Casey’s General Stores has consistently outperformed its convenience store and quick-service restaurant peers, with plans to add 400 convenience stores and grow inside sales by the mid-single digits. According to the company’s president and CEO, Darren Rebelez, Casey’s will continue to focus on its existing strategy, which has been working well for the company.
Rebelez said the company’s food business is its main differentiator and that Casey’s is playing the restaurant game rather than just the convenience store foodservice game.
The company’s plan includes growing its prepared food and dispensed beverages business, with a focus on items like pizza and chicken wings.
Brad Haga, senior vice president of prepared food and dispensed beverages, said that chicken wings have become a major growth opportunity, with the item already introduced in 850 stores. They believe their integrated business model provides a competitive advantage.
The company’s approach involves generating diversified cash flow and reinvesting it into its value proposition, leading to strong financial results. This has been a key factor in the company’s success.
Rebelez also credited the company’s leadership continuity as a key factor in its success. He noted that the executives presenting alongside him at the investor day were the same group that stood on stage three years earlier.
Stock analysts agree that Casey’s consistent growth has been impressive, with Steve McManus describing the company as building a strong food engine in c-store retail. Greg Halter said that Casey’s emphasis on foodservice in rural communities has created a durable competitive advantage.
Casey’s has reported positive growth every year since it began publicly reporting inside same-store sales in fiscal 2021, despite challenges in the convenience retail operating environment. The company’s ability to make timely decisions has also been cited as an advantage.
The company’s foodservice program has been particularly successful, with a focus on made-from-scratch items. Halter noted that this focus on quality has set Casey’s apart from its competitors, particularly in rural communities where options may be limited.
It will be important to continue to monitor the company’s inside same-store sales and make adjustments as needed to ensure continued success. The company’s strong financial results and competitive advantages position it well for the future.
Casey’s plans to continue to expand its prepared food and dispensed beverages business, with a focus on items like chicken wings. The company also plans to continue to grow its store count, with a goal of adding 400 new stores.
With its integrated business model, the company has been able to differentiate itself from its competitors and achieve consistent growth. The focus on quality and convenience has been key to this success.
The company’s success is similar to that of other companies in the industry that have prioritized quality and convenience, such as those that offer German food options.
Casey’s is well-positioned for continued success in the convenience store and quick-service restaurant industries.
Expansion plans are underway.