Casey's General Stores (CASY) 11 Jun 192019 Q4 Earnings call transcript

Company Profile

Participants

Bill Walljasper	SVP & CFO
Terry Handley	President & CEO
Karen Short	Barclays
Bonnie Herzog	Wells Fargo
Kelly Bania	BMO Capital Markets
Damian Witkowski	Gabelli & Company
Irene Nattel	RBC Capital Markets
Chuck Cerankosky	Northcoast Research
Anthony Lebiedzinski	Sidoti & Company
Chris Mandeville	Jefferies
Chris Prykull	Goldman Sachs
John Royall	JPMorgan

Call transcript

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Operator

Good day, ladies and gentlemen and welcome to the Q4 FY 2019 Casey’s General Stores Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to introduce you host for today’s conference, Bill Walljasper, Chief Financial Officer.

begin. may You

Bill Walljasper

Executive thank results and Bill joining to and us Chief here. Good the you quarter Casey’s Chief President Handley, for Officer. I’m is ended discuss also Financial morning, Terry for Officer April Walljasper, XXth.

our you I’ll These statements constitute us Litigation may business certain statements statements Reform or Private forward-looking Securities within any the possible Act Before during remind our made to and results investor XXXX. this stores. statements future we include of related growth that strategies, begin, the performance of call forward-looking at by assumed improvements meaning of operations, opportunities,

There are plan expressed or annual by which execute those our and on and cause as actual and value-creation uncertainties, from a results our on the forward-looking available in our to our the statements, to risks, other or realize SEC risks, implied including filed plan from website. recent number ability uncertainties, on results as benefits known unknown as Form are and XX-Q differ to factors future described reports well may on and other report that that materially Form of factors with value-creation most quarterly XX-K any

information, revise made or statements forward-looking Any forward obligation disclaims statements, events Casey’s views to as otherwise. our future reflect future and or update of current whether this result looking during today call as events respect or new of with any to a intention

over Terry. I like would the now turn to to call

Terry Handley

you, and everyone. morning, Thank Bill, good

upcoming week brief moment announcement on XXXX, results outlook fiscal a wanted our retirement. we about I to the summarize quarter take comment Before my and fourth made last we to for

what continued incredibly has four Casey’s, I'm our and for confident positioned business is my decades on I’m success. nearly proud reflect the I that team As well accomplished, with of

the experience years my with the I where Darren personally, tremendous look recently forward this the confidence the most takes IHOP. leadership I'm ahead. seeing is and restaurant in and company I familiar and have store, to his for fuel, to know convenience Rebelez. retire, industries, great me time in in as I successor, of right This Darren he President absolute

will interest Darren for company. earnings been to starts last our when want It of officially keen a know my you welcome your month. this I call, know to thank he in you pleasure over has all of As be you the years. all this later will getting I

quarter well let's Now for the fiscal and to our as as results move on XXXX, XXXX. outlook our for fiscal

As compared reform tax earnings the fourth most of XX% quarter a $X.XX, the over to press a and year the ago. up up year you year have to XX% per diluted seen in onetime benefit for excluding share release, were for $X.XX the to $X.XX ago from

expansion expenses margin across The on by of results last to control categories effective driven operating and compared were all the year. our fiscal primarily

continue in We components the remain fiscal of execution to opportunities upcoming optimistic the the the various and year. make creation value and about towards plan, excellent progress the

details of summarize each the of now like our results would to categories. the some I and in

experienced we fuel put wholesale quarter rising on the fourth margin. which category, our During in the pressure cost

the dollars. profit However, and managed fuels to way we were with through optimize this pleased operations that environment gross store teams retail

$X.XXX to profit dollars per result, the gross over margin a able an we fuel fourth drove compared year-ago. fuel achieve quarter a were same As average for period to of and gallon up the XX%

million quarter Midwest was last traveled price the previously total The decline primarily to as sold Despite in a described softer related same-store for due months. during described quarter fuel – sold vehicle $ the X.X%. $XXX to average gallons has contribution in and efforts prices the The third fuel quarter as demand primarily in optimization down decline gallons in Same-store same-store from and rose were and X.XX new was our opened gallons, stores the retail to up miles from gallon gallon. declined. the XX the previously retail quarter per strong X.X% were the

fuel X.X% strong below gallon a fuel from range. weather down gross were resulting of to marketing May average an year-to-date increase sold with we for May of of across line in against $XXX.X Same-store guidance The an most margin adverse current was $X.XXX as but gallons it with in expectations within margin profit year annual is our ago territory. in month and our compare year a the gallons average was sold our million. in annual in Same-store very XX.X% dollars our

to and during were were X.X% the of total Other In fourth same margin the in the average Merchandise $XXX.X sales period. year quarter. same category, from an up with strong XX period ago a points up XX% Grocery million sales up in basis nearly XX.X% the Same-store

prior sales up X.X% of points year, the average fiscal were same-store XX.X%, year. the basis For from with up XX an margin

driven in continued the significant gains other quarter tobacco was part from beer The in beverage weather, improved strength during the well by sales as in strong products. as same-store quarter to packaged in movement and late due

well margin $XXX.X the profit product for to The primarily the due promotion merchandise a XX% quarter category year increase for mix million. was to optimization. the other the items shift Gross nearly category, and margin toward were and the grocery as up across dollars as in higher quarter

to For to are are mentioned weather market. the dollars million. our current due up guidance in in our X.X% below $XXX.X Same-store sales the gross profit previously annual May year,

The quarter, total the the the food $XXX up and accelerated were fountain up category, X%. over last points million In quarter. primarily to for fourth prices X.X% shift. margin for XX.X%, price commodity year, the from taken year the basis to prepared sales strategic average sales a increases third favorable quarter was earlier in XXX product the a same mix due and from Same-store quarter fourth

increased As a gross $XXX.X margin up sales the to the prepared in food were profit expansion and XX% quarter, result of dollars nearly million.

basis $X.X to average up points in May billion. last X.X% sales were X.X% below are from Same-store Same-store sales fiscal year. XXX total sales XX.X%, year, with our an up increased the For margin

current range. annual guidance

great made strides in controlling operating We this year expenses.

million. to increase this technology pizza expense operating the compared cycling expenses $XXX.X company. to formats, delivery ago, quarter, or and mainly and up a the increasing from an incentive reduction performance the quarter stores operating ago were year by The For more XX-hour in to driven year XX spend, a compensation total X.X% in operating increased the is of due

were growth operating continue of driven will as X.X% an XXXX. up in are align total excluding operating demand. a our customer were the credit quarter. operating results focus labor hours Same-store be expenses These fees, we expenses, Year-to-date, area down to in to by decrease labor meet schedules card in expense fiscal X.X%. Managing better

I discuss call would over to statements. now like Bill to to financial turn the the

Bill Walljasper

Terry. Thanks,

quarter same slightly year as On as an to was the $X.X period to increase, increase due the ago, of number compared to revenue statement, primarily well the the billion, a previously. income operation total the stores in mentioned as up in sales in

in federal ago. over effective third months. the effective tax expenditures an the quarter past for a credits for The tax primarily tax to XX capital growth quarter primarily decrease the Depreciation quarter was due up rate was in rate year the X.X%, the in increase due from was from The to XX.X%.

