Casey's General Stores (CASY) 8-K Casey’s Earnings Increase 23% Despite Challenging Environment

Exhibit 99.1

NEWS RELEASEFOR IMMEDIATE RELEASE
Casey’s General Stores, Inc. One Convenience Blvd. Ankeny, IA 50021	Nasdaq Symbol CASY CONTACT Bill Walljasper (515) 965-6505

Casey’s Earnings Increase 23% Despite Challenging Environment

Ankeny, IA, March 8, 2010 – Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported $0.34 in basic earnings per share for the third quarter of fiscal 2010 ended January 31, 2010, compared to $0.28 for the same quarter a year ago. Year to date, basic earnings per share were $1.87 versus $1.38 for the same period last year. “The acquisition environment has become more favorable during this fiscal year,” stated President and CEO Robert J. Myers. “We surpassed the 1,500 store milestone in the third quarter as we were able to close on several small multi-store transactions.”

Gasoline –The Company’s annual goal is to increase same-store gasoline gallons sold 2% with an average margin of 11 cents per gallon. For the third quarter, same-store gallons sold were down 2.9% with an average margin of 12.4 cents per gallon. “We continue to experience a favorable gasoline margin environment,” said Myers. “However, in the quarter the average retail price of gasoline was up over 45% to $2.52 per gallon compared to $1.73 a year ago. This disparity, combined with adverse weather throughout the Midwest, impacted gallons sold.” For the year, total gallons sold were up 2.8% to 969.3 million with an average margin of 14.2 cents. Same-store gallons for the year were down 0.2%.

Grocery & Other Merchandise –Casey’s annual goal is to increase same-store sales 8.9% with an average margin of 33.9%. For the quarter, same-store sales were up 1.7% with an average margin of 32.7%. For the nine months, same-store sales were up 3.4% with an average margin of 33.7%. “Sales were impacted by customers trading down to less-expensive products, and our margin softened due to the increased contribution of lower-margin items relative to total sales of the category,” stated Myers. “That impact, along with the harsh weather affected the performance of this category.” Total sales for the year are up 5.8% to $816.1 million.

Prepared Food & Fountain –The goal for fiscal 2010 is to increase same-store sales 7.5% with an average margin of 62%. Same-store sales were up 1.4% for the quarter and 3.8% year to date. “Despite the poor weather during the quarter, we were able to drive gross profit nearly 8% due to an increased contribution from higher-margin items such as pizza and fountain,” Myers explained. The margin for the quarter was up 100 basis points to 62.8%. Year to date, total sales were $276 million compared to $254.6 million with an average margin of 63.7%.

Operating Expenses –At the nine month mark, operating expenses were up 3.2%. For the quarter, operating expenses rose 7.5%, driven by increases in credit card fees and fuel expense. These two expenses combined were up $3.6 million in the third quarter. “The increases in credit card fees and fuel expense were due to higher fuel prices during the third quarter,” stated Myers. “Without these increases, expenses would have been up about 4.5% compared to the same period a year ago.”

Expansion –The annual goal is to increase the total number of stores 4%. At the end of the third quarter, the Company had acquired 20 stores and completed 10 new-store constructions. “We are encouraged with the acquisition activity in the third quarter and have written agreements for an additional 15 locations that we anticipate closing on by the end of the fiscal year,” said Myers. “We remain optimistic about long-term growth opportunities.” The Company has also replaced 18 stores during the first nine months of the year.

Dividend –At its March meeting, the Board of Directors declared a quarterly dividend of $0.085 per share. The dividend is payable May 17, 2010 to shareholders of record on May 3, 2010.

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Casey’s General Stores, Inc. Condensed Consolidated Statements of Earnings (Dollars in thousands, except per share amounts) (Unaudited)

	Three months ended January 31,				Nine months ended January 31,
	2010		2009		2010		2009
Total revenue	$	1,114,377	$	849,274	$	3,457,281	$	3,807,082
Cost of goods sold (exclusive of depreciation and amortization, shown separately below)		937,777		688,108		2,854,192		3,255,684
Gross profit		176,600		161,166		603,089		551,398
Operating expenses		127,883		118,946		391,254		379,053
Depreciation and amortization		18,368		17,159		54,846		52,071
Interest, net		2,748		2,757		8,159		7,734
Earnings before income taxes		27,601		22,304		148,830		112,540
Federal and state income taxes		10,359		8,283		53,803		42,405
Net earnings	$	17,242	$	14,021	$	95,027	$	70,135
Earnings per common share
Basic	$	.34	$	.28	$	1.87	$	1.38
Diluted	$	.34	$	.28	$	1.86	$	1.38
Basic weighted average shares outstanding		50,914,462		50,809,645		50,892,629		50,782,729
Plus effect of stock options		185,024		148,208		146,903		142,931
Diluted weighted average shares outstanding		51,099,486		50,957,853		51,039,532		50,925,660

