Casey’s General Stores, a popular convenience store chain, announced that it anticipates opening a greater number of stores than originally planned in fiscal 2024. As a result, the company’s shares experienced a notable surge.
At 2:08 p.m. ET, Casey’s General Stores’ shares were up by an impressive 11%, reaching $265.75. Throughout this year, the stock has already risen by 18%, and over the past 12 months, it has seen a remarkable 23% increase.
The company’s CEO, Darren Rebelez, emphasized their expansion plans in an interview with CNBC, stating, “We have a lot of white space just in our existing geography. With only 16 states penetrated at this point, we still have a long runway for growth.”
Casey’s General Stores recently announced their intention to open at least 150 new stores by April 2024, surpassing their previous goal of 110 openings. Importantly, this increased store count does not necessitate an adjustment to their net interest expense outlook.
When questioned about consumer spending trends, Rebelez expressed his observation that consumers have shown resilience throughout the year. Despite pressure on lower-income consumers, they continue to spend but are opting for more affordable options such as Casey’s prepared foods or private label products.
In the first quarter, Casey’s General Stores reported a substantial 8.5% increase in prepared-food revenue, reaching $372.8 million.