Caseys General Stores Inc (NASDAQ:CASY) stock rose 6.03% (As on September 5, 11:21:49 AM UTC-4, Source: Google Finance) after the company logged a higher profit in its fiscal first quarter as its hot sandwiches drove up sales and stronger fuel margins boosted earnings. The convenience store chain posted a profit of $180.2 million for the quarter ended July 31, compared with $169.2 million in the same quarter a year ago. The company said same-store sales were up 2.3%, driven by gains in prepared food and dispensed beverages. The company posted an inside margin of 41.7%. Total inside gross profit increased 10.4% to $614.3 million compared to the prior year. Same-store fuel gallons were up 0.7% compared to prior year with a fuel margin of 40.7 cents per gallon. Total fuel gross profit increased 5.9% to $314.5 million compared to the prior year. Same-store operating expenses excluding credit card fees were up 0.7%, favorably impacted by a 2% reduction in same-store labor hours. The previously announced Fikes Wholesale, Inc. (“Fikes”) acquisition, with its 198 CEFCO convenience stores, is expected to close in calendar 2024. At July 31, 2024, the Company had approximately $1.2 billion in available liquidity, consisting of approximately $305 million in cash and cash equivalents on hand and approximately $900 million in available borrowing capacity on existing lines of credit.

CASY in the first quarter of FY 25 has reported the adjusted earnings per share of $4.83, beating the analysts’ estimates for the adjusted earnings per share of $4.50, according to Factset. The company had reported the adjusted revenue of $4.1 billion in the first quarter of FY 25, missing the analysts’ estimates for revenue of $4.15 billion. Total inside sales were up 7.6% for the quarter driven by strong performance in the prepared food and dispensed beverage category, including hot sandwiches and bakery as well as non-alcoholic and alcoholic beverages in the grocery and general merchandise category. For the quarter, total fuel gallons sold increased 8.2% compared to the prior year primarily due to the store count increase, while same-store gallons were up 0.7% versus the prior year. The Company’s total fuel gross profit was up 5.9% versus the prior year. The Company sold $4.8 million in renewable fuel credits (RINs) in the first quarter, a decrease of $15.4 million from the same quarter in the prior year.

For fiscal 2025, the Company expects EBITDA to increase at least 8%. The Company expects inside same-store sales to increase 3% to 5% and inside margin comparable to fiscal 2024.