(Original title: Casey’s (CASY.US) makes historic acquisition of CEFCO convenience stores, increasing its number of convenience stores to 2,900)
Zhitong Finance APP has learned that Casey’s General Stores, Inc. (CASY.US) completed the acquisition of Fikes Wholesale, the owner of CEFCO convenience stores. Through this historic transaction, Casey’s added 148 stores in Texas and It added 50 stores in Alabama, Florida and Mississippi, bringing the total number of stores to about 2,900. This move is the largest acquisition in the company’s history and is in line with the strategic plan presented at its June 2023 Investor Day.
It is understood that CEFCO, founded in 1979, has grown from a gas station in Texas into a convenience store chain with 77 stores in four states. Casey’s, the third-largest convenience store retailer and fifth-largest pizza chain in the United States, continues to expand its brands and product lines to include beverages, snacks, donuts and other baked goods.
Despite risks and uncertainties such as market conditions and new store integration, Casey’s financial performance remains strong, with diluted earnings per share increasing 7%, net income increasing 6%, and EBITDA growing 9% in the first quarter of fiscal 2025.
Additionally, with this acquisition, Casey’s General Stores expands its footprint in key growth areas, particularly in Texas. Company President and CEO Darren Rebelez expressed enthusiasm for the expansion and looks forward to offering Casey’s signature pizza in the new locations. This acquisition not only increases the number of Casey’s stores, but also strengthens its competitive position in the convenience store market.
In other recent news, Casey’s General Stores has been the subject of multiple analyst comments and financial updates.
Among them, Benchmark maintains a buy rating on Casey’s stock and is optimistic about the company’s growth strategy, including expanding units and strengthening the food division. However, Goldman Sachs is taking a neutral stance, arguing that current share prices already reflect growth opportunities.
JPMorgan downgraded Casey’s stock to underweight from neutral, noting that rising cheese costs could impact prepared food margins.
In contrast, Evercore ISI raised its price target on Casey to $440 from $435, maintaining an Outperform rating, a change based on insights gained from an investor day event outlining Casey’s pursuit of its EBITDA growth. Goal strategy.
It is reported that Casey’s General Stores has a market value of US$14.14 billion, and its revenue in the past 12 months was US$15.09 billion, with a growth rate of 4.01%, showing steady expansion of the business. The company has raised its dividend for 25 consecutive years, with a dividend yield of 0.52% and dividend growth of 16.28% over the past 12 months.
In terms of profitability, gross profit margin in the past 12 months was 22.7% and operating profit margin was 4.9%, indicating that Casey’s effectively managed costs while pursuing growth opportunities. The price-to-earnings ratio is 27.52, which is high relative to recent earnings growth and may be affected by investor optimism about the company’s expansion strategy and continued performance.
