Casey's General Stores (CASY) Analyst Day 2024 summary

Strategic objectives and growth targets

• Targets 8%-10% annual EBITDA growth through FY2026, aiming for top S&P 500 retail performance and top-quintile growth among retail peers.

• Plans to add approximately 500 stores by FY2026 via new builds and acquisitions, an increase from the previous 350+ store goal due to the pending Fikes acquisition.

• Focuses on accelerating the food business, growing store count by ~4% annually, and enhancing operational efficiency.

• Leverages technology, supply chain improvements, and data analytics to support growth and efficiency.

• Maintains a high say-do ratio, emphasizing delivery on stated commitments.

Food innovation and consumer engagement

• Food is the primary differentiator, with prepared foods driving traffic and margins; 75% of guests visit for non-fuel purchases.

• Recent product improvements, such as the new sandwich lineup, led to 85% category growth in Q1.

• Thin Crust Pizza launch filled an assortment gap, immediately capturing 12% of pizza mix.

• Joint business planning with suppliers accelerates innovation and leverages external culinary and engineering resources.

• Introduced new food platforms, refreshed sandwich line, and omni-channel marketing to drive food business growth.

Store expansion and M&A strategy

• Significant white space for growth in existing and new geographies, especially Texas and states like Michigan and Ohio; ~75% of towns in its distribution footprint lack a location.

• Flexible approach to growth: balances organic builds and M&A based on market conditions.

• Focuses on smaller, tuck-in acquisitions (50-60 per year at 6x-9x EBITDA) and opportunistic larger deals.

• Pending Fikes Wholesale acquisition brings ~148 large-format, high-volume fuel stores in Texas and the Florida/Alabama panhandle, with ~85% conversion rate to Casey's format.

• Five store formats allow tailored expansion from small towns to truck stops.