CASEYS GENERAL STORES INC

Casey's General Stores, Inc. operates convenience stores primarily under the names 'Casey's' and 'Casey’s General Store' throughout 19 states, with approximately half of its stores located in Iowa, Missouri and Illinois ¹. As of April 30, 2026, there were 2,944 stores in operation ². Approximately 71% of all stores were opened in areas with populations of fewer than 20,000 persons ³. The Company operates a wholesale network where Casey’s manages wholesale fuel supply agreements to certain dealer sites and other wholesale locations, and approximately 3% of total revenue for the year-ended April 30, 2026 relates to the wholesale fuel network ⁴. 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 its stores ⁵. Additionally, the Company owns and operates a fuel terminal in Waco, Texas ⁶. The Company had a fleet of over 500 tractors used for distribution as of April 30, 2026 ⁷.

The Company's business is highly competitive ⁸. The Company believes its stores located in smaller towns compete principally with other local grocery and convenience stores, similar retail outlets, including 'dollar' stores, and, to a lesser extent, prepared food outlets, restaurants, and expanded fuel stations offering a more limited selection of grocery and food items for sale ⁹. Stores located in more heavily populated communities may compete with local and national grocery and drug store chains, quick service restaurants, expanded fuel stations, supermarkets, discount food stores, and traditional convenience stores ¹⁰. The Company competes on the basis of traditional features of convenience store operations such as location, extended hours, product offerings, price and quality of service ¹¹. The Company has succeeded in operating stores in smaller towns by offering, at competitive prices, a broader selection of products than does a typical convenience store ¹².

The Company derives its revenue primarily from the retail sale of fuel and the products offered inside its stores ¹³. The Company's sales historically have been strongest during the first and second fiscal quarters (May through October) relative to the third and fourth fiscal quarters (November through April) ¹⁴. The Company delivers value to its guests through a differentiated product assortment where the right products are optimally placed, priced and promoted to drive traffic, revenue and profit ¹⁵. The Company offers the Casey's Rewards program to bring value to guests and improve the digital guest experience, and at the end of the fiscal year, the Company had over 10 million members enrolled in the program ¹⁶.

All stores carry a broad selection of food items (which at most stores includes, but is not limited to, 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 ¹⁷. As of April 30, 2026, 241 store locations offered car washes ¹⁸. In addition, all but six store locations offer fuel ¹⁹. The Company’s flagship prepared food product is its pizza, which it began selling in 1984 and is available in almost all stores as of April 30, 2026 ²⁰. The Company also recently expanded its bone-in and boneless chicken wing offerings, available in a variety of flavors, which as of April 30, 2026, were available in approximately 850 stores ²¹. The Company plans to expand the wings offering across the remainder of its stores in the coming fiscal years ²². The Company also offers a variety of dispensed beverages, including traditional fountain beverages, bean‑to‑cup coffee, and frozen dispensed beverages ²³. In the last three fiscal years, retail sales of prepared food and dispensed beverage and grocery and general merchandise items have generated about 36% of total revenue, but they have resulted in approximately 63% of revenue less cost of goods sold (excluding depreciation and amortization) ²⁴. Revenue less cost of goods sold (excluding depreciation and amortization) as a percentage of revenue on prepared food and dispensed beverage items averaged approximately 58% for the three fiscal years ended April 30, 2026 ²⁵. Each Casey’s store typically carries over 3,000 packaged food, beverage and non-food items ²⁶. All but six stores offer retail motor fuel products for sale on a self-service basis ²⁷. The Company also has charging stations for electric vehicles at 64 stores ²⁸.

Retail fuel sales are an important part of the Company's revenue and earnings ²⁹. For the year ended April 30, 2026, the number of gallons sold was 3,515,197 thousand ³⁰, total retail fuel revenue was $10,615,407 thousand ³¹, representing 60.4% of total revenue ³², and total retail fuel revenue less cost of goods sold (excluding depreciation and amortization) was $1,496,591 thousand ³³, representing 14.1% of revenue less cost of goods sold (excluding depreciation and amortization) ³⁴. The average retail price per gallon was $3.02 ³⁵, and average revenue less cost of goods sold per gallon (excluding depreciation and amortization) was 42.57 cents ³⁶. For the year ended April 30, 2026, prepared food and dispensed beverage revenue was $1,776,828 thousand ³⁷, grocery and general merchandise revenue was $4,563,614 thousand ³⁸, and other revenue was $605,252 thousand ³⁹. Revenue less cost of goods sold (excluding depreciation and amortization) by category for fiscal 2026 was: prepared food and dispensed beverage $1,040,943 thousand ⁴⁰, grocery and general merchandise $1,635,405 thousand ⁴¹, fuel $1,496,591 thousand ⁴², and other $148,102 thousand ⁴³.

