CASY - Earnings call transcript Q4 2024 | Casey's General Stores, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Q4 Fiscal Year 2024 Casey's General Stores Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Brian Johnson, Senior Vice President of Investor Relations and Business Development. Please go ahead.

Brian Johnson

you fourth us ended quarter XXXX. thank results discuss April and our for and morning, for to joining the XX, Good fiscal year am Relations President, I Senior Development. Business Investor Johnson, Brian and Vice Officer; are today Officer. Chair, Chief Chief Rebelez, With and me Bramlage, Darren Steve President Board and Executive Financial

made of Private constitute Before within forward-looking we statements the begin, XXXX. Securities this during meaning you remind us I'll the Litigation statements Act Reform investor certain of that by call may

statements other relating to forward-looking Form of realize including, or as disclaim of other report may any or integration any actions, uncertainties information, on to, views company's not expectations our plan any or plan, impact a SEC events, benefits known our cause Casey's the results to materially of for as of or annual future recent These on factors, respect and XX-K with in financial result opportunities related XX-Q our possible include this obligation most uncertainties the forward-looking business filed from which and today Form conflict future quarterly statements, made and risks, and during expressed strategies, the the to as call future reflect and or the future available our periods, Ukraine synergies, as of risks, are ability a duration update growth number to in our or the and assumed operations, statements recent current statements as of results strategic to and and statements otherwise. and forward-looking on but unknown on supply new reports strategic governmental well are website. Any factors those revise and chain, needs, forward-looking described and events results that whether acquisitions, performance or intention differ our with future plans from the stores. There to limited related at execute integration by and implied conditions, liquidity sources our actual

non-GAAP in be A Relations expense at breakdown referenced measures on the the quarter the www.caseys.com can of our call reconciliation well of the under to website link. as financial detailed the fourth operating found increase as GAAP for this Investor

With fiscal Darren to that year now discuss said, I like the turn over would Darren? quarter fourth call and results. to our to

Darren Rebelez

Thanks, good and everyone. Brian, morning,

by record We Casey's are begin commitment our outstanding and to excited team for results, and to fiscal thanking year. I'd XX,XXX another achieving share in like members their our first effort

on that plan the their our shareholders. the first back we in in never strategic to our been have our confident we on team deliver of made look year X-year out to more commitments plan ability to June and the XXXX, As was of set I execute

communities to better impact the here feedback is in the Casey's and the guests for communities. have we and day. make our guest positive That's and every delicious our purpose, life we make our shows food on we received, it

$X.X million year, communities. guests, its positive make to members our over to team able generous fiscal and This were with donate a along in impact partners Casey's,

future the to [ the to year, additional its charitable to in In addition, strong thanks ] $X fund direct performance company million was donations able funding in this for years.

this services Our our you need, helping in and supplier nonprofit members, community-giving Thank our to partners recovery of and our to and for schools disaster programs all possible. provide those families. improvements and meals make fields, team their sports for guests veterans and support

much so what do to we country. call proud good are across Casey's We

in the from year in a same-store Now Dispensed X.X% a XX% net of also share, with Prepared The diluted category, sales $XXX the XX.X% were from results billion Beverage basis, for was a Food finishing increase prior record an company let's year. discuss basis. X-year generated X.X% exceptionally or 'XX X-year up results strong $XX.XX, per the EBITDA, at $X.X year. the of past up year. stack a Fiscal fiscal XX.X% increase million record on stack XX% and this prior income earnings and on Inside in or another

performance and with points XXX a We General Inside well, Merchandise X.X% have excellent up as testament same-store good to a basis. margin or X-year XX%, expanded in XX% on Grocery basis sales stack year-over-year a results to well both nonalcoholic value our beverages. slices, while still as We guests. volatility our of handling strong for as alcoholic in maintaining approach and commodity proposition pizza saw

refreshed X%, Our with profit X% our sandwich with pizza of gallons thin total year. menu, over gallon food course a exceptionally crust the team margin job Fuel averaging and performing sold fuel $X.XXX fuel the great both and well. gross per innovation did up the was up

fuel take while margin. and continues of market Our team gross the maximizing dollars with share to volume fuel profit balance

only a operational by favorably hours on the focus fees, same-store X.X% Our up dividends. operating impacted efficiency expenses, pay reduction card year, continues were Same-store excluding of labor X.X%. for credit to of

driving This hour The quarter efforts scores same-store marked while operational engagement an high, all-time store hit consecutive eighth the scores quarter that labor or fourth way. team done and guest same-store our reduction. member showing was -- teams sales satisfaction efficiency simplification the excellence of improved right are and

