CASEYS GENERAL STORES INC

Previous wording

During the third quarter of the prior fiscal year, the Company closed on the acquisition of Fikes Wholesale and Group Petroleum Services (collectively "Fikes"), owner of CEFCO Convenience Stores, which added 198 total stores, including 148 additional stores in Texas, as well as 50 stores in Alabama, Florida, and Mississippi. During the quarter, the Company closed or divested all ten CEFCO stores acquired in Mississippi.

Current wording

During the third quarter of the prior fiscal year, the Company closed on the acquisition of Fikes Wholesale and Group Petroleum Services (collectively "Fikes"), owner of CEFCO Convenience Stores, which added 198 total stores (the "Fikes acquisition") and a wholesale fuel network.

Previous wording

As of July 31, 2025, there were a total of 2,895 stores in operation. Approximately 71% of all stores were opened in areas with populations of fewer than 20,000 persons. The Company competes on the basis of price, as well as on the basis of traditional features of convenience store operations such as location, extended hours, product offerings, and quality of service.

Current wording

As of October 31, 2025, there were 2,921 stores in operation. Approximately 71% of all stores were opened in areas with populations of fewer than 20,000 persons. The Company competes on the basis of price, as well as on the basis of traditional features of convenience store operations such as location, extended hours, product offerings, and quality of service.

Previous wording

All convenience stores carry a broad selection of food items (which at most stores includes, but is not limited to, freshly prepared foods such as regular and breakfast pizza, donuts, hot breakfast items, and hot and cold sandwiches), beverages, tobacco and nicotine products, groceries, health and beauty aids, automotive products, and other non-food items. As of July 31, 2025, 252 store locations offered car washes. In addition, all but six store locations offer fuel for sale on a self-service basis.

Current wording

All convenience stores carry a broad selection of food items (which at most stores includes, but is not limited to, freshly prepared foods such as regular and breakfast pizza, donuts, hot breakfast items, and hot and cold sandwiches), beverages, tobacco and nicotine products, groceries, health and beauty aids, automotive products, and other non-food items. As of October 31, 2025, 247 store locations offered car washes. In addition, all but six store locations offer fuel.

Previous wording

The Company had 64 stores operating under the "GoodStop (by Casey’s)" brand, 11 stores operating under the "Lone Star Food Store" brand, and was also temporarily operating certain locations under the name "Bucky's" as of July 31, 2025. Additionally, the majority of the remaining stores acquired from Fikes are currently operating under the "CEFCO" brand. Similar to most of our store footprint, the "GoodStop", "Lone Star Food Store", "Bucky's", and "CEFCO" locations offer fuel for sale on a self-serve basis, and a broad selection of snacks, beverages, tobacco products, and other essentials. However, some of these locations do not have a kitchen and have limited prepared food offerings.

Current wording

The Company had 68 stores operating under the "GoodStop (by Casey’s)" brand, 10 stores operating under the "Lone Star Food Store" brand, and was also temporarily operating certain locations under the name "Bucky's" as of October 31, 2025. Additionally, the majority of the stores acquired from Fikes are currently operating under the "CEFCO" brand. Similar to most of our store footprint, the "GoodStop", "Lone Star Food Store", "Bucky's", and "CEFCO" locations offer fuel for sale on a self-serve basis, and a broad selection of snacks, beverages, tobacco products, and other essentials. However, some of these locations do not have a kitchen and have limited prepared food offerings.

Previous wording

The Company operates a wholesale network where Casey’s manages fuel wholesale supply agreements to certain dealer sites and other wholesale locations. During the prior year, the Company expanded its fuel wholesale network through the acquisition of Fikes. The dealer and wholesale locations are not operated by Casey's and are not included in our overall store count in the table below. Approximately 3% of total revenue for the three-months ended July 31, 2025, relates to the fuel wholesale network.

Current wording

The Company operates a wholesale network where Casey’s manages fuel wholesale supply agreements to certain dealer sites and other wholesale locations. During the prior year, the Company expanded its fuel wholesale network through the Fikes acquisition. The dealer and wholesale locations are not operated by Casey's and are not included in our overall store count in the table below. Approximately 3% of total revenue for the three and six-months ended October 31, 2025, relates to the fuel wholesale network.