XX.X% We and expect between fiscal rate our to effective tax be XX.X%. for XXXX

XX, to $X.X current sheet net of equivalents be billion. maturities balance cash and April million. debt strong. At were continues was Our cash Long-term $XX.X

is new debt-to-EBITDA openings our stores the ratio XX-month Our operational improvements previously and store contribute growth X.X mentioned existing at times in recent as to at EBITDA. trailing

the expenditure year, capital $XXX the million $XXX and the for fiscal same year, to million period. million same the grew from compared quarter during For operations we EBITDA nearly generate period XX% cash a $XXX XX% is last ago up in Adjusted flow in year-to-date. $XXX compared year to in million

summary. plans later in for capital the We discuss XXXX will our allocation fiscal

to back on the and with fiscal to update XXXX. over for I'd our turn value-creation like call now Terry outlook the progress plan to you

Terry Handley

Bill. Thank you,

new XX For this fiscal additional XX stores. acquired year, stores and we opened

stores have our the we purchase. addition, off which us start value-creation pipeline, to in XX acquisition under provide achieving regarding have to Currently, under we a fiscal eight new construction, for plan. would eight including puts the unit I stores stores like growth for agreement goals our to In year. update great XX an now and replaced

value several controlling a operating and suite new for is retail optimization, new our As focus of capital program, long-term a price a fleet customers on programs expenses comprised platforms car digital plan reminder, allocation. continued the of multiyear, including drivers, a as key and as well

per first share, invested we significant EBITDA, the flow. introduced March earnings on to our demonstrated to designed goal was When value-creation XXXX, plan return plan free create increased by long-term cash and capital growth, in deliver a

and sales drivers evolution and to retail the we beyond of the continue we the As same-store habits, broaden ever-changing must consumer witnessed alone. adapt of performance number continued just landscape

in improvements, on of tax on process deliver EBITDA approach focus strong dollars increasing which earnings expectations. and XXXX we a X%, on the margin include share, growth while more in well annual return tax increase our EBITDA XX% an capital. expense balanced fiscal reflected way which to increase in and capital per gross earnings and after over a expansion XX% on increasing a delivering through management are return per invested results after rate on share these Based profit to on invested A

XX currently we accounts October. launched is shortly new the some program. launched, of as X,XXX gain begin new With show results Early additional after I these issued. this have program on X,XXX completed cards share around up in that we the that are approximately the momentum like cardholders. mind, in – of quarter. of than the we new expected utilization program. would key last accounts slower the with with new resources ramped and over beginning with adding you course target late over Even to the I to cards We new though card the milestones have we cards focus we We will it with fleet

a categories overall overall forward. us plan. allow of We across throughout X% card at total gallons program sales in fleet potential of strategy. pricing by to fiscal rules XXXX to to optimistic the our leverage continue all fleet have going key data with to will remain over our We make centralized dollars network. approach anticipate program network grown based The part pump optimization gross the Price our and of fleet generated which about to to market decisions providers on year the engage combined in improve the This market ago. we value the store our is will broad the stores data compared universal card as profit another creation –

ability we to all fuel will stores. of environment. new be year merchandise each tool. tool the by to provide with that the Centralized advantage in available impact prices out fourth optimization potential us to completed inside also retail sales fiscal to implementation fuel the ever-changing at greater response retail end the advantage price quarter, monitor any of adjusting changes this This During pricing agility identify in price the fuel will to price the correlated retail of we build provide to movements. Price be will store sales may as our

mentioned the successful As inside rollout we our program before, price through optimization testing have this a will in utilizing our completed month we September. of begin Dunnhumby scheduled platform We and starting and are stores. this as QX

both Price for and into pricing a processes promotion strategy. optimization represents increased our visibility by purchases, fundamental and marketing in-store supported our shift in fuel

benefits We the to are about these the programs bring excited will company.

over digital engagement program progress several reached last and key to quarter. continue milestones with our have We the

and the completed ordering This platform enhanced online. to an e-commerce pay the website. We and have allowing integration of streamlining process experience the customer our provides checkout successfully by new customer

consumer system every addition, engages In the opportunities during automatically to cross-sell the order.

loyalty the in design planned to mobile new to XXXX. is new the app of be program QX in of planning are this completed capability of have QX fiscal and roll out The XXXX. testing fiscal We launched and

serve average drive allow and us of to them and platforms will our customer and will The visits. marketing target-effective both our integration basket suite enhances and digital seamless personalized of new customer for rewards. capabilities additional online promotions providing customers increase and platform of a facilitates better and create a in-store by the our that understanding This experience ring gain that better digital customers digital value

opportunities. allocation capital return store acquisition investments our including profiles, value attractive will Our programs, to with well as through strategic creation strategy store growth new as construction continue disciplined prioritize and

this X%, expenses Merchandise stores. of XX% same-store X.X% depreciation margin up to to and margin an sold, same-store to share to between sales, and Grocery XX XX%; you At value average fiscal I an excluding average down operating an gallon; XX%; Food margin and with from increased X.X% with Fountain XXXX and would capital $X.XXX per stores and between increased X%, plan; increase X%, build X% increased to X% budget acquire increase with our Prepared expenses time, XX an and Other expenditure to and same-store $X.XXX gallons like between maintain to creation XX%; XX% to X%, with guidance XX% the average sales,

The million; transportation the following for million; XXXX budget information breaks down $XX $XX store replacement $XX $XX capital construction categories stores, general expenditure million; maintenance, acquisitions, $XXX technology, and fiscal and in new million. million; distribution,

budget the a distribution an center million XXXX. to the new approximately $XX total office, million the in for for for capital budget Included addition in expenditure of million $XXX fiscal is $XX corporate and

closing, In and transformational deliver growth. steps profitable we take performance to to store continue long-term enhance

significant We skill set to to review continue will on strategy shareholder to add execute our drive and successfully long-term value.