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 ⁴⁴. During fiscal 2026, the Company built 40 new stores ⁴⁵, acquired 40 stores ⁴⁶, had 1 prior acquisition opened ⁴⁷, and closed 41 stores ⁴⁸, resulting in a net increase of 40 stores to end at 2,944 stores ⁴⁹. The Company repurchased and retired 89,277 shares of its common stock under the Original Repurchase Program for a total of $62.2 million, excluding fees, commissions, excise taxes, and other costs ⁵⁰. As of April 30, 2026, $94.6 million remained available thereunder ⁵¹. Subsequent to the end of the fiscal year, on, and effective as of, June 4, 2026, the Board of Directors authorized an expansion of the Original Repurchase Program to a total aggregate amount of up to $1.0 billion exclusive of fees, commissions, excise taxes, or other costs (the 'Expanded Repurchase Program') ⁵². The dividends declared in fiscal 2026 totaled $2.28 per share ⁵³. At its June 2026 meeting, the Board of Directors declared a quarterly dividend of $0.65 per share payable August 14, 2026, to shareholders of record on August 1, 2026 ⁵⁴.

Total revenue for fiscal 2026 increased by $1,620,202 thousand (10.2%) compared to the prior fiscal year, primarily driven by $1,034,139 thousand of additional revenue from the Fikes acquisition during the first six months of fiscal 2026 ⁵⁵. Net income increased by $167,928 thousand (30.7%) to $714,448 thousand in fiscal 2026 from $546,520 thousand in fiscal 2025 ⁵⁶. Diluted earnings per share for the year was $19.16, representing an increase of 30.9% from the prior year ⁵⁷. EBITDA increased 23.6% to $1,483,615 thousand for the year ended April 30, 2026 ⁵⁸. Total revenue less cost of goods sold (excluding depreciation and amortization) was 24.6% of revenue for fiscal 2026 compared with 23.5% for the prior year ⁵⁹. Operating expenses increased $285,070 thousand (11.2%) to $2,837,426 thousand in fiscal 2026 ⁶⁰. Depreciation and amortization expense increased $46,311 thousand (11.5%) to $449,958 thousand in fiscal 2026 ⁶¹. Interest, net increased $12,683 thousand (15.1%) to $96,634 thousand in fiscal 2026 ⁶². The effective tax rate increased to 23.8% in fiscal 2026 from 23.3% in fiscal 2025 ⁶³.

The Company will introduce a new three-year strategic plan in June 2026 ⁶⁴. The end of this fiscal year marks the end of the three-year strategic plan originally announced in June 2023, which focused on three enterprise objectives: grow store count, accelerate the food business, and enhance operational efficiency ⁶⁵. The Company performed strongly over the three-year period, compared to the original goals in the plan, including building or acquiring 504 additional stores over the three-year period, well above the original goal of 350 stores ⁶⁶, and diluted earnings per share for the year was $19.16, representing an increase of 30.9% from the prior year, and annualized growth of 17.2% over the three-year period ⁶⁷.

The Company plans to expand the bone-in and boneless chicken wing offering across the remainder of its stores in the coming fiscal years ⁶⁸. As of April 30, 2026, the wings were available in approximately 850 stores ⁶⁹. The Company continues to implement its electric vehicle ('EV') strategy and as of April 30, 2026, the Company has 282 charging stations at 64 stores, across 14 states ⁷⁰. The Company's EV growth strategy is currently designed to selectively increase its charging stations at locations within its region where it sees higher levels of consumer EV buying trends and demand for EV charging ⁷¹.

Prepared food and dispensed beverage revenue less related cost of goods sold (excluding depreciation and amortization) increased to 58.6% of revenue from 58.2% during fiscal 2026 compared to the prior year, driven primarily by improved waste ⁷². Grocery and general merchandise revenue less related cost of goods sold (excluding depreciation and amortization) increased to 35.8% of revenue from 35.0% during fiscal 2026 compared to the prior year, primarily due to a favorable product mix shift ⁷³. Fuel revenue less related cost of goods sold (excluding depreciation and amortization) was 14.1% of revenue for fiscal 2026 compared with 12.7% for the prior year ⁷⁴. Revenue less cost of goods sold (excluding depreciation and amortization) per gallon increased to 42.6 cents in fiscal 2026 from 38.7 cents in fiscal 2025 ⁷⁵.

The Company relies on its distribution and transportation network, which includes its drivers and distribution center Team Members, and the networks of its vendors and direct store delivery partners, to provide products to its distribution centers and stores in a timely and cost-effective manner ⁷⁶. The Company self-distributes the majority of fuel to its stores ⁷⁷. 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 its stores ⁷⁸. Most of the Company's existing and proposed stores are within the three distribution centers' optimum efficiency range—a radius of approximately 500 miles around each distribution center ⁷⁹. Certain stores outside of that radius, in Florida for example, are supplied by a third-party distribution partner ⁸⁰.