Previous wording

The Company operates three distribution centers, through which certain grocery and general merchandise and prepared food and dispensed beverage items are supplied to most of our stores. One distribution center is adjacent to our corporate headquarters, which we refer to as the Store Support Center in Ankeny, Iowa. The other two distribution centers are located in Terre Haute, Indiana and Joplin, Missouri. The Company also self-distributes the majority of fuel to our stores.

Current wording

The Company operates three distribution centers, through which certain grocery and general merchandise and prepared food and dispensed beverage items are supplied to most of our stores. One distribution center is adjacent to our corporate headquarters, which we refer to as the Store Support Center in Ankeny, Iowa. The other two distribution centers are located in Terre Haute, Indiana and Joplin, Missouri. Additionally, the Company owns and operates a fuel terminal in Waco, Texas, which was acquired from Fikes in the prior year. The Company also self-distributes the majority of fuel to our stores.

Previous wording

The Company reported diluted earnings per common share of $5.77 for the first quarter of fiscal 2026. For the same quarter a year-ago, diluted earnings per common share was $4.83.

Current wording

The Company reported diluted earnings per common share of $5.53 for the second quarter of fiscal 2026. For the same quarter a year-ago, diluted earnings per common share was $4.85.

Previous wording

The following table represents the roll forward of store count through the first quarter of fiscal 2026:

Current wording

The following table represents the roll forward of store count through the second quarter of fiscal 2026:

Previous wording

The Company, and the retail fuel industry, has experienced historically high average revenue less cost of goods sold per gallon (exclusive of depreciation and amortization). Although this has remained relatively consistent, on a longer-term basis, this metric can fluctuate significantly, and sometimes unpredictably, in the short-term. While the Company believes that its average revenue less cost of goods sold per gallon (exclusive of depreciation and amortization) will remain elevated from historical levels for the foreseeable future, it is possible that increased oil and fuel prices, higher interest rates, macroeconomic conditions and/or continuing conflicts or disruptions involving oil producing countries may materially impact the performance of this metric.

Current wording

The Company, and the retail fuel industry, has recently experienced historically high average revenue less cost of goods sold per gallon (exclusive of depreciation and amortization). Although this has remained relatively consistent, on a longer-term basis, this metric can fluctuate significantly, and sometimes unpredictably, in the short-term. While the Company believes that its average revenue less cost of goods sold per gallon (exclusive of depreciation and amortization) will remain elevated from historical levels for the foreseeable future, it is possible that increased oil and fuel prices, higher interest rates, macroeconomic conditions and/or continuing conflicts or disruptions involving oil producing countries may materially impact the performance of this metric.

Previous wording

Casey's continues its process of implementing an electric vehicle ("EV") strategy and our management team remains committed to understanding if and how the increased demand for, and usage of, EVs impacts consumer behavior across our store footprint and beyond. As consumer demand for alternative fuel options continues to grow, Casey’s has continued to add EV charging stations across our 19-state footprint. As of July 31, 2025, the Company has 230 charging stations at 47 stores, across 13 states. Our EV growth strategy is currently designed to selectively increase our charging stations at locations within our region where we see higher levels of consumer EV buying trends and demand for EV charging. To date, consumer EV demand within our Midwest footprint has been comparatively lower than the levels along the coasts. As EV demand from our guests increases, we are prepared to strategically integrate charging station options at select stores.

Current wording

Casey's continues its process of implementing an electric vehicle ("EV") strategy and our management team remains committed to understanding how the increased demand for, and usage of, EVs impacts consumer behavior across our store footprint and beyond. As consumer demand for alternative fuel options continues to grow, Casey’s has continued to add EV charging stations across our 19-state footprint. As of October 31, 2025, the Company has 232 charging stations at 48 stores, across 13 states. Our EV growth strategy is currently designed to selectively increase our charging stations at locations within our region where we see higher levels of consumer EV buying trends and demand for EV charging. To date, consumer EV demand within our Midwest footprint has been comparatively lower than the levels along the coasts. As EV demand from our guests increases, we are prepared to strategically integrate charging station options at select stores.

