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.”
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