will take questions. We your now

Operator

first from Short our Karen is question [Operator Barclays. from Instructions] And

line is open. Your now

Karen Short

as or plan place. Darren this weeds any could the about little that, context And of value there you moving have call where whether more I would on A there on profit parts terms We talk actually the has of in give be you a that said little sales, in might endorsing are a gotten that [indiscernible]? couple the great. could be bit but know realize still in Obviously, focusing but not his of thoughts questions. creation don’t versus you dollars to in you maybe

Bill Walljasper

speak been Yeah. that’s fact I of Darren that and bring to-date, of going also take a his certainly the in the in leadership in can’t programs where And the will we’ll driving value experiences well is style as certainly are assess all opportunity retailer. And assessment plan. for consideration creation the his to unique I as done he future. am he forward. and Karen, just into the experienced terms confident the very company specifically

Karen Short

a And then on of then value just the and you just the you maybe obviously on timing creation a the plan. right little obviously little were maybe comment bit Terry could if of right bit in is could middle kind comment

the any That’d such So after thoughts now Casey's. at a leave on is time great. to great career right why be

Terry Handley

in something the mean year of with in Karen. finding have in board of months working with I and terms really the This timing creation more Sure. strategic successor. my that value necessarily a last for certainly that and Yeah. I six that terms mind the regards been plan wasn't within to the is process approximately

We Casey's the me lot company with my and of a entire half to my for for of for lot years Certainly got XX here after with being literally but life. a passion company adult serving [ph] this I family. also

I for I I to can with support to integrity. Darren, an better a to a whatever a my whatever be that put be the So mind outstanding I of certainly is of to going great will of him. me do time of forward. priority individual in forward I the But got individual quite will it's them going can And at frankly first. he's deal payback forefront and going that lot will my Casey's always think Casey's can't do and leader for and as support I've regard

Karen Short

Great. a That's just couple helpful. then Bill of questions. And

for maybe were just housekeeping color on OpEx And question of can what the how fees of about throughout in quarter? to the credit little a at XXXX, and would growth the Looking think D&A? last XXXX, card then I give you ask the regarding is same cadence bit

Bill Walljasper

Absolutely. Yeah.

X.X%. had. in the respect talk broaden million a coming operating probably specifically was take at sequentially QX a higherthan $XX.X I'm little XXXX last that were quarters, to about going that several we obviously to in expense, fiscal fees question the card credit in at question up QX then all, of First trended quarter. into and With where you your

the things that several quarter fourth transpired. were in There

we changes XX-hour have year to ago. certainly of delivery to the the Also, lapsing have incentive within we a did performs, pizza are First all, as we company incentive format compensation several people the the compensation company. opportunity an

factors of to were to the were X.X%. those there combination X% X.X% no two of comparison In fiscal bonuses and paid out that roughly about XXXX,

as that We X% plan. related value-creation guidance, So, results. we our does rate to quarter expenses fourth lower to believe X%, at the than certainly that or value is related that look include that the run the to fees obviously,

operating optimistic obviously labor very – respect the with hours. we’re continue that So, expenses to to we forward, control we, can going

are off QX the is study of fiscal several scheduler probably completed forefront and We scheduler. will the at here year. a that in in here motion and the the into have things will on quarter being and out quarter, kicked A that time a roughly to that study time roll first be labor this first execution then starting motion feed new

what does that automated and the will Kraen, it more on to what that basis of really, much accordingly or for demand. performance approach excited a meet a customer to monitor is adjust us, store-by-store store labor we're be sales So, and about the

where that's going to be focus going bit we'll efficiencies us a fiscal have it think quite it’s I as a XXXX. was So, for of our in XXXX in key forward. Obviously,

Karen Short

then a OpEx higher we taper will year? as off start through kind So, and the of little go

Bill Walljasper

Yeah.

kind that's a basis. you When OpEx think you somewhere figure right on X.X%, intent I level, from think now. of same-store about maybe around X% high a probably the

a few throw to range, going X% X% just there that you and high-level X% store about in with in thinking new to growth and X% You’re you're to miscellaneous right. a gets that things the perspective. it X%, But from

on right You're point, though.

benefit schedule the labor that half. us something the in I will back is think

Karen Short

Okay. D&A? just And then

Bill Walljasper

prior the accelerated quarters. kind the of store year. you replacement of things D&A activity, little in is Yeah, downward function D&A, saw move the D&A, this a that I bit in from of last year of depreciation A mean obviously the one than less couple

environment. roughly number say the units. relatively should a smooth as depending at to smooth far planned I of the that, acquisition be activity. It we could throughout our as store I That swing, fiscal year think be cadence as will relatively same on new rollout But that’ll the going fiscal year. of the look But we're have construction D&A this goes,

Karen Short

Thanks. Great.

Bill Walljasper

You bet.

Operator

you. Thank

Our next Wells from Herzog question is Fargo. Bonnie from

is Your open. line now

Bonnie Herzog

first fuel from guidance morning. margin to you. a for All historically. a your right. ask year Thank certainly year. wanted Good step-up question on and last I the There's decent

the want this you achievable? hear will from really confidence you What guys. just be gives So to that

Terry Handley

retail and store Yeah, quite that is Terry. element I an you in, with are and operations Bonnie, it's optimization team honestly would the certainly tool their tell confident partnership – our is leadership. the that we this quite price and fuels

think talking implementation price ago year call, a If operations, on in back conversation the we to this timing ahead retail the during quite utilizing of pricing retail margin. to we you tool, calls engagement bit team its had review tools out with the and continued leadership we were well order in frankly of as maximization terms jumped store of in fuel's about as the and the a in their at of and facilitate little that of and time our the the optimization strategies and

the as utilizing team QX, versus a here set team the have embraced talented the has got just of we in tool fuel’s tool those And we've decentralization rules that that engaged retail markets. We leadership different strategy pricing store got the a around decentralization. is becoming operations now and

just an that but increase influence markets potentially to only quite be confident I'm on driven. the So, have would opportunity again margin but in tell that will the volume we in I certain not you market to side the fact market begun

that fuel a be this believe certainly throughout out and looking then contracts procurement. that impact fuel days We're this would building grow terms of early might having in assist taking that we of of and the that are that a in on that's side rest here we year. and terms procurement enhancing at top margin believe us of in team of how we're to fiscal strategy fuel the engagement the that And to the continue and the going positive we of equation,

Bonnie Herzog

you're that some the kind look mean just believe would of these you I especially mentioned then just can helpful these future, Now margins out into of you beginning to you do that the and initiatives? that's really expand in continue or so implementing you of when as

Terry Handley

go. with find talked that and find that to we markets I I fuel think I we margins pricing all where think can believe as approach balanced influence upon certainly to expand Well, find call… itself about the in opportunities again which in margin strategy, will certain where our we and this we we've fuel balance. just more as a again, the know also better will regards But – margins environment will

Bonnie Herzog

Yeah.