XXX excited as a those and acquired of acquired XX we state. priority more into were XXth built into were fiscal we're And Casey's for Texas, also expand bring company, was of all to 'XX. growth XX footprint able Store we our as our new in market. to capabilities stores stores our high the in that

great business acquiring year. the stores both grow of every We way believe our two-pronged is a and approach ratably to building

exceed on or new XXX at way to are X-year least meet stores. well our goal We our of

a where during in challenged and Casey's been strong the broader business retail The uniqueness, of fiscal time results has advantage strategic 'XX industry the durability illustrates model.

to turn to quarter call for like to Steve? Steve the fourth outlook and now over 'XX. discuss I'd the our fiscal

Stephen Bramlage

Darren. Good you, Thank morning.

results like and we quarter possible year a have make hard the whole the the their phenomenal also for take The and Casey's to financials, to moment work for and I'd outstanding the entire the full remarkable to the it accomplishment dedication. are team that their Before I And members recognize get a due organization. financial team.

million, as during fourth from the Now nearly basis Total XX.X%, which one an diluted I'll year. outstanding, full average with impacted year inside operating up of XX% quarter, year year. those Food in points. fourth gross from total now due prior $X.XX, XX or impact prior for And Casey's rose the dollars sales were dive points. $XX sales the margin the a from million results. Total Beverage million and $XXX for further EPS approximately $XXX $X.X This the million XX.X% to additional and year. an the to Prepared results by was to million, increased that's $XX.X Grocery billion, increase total XXX prior sales by of same-store a Dispensed therefore financial General to quarter Merchandise results And as increase XX%. XX% leap by resulted The rose the profit had The increase into of day $XX.X was basis reminder, quarter XX%. and approximately an total inside

basis the per from Cheese basis points. margin Margin some approximately the benefit had by modest from this quarter. average pound down up well sales ago. Prepared Sandwiches year year and Dispensed X.X% XXX points and Hot and quarter. XX to Same-store adjustments the price from benefited for were Beverage XX in the up was for quarter margin. were a an The Beverages Dispensed basis the Food XX.X%, costs $X.XX prior approximately point retail $X.XX, performed to

with XX.X% same we Same-store nonalcoholic particularly beverages, margin a Grocery and basis experienced towards increase period and General from pack XXX ago. mix up X.X%, were Merchandise shift was favorable points an year Sales the were and category. and smaller the sizes of alcohol a in in our alcoholic average strong the

cost growth to positive Retail label our the the price margin the and adjustments, goods were of private all of contributors quarter. management for program

fourth last fuel approximately compared $X.XXX gallon. with X.X% sold per That's period the per the up quarter, $X.XXX fuel same During year. up of same-store to gallons gallon margin a were

basis data volume Our several by points. hundred same-store relevant geographic gallon outperformed OPIS

Retail million, ] retail offset by in of were decline was $X.XX X% the price year to quarter, $XXX increase total from in primarily fourth the million fuel and average up X% fuel gallons [ $X.XX. to a partially last $XXX a to the sales in due sold

quarter. Total ago. year operating the X% of expenses operating fourth increase were Approximately that a in XXX is due to up XX% $XX or than million stores more

an Another and X% same-store is member And Approximately financial of costs due to finally, the a to for accrued discretionary was increase the employee bonus. giving to team X% higher in X% the increase the strong increase expenses. incentive charitable of due of to compensation related performance. approximately special was change due

year, for prior quarter quarter the was an to million the of up up $XX our in primarily Net to $XXX year an million, the $XXX the was income stores. [ versus of increase $XX.X due versus XX%. million XX%. (sic) EBITDA increase ], million prior $XX.X million, was Depreciation

remains had have due liquidity we we coming flexibility. billion. no XXXX. total sheet available $X.X balance and XX, maturities condition, in have Our April we ample On excellent until Furthermore, financial of significant fiscal

to is is we themselves. X.Xx ratio they senior investments strategic our capacity continue to leverage calculated accordance And have Our as good with EBITDA. make notes, in present sufficient

free flow. company points XX.X%, of For million. year brought at our prior in generating of and year $XXX million generated $XXX of $XXX capital equipment for free net activities finished cash cash up quarter, flow for XX Return that's cash from less This resulted the on purchases total the to operating year. the fiscal million, by invested the property of $XX the basis million

