The Ankeny-based Casey’s convenience store chain reported net income for the first quarter was up a little more than 27% compared to last year at almost $274 million. Same store inside sales were up 2.3%, while gallons of gas sold were down three tenths of a percent.
CEO Darren Rebelez say the margin on a gallon of gas was nearly 48 cents and gross profits on gas sales were up 19.6% percent in the quarter as consumers reacted to increased gas prices. “Exactly the type of behavior that we would expect to see, fewer gallons per trip, but more trips made, which ultimately accrues our benefit if we have more people coming to the store,” he says. Total fuel gallons sold for the quarter increased 2.5% compared to last year due an increase in the number of stores, which the company says was slightly offset by a modest decrease in same-store gallons sold.
Rebelez says customers are making some different choices at the pump. “People are trading out of premium and mid-grade and opting for regular or higher ethanol blends of fuel. The higher ethanol blends of fuel carry a higher margin for us than clear gasoline. So while these trends kind of ebb and flow, it’s very consistent with prior periods of higher gas prices and ultimately works out to our benefit,” Rebelez says.
Casey’s says the volatility in gas prices due to international events saw the gas margin vary during the quarter from 30 to 60 cents a gallon.