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Casey’s sees lower third-quarter net earnings

(Source: Big Stock)

Casey’s General Stores says it plans to open at least 150 more stores this fiscal year, after reporting stagnant revenue during the third quarter.

The fuel and convenience store chain’s net earnings declined 13.2 per cent year over year to $86.9 million as revenue slipped 0.1 per cent to $3.33 billion.

Inside gross profit increased 11.3 per cent to $501.5 million while fuel gross profit decreased 2 per cent to $257.2 million.

During the past year the company has opened 167 new stores. The company attributed higher inside sales to strong performance in the prepared food and dispensed beverage category, including whole pizza pies, hot sandwiches, and dispensed beverages as well as non-alcoholic and alcoholic beverages in the grocery and general merchandise category.

“Our fuel team navigated a rising cost environment and delivered nearly flat gallon volume and a 37.3 cents per gallon fuel margin,” Casey’s chairman, president, and CEO Darren Rebelez.

“The operations team performed exceptionally well this quarter integrating multiple acquisitions, reducing same-store labor hours while growing sales and driving positive guest satisfaction scores.”

For this fiscal year, the company forecasts same-store inside sales to increase 3.5 per cent to 5 per cent and same-store fuel gallons sold to be between negative 1 per cent to positive 1 per cent.

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