been Directors share, the increase. meeting, June increased. that has the $X.XX the At dividend That to the the per year to consecutive voted XXth XX% marks dividend Board increase a of

million the also to total quarter, bring share we still $XXX on of the million stock the During the million, fourth have to authorization. we remaining year approximately $XXX for repurchased repurchase and existing $XX

will remains EBITDA accretive investing growth Our regards but ROIC and primary we allocation in continue repurchase. to capital priority be to share opportunistic in opportunities,

outlook: following at the X%. We least providing to XXXX is company The EBITDA increase expect fiscal

be same-store inside to fiscal to X% between to expected increase gallons fuel inside X% same-store positive sold negative company expect approximately and margin to X%. X% to to expenses comparable to The We XXXX. expects Total sales are increase be operating X% for X%. to

M&A add construction. to store fiscal XXX stores through of XXXX least expect a We new in mix and at

be year. our guiding a margin EPS providing approximately is not fuel expected to million, tax expected million. $XX be rate $XXX and to of is property $XXX XX% be CPG and estimates. expense equipment interest be we to expected and we're the for are past XX% the amortization figure, nor million. to purchase practice, approximately The Depreciation expected Net to is to approximately Consistent with approximately is

up operating annual associated guidance,range was fuel Finally, and versus builds. prior expectations. margin gallons same-store modestly Current expect year. sales prior-year were low as the to per be and to consistent Fuel first May our depreciation CPG and unfavorable the and the in same-store quarter was expense quarter our $X.XX low are first digits experience follows: with May sold double costs be both for gallon. new cheese And timing up we the mid-teens due store lapping with acquisitions to Inside

I'll to back over the Darren. turn call now

Darren Rebelez

All rigtht. of and Thanks, plan. effort congratulate another the is Casey's our executing and team to result the year. strategic performance X-year the you I'd a Steve. the thank record team like for delivering say The dedication financial to entire tireless of again

efficiency. of accelerate units of number we plan grow out and laid pillars: business, had XXXX, X in the The operational the June enhance food

are We to of an on these excellent off start each objectives.

in industry, the the right value business, XXXX proved convenience that prepared is right in we Our for differentiator most the which our fiscal innovated products significant Casey's have food at guests. store

out up sandwich for has to for a of as that XXXX, guests, Thin ] rolled a meet has which a offering, [ the shown menu. financial lunch This that relative staple pizza strategic part entire well refreshed on In our launched June their in has day our retail needs as value we pizza being And a of we innovation results. in to the ensure become family allowed price are occasion. we Crust the us XXXX, of calendar platform

lapping has inside plan. fiscal up Food with a consistent sales and we Dispensed sales growth been XXXX, strategic Our has year. as during fiscal Despite in Beverage been strong same-store were expected, same-store X.X% the And growth. pacing Prepared the that

commitment number Our start. to of is off great a growing units also the to

XXX During new XX new another for stores. bought and of a acquired stores the we acquired fiscal total year, XXX and

adding least of the are We stores by XXXX. XXX of ahead our end pace at fiscal for

case be gives approach freedom in to we in with opportunistic strong history. was fiscal allows had the and Our us to two-pronged second acquisitions. build company's That the flexibility XXXX, by, our the acquisitive balance our us the sheet year most where

XXXX business efficiently. the more Fiscal trend of operating the continue

done a engagement. efficiency while excellence identifying operational to guest and areas satisfaction team team member job simultaneously Our store has improve tremendous improving

Two happened at provides of production data the voice with the inside certain production planner on or highlights assistant from planner the and digital quantities to the our kitchen times stores foods day. what digital fiscal made AVA. of clear prepared the with be the automated throughout year need The

work and efficiency team members and order enhance the can in answers great what the the we're AVA done, not continue phone takes fiscal they is the and to is food. do on so kitchen which work operational The team's best, in excited making beyond. to 'XX

has X Rewards Casey's Turning to the over members. million now guests,

for per guests more rewards win-win the gets the both store is trip, rewards joining the As visit program Casey's. frequently a and and spend more

Maria to partner Moats XXXX, is her role highly to like Castañón is and from experience. X. XX the years Directors with she Ms. XX, Board PricewaterhouseCoopers on financial of Moats of as a expert also over welcome Castañón a July retiring I'd June effective at accomplished

join Most tackle which and Boards, toughest Maria management Center, served challenges. We're excited strategic helps Board. and Insights today's teams recently, as governance PwC's Governance to leader of Maria a investors have the

look fiscal forward I'm of and Casey's. we future excited very XXXX about As beyond, the to

financial our the execute people value. We leadership resources, have shareholder and team drive strategic and to plan

your take now will We questions.