Previous wording

The Company also remains committed to offering renewable fuel options at our stores and continues to expand its alternative fuel options in response to evolving guest needs and as part of its environmental stewardship efforts. Currently, almost all of our stores offer fuel with at least 10% of blended ethanol and approximately 42% of our stores offer biodiesel. Every newly built store has the capability to sell renewable fuels, and we aim to continue growing sales of renewable fuels throughout our footprint.

Current wording

The Company also remains committed to offering renewable fuel options at our stores and continues to expand its alternative fuel options in response to evolving guest needs and as part of its environmental stewardship efforts. Currently, almost all of our stores offer fuel with at least 10% of blended ethanol and approximately 41% of our stores offer biodiesel. Every newly built store has the capability to sell renewable fuels, and we aim to continue growing sales of renewable fuels throughout our footprint.

Previous wording

Same-store sales of prepared food and dispensed beverage increased 5.6% and grocery and general merchandise increased 3.8% during the quarter. The increase in prepared food and dispensed beverage same-store sales was attributable to strong sales of whole pizzas and bakery. The increase in grocery and general merchandise same-store sales was primarily due to sales of non-alcoholic beverages. Additionally, the first quarter results reflected a 1.7% increase in same-store fuel gallons sold.

Current wording

Same-store sales of prepared food and dispensed beverage increased 4.8% and grocery and general merchandise increased 2.7% during the quarter. The increase in prepared food and dispensed beverage same-store sales was attributable to strong sales of whole pizzas and hot sandwiches. The increase in grocery and general merchandise same-store sales was primarily due to sales of non-alcoholic beverages. Additionally, the second quarter results reflected a 0.8% increase in same-store fuel gallons sold.

Previous wording

Total revenue for the first quarter of fiscal 2026 increased by $469,369 (11.5%) over the comparable period in fiscal 2025, primarily driven by $522,334 of additional revenue from the Fikes acquisition, which included 198 additional convenience stores and a wholesale fuel network. Prepared food and dispensed beverage revenue increased by $53,305 (13.2%), due to an increase in same-store sales of 5.6% driven by strong sales of whole pizzas and bakery, as well as an increase of approximately 7.6% related to store growth, due to operating 221 more stores than a year ago. Grocery and general merchandise revenue increased by $156,405 (14.6%), due to an increase in same-store sales of 3.8% driven by sales of non-alcoholic beverages, as well as an increase of approximately 10.8% related to store growth. Retail fuel revenue increased by $178,017 (7.0%) due to an increase in the number of gallons sold of 139,244 (18.0%). This was partially offset by a decrease in the average retail price per gallon of 9.4%.

Current wording

Total revenue for the second quarter of fiscal 2026 increased by $559,313 (14.2%) over the comparable period in fiscal 2025, primarily driven by $511,805 of additional revenue from the Fikes acquisition. Prepared food and dispensed beverage revenue increased by $49,972 (12.0%), due to an increase in same-store sales of 4.8% driven by strong sales of whole pizzas and hot sandwiches, as well as an increase of approximately 7.2% related to store growth, due to operating 236 more stores than a year ago. Grocery and general merchandise revenue increased by $140,943 (13.4%), due to an increase in same-store sales of 2.7% driven by sales of non-alcoholic beverages, as well as an increase of approximately 10.7% related to store growth. Retail fuel revenue increased by $272,657 (11.3%) due to an increase in the number of gallons sold of 130,738 (16.8%). This was partially offset by a decrease in the average retail price per gallon of 4.8%.

Previous wording

The other revenue category primarily consists of activity related to wholesale fuel and car wash revenue, which are both presented gross of applicable costs, as well as lottery, which is presented net of applicable costs. Other revenue increased $81,642 (120.1%) for the first quarter of fiscal 2026 compared to the prior year, driven primarily by an increase in wholesale fuel revenue, as a result of the Fikes acquisition.

