Notes on Casey’s General Stores
“operate convenience stores under the name “Casey’s General Store” in 11 Midwestern states, primarily Iowa, Missouri, and Illinois. [that explains why I’ve never heard of them]
stores carry a broad selection of food (including freshly prepared foods such as pizza, donuts, and sandwiches) [wonder how fresh]
all Casey’s stores offer gasoline for sale on a self-service basis.
1,699 stores in operation
corporate headquarters in Ankeny, Iowa
Approximately 59% of all our stores are located in areas with populations of fewer than 5,000 persons
We seek to meet the needs of residents of smaller towns by combining features of both general store and convenience store operations. Smaller communities often are not served by national-chain convenience stores. We have succeeded at operating Casey’s General Stores in smaller towns by offering, at competitive prices, a broader selection of products than does a typical convenience store.
revenue primarily from the retail sale of gasoline and the products offered in our stores
In warmer weather, customers tend to purchase greater quantities of gasoline and certain convenience items such as beer, soft drinks, and ice [but the hard drugs sales (cigarettes) are remarkably consistent]
typically carries over 3,000 food and nonfood items. Many of the products offered are those generally found in a supermarket. The selection is generally limited to one or two well-known brands of each item stocked. Most of our staple foodstuffs are nationally advertised brands. Stores sell regional brands of dairy and bakery products, and approximately 88% of the stores offer beer.
products with higher gross profit margins… added various prepared food items to our product line over the years, facilitated by the installation of snack centers, which now are in the majority of stores. The snack centers sell sandwiches, fountain drinks, and other items that have gross profit margins higher than those of general staple goods.
the Company was selling donuts prepared on store premises in approximately 98% of our stores in addition to cookies, brownies, and Danish rolls. The Company installs donut-making equipment in all newly constructed stores.
made-from-scratch pizza … is available in 1,654 stores (97%) … Although pizza is our most popular prepared food offering, we continue to expand our prepared food product line, which now includes ham and cheese sandwiches, pork and chicken fritters, sausage sandwiches, chicken tenders, popcorn chicken, breakfast croissants and biscuits, breakfast pizza, hash browns, quarter-pound hamburgers and cheeseburgers, and potato cheese bites. The newly constructed stores and many of the remodeled stores now offer made-to-order sub sandwiches. [holy shit, obesity in the heartland]
retail sales of nongasoline items have generated about 29% of our total revenue, but they have resulted in approximately 74% of our gross profits. Gross profit margins on prepared food items averaged approximately 62% during the three fiscal years ended April 30, 2012—substantially higher than the gross profit margin on retail sales of gasoline, which averaged approximately 5%. [5% is high… this is true of nearly all convenience stores, gas is sort of a loss leader … worst customers are the ones who buy gas and nothing else (me)]
The most recent store design measures 39 feet by 92 feet with approximately 2,300 square feet devoted to sales area, 500 square feet to kitchen space, 400 square feet to storage, and 2 large public restrooms. ’
Each new store typically includes 4 to 8 islands of gasoline dispensers and storage tanks with capacity for 30,000 to 50,000 gallons of gasoline.
The merchandising display follows a standard layout designed to encourage a flow of customer traffic through all sections of every store. [lol, must wind your way through the aisles to get to the cash register to pay for gas… PAY AT THE PUMP, ALWAYS]
open at least sixteen hours per day, seven days a week
operate 352 stores on a 24-hour basis.
It is our policy not to install electronic games or sell adult magazines on store premises. [NO GAMBLING OR PORN PLEASE, THIS IS IOWA]
Where there is no competing store, we can often operate profitably at a highway location in a community with a population of as few as 400 [with no competing store they can probably operate profitably with a population as few as 40 :) ]
73% of Casey’s total revenue for the year ended April 30, 2012 was derived from the retail sale of gasoline.
Average gross profit
margin per gallon
(excluding credit card fees)
with gas at $3.45
4.4% gross profit margin [normal, and crappy … need to force ‘em down the aisles where they’ll pick up some Beef Jerky or best, one of their terrible “made-from-scratch” pizzas]
Food, including prepared foods, and nonfood items similar or identical to those sold by the Company are generally available from various competitors in the communities served by Casey’s General Stores. We believe our stores located in smaller towns compete principally with other local grocery and convenience stores, similar retail outlets, and, to a lesser extent, prepared food outlets, restaurants, and expanded gasoline stations offering a more limited selection of grocery and food items for sale. Stores located in more heavily populated communities may compete with local and national grocery and drug store chains, expanded gasoline stations, supermarkets, discount food stores, and traditional convenience stores. Convenience store chains competing in the larger towns served by Casey’s General Stores include Quik Trip, Kwik Trip, and regional chains.