Operator

And [Operator be Michael from Montani will question Evercore our of ISI. Instructions] first coming

Michael Montani

results. Congrats on the

gaps night some And what that out seeing trying like sort kind could, food of the or of doing to and fast wanted of newness in your of prepared today all value are drive you you're whether of second week discuss with do you win it's to if Just the competition? LTOs I innovation, terms a if there to pizza? meals versus in you can ask

Darren Rebelez

have go the of cycle. bit ahead, it's the we lot the that, we've that through Darren. we taken a approach And last restaurant say probably what price over price years. measured Mike, little try think I value, taken to to the it's industry respect broadly Yes, to restaurants in I'll like been With to seen, recognized of couple and a we've more

had because ] will we come value commodities run the commodities took and as So but know on we tried that the to relative try down. gap off, all and price, keep didn't to price consumers, pass back -- we we and some [ to inflect

value see as and margins ourselves our to bit between has continues start that foods. a to But And competitors. now, little we our prepared improve happened on gap more importantly, QSR widen that

we're And and Casey's for value the into so what specifically is proposition. that people trading seeing our channel

remarks. mentioned In the of the of terms I a in couple things prepared innovation,

definitely that the first within and giving targeting them wanted, achieved [ a be about mix The just mix. was a XX% were And will launched last category we a ] before. And was we that consumers pizza, that -- year. product, different have Thin on we this a about beta pizza and it's that time Crust that that

around innovated we've that. So

been we highlight has But program. chicken able we What passed a by And some the the sandwich of the of the price. to all quality, upgrading is also quality revamped sandwich, our probably upgraded added we do sandwiches. on and those lunch spicy crispy we on were then show

first the been ] for prices has So that category, we in quarter. [ XX% up subcategory raised that

in And Prepared guests with Beverage so these driving the Food products Dispensed have category. and really been resonated the performance and

Michael Montani

guess that I inside around could margin comparable it I if store. could, just follow-up, the the be was for commentary

about cheese definitely there, Steve, takes if the mentioned the just and spot wondering, you of can prices. I'm or you talk that some you So see puts Darren

year? course think the of to how over the about Just that

Stephen Bramlage

Mike. had is I'll improvement one. Sure, start quite about. bit that our with the over a course We of margin talked Steve. we fiscal of as This 'XX,

holding so is the it to like prudent probably for on feels And out gate, us assumption the of that make. line a

is the us. a I side puts business, the of for and that when And think takes Grocery on the contractual business of

need good We've preserve price margin to likely that we're to, business retail where in have in inflation -- already 'XX. the category. We to that occur a pretty adjusted points we in of fiscal sense

as so on think goes be pretty business. we And side steady that Grocery good that, she the the I feel of will

points food conducive. of looks a the looking little the bit on curve lock of that about headwind us like now, the in a a first then business, in moment, our buy for year-over-year We're modest And is hundred a that's prepared cheese quarter. basis at that couple lock a on basis, was got But consistently the of and further as more we just side to the -- not us We've headwind of X/X of quarter it out. tailwind. cheese go right for

remain other some inflation. exception I commodities, The favorable where still of with would certainly [ say, beef the we see broadly ],

put be the that it Darren our gross way feels to that the margins. desire dollar maintain to us next try you would year So like with together, growth all generate fiscal along to value for comparable target proposition in the to profit referenced best earlier,

So that's what we're doing.

Operator

our from James. Raymond coming question be And Bobby next of Griffin will

Robert Griffin

congrats from a quarter. Raymond And Bobby on great James.

First on see, -- inside difference traffic up, the I just and out just general? it the throughout store ticket just prepared of and the inside in you or quarter curious, on kind quarter, so little wanted the a food track to color results how ticket even between a Really or business strong moved give traffic could break this basis?

Darren Rebelez

Darren. Yes, this is Bobby,

quarter. over X.X%, And was up was average of ]. traffic then ticket the about the [ the Our X.X% X.X% course about up

for gets quarter our the effect. year comp what to that's ex you leap So the

Robert Griffin

kind on of follow-up there. balance more guess, I high my just Darren, or And Good level. question second the is

you Or of there opportunity Reward a as leveraging journey pretty You now kind profile big there? like close incremental next larger? that? on the that of over of it thoughts more is of couple X still that guys on member any curious, your members. the trending are years? just get to million to benefits Where are around Just continues Is

Darren Rebelez

Yes.