Bill Walljasper

In by are retailers the minimum past, rising lot wage. of a pressured

price on So fees credit depending fuel labor pressures, what retail does. card the

right So it don't XX But I where if last front seen out go. direction. the exactly rising in we why our certainly see years. have we're as as over optimization this certainly you to – that go to retail price field we the historically, with going be well our reason And great tool. the look we've speak as as fuel any utilize I to can't in will X team. margins leadership other And should with the this fuels well as

Bonnie Herzog

fleet your mentioned bit a you on question it a ramping then keeps And – expected. again think I than card program, little Okay. slower you

this what seeing, wondering volume So importantly and you fuel changes in kind I'm the sequentially versus in last, just traffic. that any might tracking lift wondering and improved it's implementing, or some terms guess of be more how this store of I maybe and been maybe the of quarter to you've even has

Bill Walljasper

a moved is card We benefit see where anticipated have I have is solid universal fleet sequentially And we quicker. us. right. we've a gallon in see we it that certainly But The quarter-to-quarter. moving that – great Yeah. to continues to quicker. liked mean to had surprise. growth for move it you're we regard. it be would I And to mean continue

and we’ll But regards sales, improve. expected inside the program as begin out sales to as certainly necessarily card on the influence influence we fleet merchandising the And capabilities, certainly seen and haven't inside with build we to yet. cross-sell the on opportunities

Bonnie Herzog

little in question, down a Okay. further just grocery strength I could the comps. And your ask if wanted on to one drill final then

as this You well by strong beer, was beverage driven mentioned and lot as packaged of OTP. a

was categories weather, I and or performed Memorial then you I also, spending, So love color you further could maybe regions. a some specifically on on segments and given possibly drill down which guys and well, hoping Day just guess traffic maybe little consumer weekend for really the the your

than us. lot of a Thanks. weather better had You

Bill Walljasper

certainly is All circle same-store to try growth them, This all crack one respond accordingly. I'll if quarters. But to with I’ll could, I of merchandise obviously sales and me, right, questions. and take were the a general they Bill. Bonnie. in category respect If at back with just those prior you in very the to our fourth some yes, quarter, relative robust missed

But so you the it's product some and look can quite of we business. And you’ve combination time, a our been to to and activity. short-term things. our weather Obviously, following Bonnie, have refinements affect promotional stock know, several continue as for

expect And categories the saw packaged fourth We in would sales category, category, quarter. month month all favorable same-store of of at April a with double-digit in the so, sales, that's looking the comp you in in beer double-digit the that sales weather. the in quarter the same-store the driving were that had increase and April, in in the the beverage we significant category, overall grocery underlying

behind their should the weeks referenced of – May put kind all that in record. planting as that that the perspective, area, was into wettest on states of To wet is impacted across our And XX narrative, pretty crop. month we one significantly our in of May, with planted of in community be we a So it by in marketing by very the move and several it’s now. the farming May, regard,

that's commentary we And a that, so, in obviously, downward with and the had. of traffic the that direction customer part moves

the we've stores of but probably our stores, in area. delays. physically not also necessarily fuel It You product which have had the general some grocery significantly causes impacted merchandise market getting only the hasn't to that logistically activity and seen flooding but

outages. We have some

– certainly one of anticipate I forward. we slight a the But just would move month as again, So, impact that's May. month in I wouldn't

optimism gives forward. us some going And so, what that's

Bonnie Herzog

Okay. That's helpful.

Bill Walljasper

I that's Yeah. helpful. hope

Bonnie Herzog

you. Thank of Terry. want just to with luck I say Yes. And then, everything, best

Terry Handley

Bonnie. Thank It's you much, pleasure. so a been

Bonnie Herzog

Thanks.

Operator

you. Thank

is question Bania next from Our from BMO Capital. Kelly

Your line open. is now

Kelly Bania

questions. morning. Thanks taking Good Hi. for my

Bill Walljasper

morning. Good

Kelly Bania

similar to competitive Good are you're Wanted what morning, kind widening that optimization you. seeing a ask good and across gap opportunity your or if on fuel of wanted is a about more response region the is Terry. to any more you fuel I efforts is still see and any? your this kind congratulations. gap just fuel is markets – where luck front? little margins or of And – this your bit specific to Are margin competitors to you price broadly maintaining you or that there specific

Terry Handley

the be under this tell in our in them strategy response were not we is over Yes. to market-to-market prior fuel Bonnie, sold pricing within it’s In ensuring where competition Terry. a of terms we years, with identify and competition, more would broad it May follow I being we retail going from the our a cases price. a you particular that market that terms basis. of of

the the is the That the of of likely opportunities our market that stores were we was down margin we density holding with over realized volumes. time most one inflating were leader artificially those we and of growth, areas and that the reality stores number our and

maximize opportunity as for dollars an is profit well this of course us reverse to So gross organization. in those that to the resulting and margin, potentials terms as

will we the basis, market to money But gross ourselves day, town opportunity that's at And these to to some competitors maybe drive okay been now an market within fine. have market the to competitors all market we're understand and we're us and differently. particular In certainly opportunities here make react they've I the back that little – to say situations store we fighting to store, look and monitor of will dollars years, organization. more at some the town to profit a those within the will think cases a continue trying to end

Kelly Bania

the strong That's And really for saw like that seemed on fiscal the sounds kind April acceleration a prepared and and guess Okay. and in food maybe in same general between into like of helpful. year the comps upcoming the and performance this comps, forward curious divergence you're you grocery April and you an just merchandise wide as especially I look calling if quarter just strength in a just category.

And so What's prepared maybe not? really food underneath just happening within and driving help us that? what's understand What's what's working comps?

Bill Walljasper

Yeah. Bill, Kelly. I'll is happy. This be

to month think So, the of I still -- had with April. about you question a respect

all, and the ones categories. would first of would So any categories impacted you a on beverages time beer foremost you would basis, and the – the packaged significant the temperature have That are a that first expect. be differential time period-over-period any probably be you

respect to a that in the in actually mid-single-digit of With foods prepared we April, April. of month specifically month comp had

So we We acceleration track of definitely definitely that had in positive in an month saw the April. regard.

