A bullish thesis on Casey’s General Stores argues the company’s core value lies in its high-margin prepared-food business rather than fuel sales. The convenience store chain operates about 2,900 locations in small Midwestern communities, where it often holds a local monopoly on food, groceries, and fuel. Inside-store operations, especially private-label pizza, drive profits with margins of roughly 41% to 42%, while fuel serves mainly as a traffic generator. In the third quarter of fiscal 2026, diluted EPS rose about 50% year-over-year to $3.49, net income increased roughly 49% to $130 million, and EBITDA grew approximately 27.5% to $309 million. Management raised full-year guidance, and the recent Fikes acquisition is expected to be EBITDA-accretive while supporting debt reduction. The stock trades around 42 times forward earnings, which the thesis views as demanding, suggesting a more attractive entry point closer to 25 times earnings.
Caseys General Stores IncBullish thesis highlights 50% EPS growth, raised guidance, and accretive acquisition
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