Our a continue most as we to able million more one-to-one consumers lies activate digital up program, team done X that come. there, in they job you has a spend get visit more that mentioned, when for the Rewards store we frequently, in opportunity the marketing. Where building being profitable sophisticated members. in is more And to They have. they the group great sure, real

that some still today We being individual of their terms to room to we influence do and different of an go reach with in of to able a start really bit that but have seeing patterns cohorts, specific actually to purchasing behavior. buying out

team So our that I speak. on do there, still runway working some meaningful as -- and is think there's actively but we

Operator

question Bonadio next from Anthony Our Fargo. will Wells of be coming

Anthony Bonadio

to 'XX context guidance of wanted initially clearly X I quite ask Year of expected. about the of ahead the what X-year plan. in a all finished fiscal bit us

likely pull-forward low can was given the the there plan, versus right multiyear just business about understanding rate how end thinking change of of level So And Year you growth what your talk 'XX, for that some how momentum about, why you're now? right the two, one, achieve is X you in in the does X? performance by Year the then CAGR can ultimately

Stephen Bramlage

would feel statement have Certainly a well. gate to we highly confident about of speaking, what plan. -- year us of prudent results I'll an look good This to, of feel get We right? There's the with to as of consumer in, light concern, a ability books our and value that and start there's the to number is that really ability for that situation. We to course, consumer that consumer we've Steve. first some of pocket the got most deliver had that. Feels buy like. and out coming proposition health good in the into around those broadly influence the

our feels But continue And us X-year our really have. the sure. it We helps we for the to for it strong regarding right I confidence that level, like it's plan. plan think out number own strongly relates destiny the just to of start X-year the number, That to gate control achieving feel

over momentum plan, in the the growth But we're whether same-store good broader years. I have exiting it's the the the and driving we year consolidation things growth are feel around strategic that think about business deliver or to and of first the in new against the sales mothership available that we us that dynamics industry plan that our of levers that the next to really side ability opportunities, couple unit the

Operator

Katai next will our coming question be Deutsche Krisztina of from Bank. And

Krisztina Katai

you And Congratulations saw on quarter. very adjustments that retail sales. to about on that you ask price talked you modest that about -- last talked Grocery wanted and strong sequentially acceleration took know I that results. you I General same-store some Merchandise

now segment to just the in retailers play how higher announce have ability And to to So absorb how just see prices. this you out you to many consumers' thoughts wanted I'm asking get year started for the continue been context rising? do on in then, food promotions your of balance And as price that the cuts. see that dynamics the have of

Darren Rebelez

I'll is Krisztina, go this ahead take Yes, Darren. and that.

been taken inflationary have we again, haven't aggressive taking throughout price year. overly price entire And this increases modest some period. this on We

you inside Merchandise subcategories X%, if the the General look the So, and tobacco, been has outside Grocery inflation X.X%. of about at

there, some So and price. it's that inflation significant we have of passed not on

as our income only base, around upper-income consistent store they normally They're about still lower just [ the continuing guest to to have. with of we're pretty behavior continuing ] But buy little X/X seeing they're the moving which bit. buy. They're The is consumers. a consumers, a

store. has year. this strong been really -- example so simple basis, and lot business lower-income Fountain price And Drink more and is Soft on per a our a our that, that's is ounce among affordable can buying especially version inside And consumers. bottle the than the A last

just flow and decisions, forth purchasing. and making between still they're back those categories. They're So different

because has from this reputation is purchase. on for frankly, value discerning environment and us able our they about and good helped buy can They're that for a for now, little the us just being it. that's occasion. people money more seeing resilient And think overall right to the where we're they a consumer what rely what pretty where I being But buy in value still

Krisztina Katai

data And follow than have margins, fuel which Got what what the it. I came just could OPIS in your would can maybe about up on you talk from if markets suggested, in curious better you up, I'd And perspective. that significantly fuel gallon pricing the put growth hear industry of same-store also the as a to well. be which context in margins outpaced the strength overall of transpired

