Why Casey's General Stores Shares Are Surging Premarket Wednesday - Casey's General Stores (NASDAQ:CASY)

　　Caseys General Stores, Inc. CASY shares are trading higher after the company reported fourth quarter and FY24 results.

　　Sales of $3.60 billion exceeded the street view of $3.48 billion. EPS of $2.34 beat the consensus of $1.72.

　　Inside same-store sales rose 5.6% and 12.4% over a two-year period, with an inside margin of 41.2%, aided by strong performance in hot sandwiches and dispensed beverages within the prepared food and dispensed beverage category, alongside non-alcoholic and alcoholic beverages in the grocery and general merchandise category.

　　The companys inside gross profit increased by 16.2% Y/Y to $517.6 million. Fuel same-store gallons grew 0.9% Y/Y, with a fuel margin of 36.5 cents per gallon. Total fuel gross profit increased by 15.4% Y/Y to $253.6 million in the quarter.

　　As of April-end, the company had around $1.1 billion in available liquidity, consisting of about $206 million in cash and cash equivalents on hand and $900 million in undrawn borrowing capacity on existing lines of credit.

　　During the quarter, Caseys General Stores repurchased approximately $15 million worth of shares for a total of $105 million for the year. The company has around $295 million remaining under its existing share repurchase authorization.

　　Dividend: The Board of Directors increased the quarterly dividend by 16% to $0.50 per share. The dividend will be payable on August 15 to shareholders of record on August 1.

　　FY25 Outlook: The company expects EBITDA to increase by at least 8%. The company anticipates a 3% to 5% increase in inside same-store sales, with an inside margin similar to that of fiscal 2024.

　　Caseys General Stores targets same-store fuel gallons sold between negative 1% and positive 1%.

　　The company plans to increase its store count by at least 100 in FY25 through a combination of mergers, acquisitions, and new store construction.

　　Darren Rebelez, President and CEO, said, “Casey‘s started its three-year strategic plan with a record fiscal year, exceeding $1 billion in EBITDA for the first time in the company’s history.”

　　“Inside same-store sales were outstanding, up 4.4%, or 11.2% on a two-year stack basis, led by strong performance in pizza and bakery as well as alcoholic and non-alcoholic beverages.”

　　Caseys also announced the appointment of Maria Castañón Moats to its Board of Directors, effective as of July 1, 2024, following her retirement from PricewaterhouseCoopers, LLP.

　　Price Action: CASY shares are up 5.95% at $345.96 premarket at the last check Wednesday.