VOL. XCIV, NO. 247

★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★

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Thursday, January 8, 2026

Casey's General Stores, Inc.

CASY · NASDAQ

Market cap (USD)$21B
SectorConsumer
IndustrySpecialty Retail
CountryUS
Data as of
Moat score
54/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

Casey's General Stores, Inc. operates a large U.S. convenience-store network with nearly all sites offering motor fuel and a growing prepared-food program anchored by its long-running pizza offering. The business is reported across four revenue categories: Fuel (largest by revenue), Grocery & General Merchandise, Prepared Food & Dispensed Beverage, and Other (including wholesale fuel and car wash). Key moats are primarily local and operational: dense placement in smaller communities, company-owned distribution centers with fleet-based replenishment, and a scaled loyalty program delivered via the Casey's app. Prepared foods carry materially higher margins than fuel and rely on consistent execution (kitchens, labor, menu innovation). Main counter-pressures are intense price competition (especially in fuel), labor and logistics constraints, demographic shifts in rural markets, and competitor expansion into Casey's core geographies.

Primary segment

Fuel

Market structure

Competitive

Market share

HHI:

Coverage

4 segments · 6 tags

Updated 2026-01-06

Segments

Prepared Food and Dispensed Beverage

Convenience-store prepared food & dispensed beverages (pizza, sandwiches, bakery, fountain)

Revenue

10.1%

Structure

Competitive

Pricing

moderate

Share

Peers

DPZPZZAYUMMCD+1

Grocery and General Merchandise

Convenience-store in-store retail (packaged food/beverage, tobacco/nicotine, alcohol, health/beauty, general merchandise)

Revenue

26%

Structure

Competitive

Pricing

weak

Share

1.8%-2.1% (implied)

Peers

MUSAARKOATD.TO3382.T+3

Fuel

Retail motor fuel sold through convenience-store fuel sites (gasoline and diesel)

Revenue

61.3%

Structure

Competitive

Pricing

weak

Share

Peers

MUSAARKOATD.TO3382.T+3

Other (wholesale fuel, car wash, lottery)

Ancillary convenience-store revenues (car wash) and wholesale fuel activity; lottery commissions

Revenue

2.6%

Structure

Competitive

Pricing

weak

Share

Peers

SUNGLPPARR

Moat Claims

Prepared Food and Dispensed Beverage

Convenience-store prepared food & dispensed beverages (pizza, sandwiches, bakery, fountain)

Revenue share computed from FY2025 'Total revenue by category' table in the Form 10-K (FY ended Apr 30, 2025).

Competitive

Brand Trust

Demand

Strength

Durability

Confidence

Evidence

Casey's positions pizza as a long-running flagship item and sells it across (almost) its store base, supporting premium attachment vs. typical c-store food.

Erosion risks

  • Food quality or safety incident damages trust
  • QSR price/promotions compress perceived value
  • Brand dilution as footprint expands into new regions

Leading indicators

  • Prepared food same-store sales growth
  • Prepared food margin trend
  • Customer satisfaction / complaints trend

Counterarguments

  • Pizza and hot food are widely available from QSR and other c-stores
  • Consumers can substitute to grocery deli/prepared meals with similar convenience

Operational Excellence

Supply

Strength

Durability

Confidence

Evidence

Full-kitchen footprint and a deliberately high-margin food program indicate process know-how and execution that drives traffic and gross profit.

Erosion risks

  • Labor availability/wage inflation impacts kitchen staffing
  • Complexity integrating acquired store formats and food programs
  • Input cost inflation reduces margins without pricing offset

Leading indicators

  • Kitchen labor hours per store
  • Food waste / spoilage metrics
  • Remodel cadence for newly acquired stores (kitchen rollouts)

Counterarguments

  • Other regional c-store chains can replicate kitchens and menus
  • Operational excellence is hard to measure and may not persist through rapid M&A growth

Grocery and General Merchandise

Convenience-store in-store retail (packaged food/beverage, tobacco/nicotine, alcohol, health/beauty, general merchandise)

Revenue share computed from FY2025 'Total revenue by category' table in the Form 10-K (FY ended Apr 30, 2025).

Competitive

Physical Network Density

Supply

Strength

Durability

Confidence

Evidence

A dense store footprint in smaller towns (often underserved by national chains) supports convenience-driven traffic and repeat purchase behavior.

Erosion risks

  • Dollar stores and grocers expand into small towns
  • Demographic decline in rural areas reduces traffic
  • E-commerce and delivery reduce convenience advantage for packaged goods

Leading indicators

  • Inside same-store sales growth
  • Traffic counts / transactions per store
  • Competitive store openings in core counties

Counterarguments

  • Switching costs are low; consumers can buy packaged goods elsewhere
  • New entrants can open stores if locations are attractive

Distribution Control

Supply

Strength

Durability

Confidence

Evidence

Company-owned distribution centers and fleet-based replenishment improve in-stock reliability and can lower unit costs, particularly in more remote geographies.

Erosion risks

  • Distribution capacity constraints during rapid store growth
  • Transportation labor shortages (drivers) increase costs
  • Competitors expand their own distribution networks

Leading indicators

  • Distribution cost per case/mile
  • In-stock rates / service levels
  • DC capacity utilization and on-time delivery

Counterarguments

  • Large peers also run sophisticated distribution; advantage may be incremental
  • Direct-store-delivery vendors can reduce the uniqueness of owned distribution

Habit Default

Demand

Strength

Durability

Confidence

Evidence

Rewards points and mobile app engagement create repeat-purchase incentives across inside and fuel purchases, reinforcing habitual trips.