Darren Rebelez

I and Yes. in is say fuel and a costs I in is managing volume. thing margin fantastic fuel the quarter, balancing the guess that Throughout the would team our pricing doing job we quarter. increase the wholesale had through $X.XX

little and So in first months come then to down, started of a bit. couple thinner. so saw the we as expand quarter, the to the exit margins were wholesale margins April, prices a bit And started we

But They've consistent approach in team. balance. reacting really have a to in that fuel allowed fuel very I just that of been of very nimble to lot would to us credit and their wholesale terms keep competitive give our and dynamics costs

be positive to to needed able where margins the drive those gallons the course slightly and quarter. we been to still we've so over incremental maintain And of

Operator

our question coming Kelly And will be Markets. next Capital BMO Bania of from

Kelly Bania

Wanted low-income just ask the Kelly about is This Bania. to cohorts.

quarters, was think cohorts. coming about from inside fastest the you I how in recent the low-income store talked growth the

is attributed guess, of was if value that. wanted check in that I But just maybe still playing you are your that that's dynamic And just So on changing? kind I out if to curious positioning. seeing or to

maybe you does some within competitive? about get there's it as plan, value the some QSR just QSR fiscal seem like are also, Because more think more more expecting challenges space. the you coming price to And there 'XX then and

your in respect what's that? with plan curious, just So to

Darren Rebelez

low-income just making difference are Like that some from there's there. They're I they're Yes. purchasing store, strength the wouldn't to different seeing say coming we're Kelly, mentioned say I guess but previously, buying. they I still store. the I'd a consumer. consumer, inside purchasing the still decisions still on

the are some With them accelerate seeing certain purchases we consumers, categories. higher-income in

higher-income in they're the Hot and by Sandwich platform about primarily consumers they think that in mentioned new having we that that over XX% I driven QSR, category. to category. And down but the That's are being growth launched, us. trading we're So from trading I

we're so strength seeing And some there.

to ] higher nicotine are more skewing pouch the in see you and Zyn some products, likely income. also the They're so those the of like the alternative [ buy more others products marketplace, which

strength to sides, seeing the I is short we're both question. guess, on So the answer

] going With value there's an QSR Certainly, they're couple been that to have burger thing. larger a little of competitiveness, players respect with get on that that combo and a aggressive to it's [ some sort said of sharper question. interesting offers

places turn I is But industry franchisees restaurant a a or it's bag don't of of lot trick the think a those levers and franchise because little bit primarily business, a have to to other menu to pull that's years. to seeing expand you operating experienced as the why absorb as prices a of have. last cost the inflation they've are that over lot of high couple And they

inflation able in to franchisees and to So you have they haircut a their really be if their restaurant prices. absorb the scenario, drop take really decide can the in that -- to profitability

So really I don't happening. that anticipate

been think -- these if some a promotional see for But what activity spurts I term, of with that's time, to the starting you're sustainable some see their the doing. have know given I don't what guys you'll which is very over at franchise think I of now dynamic. month a long

Kelly Bania

also to That's very ask helpful. a I just fuel little wanted just about bit.

one, the an quarter? the maybe Or that fuel it is the on then of timing and motion. getting strategy how the really just arbitrage number into And how kind of update margins? diesel in did Just impacting fuel

Darren Rebelez

Yes.

Margin in a has seen pretty of side, exact hanging strong, kind lot industry but overall. of And in volume. that's been construction of little don't have softness diesel fuel really that little we've of to bit On diesel has a the bit. volume me, was do softness number there. I the a demand off right dampened front the in for with of in some

before executing we but just verbal on We begin haven't some qualify received executing paperwork -- we to With respect waiting the just fuel, on we approval, start paperwork can that just need all about upstream for where we purchases. permits. that, the to And frankly, we're activity procurement we've are the ready now. filed for to

imminent, it's on up. shows say, paperwork I'd when that So depending

Stephen Bramlage

profitability, I during in in what our terms has gallon more a diesel basis change historically our on that's been. don't a would experience for quarter just quarter of significant the add, couple of specifically a think pennies us the profitable from was, experience gas but I diesel's than

Operator

will next Research. Northcoast question coming of Chuck Our be from Cerankosky

Charles Cerankosky

everyone. be about for to quarter. getting talk Can to months? you the need morning, store bit and over and your IT doing growth XX further costs? you distribution maybe considerable. with applying trucking been streamline to forth The Great little Good Any centers? bigger, next has company new so routing XX a might is What logistics

Darren Rebelez

at this can all stores distribution in our point, our Texas. Yes, our are just stores X includes of stores that added of centers we out supply the where located, existing Chuck, recently we