So behavior now be question fiscal in when that very as obviously tools is for start trying can at we Obviously, that especially out you the guidance regard. X% to guidance. looking when X% hope predict challenging, are to to you change in future, about consumer XXXX rolling your to effectuate to that the speak we

a food a you – this that's categories. the in than category rest so the prepared little bit why wider in delta get of And the of

optimization, in we tools And category, for the general general side as and the and that in – is believe side. margin. we category, have on we Now, when testing the But some there reason part as have well merchandise and success ability spread. drive the fuel did you grocery have confidence the price the of we already to that grocery look complete have margin that we you see the we fuel also at merchandise have that out had

prepared comp definitely where the have ability becomes a foods. have bit but that –we predict little more challenging to goes, grow we It believe in to that comp

of April. And e-commerce rolled Some us an mentioned, us that in the increase going out things to we confidence that average you that's platform we the as give here just to certainly ring. believe opportunity basket give

ordering more Secondly, another us with alluded, launched approach consumers base the that as Terry category. this our another to app touch for avenue new we well gets as – as mobile opportunity, in streamlined is to quarter,

the Then, launch second to we're loyalty program quarter. or in planning right now, scheduled the

We out. Hopefully, XXXX. course and the that every anticipate Food And that you the quarter comps year. so we throughout cadence move we at Prepared look helps ramp fiscal over the of sequentially of as

Kelly Bania

Yeah. as X about is that basket that Maybe there, mix-driven? that that ring, think – price-driven a is comps up of more to to acceleration or a comment that, follow Or that X is more is as expecting? you're about just we about or just think for your outlook, and on that we traffic ticket

Bill Walljasper

to mean, I both. definitely, a be going ticket. it’s we expect Well,

platform opportunity XXX% One automatic things say, e-commerce will the is, consumer. of cross-sell that the I to provides the

will go that you automatically So website when and a it or pizza on direction. that to push products, other order you

And an so that seeing we are in regard. uptick definitely

bit And early of going ring. both. But basket to be so it's little to be on, generated average the it’ll

Kelly Bania

plantings, us one, Maybe the mentioned farm the kind And Okay. your just of flooding. the backdrop, of economic maybe the consumer trade the income, help your and delayed just another in you understand area. state core

Bill Walljasper

increase slight we there Yeah. be might in Certainly this the has last farm the coming out somewhat over been of dramatic seen year, there’s down three but reports. that nothing you here The a income, calendar have know, income, years. outlook farm for as

this year patterns planning. in the we calendar and been not – far have that the conducive for so farmers had their Certainly weather the early

As weeks their two I behind mentioned, three forward. into are does probably to mindset a factor of weeks, their moving planning, couple the that and farmers

So, that to one ever-changing again, talked to we that's things those Terry continue need just of about adapt habits kind consumer to. of that

Operator

you. Thank

next question from from G Our Research. Damian is Witkowski

now is line Your open.

Damian Witkowski

the it’s Terry, a been all best. pleasure and

Terry Handley

Yeah. Thank you.

Damian Witkowski

of realized contemplate it on that you of have and does margin that share that for… does in fuel But and a terms changes And also, you provided? value on guidance just year what just the I question does. depending overall, sort losing market range what the contemplate some next for crude

Terry Handley

strategy share, margin in terms that understand certainly, that we want of in volume loss change the balance we our as identify and we Well, certain renewed strategy or markets find loss potential the there to will of increase. be market volume between a in but

market-to-market fuel So, between achievable the and overall, optimization we basis. that team fuel’s utilizing goal leadership, there and have will fiscal we believe that the we is confident opportunity the margin be But we're on those we movements tool, on XXXX well for what we'll of understand this and that effort as certainly this fact we’ll cooperative operations have, a as that on delta procurement be doing continued communications retail find as the the that market-to-market in side. store price both dynamics sides that

can't what We can going bring us well to team and as dynamics forget procurement those about fuel the forward.

In being environment, terms unless the don't of major in still I all really anticipate in or of RINs been RIN. right RINs hasn't and terms here fiscal XXXX changes any the now, there impact much an at of something change in impact

Bill Walljasper

million that a just Walljasper. in margin out of Terry Damian. finished putting question to cost This I'm I ask Terry embedded Hey, Bill couple We add things to $X.XXX so the of we the flow you dollars the RINs wanted XX.X of believe people just and for to perspective, kind that say. on mean $X.X gets that correct. a is say about the RINs overall year are fuel some margin. gallon. per you, to had exactly I is value flushed of the and and sold ebb think million what Thank quarter We but question kind in at had. the

Obviously in somewhat if the activity macro anticipating keeping for underlying and we the environment acceleration XXXX, look are you obviously margin fiscal at consistent. that guy

you that Now couple of question to respect think it answer category with cadence change your but could a moving forward. things to the fuel as the to about and alluded

coupled the advantage our integration price have about quarter, have system just to of where quarter roughly And back activity we this can that quarter. those complete we with basically so to price the here fourth and just first new the don't still we we sale second As that the automated started in move automate tool. fuel will in signs begin of we stores signs. begin the XXX point procurement that we with price into then We’ll

even favorable still environment believe to to an comparing. opportunities we're we We think the We we're very to grow definitely fall. be have be a We know comparing though going margin fuel in we abnormally going margin. have against opportunity that fuel

Damian Witkowski

realized wouldn't is guys off or he that plan place Darren I then he he in – because the is And but that on the still sign sign – doesn’t.. XXXX guidance off on started, you he did long-term Okay. hasn't have

Bill Walljasper

Yeah.

the had hasn’t of Darren know that board opportunity. He's we've an been inundated lot I has sent sent material with him. So him and a

going at he XXXX through know time. I've any and to I heard is comments digesting material. plan respect point So to this not that the FY contrary with in

Damian Witkowski

That’s right. Thank All fair. so much. you Yeah.

Bill Walljasper

You bet, Damian.

Operator

Thank you.

is question next Capital from Markets. from Our RBC Nattel Irene

open. now is line Your

Irene Nattel

the congratulations. of I'll Thanks. to Terry, my add Good chorus And, morning, everyone. voice

Terry Handley

an much, absolute Well, been Irene. thanks so pleasure. It's

Irene Nattel

we to items, need to practical Likewise. Sadly, however. turn more Likewise.

just I'm So wondering – yeah.

comes to always back Sorry, that.

changes what think On us bit maybe a the lies team, done how is. making, the through of about and it big historically, you fuel and acquisition little you where you're walk could just thinking kind how opportunity and you've it

Bill Walljasper

Yes.

terms of going, think that's I the where fuel In you're procurement, Irene…

Irene Nattel

Yeah.

Sorry. Fuel procurement. Yeah.