Current wording

The other category primarily consists of activity related to wholesale fuel and car wash revenue, which are both presented gross of applicable costs, as well as lottery, which is presented net of applicable costs. Other revenue increased $95,741 (148.2%) for the second quarter of fiscal 2026 compared to the prior year, driven primarily by an increase in wholesale fuel revenue, as a result of the Fikes acquisition. The increased activity related to the wholesale fuel network carries a lower revenue less cost of good sold as a percentage of total revenue. Additionally, other revenue and other revenue less cost of goods sold (exclusive of depreciation and amortization) was favorably impacted by a one-time adjustment of $8,000 due to a change in estimate related to breakage assumptions on the outstanding gift card liability balance.

Previous wording

Total revenue less cost of goods sold (exclusive of depreciation and amortization) was 24.4% of revenue for the first quarter of fiscal 2026, compared to 23.3% for the comparable period in the prior year. Prepared food and dispensed beverage revenue less related cost of goods sold (exclusive of depreciation and amortization) decreased to 58.0% of prepared food and dispensed beverage revenue for the first quarter of fiscal 2026, compared to 58.3% for the comparable period in the prior year driven primarily by the acquisition of Fikes, as the CEFCO stores contribute a lower percentage than a typical Casey's store. Grocery and general merchandise revenue less related cost of goods sold (exclusive of depreciation and amortization) increased to 35.9% of grocery and general merchandise revenue for the first quarter of fiscal 2026, compared to 35.4% of grocery and general merchandise revenue for the comparable period in the prior year driven primarily by product mix.

Current wording

Total revenue less cost of goods sold (exclusive of depreciation and amortization) was 24.9% of revenue for the second quarter of fiscal 2026, compared to 24.3% for the comparable period in the prior year. Prepared food and dispensed beverage revenue less related cost of goods sold (exclusive of depreciation and amortization) decreased to 58.6% of prepared food and dispensed beverage revenue for the second quarter of fiscal 2026, compared to 58.7% for the comparable period in the prior year driven primarily by the acquisition of Fikes, as the CEFCO stores contribute a lower percentage than a typical Casey's store. Grocery and general merchandise revenue less related cost of goods sold (exclusive of depreciation and amortization) increased to 36.0% of grocery and general merchandise revenue for the second quarter of fiscal 2026, compared to 35.6% of grocery and general merchandise revenue for the comparable period in the prior year driven primarily by product mix.

Previous wording

Fuel revenue less related cost of goods sold (exclusive of depreciation and amortization) was 13.7% of fuel revenue during the first quarter of fiscal 2026, compared to 12.3% for the comparable period in the prior year. Revenue per gallon less cost of goods sold (exclusive of depreciation and amortization) per gallon increased to 41.0 cents in the first quarter of fiscal 2026, compared to 40.7 cents for the comparable period in the prior year. The Company sold 6.1 million RINs (renewable identification numbers) for $6,742 during the quarter, compared to the sale of 8.5 million RINs in the first quarter of the prior year, which generated $4,834 (see Note 3, above, for a further description of RINs and how they are generated).

Current wording

Fuel revenue less related cost of goods sold (exclusive of depreciation and amortization) was 14.0% of fuel revenue during the second quarter of fiscal 2026, compared to 12.9% for the comparable period in the prior year. Revenue less cost of goods sold (exclusive of depreciation and amortization) per gallon increased to 41.6 cents in the second quarter of fiscal 2026, compared to 40.2 cents for the comparable period in the prior year. The Company sold 7.0 million RINs (renewable identification numbers) for $7,222 during the quarter, compared to the sale of 6.3 million RINs in the second quarter of the prior year, which generated $4,923 (see Note 3, above, for a further description of RINs and how they are generated).

Previous wording

Operating expenses increased $88,702 (14.6%) to $698,176 in the first quarter of fiscal 2026. Approximately 10% of the increase is due to operating 221 more stores than the comparable period in the prior year. Same-store employee expense contributed to approximately 1.5% of the increase, as the increases in labor rates were partially offset by a reduction in same-store labor hours.

Current wording

Operating expenses increased $101,908 (16.7%) to $711,587 in the second quarter of fiscal 2026. Approximately 10.5% of the increase is due to operating 236 more stores than the comparable period in the prior year. Same-store employee expense contributed to approximately 2% of the increase, due to increases in labor rates, as same-store labor hours were flat.

