Casey’s General Stores, a name synonymous with Midwest convenience and a surprising pizza powerhouse, has delivered a striking financial performance in the first quarter of its fiscal year 2026, with results that have industry watchers taking notice. The company reported a remarkable 14.2% boost in inside sales, a figure that underscores the growing strength of its food and beverage program, according to its latest earnings call and financial disclosures.
The numbers, as outlined by C-Store Dive and confirmed by the company’s own statements, are hard to ignore. Same-store inside sales climbed 4.3% year over year, a healthy jump that’s even more impressive when you consider the context: Casey’s now operates over 200 more stores than it did just a year ago. This expansion, coupled with sharp execution on merchandising and operations, fueled a 20% year-over-year increase in both EBITDA and net income, said Darren Rebelez, Casey’s chairman, president, and CEO, during the first-quarter earnings call.
“Casey’s delivered an excellent first quarter highlighted by strong sales growth both inside and outside the store,” Rebelez told analysts. “Our inside same-store sales were driven by positive traffic growth due to our summer merchandising plan as well as our team’s outstanding execution, demonstrating our ability to serve our guests efficiently at a high level.”
Drilling down into the numbers, Casey’s reported a net income of $215.4 million for the quarter ending July 31, 2025, up 19.5% from the prior year. EBITDA clocked in at $414.3 million, a 19.8% increase over the same period, according to the company’s financial results. The inside margin held strong at 41.9%, while total inside gross profit soared 14.8% to $705.5 million.
But what’s truly powering these gains? The answer, it seems, lies in the kitchen. Casey’s has leaned heavily on its prepared food program, which has become a cornerstone of its growth strategy. The company, now boasting a spot among the top-five pizza chains in the U.S. by store count, brought back its popular BBQ brisket limited-time offer (LTO) this quarter. That move, combined with a noticeable uptick in whole pie sales, helped drive a 5.6% year-over-year improvement in same-store prepared food and dispensed beverage sales. Overall sales in that category jumped 13.2% to $458 million, CFO Steve Bramlage confirmed during the earnings call.
Whole pizzas, as Rebelez pointed out, are the highest-margin subcategory in prepared food—making them a critical lever for profitability. The company is keen to keep that momentum going. “Whole pizzas are the highest-margin subcategory in prepared food,” Rebelez emphasized, highlighting the strategic importance of this offering.
Casey’s isn’t resting on its laurels, either. The company is still actively developing its wings program, first announced at the beginning of 2025. “We’ve identified a few opportunities with some flavor profiles, with some builds,” Rebelez said. “We’re still tweaking some equipment needs, but we like what we’re seeing.” This focus on menu innovation seems to be resonating with customers, particularly those in lower income brackets. Rebelez noted that the price and quality of Casey’s prepared food is “really resonating” with lower-income shoppers, a demographic that’s increasingly important in today’s competitive landscape.
Beverages have also played a significant role in Casey’s grocery-side success. Nonalcoholic beverage sales rose over 8%, another sign that the company’s merchandising strategies are hitting the mark. On the forecourt, same-store fuel gallons sold grew by 1.7%, with a margin of 41 cents per gallon—a notable achievement considering that OPIS, a fuel industry benchmark, reported an overall 3% decline in mid-continent fuel sales. This suggests that Casey’s is not just holding its own but actually taking market share from competitors in a shrinking market, a feat that speaks to its operational strength and customer loyalty.
On the expense side, Casey’s demonstrated discipline as well. Same-store operating expenses, excluding credit card fees, rose just 3.0%, a figure favorably impacted by a 1% reduction in same-store labor hours. This efficiency helped bolster the bottom line even as the company ramped up its in-store and foodservice operations.
Fuel sales, always a key metric for convenience retailers, continued to be a bright spot for Casey’s. Same-store fuel gallons were up 1.7% compared to the prior year, with a fuel margin of 41.0 cents per gallon. Total fuel gross profit increased 18.8% to $373.6 million, further strengthening the company’s financial position. The company’s fiscal 2026 outlook, previously disclosed, remains unchanged as of September 9, 2025, signaling confidence in continued growth and stability.
Beyond the balance sheet, Casey’s has made moves to bolster its brand presence in the communities it serves. On July 1, 2025, the former Wells Fargo Arena in Des Moines, Iowa, was officially renamed the Casey’s Center, with the company securing naming rights for the next decade. The venue, a regional landmark since 2005, now carries the Casey’s name—a testament to the retailer’s growing influence and commitment to its Midwest roots.
For those watching the broader retail and convenience sector, Casey’s story this quarter is one of strategic focus, operational discipline, and a willingness to double down on what works—namely, great food, efficient service, and strong community ties. The company’s ability to drive inside sales, expand margins, and capture market share in a challenging fuel environment sets it apart from many of its peers.
As the fiscal year unfolds, all eyes will be on Casey’s to see if it can sustain this pace. With a proven food program, ongoing menu innovation, and a knack for operational excellence, the retailer appears well-positioned for the road ahead—no matter how competitive the landscape becomes.