Bill Walljasper

a We historically, that rack growth purchaser Yeah. No. the or at Fuel there, have see basis a very again, there. we opportunities for think contracts. contracts. daily attempted is rack we been points a of great in limited exposure had fuel we've procurement, And pricing. the fuel And looking on certainly upside by

really and have just terms from fiscal – the terms to the and here contracts. you surface, I XXXX, scratch the of brought certainly already a company identified folks the we And of last half identifying they these beginning couple we've we're out if of the great experience. an of believe to outside back We've now had in during – impact will, needed the but that to team in team build

contracts, We current based through have the upward see basis believe, an improvement. on those we movement already contracts in established, points margin we'll and

to job as of well as fleet management continue out we how our We'll build as the understanding well. terms better in do a team,

deliberate we so of and of in being again, more a that how strategic here think just fuel. in being terms we our And do great we is, terms purchase that in there upside a little more

Irene Nattel

That's it a fuel. at brand – no absolutely this really though there's national to brand move to sounds plan you. perhaps Casey’s a helpful. label whatsoever of point And Thank as versus sort private

Bill Walljasper

that No, and said Irene, no, absolutely. I've terms a – we brand. a Casey’s on consider frankly, fuel calls and brand. consider forth national so in We of Quite before this

any with we And reason We we so anything now. right different compete anybody to believe see doing we in don't market can do than our we're what really wherever operate.

Irene Nattel

if questions, other of couple I might. A Absolutely.

other think about of difference card convergence, as that and thinking the your Just the of out particularly sort you loyalty out you the fleet opportunity in base? e-commerce for there's the fleet program that any some sort the ability to as the roll for tools, you card is roll in-store customer something and users? target Do of there there,

Bill Walljasper

path specifically to purchasing look digital and at customers, in as engagement the here guess terms at I look their Bill them and and as down identification start here, opportunities much that how can would we bring wrong in we're of I in on Yeah. the that I I and can value their our I'll go of purchasing jump But the going based to habits. them would case you Irene. maybe promote tell that habits to individuals

But customers. So, our as more I than certainly, to that opportunity fleet well. it's our to maybe customers there retail specific believe still there's

store markets. habits, they their structure we frankly, can a tendency, around small field build in they in understand their leadership we've and particular store level, these our communities, in purchasing know identified their what operations at And quite the customers, promotional certainly

Irene Nattel

one just current environment? And the if can might, you great. I That's address final one acquisition

Bill Walljasper

believe our tuck-in some a best of at being these acquisitions. Well, right us case-by-case We throughout terms have basis. and multiples to still what a on in acquisitions pretty area. of we suited I'll we we're call, book opportunities great now, paid that, And acquisition are, purchasing been the historically, are – business in operating some of environment, there look still have high

be disciplined. And we're say going will that. I to to continue

that, at and want to the don't brings going sure we day, believe we then shareholder an we out of will certainly terms and to multiple But acquisitions. shareholders, value that in we disciplined that look believe be that. it the some an our value at will is to have to feel make to continue And opportunity of to will bring acquisition of if walk away. approach integrate line, end that we of if make when find we size an if it's then We we do acquisition we we

Irene Nattel

I I sorry One then final And lied. one, you. Thank great. That's if might.

of sort some as there assess there and see inside the may how store in to side, on market abilities how you your think in you fuel your categories, move be as you well opportunities you shift the As we procurement do would go forward?

Bill Walljasper

certainly Well, that distribution procurement our purchase pricing. have utilizing truckload – items, to have to we inside and regards with ability we network our the on

a are We major national to the of supplier. majority vast our buyer

ingredients of side, the tell it I So maximizing to food opportunity pricing, to service we side, commodity terms the that that you in that's every making would are be when sure key. comes going

have you, – the fact I will and Darren know of attitude. I'm I same confident tell the that will

quality when not food sacrifice it our on comes category. to will We

we of the always costs look in of not but driving of will to to will out products, terms advantages product. We sacrifice do so quality that

equipment, an of a an we Equipment diversity at basis, at that in can we're in but always, is for job do but And look better to a certainly But equipment. for go we how may looking that annualized as in on the think we're damn pretty purchasing where good can we opportunity terms better another it, of where long always been our we I look we a change now. time, and will be procurement we've maybe in focus that forward need continued and forward. doing purchasing, awful terms us going be we certainly

Irene Nattel

great. That's Thank you.

Operator

you. Thank

question next Research. from Chuck Cerankosky from Northcoast is Our

line now Your open. is

Chuck Cerankosky

ready comparisons you wishes best some Terry, everyone. you you. retire. best fiscal tough And All to the good see the team it’s morning, as – to for Good XXXX. left to get you with

Terry Handley

Yes. you. Thank

Chuck Cerankosky

flow, talk sort of that about down, into cash debt going repurchases balance stock you could year, and expectations bit about Bill, perhaps sheet free pay thing? a the little next

Bill Walljasper

Absolutely.

As but to this over down, times I bit continue continue – X.X EBITDA. grow the EBITDA year will to will at downward this call, in of move currently we That a as primarily it fiscal that move we fiscal the to of we our year. pay course upcoming debt debt set anticipate little mentioned

things that flow. about XX launched key mentioned free drive continue cash is creation items that we plan the list in ago, this the on our one as value months was to of One of Terry the was narrative to

anticipate upcoming year. to So we this positive be fully free cash flow

on Now, debt. don't new with any point to we to have debt, any this plans take respect at

that shareholder any that However, ability the acquisitions have be to in value. up execute we'll we come of to drive say feel I we regard would on opportunistic type should

Chuck, it fiscal this past payment little due but of – is know, XXXX, you have million we do a bullet in August XXXX. $XXX a As

– And refinance we choose. I whatever confident so we concerns are we we currently looking And if we am no have at that. in that market

attractive. are And so more whichmake treasuries those coming down, markets know as you even

with along that for that. that continues refinance path I that if I we So as into a answers setting respect to interest your up ourselves hope questions. are tailwind head believe payments fiscal XXXX, we as we

Chuck Cerankosky

How about share story? repo? Any on that thoughts

Bill Walljasper

still But – bit X.X that, that opportunistic time share certainly repurchase we of I'm Yeah. the that extent it's Darren I you're want to certainly thoughts at at debt or not out think up speak on I over year Yeah. evaluate so my you're X for off when but makes to of perspective take the – it on but us repurchase. guess We’ll Share table. as free in to now not his when currently not thing and cash from share it's regard. share the one don’t a little times turn to thereabouts Right you sure the we saw we as repurchases. have flow. repurchase as in quarter any course this have fourth drive on will be do we results

XXXX you as moving from stand resources our value results value. fiscal the right I there so have and We [indiscernible] through really June this focusing But would on to keep and lot to so creation that as now that. out we’re to authorization continue updated of goes we'll plan a up say you are that see execute next do can an hard our shareholder drive direction and

