Casey's General Stores, Inc. (NASDAQ:CASY)

highly rated, sound fundamentals, retail industry. people eat and cars guzzle. Navellier's report card & msn.moneycentral.

Have you ever heard of Ankeny, Iowa; Bluesprings, Mo.; Basehor, Kan.; St. Francis, Minn.: Godfrey, Ill.; Yanktown, S.D.; Wood River, Neb.; or Argos, Ind.? Well, these are some of the typical leafy small towns that dot the landscape of America’s Midwest, where CASEY’S (CASY-$43.43) operates 1,610 bright, clean and colorful convenience stores. Last year, these little gold mines sold $6.7 billion worth of gasoline, diesel fuel, OTC pharmaceuticals, milk, breads, beverages, housewares, pet supplies, automotive products, beer, wine, hamburgers, health and beauty aids, pastries, soups, soaps, pizza and donuts. And while we recognize Pizza Hut or Dunkin’ Donuts as the industry leaders, CASEY’S is the 9th largest retailer of pizza and donuts in the U.S.

The convenience store business is tough — like fighing bobcats for a living. Most operators earn onionskin thin margins and low single-digit returns on invested capital. About 65 percent of store revenues flow from the fuel pump, and the consumer is so price conscious that there’s little room for price flexibility. And considering the high level of fixed costs for labor and rent and the volatility of fuel prices, this is not the easy Mom and Pop business of a generation ago.

But CASEY’S is successful for the following reasons: 1) Lots of fresh food products, 2) Enormous economies of scale, 3) A location strategy where 1,200 stores are located in towns of fewer than 5,000 residents and are often the only game in town, 4) Its operations are completely integrated, 5) CASEY’S owns all its stores and distribution centers, 6) It owns all of its trucks and delivers 77 percent of its own gasoline, and 7) CASEY’S fresh food division generates gross margins of 62 percent. These benefits give CASEY’S a significant advantage over the competition in a very fragmented industry.

In the past 10 years, CASEY’S store count has grown from 1,305 to 1,610; its book value has doubled to $12.75; revenues have grown more than three-fold to $6.7 billion; and dividends have increased seven-fold to 54 cents as net-profit margins improved by 50 percent to an impressive 2.1 percent. There are only 38 million shares outstanding, and since 2001, CASEY’S share price has risen from $15 to $45 earlier this year. This year, CASEY’S earnings are expected to rise by 18 percent to $3.00, and 2012 earnings are projected at $3.55. As the store count grows to 1,725 in 2015, earnings could reach $5.00 a share on revenues of $9 billion.

CASEY’S is a clean company with a fine balance sheet, a good income statement and honest management. CASEY’S doesn’t pollute the environment and enjoys good relations with its 8,100 employees. CASY is a good neighbor, pays its state and county taxes on time, and gladly supports the community activities of the hundreds of little towns in which it does business. CASEY’S has a strong economic moat, almost no competition, solid management, a captive audience and employees are not unionized. The company has a great balance sheet, superb inventory controls, strong cash flow and good marketing people. So, I think the stock, in the next 10 to a dozen years, could trade at the $95 to $110 level providing CASY is not bought out by a competitor sooner. This little-known classy stock looks good in any conservative long-term growth portfolio.

good food, smart people running the company

casy's mgt is very disciplined. I was involved in one of their acquisitions, and they were sharp horse traders. apparently they run the business in general that way, and are expanding methodically and profitably. they'll work thru the margin pressure.

Taking over the world, one gas station at a time...

small and smart, they use their data to run their business, and own their assets.

RISE TOO STEEP TO LAST WILL CORRECT SOON TO -20%

Great track history.

CASY is one of the best companies in the USA. This has been voted on. Not only that they are a dominant force in Iowa. They pretty much are in every small town and are very prominent in the large cities too. Either they will keep growing or be a huge take over target - this would be done to get a great foothold in the Midwest. Plus they also pay a dividend.

Twenty one dollars, probably a good time to pick some of these shares cause they're gonna go back up again.

As margins improve, so will profits.

In most small towns in Iowa, Casey's is the only convenience store. They have been in this market for over 20 years. They sell tasty pizza and a LOT of gasoline. They also serve as the local gathering place for people to meet and drink coffee. The main competition for Casey's in Iowa is the privately held "Kum & Go" (http://www.kumandgo.com/) chain, but mainly just in the larger markets.

Weekly triangle $32-34; support ~$26

I have watched this company for twenty five years, It is strictly run and maintains good cash flow with low debt.

stroking it's customers right

good place to stop travelling midwest

‘Come once, Come again!’ Casey's General Stores, Inc. operates convenience stores in nine Midwest states in The U.S., including Iowa, Missouri, and Illinois. It offer gasoline for sale on a self-service basis, which constituted to almost 70% of the company’s revenue in 2006. In addition, stores carry a selection of food items (including freshly prepared foods such as pizza, donuts, and sandwiches), beverages, automotive products, and other non-food items.,

As company has its own fleet of trucks with installed information systems that provide real time data on inventory, it enables the procurement of gasoline at the lowest cost and at the right time.

Casey’s grocery revenues are expected to increase with the introduction of higher-margin products, such as bottled water, sports drinks, energy drinks, and wine at select stores. Strategically moving ahead company is also analyzing Point of sales data to replace some of the slower-turn grocery merchandise and replace it with faster-turn items. Discounting the same we expect the company to perform inline with its past performance.

Casey’s prepared food segment drives the company’s growth going forward as it generates the chain’s highest gross margin each year compared to other segments. Moreover, it also manages a rotating menu that reflects seasonal foods, new items, and shifts in dining trends. Now-a-days Made-to-order pizza is Casey’s signature product which lead to generate more loyal customers and makes Casey’s a dependable meal provider.