Erosion risks

  • Competitors match or exceed rewards economics
  • Lower engagement if app experience deteriorates
  • Regulatory/fee changes affecting fuel discount economics

Leading indicators

  • Active rewards members (monthly active)
  • Share of transactions with loyalty ID
  • Redemption rate and repeat purchase frequency

Counterarguments

  • Loyalty programs are common and may not create durable differentiation
  • Consumers can multi-home across multiple c-store rewards programs

Fuel

Retail motor fuel sold through convenience-store fuel sites (gasoline and diesel)

Revenue share computed from FY2025 'Total revenue by category' table in the Form 10-K (FY ended Apr 30, 2025).

Competitive

Supply Chain Control

Supply

Strength

Durability

Confidence

Evidence

Self-distribution and indexed purchase agreements with volume commitments can improve supply reliability and margin management versus smaller operators.

Erosion risks

  • Fuel demand declines over time with EV adoption
  • Wholesale price volatility compresses margins
  • Supply disruptions (refinery outages, logistics constraints)

Leading indicators

  • Same-store gallons sold
  • Fuel margin (cents per gallon)
  • EV penetration in core markets

Counterarguments

  • Fuel is a commodity; supply-chain advantages rarely translate into durable pricing power
  • Large integrated oil brands can match or exceed procurement/logistics capability

Physical Network Density

Supply

Strength

Durability

Confidence

Evidence

A large base of fuel-capable sites and highway-oriented site selection supports volume and convenience-driven loyalty (especially in smaller towns).

Erosion risks

  • New competitor sites open near high-traffic corridors
  • Local price wars reduce margins
  • Regulatory changes (fuel standards) increase compliance cost

Leading indicators

  • Fuel volume per store
  • Competitive site openings/closures near Casey's locations
  • Credit card fee rate trends (fuel-heavy mix)

Counterarguments

  • Fuel customers can easily defect for a few cents per gallon
  • Physical footprint advantages depend heavily on local micro-markets

Other (wholesale fuel, car wash, lottery)

Ancillary convenience-store revenues (car wash) and wholesale fuel activity; lottery commissions

Revenue share computed from FY2025 'Total revenue by category' table in the Form 10-K (FY ended Apr 30, 2025). The 10-K notes that Other includes wholesale fuel, car wash revenue, and lottery (presented net).

Competitive

Scope Economies

Supply

Strength

Durability

Confidence

Evidence

Ancillary services monetize existing trips and assets (sites, traffic, payment rails), adding incremental profit without requiring standalone customer acquisition.

Erosion risks

  • Car wash competition and promotional intensity
  • Lower discretionary spend reduces car wash frequency
  • Wholesale fuel margins compress with market volatility

Leading indicators

  • Car wash count and same-store car wash sales
  • Wholesale fuel volume and margin
  • Lottery commission rate changes (state policy)

Counterarguments

  • Car wash and wholesale fuel are not unique; competitors can offer similar add-ons
  • Lottery is regulated and commoditized; limited differentiation

Supply Chain Control

Supply

Strength

Durability

Confidence

Evidence

Wholesale fuel network and a fuel terminal (added via Fikes/CEFCO) provide infrastructure to serve dealer sites and support supply optionality.

Erosion risks

  • Terminal throughput/utilization underperforms
  • Counterparty concentration in dealer network
  • Regulatory changes to fuel handling and environmental compliance

Leading indicators

  • Wholesale gallons and margin
  • Terminal utilization and operating cost
  • Environmental compliance incidents

Counterarguments

  • Wholesale fuel is highly competitive with thin margins
  • Infrastructure is replicable by larger distributors in the region

Evidence

sec_filing
Casey's General Stores, Inc. Form 10-K (FY ended Apr 30, 2025) - Products Offered

The Company's flagship product is its pizza, which we began preparing and selling in 1984.

Direct company statement supports a brand-led differentiation claim within prepared foods.

sec_filing
Casey's General Stores, Inc. Form 10-K (FY ended Apr 30, 2025) - Prepared food operations

To facilitate the prepared food offerings, we have installed full kitchens in almost all of our stores.

Kitchen buildout enables a repeatable operating model for made-to-order food at scale.

sec_filing
Casey's General Stores, Inc. Form 10-K (FY ended Apr 30, 2025) - Prepared food margin

Revenue less cost of goods sold (excluding depreciation and amortization) as a percentage of revenue on prepared food and dispensed beverage items averaged approximately 58%.

Sustained high gross margin is consistent with differentiated execution vs. commodity retail categories.

sec_filing
Casey's General Stores, Inc. Form 10-K (FY ended Apr 30, 2025) - Company footprint

Many of the smaller communities in which we operate are often not served by national-chain convenience stores.

Supports a geographic positioning advantage vs. some large-format/national competitors.

sec_filing
Casey's General Stores, Inc. Form 10-K (FY ended Apr 30, 2025) - Store footprint

Approximately 71% of all stores were opened in areas with populations of fewer than 20,000 persons.

Evidence of focus on smaller-population markets where local competitive intensity can be lower.

Showing 5 of 19 sources.

Risks & Indicators

Erosion risks

  • Food quality or safety incident damages trust
  • QSR price/promotions compress perceived value
  • Brand dilution as footprint expands into new regions
  • Labor availability/wage inflation impacts kitchen staffing
  • Complexity integrating acquired store formats and food programs
  • Input cost inflation reduces margins without pricing offset

Leading indicators

  • Prepared food same-store sales growth
  • Prepared food margin trend
  • Customer satisfaction / complaints trend
  • Kitchen labor hours per store
  • Food waste / spoilage metrics
  • Remodel cadence for newly acquired stores (kitchen rollouts)
Created 2026-01-06
Updated 2026-01-06

Curation & Accuracy

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