Sunday, September 13, 2015

Casey’s General Store finding Grocerant Niche Ready-2-Eat Sales Success




Once again Casey’s General Stores Inc. reported record first-quarter record earnings this time of $61.8 million during its 2016 fiscal first quarter ended July 31. Last year by comparison, Casey’s generated a net profit of $50.1 million in the same quarter a year ago. Not bad, and thank you Grocerant niche food. 

Casey’s Chairman and CEO Robert J. Myers said during the conference call, “The company is off to an excellent start to the fiscal year with strong sales, margin expansion in prepared foods, and a favorable operating expense environment during the period,”  The key driver of top line sales growth and bottom line profits at Casey’s once again Ready-2-Eat and Heat-N-Eat grocerant niche fresh prepared food. 

Total prepared food and fountain sales rose 14.8 percent to $223.4 million, and gross profit dollars grew 19.9 percent year over year to $139.7 million. Now let me say that for a chain of 1,887 units 14.8% year over year growth is simply outstanding. 

Prepared food and fountain beverages enjoyed the most growth during Casey’s most recent quarter. On a same-store basis, sales in this category increased 10.4 percent year over year, with an average margin of 62.5 percent.

“Myers credited the strategic initiatives that are focused on driving sales to this category,” including “Major remodels, 24-hour [store] conversions and pizza delivery continue to deliver impressive sales gains, and lower ingredient and supply costs enabled us to expand our margin.”

Casey’s is growing more than margins, “Casey’s opened eight new stores, acquired one store and replaced seven existing stores in its latest quarter. The convenience store retailer also had 17 major remodels under construction at the end of its fiscal first quarter, along with 26 new stores and four replacement stores.”

www.FoodserviceSolutions.us  specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche since 1991 Contact: Steve@FoodserviceSolutions.us

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