Gasoline sales rose at a double-digit rate
Gasoline was Casey’s General Stores’ (CASY) best-performing sector during the second quarter. The company recorded an impressive 17% YoY (year-over-year) increase in total fuel sales during the quarter. Same-store gallons sold rose 1.9% and met the annual goal of a 1%–2% rise. Total gallons sold rose 5.7% YoY to 562 million gallons. Gasoline sales accounted for 61% of the total revenue during the quarter.
“The Company is an industry leader in same-store gallons sold, and continues to gain market share in this category,” said Terry Handley, Casey’s president and CEO.
“Further, our fuel pricing strategy positioned us to take advantage of market volatility throughout the quarter to realize a fuel margin near the top end of our guidance,” he added.
Casey’s met fuel margin targets
The average fuel margin stood at $0.197 per gallon—in-line with the $0.18–$0.20 per gallon goal. In comparison, Murphy’s retail fuel margins averaged $0.155 during the last reported quarter.
Casey’s sold 17.3 million renewable fuel credits for $14.5 million during the quarter.
The gross profit for the segment rose 11.7% YoY to $110.7 million due to better fuel margins and increased gallons sold.
Investors looking for exposure to Casey’s through ETFs can invest in the SPDR S&P Retail ETF (XRT). CASY accounts for 1% of XRT.
Next, we’ll discuss how Casey’s Grocery and Merchandise segment performed in 2Q18.