So our we out DC. Joplin that handle of can

so we're without operation and DC store comfortable very with our right having moment. And the to add ability at another footprint scale the now our to

no there. So challenges

of going the we stores. planning point, more a inside and warehouse sophisticated supply this primarily into to procure on doing a And little at [ on get we're work the more outbound the products side on lot them demand compound to as as the ] chain, loads well the how IT of side the bring

behind chain. come that there, to more of supply side planning a of we're our lot effort and energy putting but the So demand

Operator

Next question Tarlowe Jefferies. will Corey of be coming from

Corey Tarlowe

do for, mentioned to you stores much the reduced straight quarters. you in there think labor now opportunity believe, this I think, drive is more I X continue efficiency in to fashion? been Darren, How hours that, have

Darren Rebelez

quarters of that labor is I said correct. hour Yes, same-store X declined. Corey, consecutive

hours. year We have another plan in same-store decrease our built into X% labor this

sight the expect 'XX of to happen we have same over to do So I fiscal think And able we of to being thing. make line the year. course the that

want the either I or cutting thing it This work team, very being that is I work of of we has And been out not done improvement a the and store or guess this in outsourcing so ways emphasize to that's is moving upstream finding that altogether it strategic store. and get limiting analyzing our so just the hours. continuous really with it

hours a giving savings, store bit translates obviously great OpEx the form which back little not bit we've out food so taking of also members a in successful easier the take And of it store. frankly, working the make very better stress to little the been in team slack, a experience, and makes guest out, deliver at hours just only for of into which but

great been that, do because is easier. it's job as we engagement is Team about the what's member And it goes up easier.

team Our they much jobs much. overtime. as spend over don't we longer, they over get and their turn don't When they as in turn much, members as better at training don't stay because

scores satisfaction down dollars the fact, in go quarter Guest year-over-year. In XX% training up. fourth were almost

really of a execute. of it's it cycle. taking that team the complexity members our is virtuous the out root easier of store So all But to make and for

a and make. we've progress really we're the to have of with still happy we improvements made, So more runway decent

Corey Tarlowe

wanted very follow I That's your some label. And for to it. private you've that just planning this within business? helpful. up that that year, Got are expectations segment? on you recent successes seen What are how within

Darren Rebelez

Frost Trail And the contributor value for behind ]. got good opportunity and continues recent in we stores our label Cheetos say, bourbon. and be Gold is [ to successes Vodka the of for with Vodka #X become guests. category private us our the liquor has a really Silk a one presents more actually, our Frost and I'd vodka selling the into Trail Yes,

a So story. nice that's been success

team categories. the continues The across to innovate

be getting assortment XXX private label, to development. premium offer. now, offer another a XX with or the And about value-oriented of so in the that products different have right or under into continuing evaluate ways is team more tiers more whether We a of

but So next label portfolio level. actively private to to more on on is the evolving our team working the come that,

Operator

next from Royall question John will be Our JPMorgan. of coming

John Royall

you about on of new build is, think fiscal how in mix helpful. store one just we acquisition any additions the that would be about Or XXX-plus store the 'XX? is in the first talk that can assume accelerating? CapEx increase versus should in the we portion The Should color from

Stephen Bramlage

John, this is Steve.

at it's the is Our assumption XX-XX, moment right. to going be

new total units, 'XX that shade of FY 'XX. of new builds higher proportion proportion in we units the towards had and that FY in terms In would a

PP&E more new XX So associated units the that in there's we a spending versus 'XX. FY with little had XX

all we activity. our the remodel to remember of stores But also with acquisition associated continuing

a stores. acquisition actually closing into and those And so capital an putting between there's lag

baked kind ] more of around [ NTIs there's activity assumption well more but So as starting there's into slightly remodel year-over-year, that PP&E.

Operator

Capital from And Irene of question Nattel our Markets. will be RBC next coming

Irene Nattel

of couple follow-ups. a Just

can on On the label penetration, private piece, update us current you please?

