CASY - You Might Think Casey's Makes All Its Money From Fuel Sales But 63% of Its Profits Come From Somewhere You Might Not Expect
2024-02-10 01:45:00 ET
Home to over 2,500 convenience stores across the United States -- making it the third largest c-store chain in the country -- Casey's General Stores (NASDAQ: CASY) is instantly recognizable to most fuel-pumping customers across the Midwest. However, despite these steady fuel sales, Casey's operations inside its stores are what makes it a compelling investment proposition.
While it is not a groundbreaking notion to learn that convenience stores lean upon sales of food and beverage products to boost their profits, Casey's is quietly perfecting the art of making these "inside" sales. So, how exactly does the company do it?
Pizza, mostly. Selling its first slice in 1984, Casey's has grown to become the fifth-largest pizza chain (by kitchen count) in the U.S. -- a somewhat peculiar feat for a convenience store. Powered by this surprising growth story, Casey's inside sales now account for roughly 62% of the company's gross profit , helping its stock rise by over 28,000% since its 1986 initial public offering.
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You Might Think Casey's Makes All Its Money From Fuel Sales, But 63% of Its Profits Come From Somewhere You Might Not Expect