Caseys' Acquisition Propels Strategic Expansion in Texas and Southeast

Casey's General Stores Inc. has released its second-quarter fiscal 2025 report, highlighting a 14% increase in net income year-over-year, reaching $180.9 million. A significant contributor to this growth is the recently completed $1.145 billion acquisition of Fikes Wholesale Inc., which added 198 CEFCO convenience stores to its portfolio, including 148 in the key market of Texas. This acquisition aligns with Casey’s strategic expansion in Texas and the Southeast region. Total EBITDA also rose by 14% compared to the previous fiscal year. Inside sales increased by 9%, significantly driven by the prepared food and beverage category, while operating 93 new stores contributed to a 5% rise in expenses. Fuel sales were solid with a 6.2% increase in total gallons sold, even though same-store gallons declined slightly. Casey's CEO, Darren Rebelez, praised the company's performance, underlining the robust internal sales dynamics and efficient operations, despite pressures on labor costs. As a result of the acquisition, Casey's has updated its fiscal 2025 outlook, anticipating a 10% rise in EBITDA and forecasting an increase in operating expenses due to one-time integration costs. The acquisition will modestly dilute third-quarter EBITDA but is expected to be accretive by the fourth quarter.