Darren Rebelez

gross current and a up Grocery category. goes around we Merchandise General about if XX%. And beer, and don't of right that categories XX% profit from that to penetration, the Irene, we is perspective, like Yes, dollar exclude some participate in, number tobacco

at is So this moment. our that's penetration where

Irene Nattel

of some then for product F consumer to you and what the And the taking environment? 'XX development you great. offer types pipeline, if sort pressure you just the together sort new piece, just the of spending innovation consumer into are of, account as about products will, think tying 'XX, of piece That's pocket the sort current sort degree the books of to right on of

Darren Rebelez

spend on is of private innovating prepared Yes. our Where and really label. most time on we foods

the especially to to national alternatives of those of both as the QSR, just naturally to categories So a relative ] proposition [ kind may guests, or brand case represent very be. either

what So, guest a appropriately of first. ], right then other normal focus for of alternatives. as is to we price got tends the the a matter at looking positioned versus from course, is value a on perspective pricing, level to product what product right just we it quality [ we better and And be do the our as We much have

then trying the not possibly as to overly certainly product conscious good trying the we frankly. we to because we're for win it but with value value, accordingly can price quality to are and cheap, believe we make be the do as proposition. we We're of So can we overengineer

Operator

And from Lawrence our coming will next question Benchmark. John of be

John Lawrence

Rewards a little there. how We'll talk rewards speak the somebody the the spend changed engaged Great quarter. has in that's over bit just about on to and that and couple you -- last somebody about difference Would for start not years? of really Casey's and program that's versus

Darren Rebelez

guess are some -- using our form John. of guests are is start Yes, about rewards, XX% I'd With where I using the program. rewards

of have when they -- more they tend frequently, to transactions account when non-rewards more versus a spend then tied and to rewards our visit they So spend about XX% XX% they -- they more it. They a member. visit

] get more and more rewards program. to So benefit accrues [ it our people into certainly that

really been new almost since a members the And on we've about over last inception per of XXX,XXX cadence month. -- the

give XX%, to stand that here we over where that, or million but about a we rewards year still X as a a little And So with today. that's rate sit trying take, pretty engagement We're that's good still grow come the number. program. into at

Operator

will from of Sachs. question be Herzog next our Goldman coming Bonnie And

Bonnie Herzog

margins. I had a inside question on your

could this but You that flat are I year. saw strong expansion touched tailwinds this or you on cheese year. guiding be last costs, but And of fiscal just other be we year margins highlight any should headwinds hoping mindful to know next you

Stephen Bramlage

This Steve. Sure. is

points adjusted side across Grocery We've increases the the I We couple on going lot think there's specifically, a It's those retails be. referenced that generally basis what a us. that of know for of pressure cost ] of that's business contractual On category. business earlier, margin. we've Again, a hundred think not accordingly. I to are [

priced ] to So preserve the I side. think [ Grocery margin on we've

a headwind, prepared of speaking, on broadly is a side, foods yes. And little bit cheese the

little proteins bit I aggregation a of tailwind. the a of think is

a the tailwinds. for So modest us, almost are proteins all but beef is up other

So end we now kind comparable speaking, and know what up we generally ] [ I that with, on out think of washes year-over-year. based margins

Bonnie Herzog

question but lot you And asked guys opportunity biggest see as you guidance FY today, where you upside I guess, the your where for to do see 'XX as sit well maybe been and a has me. as risk helpful. to -- That's big-picture your from maybe in Darren already, the and I business? here Steve, Okay. biggest know a

Darren Rebelez

side. continues operationally, good entire that across I terms the potential we is get mount a have be lot And the those normal continuing we of challenged Bonnie. more biggest of But the as feel that have to see Yes, I'd on about into are I of we and upside a industry we operating to operators. think mean, environment, opportunities. business, the we more the on momentum as M&A pressures board. in say the store velocity smaller growth

say larger And so on biggest can benefits transact of probably that have would that in step-change growth give and some I we all that. with store opportunity course, us opportunities is single a the come if the we our

because risk from and standpoint, been maintain at able in consumer really think we've where say consumer, for I get is the [ a a I actually. beneficiary time, impact about a to From But that that risk wallets margins at more tighter, consumer biggest bit good than same right? good we'll I a feel we and health that's that probably And we're single stand ] be benefit a risk, the with the I preserve little that to would everyone a the it. victim feel of proposition risk strong value probably really retail. of of if

Operator

closing further I'm would to And the conference for turn now no I Darren questions. Rebelez showing like remarks. to back

Darren Rebelez

in taking everyone. day, to their call. for I'd us Have join delivering once on great team the like you to again for thank the today Thank a contributions Okay. also members our another time record year.

Operator

call. participating. conference for Thank today's concludes you This

now may You disconnect.

Casey's General Stores (CASY) 12 Jun 242024 Q4 Earnings call transcript