underperformed over the subsequent 30 days as optimism waned. With a beta of 1.2, the stock’s volatility outpaced the S&P 500, making it a speculative play for traders rather than a stable investment for long-term holders.

CEO Commentary

Darren Rebelez, Chairman and CEO, highlighted 3.3% same-store sales growth, driven by prepared foods and value offerings, alongside a 41.6¢/gallon fuel margin. He emphasized the company’s strategic execution, including operating 9% more stores year-over-year, and expressed confidence in leveraging sales momentum and expansion.

Guidance

Casey’s updated its fiscal 2026 guidance to reflect 15-17% EBITDA growth, 3-4% inside same-store sales, and a 41-42% inside margin. Fuel gallon growth is projected at -1% to +1%, while operating expenses are expected to rise 8-10%. The company plans to open at least 80 stores, maintain a 24-25% tax rate, and allocate $600 million to capital expenditures.

Additional News

RBC Capital raised its price target for CASY to $591 from $570, citing strong gas margins and a $0.16-per-share one-time adjustment. Meanwhile, Casey’s faces legal challenges, including a lawsuit involving 1,400 current and former Store Managers over FLSA misclassification claims. The company also announced a $0.57-per-share dividend and $31 million in share repurchases under its existing $233 million authorization.