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Casey's General Stores Inc. today reported its second quarter FY 2013 results, which included a drop in earnings per share impacted by lower gas margins and a decrease in cigarette sales.
However, the company received a boost from its prepared food program, which Robert J. Myers, chairman and CEO, said is doing "exceptionally well."
For the foodservice category, the company's goal for fiscal 2013 is to increase same-store sales by 11 percent, with an average margin of 61.1 percent. For the quarter, same-store sales were up 10.1 percent, with an average margin of 62.5 percent.
"This category continues to benefit from three primary operating initiatives: expanded hours, pizza delivery and major store remodels," Myers said. "The margin continues to exceed our annual goal primarily due to an increase in pizza sales."
Year to date, total sales were up 14.5 percent and gross profit rose 19.4 percent to $182.1 million.
So far this fiscal year, Casey's has converted 150 stores to 24-hour operation, added pizza delivery to 103 stores and completed 51 major remodels.
At the mid-year point, the company opened eight new store constructions and completed the acquisition of three stores. The company has also replaced 13 stores.
"In November we completed the acquisition of 22 Kum and Go locations and opened our first stores in Tennessee and North Dakota," Myers added. "We are on pace to build 30 new stores this fiscal year and continue to be optimistic with the acquisition environment."
Casey's currently has 13 stores under construction and has eight stores under written agreement to acquire.
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