Casey’s General Stores Inc (NASDAQ:CASY) stock fell 5.67% (As on Sep 8, 11:21:49 AM UTC-4, Source: Google Finance) though the company posted higher than expected results as guest traffic returned throughout the first quarter. Inside same-store sales rose 8% compared to prior year with a margin of 40.5%. Inside same-store sales were driven by strong performance in packaged beverages, grocery items such as salty snacks and meat snacks, as well as a resurgence in pizza slices, driven in part by improved guest traffic. Inside margin was positively impacted by mix shift, both within and across categories, and procurement initiatives. Private label products reached 4.4% share of the Grocery and General Merchandise category by quarter end which was beneficial to gross margin. Total inside gross profit grew 16.7% to $463.5 million compared to the same period last year due in part to the merchandise resets and strategic sourcing initiatives the Company implemented earlier this calendar year.

Fuel gallons increased 9% on a same-store basis compared to prior year with a fuel margin of 35.1 cents per gallon. Same-store gallons sold were positively affected by higher guest traffic from lapping COVID-19 restrictions that were in place a year ago. Total fuel gross profit increased 11.6% to $234.5 million compared to the same period last year as the increased volume was offset by a lower fuel margin environment. The Company sold $18.7 million in renewable fuel credits (RINs) in the first quarter, an increase of $15.3 million from the same quarter in the prior year. Further, Casey has completed the acquisitions of Buchanan Energy and the Oklahoma Circle K stores in the quarter, adding 137 new units.

CASY in the first quarter of FY 21 has reported the adjusted earnings per share of $3.19, beating the analysts’ estimates for the adjusted earnings per share of $2.83, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $3.18 billion in the first quarter of FY 21, beating the analysts’ estimates for revenue by 3.44%. The company’s Adjusted EBITDA has increased compared to the same period a year ago on the back of higher fuel and inside gross profit from improved guest traffic, offset by an increase in operating expenses driven primarily by a resumption of normal operating hours versus the prior year. Net income and diluted EPS in the first quarter were less than prior year mainly due to higher depreciation expense from operating 166 additional stores than the prior year period.