Casey’s General Stores continues to gain traction in pizza delivery business

June 10, 2014

Casey’s General Stores reported its annual results, which included a same-store sales increase of 11.8 percent in its prepared food and fountain category, which features pizza delivery and sales.

The company's annual goal was to increase same-store sales 9 percent with an average margin of 62 percent, according to a news release. For the year, same-store sales were up 11.8 percent with an average margin of 61.1 percent. Same-store sales for Q4 increased 12.1 percent with an average margin of 60.1 percent.

“Even though rising cheese and meat costs adversely impacted the margin, we were still able to grow gross profit dollars by over 16 percent in the fourth quarter compared to the same period last year,” CEO Robert J. Myers said in the release. “Our sales continue to benefit from expanding operations to 24-hours a day, adding pizza delivery, and completing major remodels. We also implemented strategic price increases at the start of fiscal 2015 to partially offset rising input costs.”

During the fiscal year, the company built 44 new stores, acquired 28 stores, and also completed 20 replacements as well as 25 major remodels. The company also currently has 27 new stores and 23 replacement stores under construction, as well as 38 new sites, 28 replacement sites, and five acquisition stores under contract to purchase. Casey’s recently announced plans to build a second distribution center in Terre Haute, Ind., to facilitate store growth and provide a more efficient distribution system to the existing chain.

In 2015, Casey’s hopes to continue to increase its prepared food and fountain sales by close to 10 percent.


Topics: Delivery, Franchising & Growth, Operations Management

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