Casey's General Stores, Inc.’s CASY business operating model, omnichannel capabilities, enhanced customer reach and private-label offerings reinforce its position in the industry. Through its unwavering commitment to guest-centered convenience and restaurant-quality food, Casey’s aims to carve out a unique position in the market.
Let’s Analyze
Casey's price and product optimization strategies, increased penetration of private brands and digital engagements comprising the mobile app and online ordering capabilities are commendable. This third-largest convenience retailer and fifth-largest pizza chain’s self-distribution model, strength in the Inside category and acquisition activities bode well.
Inside sales comprising Grocery & General Merchandise and Prepared Food & Dispensed Beverage jumped 8.4% to $1,124.1 million in the final quarter of fiscal 2023. Inside same-store sales increased 6.5% compared with a 5.2% rise registered in the year-ago period. This was driven by a stellar performance in non-alcoholic and alcoholic beverages in the Grocery & General Merchandise category as well as bakery and hot food in the Prepared Food & Dispensed Beverage category.
While Grocery & General Merchandise sales advanced 8.8% to $809.8 million, Prepared Food & Dispensed Beverage sales increased 7.1% to $314.2 million in the quarter.
Casey's General Stores, Inc. Price, Consensus and EPS Surprise
Casey's General Stores, Inc. price-consensus-eps-surprise-chart | Casey's General Stores, Inc. Quote
Casey’s focus on technology advancements, merchandise ordering efficiency, inventory management and data analytics positions it well for future growth. The company has been strengthening pizza promotions for guests seeking meal solutions, along with enhancing breakfast lineups. Casey’s Rewards, the company's flagship loyalty program boasting a membership of more than 6.5 million, has proven to be a vital tool for guest engagement.
With more than 2,500 stores in 16 states, Casey’s aims to strategically increase its footprint. By ensuring the right stores at the right locations with the right products, the company targets the addition of 350 stores by the end of fiscal 2026. This growth strategy involves both organic expansion and strategic acquisitions.
Wrapping Up
Casey’s business model, private-label offerings, expansion of its footprint and digitization endeavors should support sales. The company estimates Inside same-store sales to increase between 3% and 5% in fiscal 2024. Additionally, it foresees an Inside margin within the band of 40%-41%.
Shares of this Zacks Rank #2 (Buy) company have risen 24% in the past year, in tandem with the industry’s growth.
3 More Stocks Looking Red Hot
Here we have highlighted three other top-ranked stocks, namely Ross Stores ROST, Celsius Holdings CELH and Walmart WMT.
Ross Stores, which operates off-price retail apparel and home fashion stores, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 10.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and earnings suggests growth of 4.6% and 12.6%, respectively, from the year-ago reported numbers. ROST has a trailing four-quarter earnings surprise of 11.5%, on average.
Celsius Holdings, which offers functional drinks and liquid supplements, currently carries a Zacks Rank #2. CELH delivered an earnings surprise of 81.8% in the last reported quarter.
The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings suggests growth of 69.6% and 154.4%, respectively, from the year-ago reported numbers.
Walmart, which operates a chain of hypermarkets, discount department stores and grocery stores, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 5.5%.
The Zacks Consensus Estimate for Walmart’s current financial-year sales suggests growth of 4.2% from the year-ago period. WMT has a trailing four-quarter earnings surprise of 12%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