Previous wording

Depreciation and amortization expense increased $14,554 (15.4%) to $108,963 in the first quarter of fiscal 2026, primarily due to operating 221 more stores than a year ago.

Current wording

Depreciation and amortization expense increased $14,824 (15.3%) to $111,416 in the second quarter of fiscal 2026, primarily due to operating 236 more stores than a year ago.

Previous wording

Interest, net increased $12,783 (90.9%) to $26,850 in the first quarter of fiscal 2026, primarily due to issuing incremental debt of $1,100,000 in the prior year to partially fund the acquisition of Fikes.

Current wording

Interest, net increased $12,137 (96.7%) to $24,690 in the second quarter of fiscal 2026, primarily due to issuing incremental debt of $1,100,000 in the prior year to partially fund the acquisition of Fikes.

Previous wording

Net income increased $35,157 (19.5%) to $215,355 compared to $180,198 in the comparable period. The increase in net income was primarily attributable to higher profitability both inside the store and in fuel, partially offset by increases in operating expenses, depreciation and amortization, and interest expense. See discussion in the paragraphs above for the primary drivers for each of these changes.

Current wording

Net income increased $25,418 (14.0%) to $206,336 compared to $180,918 in the comparable period. The increase in net income was primarily attributable to higher profitability both inside the store and in fuel, partially offset by increases in operating expenses, depreciation and amortization, and interest expense. See discussion in the paragraphs above for the primary drivers for each of these changes.

Previous wording

The effective tax rate decreased to 22.7% in the first quarter of fiscal 2026 compared to 24.1% in the same period of fiscal 2025. The decrease in the effective tax rate was primarily due to an increase in excess tax benefits recognized on share-based awards.

Current wording

The effective tax rate decreased to 23.7% in the first six months of the fiscal year compared to 24.3% in the same period of the prior fiscal year. The decrease in the effective tax rate was primarily due to an increase in excess tax benefits recognized on share-based awards.

Previous wording

The following table contains a reconciliation of net income to EBITDA for the three months ended July 31, 2025 and 2024:

Current wording

The following table contains a reconciliation of net income to EBITDA for the three and six months ended October 31, 2025 and 2024:

Previous wording

For the three months ended July 31, 2025, EBITDA increased by 19.8%, when compared to the same period a year ago. The increase was primarily attributable to higher profitability both inside the store and in fuel, partially offset by higher operating expenses. See discussion in the preceding sections for the primary drivers for each of these individual changes.

Current wording

For the three and six months ended October 31, 2025, EBITDA increased by 17.5% and 18.7%, respectively, when compared to the same period a year ago. The increase was primarily attributable to higher profitability both inside the store and in fuel, partially offset by higher operating expenses. See discussion in the preceding sections for the primary drivers for each of these individual changes.

Previous wording

Critical accounting policies are those accounting policies that management believes are important to the portrayal of the Company’s financial condition and results of operations. The Company's critical accounting policies are described in the Form 10-K for the year ended April 30, 2025, and such discussion is incorporated herein by reference. There have been no changes to these policies in the three months ended July 31, 2025.

Current wording

Critical accounting policies are those accounting policies that management believes are important to the portrayal of the Company’s financial condition and results of operations. The Company's critical accounting policies are described in the Form 10-K for the year ended April 30, 2025, and such discussion is incorporated herein by reference. There have been no changes to these policies in the six months ended October 31, 2025.

Previous wording

Due to the nature of the Company’s business, cash provided by operations is the Company’s primary source of liquidity. The Company finances its inventory purchases primarily from normal trade credit aided by the relatively rapid turnover of inventory. This turnover allows the Company to conduct its operations without large amounts of cash and working capital. As of July 31, 2025, the Company’s ratio of current assets to current liabilities was 1.03 to 1. The ratio at July 31, 2024 and April 30, 2025 was 0.84 to 1 and 0.92 to 1, respectively. The increase in the ratio is primarily attributable to an increase in cash and cash equivalents during the quarter. For further information, refer to discussions on the changes in the sections of the statement of cash flow below.