Chuck Cerankosky

going to should fuel more on operations Terry. in What the a that back was quarter, of expect we And enhanced from the fuel perhaps question margin and fourth impact the mix for forward? this is

Terry Handley

in [ph] Product talking that I'll be jump in. we're to optimizations happy fuel? about

Chuck Cerankosky

it. to diesel to alcohol Yes. gas Everything clear more on from

Terry Handley

Yeah.

optimization also which would QX. fiscal price So on over the our course year include the of

fuel margin. roughly about points basis to You're the XX

Chuck Cerankosky

can that? say going is or you would quantify upside there anybody forward What is the

Bill Walljasper

Yeah.

product and look cycle quarter, about made won’t changes adjustments. we when optimization those third going until So, the and the we those over at second quarter on tranches we roughly when forward, depending

So, one we beyond. is to refinements again, continue diesel, to as we premium, have quarter, respect that of in fiscal share our for that’s and to changes. We’ll second out good those would continue we’ll move larger another a play product and cycle benefit and, might coming be XXXX be over and the in that into that mix a first with quarter E-XX look until

that we’ll one keep you so, well. And on as up-to-date

Chuck Cerankosky

All you. right. Thank

Bill Walljasper

You Chuck. bet,

Operator

is Instructions] [Operator from our you. Company. Thank Lebiedzinski And Sidoti & next Anthony question from

Your is now line open.

Anthony Lebiedzinski

retirement thank and taking you certainly, the well-deserved. and certainly and on morning pending for Terry, your Good Yes. questions, congratulations

Bill Walljasper

Thank you, Tony.

Anthony Lebiedzinski

Sure.

fuel. couple a on questions So, of

So, specifically? the fuel just procurement, fuel within as in is wondering your already there of already fuel you expectation guidance margin far any Are for as XXXX? some embedded fiscal baking improvement because the procurement

Terry Handley

this Terry. fuel the from Anthony, into the taking embedded we’re expectations Yeah. procurement terms is and account that margins. in improvement certainly, into And of

more and And so, continue move reach and to at year we goals thereof a continued we we’re fuel quite as confident adept become as – enhancements procurement we will for that those strategy. will work begin through we the certainly

Anthony Lebiedzinski

roads? about the there there of the should have And with late. fuel you vehicles driven on down as Got fuel-efficient also, that miles how fact vehicle are it. that. same-store more Thank mentioned think you for And longer out we here volumes have been term,

the longer into about your to also strategy? new term, volumes pricing way and what's fuel of So taking think account fuel same-store right the kind

Terry Handley

in Terry. such, electric vehicles and longer this again, the would Anthony, Yeah. term is road. that the that of is terms I you, down think tell I

near I that As terms certainly and the prominent, this very, be would with in term, gallon a strategy, fiscal the very is tell around approach, I approach bear is about think confident XXXX that the to of that right going balance margin results fact believe growth out. the growth more our we of you and from our we're

operations the opportunities we'll shape where And continue gallons, potentially can also, importantly, we those but can to our we cooperation enhance margin. team, grow where with in more as that as fuels find markets the – store importantly those leadership, think finding or tool just is retail utilized begins by is I and we're to the take fuel

Anthony Lebiedzinski

touch you the could it. Got your your if that. markets for Ohio performance of newer you Thank of and example. just like Right. for stores just wondering also in on some Michigan, And

Bill Walljasper

only new the Quite a Yeah. to in make well, face terms also market, to part quite we’re in and those on fuel provider they and being sure and will, a but street, And if value are and that a understand Kentucky, it's we Oklahoma, whether food it’s new that Michigan, that of their doing certainly we what frankly, markets grocery bring Ohio, being any of you Tennessee, community. need not community. and

of years And retailer that quite I'm proud that that just from a as into one is the make aren't we is over new have state we the move sure Iowa. of we we things the of – communities,

are always community that we and that of part a are involved. We

And make us to want stay, the to community. And that there we of that a that certainly we're so understand sure well for that plays we're they to part continues. there very and be

as us and certainly But – Arkansas. well for has done Oklahoma as very well

get a continue there a and to we'll thank So these new the of in store I out great done operations seem can’t about states and we're that, build front just excited enough job. states, to out with great job get those doing them.

Anthony Lebiedzinski

All thank so you Well luck. right. and best of much

Bill Walljasper

to Anthony. Good talking you. Hey. Thanks,

Anthony Lebiedzinski

Likewise.

Operator

you. Thank

Chris is Jefferies. question from next from Our Mandeville

open. now is line Your

Chris Mandeville

in of perhaps the What a that we bit? Hey. about down Good start, QX, were morning. food we now to margin and break your Bill, talk in can do costs stand in strength terms pricing? little the quarter where in locking chief and maybe

Bill Walljasper

Yeah.

So food margin. things that several benefiting the quarter, there are prepared we’re fourth

we another increases still July. and from and in took we the were again all, – of First retail benefiting that price May, in and then took we series

first. that's So

The a benefit the cheese all you're was fourth ago. in. in quarter the That $X.XX commodity year Second, compares cost – $X.XX correct. to price

the of as to XX And mix promotional about then So every a is the – a of get that's some XX product basis lastly, reminder, swing $X.XX little points XX more items as on bit about margin. points food higher a prepared benefit we is helping shift overall margin well. just basis as

kind that's a there. of So synopsis

think below it $X.XX, on about locking the our a in not currently on currently far last on $X.XX. as are year which all spot of $X.XX cheese, As in cheese, I QX $X.XX, market, we about about is which locked currently comparison we're was

still we favorable a So have comparison.

spot months decision look to three to has contemplated at made continue market will probably last very to see worked We on most futures we over for we results. and well continue as the to as you the this the recent four out opportunities and to can look buy with the respect

Chris Mandeville

Got it. excluding being What A quick one on grocery. just cigarettes? comps were

Bill Walljasper

XXX be Comps up where excluding cigarettes X% is going in point to range a from basis to XXX to range we – finished. well X%

Chris Mandeville

what marketing? increase notable can with e-mails you're I touch a your digital media little and on on then we've And a social you Okay. guess seen bit pretty doing posts.

and doing what So a was you Chris support be us might and team? engagement customer his provided give you else and maybe how affected of to how that sense

Bill Walljasper

Yeah.

