Casey’s General Stores, Inc. CASY is strengthening its grocery and general merchandise business through beverage demand, targeted merchandising and value-focused offerings. Non-alcoholic beverages remained a key sales driver, while the company adapted its assortment to changing customer preferences. Its growing emphasis on energy drinks, nicotine alternatives and private-label products helped sustain category growth amid uneven demand across traditional convenience-store staples.
During first-quarter fiscal 2027, grocery and general merchandise sales rose 4.9% year over year to $1.28 billion. Same-store sales increased 2.7%, with non-alcoholic beverages delivering strong performance. On a two-year stacked basis, same-store sales advanced 6.5%. Category gross profit reached $457.8 million, up from $439.5 million in the comparable year-earlier period.
Energy drink sales rose 12% in the quarter, providing a notable boost to beverage performance. Beyond beverages, nicotine alternatives recorded 47% growth as Casey’s expanded space for these products. Management highlighted their attractive economics, with margins roughly double those of combustible cigarettes. This assortment shift offers an opportunity to support profitability as cigarette consumption continues its long-term decline.
The company is also expanding its appeal to value-conscious shoppers through private-label snacks. Management reported strong growth in these offerings as national-brand price increases pressured snack demand. Meanwhile, ready-to-drink cocktail sales grew more than 30%, partially offsetting beer weakness. These trends show how Casey’s is adjusting its merchandise mix to capture demand in faster-growing categories.
For fiscal 2027, Casey’s reiterated guidance for inside same-store sales growth of 2-5% and an inside margin above 42%. The outlook encompasses grocery and general merchandise alongside prepared food and dispensed beverages. Beverage strength, focused merchandising and private-label momentum provide support for achieving these companywide inside-store targets.
Casey's Price Performance, Valuation & Estimates
Shares of Casey’s have lost 18.2% over the past six months compared with the industry’s 13.4% decline.
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From a valuation standpoint, CASY is trading at a forward 12-month price-to-sales ratio of 1.12, up from the industry average of 0.86. It has a Value Score of B.
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The Zacks Consensus Estimate for Casey's fiscal 2027 earnings implies year-over-year growth of 11.9%, whereas the same for fiscal 2028 indicates an uptick of 10.8%. Estimates for fiscal 2027 and 2028 have been revised upward by 30 cents and 32 cents, respectively, over the past 30 days.
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Casey's currently has a Zacks Rank #2 (Buy).
Other Key Picks
We have highlighted three other top-ranked stocks in the retail space, namely Ross Stores Inc. ROST, Target Corporation TGT and Dollar Tree DLTR.
Ross Stores operates as an off-price retailer of apparel and home accessories. The company also holds a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales indicates growth of 32.7% and 12.8%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 11.2%.
Target offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Target’s current fiscal-year earnings and sales suggests growth of 37.8% and 5.1%, respectively, from the year-ago actuals. TGT delivered a trailing four-quarter average earnings surprise of 10.5%.
Dollar Tree is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. The company also carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Dollar Tree's current fiscal-year earnings and sales suggests a growth of 36.4% and 6.6%, respectively, from the year-ago actuals. DLTR delivered a trailing four-quarter average earnings surprise of 12.2%.
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Casey's General Stores, Inc. (CASY): Free Stock Analysis Report
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