Casey's General Stores, Inc. (CASY) Stock Analysis

Casey’s General Stores’ competitive edge is rooted in its unique rural footprint, vertical integration, and high-margin food business. Roughly two-thirds of Casey’s 2,900+ stores are located in towns with fewer than 20,000 residents—a segment largely ignored by national chains such as 7-Eleven and Circle K. This geographic focus reduces direct competition and enables lower real estate and operating costs.

The company’s vertically integrated supply chain—owning three distribution centers and a tanker fleet that delivers about 60% of its fuel—supports cost control and reliable service to remote locations. In contrast, many peers rely on third-party logistics, which can be less efficient and more costly, especially in rural markets.

Casey’s is the fifth-largest pizza chain in the U.S., with prepared food and dispensed beverages accounting for 34% of revenue but 63% of gross profit (excluding depreciation). Its inside gross margin of 41.5% outpaces the industry average of 37%. The proprietary food offering, especially pizza, drives customer loyalty and differentiates Casey’s from fuel-centric rivals like Murphy USA.

The company’s digital rewards program, with over 9 million members, enhances customer retention and enables targeted marketing. Casey’s also benefits from a resilient, community-focused culture and disciplined cost management, as evidenced by 12 consecutive quarters of reduced same-store labor hours. These factors collectively underpin a durable advantage in a fragmented, slow-to-consolidate industry.