The Company expended $797,503 thousand for purchases of property and equipment and payments for acquisitions during fiscal 2026 ⁸¹. The Company believes its current $850,000 thousand committed unsecured revolving credit facility, its $50,000 thousand unsecured bank line of credit, current cash and cash equivalents, and the future cash flow from operations will be sufficient to satisfy the working capital needs of its business ⁸². The Company repurchased and retired 89,277 shares of its common stock under the Original Repurchase Program for a total of $62.2 million, excluding fees, commissions, excise taxes, and other costs ⁸³. As of April 30, 2026, $94.6 million remained available thereunder ⁸⁴. Subsequent to the end of the fiscal year, on, and effective as of, June 4, 2026, the Board of Directors authorized an expansion of the Original Repurchase Program to a total aggregate amount of up to $1.0 billion exclusive of fees, commissions, excise taxes, or other costs (the 'Expanded Repurchase Program') ⁸⁵. The dividends declared in fiscal 2026 totaled $2.28 per share ⁸⁶. At its June 2026 meeting, the Board of Directors declared a quarterly dividend of $0.65 per share payable August 14, 2026, to shareholders of record on August 1, 2026 ⁸⁷.

The Company may be adversely impacted by increases in the cost of food ingredients and other related costs ⁸⁸. Cheese, representing the Company's largest food cost, and other commodities can be subject to significant cost fluctuations due to weather, availability, global demand and other factors that are beyond the Company's control ⁸⁹. The volatility of wholesale petroleum costs could adversely affect the Company's operating results ⁹⁰. Over the past three fiscal years, on average the Company's retail fuel revenues accounted for approximately 62% of total revenue and its retail fuel revenue less cost of goods sold (excluding depreciation and amortization) accounted for approximately 34% of the total revenue less cost of goods sold (excluding depreciation and amortization) ⁹¹. General economic and political conditions that are largely out of the Company's control may adversely affect the Company's financial condition and results of operations ⁹².

Developments related to fuel efficiency, fuel conservation practices, climate change, and changing consumer preferences may decrease the demand for motor fuel ⁹³. A shift toward electric, hybrid, hydrogen, natural gas or other alternative fuel-powered vehicles could fundamentally change the shopping and driving habits of the Company's guests or lead to new forms of fueling destinations or new competitive pressures ⁹⁴. The convenience store industry is highly competitive and characterized by ease of entry and constant change in the number and type of retailers offering the products and services found in the Company's stores ⁹⁵. The Company may not be able to identify, acquire, and integrate new properties and stores, which could adversely affect its ability to grow its business ⁹⁶.

The Company's net income is significantly affected by changes in the margins it receives on its retail fuel sales, and over the past three fiscal years, on average retail fuel revenues accounted for approximately 62% of total revenue and retail fuel revenue less cost of goods sold (excluding depreciation and amortization) accounted for approximately 34% of the total revenue less cost of goods sold (excluding depreciation and amortization) ⁹⁷. Sales of tobacco and nicotine products have averaged approximately 9% of total revenue over the past three fiscal years, and tobacco and nicotine revenue less cost of goods sold (excluding depreciation and amortization) accounted for approximately 9% of the total revenue less cost of goods sold (excluding depreciation and amortization) for the same period ⁹⁸. Total credit card fees incurred in fiscal 2026 were $279 million ⁹⁹. The Company is subject to extensive governmental regulations including those relating to environmental protection and remediation; the preparation, transportation, storage, sale and labeling of food and other products; and legal restrictions on the sale of alcohol, tobacco and nicotine products ¹⁰⁰. The Company may not be able to identify, acquire, and integrate new properties and stores, which could adversely affect its ability to grow its business ¹⁰¹.

Management's message emphasizes that the end of this fiscal year marks the end of the three-year strategic plan originally announced in June 2023, which focused on three enterprise objectives: grow store count, accelerate the food business, and enhance operational efficiency, enabled by a strong foundation and Team Member experience ¹⁰². The Company performed strongly over the three-year period, compared to the original goals in the plan, including building or acquiring 504 additional stores over the three-year period, well above the original goal of 350 stores ¹⁰³, diluted earnings per share for the year was $19.16, representing an increase of 30.9% from the prior year, and annualized growth of 17.2% over the three-year period ¹⁰⁴, Casey's Rewards members grew to over 10 million at year-end ¹⁰⁵, and continued growth of the prepared food program with the expansion of bone-in and boneless chicken wings, which were available in approximately 850 stores as of the end of the year ¹⁰⁶. The Company will introduce a new three-year strategic plan in June 2026 ¹⁰⁷.