Summary
Casey's General Stores, Inc. (CASY) filed a Form 8-K on December 15, 2009, to disclose its November 2009 same-store sales results. The report indicates a decrease in same-store gasoline gallons sold by 3.8% compared to November 2008, although the gasoline margin exceeded the company's fiscal 2010 goal. Conversely, the company saw positive same-store sales growth in its prepared food and fountain category (up 2.7%) and in grocery and other merchandise (up 3.0%). Investors should note the impact of a recent federal excise tax increase on cigarettes, which accounted for approximately 3.5% of grocery and other merchandise sales. While gasoline volume was down, the performance in prepared foods and merchandise suggests resilience in these key revenue streams for the convenience store operator.
Key Highlights
- 1November 2009 same-store gasoline gallons sold decreased by 3.8% year-over-year.
- 2November 2009 gasoline margin exceeded the fiscal 2010 goal of 11.0 cents per gallon.
- 3Average retail price of gasoline sold in November 2009 was $2.52 per gallon.
- 4Same-store sales for prepared food and fountain increased by 2.7% in November 2009.
- 5Same-store sales for grocery and other merchandise increased by 3.0% in November 2009.
- 6A recent federal excise tax increase on cigarettes impacted grocery and other merchandise sales by approximately 3.5%.