Casey’s General Stores, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

	January 31, 2010		April 30, 2009
Assets
Current assets
Cash and cash equivalents	$	152,891	$	145,695
Receivables		11,661		10,888
Inventories		112,672		106,528
Prepaid expenses		1,686		1,394
Deferred income taxes		8,653		11,895
Income taxes receivable		11,232		8,327
Total current assets		298,795		284,727
Other assets, net of amortization		9,545		8,582
Goodwill		55,922		50,976
Property and equipment, net of accumulated depreciation of $690,841 at January 31, 2010, and of $652,376 at April 30, 2009		987,578		918,410
Total assets	$	1,351,840	$	1,262,695
Liabilities and Shareholders’ Equity
Current liabilities
Current maturities of long-term debt	$	25,926	$	28,442
Accounts payable		131,825		115,436
Accrued expenses		64,567		77,365
Total current liabilities		222,318		221,243
Long-term debt, net of current maturities		156,077		167,887
Deferred income taxes		139,601		125,536
Deferred compensation		12,133		11,085
Other long-term liabilities		15,741		15,914
Total liabilities		545,870		541,665
Total shareholders’ equity		805,970		721,030
Total liabilities and shareholders’ equity	$	1,351,840	$	1,262,695

Certain statements in this news release, including any discussion of management expectations for future periods, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from future results expressed or implied by those statements. Casey’s disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.

Sales and Gross Profit by Product (Amounts in thousands)
Nine months ended 1/31/10	Gasoline			Grocery & Other Merchandise			Prepared Food & Fountain			Other			Total
Sales	$	2,350,541		$	816,074		$	276,042		$	14,624		$	3,457,281
Gross profit	$	137,176		$	275,356		$	175,976		$	14,581		$	603,089
Margin		5.8	%		33.7	%		63.7	%		99.7	%		17.4	%
Gasoline gallons		969,268
Nine months ended 1/31/09
Sales	$	2,765,279		$	771,126		$	254,609		$	16,068		$	3,807,082
Gross profit	$	123,722		$	259,394		$	155,142		$	13,140		$	551,398
Margin		4.5	%		33.6	%		60.9	%		81.8	%		14.5	%
Gasoline gallons		943,086

Gasoline Gallons Same-store Sales Growth
	Q1		Q2		Q3		Q4		Fiscal Year
F2010	3.2	%	-0.7	%	-2.9	%
F2009	0.5		0.2		2.1		1.2	%	1.0	%
F2008	0.3		-1.6		-3.9		-2.5		-2.0

Grocery & Other Merchandise

Same-store Sales Growth

	Q1		Q2		Q3		Q4		Fiscal Year
F2010	6.4	%	1.9	%	1.7	%
F2009	4.7		4.9		6.5		8.0	%	5.9	%
F2008	9.1		11.2		5.4		3.6		7.3

Prepared Food & Fountain

Same-store Sales Growth

	Q1		Q2		Q3		Q4		Fiscal Year
F2010	6.6	%	3.4	%	1.4	%
F2009	12.3		9.3		8.1		7.2	%	9.1	%
F2008	9.5		10.6		8.4		11.2		9.8

Gasoline Margin

(Cents per gallon, excluding credit card fees)

	Q1		Q2		Q3		Q4		Fiscal Year
F2010	15.7	¢	14.3	¢	12.4	¢
F2009	15.6		13.7		9.9		12.1	¢	12.9	¢
F2008	15.8		13.6		13.5		12.6		13.9

Grocery & Other Merchandise

Margin

	Q1		Q2		Q3		Q4		Fiscal Year
F2010	34.3	%	34.1	%	32.7	%
F2009	34.0		33.9		32.9		33.7	%	33.7	%
F2008	34.0		33.1		31.9		33.2		33.1

Prepared Food & Fountain

Margin

	Q1		Q2		Q3		Q4		Fiscal Year
F2010	63.8	%	64.6	%	62.8	%
F2009	60.5		60.5		61.8		62.7	%	61.4	%
F2008	61.7		63.0		63.6		60.9		62.3

Corporate information is available at this Web site:http://www.caseys.com. Earnings will be reported during

a conference call on March 9, 2010. The call will be broadcast live over the Internet at 9:30 a.m. CST via the

Investor Relations section of our Web site and will be available in an archived format.