Casey's General Stores Plans to Add 150 Stores

Estimated read time: 3 minutes and 57 seconds

CASEY AT THE BAT

Casey’s General Stores Expands and Sees 15% Rise in Second-Quarter Profit (Read More)

Expanding Footprint

• Texas Entry: Casey's acquired Lone Star Food Stores, adding 22 stores to its presence in Texas.

• Growth Plan: Casey's aims to add 350 stores by end of FY2026 through organic growth and acquisitions.

Strong Financial Performance

• Profit Increase: Net income rose 15% to $158.8 million, beating analyst expectations.

• Revenue Growth: Revenue increased 2% to $4.06 billion.

• Inside Sales Boost: Total inside sales rose 6.2%, with a 2.9% increase in same-store sales.

• Fuel Performance: Total fuel gallons sold increased 4.0%, while same-store fuel gallons remained flat.

Efficient Operations

• Expense Management: Same-store operating expenses were effectively managed, with a reduction in labor hours.

• Liquidity: Casey's has approximately $1.3 billion in available liquidity.

• Current Store Count: Casey's ended Q2 with 2,592 stores.

🧠 EDITOR’S THOUGHTS

Who tf is Casey? I have their annual report so you can get familiar with them: Casey’s Annual Report 2022

📝 CASEY’S CHEAT SHEET

• Average Price Point: $1M - $2M

• Average Cap Rate: 5.5% - 6.5%

• Lease Type: Ground Lease or NNN

• Rent Increases: 1.5% annually or 10% every 5 years

• Base Term: 20 plus Four 5-Year Options (Sometimes More)

• Average Rent: $70,000 - $100,000

• Lot Size Requirement: 0.8 - 1.0 Acre

• Building Size: 3,000 - 3,600 SF

TRIPLE NET TENDIES

🧠 Thought Leader: Brian LaManna shares his favorite email when checking in.

👂 Ear Hustle: Graham Stephan breaks down the Fed’s Meeting and what happens after ending rate hikes.

💎 Web Gem: Daniel Herrold shares which NNN deals are backlogged the most.

NET LEASE NUGGIES

• McDonald's Introduces CosMc's Concept, Testing Innovative Drive-Thru Format - McDonald's launched a new concept called CosMc's, offering a drive-thru-only format focused on specialty beverages and solving the 3 p.m. slump. The 10-store pilot drew significant attention with cars lining up hours before opening. While CosMc's presents competition in the specialty beverage field, it differs from Starbucks and Dutch Bros with a drive-thru-only format and lack of human interaction. McDonald's plans to assess results before deciding on expansion or incorporating learnings into traditional units. (Read More)
  

• Wendy’s Implements AI Drive-Thru Ordering Wendy’s has introduced AI technology for drive-thru ordering at its restaurants. The technology, called Wendy's FreshAI, uses Google Cloud's generative AI to provide a personalized and efficient experience for customers. Initial results show improved service times and order accuracy. Wendy's plans to expand the use of the technology to more locations in the coming years. The AI system is seen as an assistant to employees rather than a replacement, allowing workers to focus on other tasks in the restaurant. (Read More)

• Restaurant Evictions and Lawsuits over Unpaid Bills - Restaurants across the nation are facing eviction and legal action from stakeholders due to unpaid debts. Jay Pandya, owner of Boston Market, filed for personal bankruptcy and listed liabilities of between $10 million and $50 million. The struggling chain has faced numerous legal challenges, including a lawsuit from US Foods for $11.6 million. Government agencies have also intervened, ordering the closure of 27 stores in New Jersey and imposing penalties and damages. Similar situations have been reported in other locations, with store evictions and unpaid debts to landlords. (Read More)

BEAST TWEETS x POSTS

🐦 The Real Estate God: There are 3 main debt metrics in real estate…

🦅 3NDeveloper: Received a great LOI from a Tenant looking to lease our building. Great rent offer, but asked for $1,000,000 in TIAs.…

🦢 Kyle Matthews: The FED more or less just declared victory.…

🦆 Blake Haggett: J Powell saying “rate cuts” just moved assets 10% higher. Just created more inflation…

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