to So support and certainly up can Chris stand we [indiscernible] key areas for team. his for this is many much as a as we're and us for so to of key area provide obviously one this

has kicked go off through. see reducing And number you that site, e-commerce April in clicks streamlined of our know the so website to we much to customer enhanced a new as here

we regards for earlier it opportunity mentioned uptick so a an I that. automatic As in to creates are seeing nice cross-sell,

as little at earnings now provide insight the out to early give the but right any call of it's certainly to that results here how some think a platform. we I next too e-commerce will

start give certain that commerce opportunities during doing us, that promotions of pizza and with running different with does some week through some with doing different of customers promotional we started to days that. we along promotional the that it start data along we special some drive running opportunities So on capturing our site

results, primarily. I'll in few respect you very we volume off-days a been a some what have typically we would those, have that of driving but successful so We’ve of only has would at what don't call in with least those pizza, to done lot seen expect of

launching will on. in a increase customers are and move couple is we types with the also fiscal this new of one mobile now the social you from because here QX, month loyalty engagement mentioned. as year, media but as see into of to Obviously I other the continue products, forward will app in we start an this engagement So,

Chris Mandeville

be innovation board on of little the me coming into thoughts quality? in on any then just on a preliminary bit how how Darren breadth being being service. terms food about actually Might final menu and product your today for the And mix but you one is feel initial here,

Bill Walljasper

into and with Pizza products. operation, you I last Well, is preferences, primary XX-plus very new over But been the in an new mean, this area to consumer as years. we've have food the product, that our know. states, prepared We've successful is blessed been very, we as needs fortunate very been evolve the evolve.

that with present And product that's diligently also I on packaging, to the know working is a maybe different to the in call, just a package lot product but different innovation, conference products. more starting a of Chris for products the ways next have and his kind under team reimaging but We'll way food priority around aspect service us. category it now. high right the in detail is very

Chris Mandeville

All working Terry, a enjoy It’s right. with Great. congratulations. Please been your you. privilege retirement.

Bill Walljasper

it. Yes, you Appreciate too. Chris. Thank you,

Operator

Thank you.

is next question Goldman Sachs. Chris from Our Prykull from

Your line is now open.

Chris Prykull

guys Terry, Good Thanks me in. for And, congratulations. squeezing Morning,

couple me. for a of just questions follow-up So

maybe guidance sales all cadence it fair in seeing about how it weighted particular. are of be On initiative does what some back you standpoint? fiscal QSR thinking And competitive prepared as on give an assume characterize from of from that? you're of for the it us And a your half same-store maybe Would to just more timing the the what update then given rollouts? XXXX,

Terry Handley

is you would I answer would see – the more that of first you yes I terms it Terry. tell back of your year. tell in fiscal the half will to the Well, the - part you of of question this that

end a we of over we very online jump As there's Bill of nice there. terms the a certainly here great at the rolled see has out just April. year just of a orders, jump upside platform – mentioned, in nice e-commerce understand And still very, while that actually, the deal

of QX The mobile app rolling is the in program out now then And certainly – is coming here in scheduled. right QX. as loyalty is presently

that the of the back sales. we So that certainly come in will terms where is of believe upside half year

In as terms in regarding might And the the to to the QSR. take of promotional sandwich perspective. terms well competitive will pie speak his of right whole terms going very promotion of continuing pricing we as It's are forward from that very – pie, competition, specifically our -- the that to I'm and assessment the relative pizza on something confident that how obviously I'll in that strategy in our look now very, whom whole pizza assess. we competitors a Darren faced as combos

So become is Everybody very market. last dollar. fighting it's a every competitive for obviously

right We're there to to that promotional want it them, but aren’t also topic. sure balanced being comes with we when the it's make overprescribed certainly we a that approach and

Chris Prykull

of which with is benefits if and three- Great. sort the mix that competitive could pricing get think second, back that how five-year dynamics fuel fuel layer layer of average that? you building C-store go you discussed you $X.XX, fair of guidance, then just between you when the the for to start you and is guess from about then to you then in margin some somewhere I guidance one on benefit it And That's the blocks the helpful. assume or to $X.XXX, top in earlier procurement margin I

Bill Walljasper

The short answer that yes. to be would

Chris Prykull

margins same-store think the then And and explicitly, and Perfect. of fleet between the ramps? last just maybe as thinking should gallons year are the progresses? about card more guess impacts, how I about the you cadence gallon growth as specifically fleet Okay. the versus we optimization, one how maybe the the interplay one, price card

Bill Walljasper

have great here, we the different I but I we present. somewhat in – our roll out to where markets we what a Bill program at would opportunity I opportunities will card continue those as of a in of But terms density. guess being great have Yeah. – especially see them may this, in opinion look different would on terms little fleet

there they look scale start half And see so that a back the we'll to where, will in becomes to to the certainly program in degree. more our base to that card fleet potential that with and year, utilize – we greater start start tune to as the the of consumer up

Bill Walljasper

Yeah.

ramping to there back up to also add launched opportunities As loyalty program fleet to ramping anticipate as card well, that, year to the the the Just in in universal volume. and half we addition the is some drive some up of

to mentioned half. believe an have to back we as increases Terry So from a in opportunity we path glide the definitely that

Chris Prykull

this helpful fiscal Great. luck Really good year. and

Bill Walljasper

Thank you.

Operator

Thank you.

Royall is from JPMorgan. question Our next from John

now Your line open. is

John Royall

Thanks So my far? answered past that one. competitors guys had the morning, questions of in Good and I prepared alluded in you foods, you're one in. maybe seeing me have for Hey. talk that’s you In can activity to squeezing by guys the have XQ QSR what just XQ evolved promotional Most quick been in about and

Bill Walljasper

competitive continues an for competitive. is area be This John. has been to very Absolutely, some that It time now.

we the totality. that category pizza some it of are of prepared is and Pizza into as food might you so in category. roughly comes the the seeing, fountain And activity imagine about half

elevate. pricing continues promotional And to our activity peers from in aggressiveness the and so

that. we continue try to so respond And to to

And mainly certainly of deem – to we so have are we are value we stores, QSRs propositions promotional our to in what top where what that area their being we also in to depending market referring respect but and our are that's that's cognizant on we're track also we're competitors our the activity more other proactive movement. so and be that their with there

John Royall

Thank you. Great.

Bill Walljasper

You bet.

Operator

back the over no remarks. this At I you. closing CEO for Terry showing like Handley, time I'm President turn to to further would call Thank and questions.

Terry Handley

by close Casey's value to I profitability and through initiatives, our for improve this the plan. and long-term would us to everyone call creation our accelerated morning position thank like joining revenue growth for our reiterating key design

believe day. growth return initiatives. shareholder on and of value. a will focuses will high record strategy long-term strongly This everyone driving prioritizing have the actions these continue of great that our be disciplined through combination allocation a Thanks, and capital profitable track accomplished We

Operator

Ladies participation today's the thank for conference. gentlemen, in you program. concludes your This and

disconnect. now may You

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