Current wording

Due to the nature of the Company’s business, cash provided by operations is the Company’s primary source of liquidity. The Company finances its inventory purchases primarily from normal trade credit aided by the relatively rapid turnover of inventory. This turnover allows the Company to conduct its operations without large amounts of cash and working capital. As of October 31, 2025, the Company’s ratio of current assets to current liabilities was 1.05 to 1. The ratio at October 31, 2024 and April 30, 2025 was 0.88 to 1 and 0.92 to 1, respectively. The increase in the ratio is primarily attributable to an increase in cash and cash equivalents. For further information, refer to discussions on the changes in the sections of the statement of cash flow below.

Previous wording

Net cash provided by operating activities was $372,417 for the three months ended July 31, 2025, compared to $281,354 for the comparable period in the prior year, an increase of $91,063. Our primary source of operating cash flows is from sales to guests at our stores. The primary uses of operating cash flows are payments to our team members and suppliers, as well as payments for taxes and interest. Cash flow from operations was favorably impacted by improved revenue less cost of goods sold (exclusive of depreciation and amortization) of $157,190, offset by an increase in operating expenses of $88,702 and an increase in cash paid for interest of approximately $15,051. Refer to "Three Months Ended July 31, 2025 Compared to Three Months Ended July 31, 2024" starting on page 16 for further details on the primary drivers for the changes in revenue, cost of goods sold, operating expenses, and interest. Cash flows from operations can also be impacted by variability in the timing of payments and receipts for certain assets and liabilities, such as wage related accruals, accounts payable, and receivables from credit card companies or our vendors. Operating cash flows were also favorably impacted by an increase of $18,510 due to the timing of inventory purchases, as well as an increase of $17,588 related to accounts payable, due to the timing of payments.

Current wording

Net cash provided by operating activities was $719,486 for the six months ended October 31, 2025, compared to $552,057 for the comparable period in the prior year, an increase of $167,429. Our primary source of operating cash flows is from sales to guests at our stores. The primary uses of operating cash flows are payments to our team members and suppliers, as well as payments for taxes and interest. Cash flow from operations was favorably impacted by improved revenue less cost of goods sold (exclusive of depreciation and amortization) of $320,317, as well as a decrease in cash paid for taxes of $17,553 compared to the prior year, primarily due to increased accelerated tax depreciation following the reinstatement of 100% bonus depreciation under the One Big Beautiful Bill Act. This was offset by an increase in operating expenses of $190,610 and an increase in cash paid for interest of $31,847. Refer to "Six Months Ended October 31, 2025 Compared to Six Months Ended October 31, 2024" starting on page 16 for further details on the primary drivers for the changes in revenue, cost of goods sold, operating expenses, and interest. Cash flows from operations can also be impacted by variability in the timing of payments and receipts for certain assets and liabilities, such as wage related accruals, accounts payable, and receivables from credit card companies or our vendors. Operating cash flows were also favorably impacted by an increase of $24,144 due to the timing of inventory purchases, as well as an increase of $30,288 related to accounts payable and accrued expenses, due to the timing of payments.

Previous wording

Cash used in investing activities decreased by $9,947. The decrease is primarily attributable to increased proceeds from the sale of assets of $10,811, due to an increase in store divestitures compared to the prior year. During the first three months of fiscal 2026, the Company expended $119,541 for purchases of property and equipment and payments for acquisitions compared to $118,677 for the comparable period in the prior year. Purchases of property and equipment and payments for acquisitions of businesses typically represent the single largest use of excess Company funds. Management believes that by acquiring, building, and reinvesting in stores, the Company will be better able to drive long-term shareholder value.

Current wording

Net cash used in investing activities increased by $98,395. During the first six months of fiscal 2026, the Company expended $368,554 for purchases of property and equipment and payments for acquisitions compared to $257,567 for the comparable period in the prior year. Purchases of property and equipment and payments for acquisitions of businesses typically represent the single largest use of excess Company funds. Management believes that by acquiring, building, and reinvesting in stores, the Company will be better able to drive long-term shareholder value.