By Denny Jacob
Casey’s General Stores Inc. said revenue and net income rose in the fourth quarter despite high fuel costs and other macroeconomic headwinds.
The convenience store chain said net income rose to $59.8 million, or $1.60 per share, for the quarter ended April 30, from $41.7 million, or $1.12 per share. stock, a year ago. Analysts polled by FactSet had expected earnings of $1.67 per share.
Revenue hit $3.46 billion, matching analysts’ expectations polled by FactSet, from $2.38 billion.
Same-store inside sales increased 5.2% with a 39.4% inside margin in the fourth quarter, while same-store fuel gallons sold up 1.5% with a fuel margin of about 36 cents per gallon, the company said.
Operating expenses increased by approximately 15%, from $426.3 million to $490.9 million. The company said about 9% of the increase is due to operating 209 more stores than a year ago.
Chief executive Darren Rebelez said same-store sales were driven by prepared foods and beverages distributed, particularly pizza slices and its breakfast offerings.
Casey’s said it expects same-store internal sales to grow 4% to 6% and maintain an internal margin of around 40% in fiscal 2023. The company also expects Same-store fuel gallons stable at 2% higher for the year. Total operating expenses are expected to increase by approximately 9-10%.
Write to Denny Jacob at [email protected]