Casey’s General Stores saw its stock price surge this morning after its third-quarter results beat market expectations.

The company, headquartered in Ankeny, reported earnings of $2.33 per share, which beat analysts’ expectations of $2 per share. Revenue grew by 17.3% to just over $3.9 billion, exceeding expectations of $3.7 billion.

Casey’s strong earnings were helped by a 20% increase in the amount of fuel sold and a 15% increase in inside sales despite difficult economic conditions.

“We are growing the food business, accelerating unit growth, all while operating the stores more efficiently,” Darren Rebelez, Casey’s chairman, president and CEO, said during the company’s third-quarter earnings call today.

The earnings report prompted several stock analysts to maintain a “buy” rating on the stock. Casey’s stock began the day at $392.45 per share, hitting $410.11 at 10 a.m. At noon today, Casey’s price per share was $402.25.

Consumers continue to purchase products at Casey’s even though prices are inching upward, Rebelez said. Consumers with annual incomes of $50,000 or less also continue to make purchases, although “not at the same rate that we see in the other income cohorts,” he said.

Lower-income customers are not buying as much tobacco and alcohol as they previously did, Rebelez said. “More discretionary items … is where we see a little bit of softness.”

Pizza sales continue to be strong, including in markets with national-brand competitors, Rebelez said. “We are still in a good spot from a value proposition standpoint when we look at our pizza business.”

In the third quarter, which ended Jan. 31, Casey’s had 2,893 stores in 20 states. The chain has opportunities for expansion in Texas, where it has 148 stores thanks to the November acquisition of Fikes Wholesale. Expansion opportunities also exist in Michigan, Ohio, Kentucky and Tennessee, he said.

“We approach every fiscal year with the assumption that our growth target is going to be half from [new store builds] and half from small deal” mergers and acquisitions, Rebelez said. “Over the last couple of years, as deal flows evolved, [Casey’s growth] has skewed much heavier on the acquisition side versus the [new build] side. We continue to go out and find real estate and land bank those sites so if the deal flow starts to slow a little bit, we have the pipeline to support it. …

“We don’t have a bias one way or the other.”

Since May 1, 2024, Casey’s has built 21 new stores and acquired 228 others, according to the earnings report.

At its quarterly meeting this month, Casey’s board of directors approved a quarterly dividend of 50 cents per share payable May 15 to shareholders of record on May 1.

To read the news release about Casey’s fourth-quarter and fiscal year results, click here.