We came across a Haussier thesis On Casey’s General Stores, Inc. (Casy) on substitution by two natural capital. In this article, we will summarize the thesis of Bulls on Casy. The action of Casey’s General Stores, Inc. (CASY) was negotiated at $ 465.96 in May 7th. Casy train and p / e were 32.47 and 29.50 respectively according to Yahoo Finance.
A truck parked in a service station, its fuel tank being filled with a pump.
Casey general stores represent a convincing and unconventional history of growth in the landscape of retail and food service, in particular because of its domination in rural America. Operating in a traditionally without interest company – AGS stations depending on the drop in tobacco and fuel sales – cases have challenged the chances by strongly leaning on high margin food offers. Its strategy to focus on low-competition regions, with 72% of stores in cities of less than 20,000 people, has positioned it not only to survive but also by offering a fort-graphic pizza and a robust range of bakery. This food-oriented approach, dating from 1984 at least 1984, helped transform Casey’s into the fifth largest chain of pizza in the United States in number of kitchens, and its food program is now at the heart of the identity and economy of the company. Not only does this offer improves the economy of units in areas with low traffic, but it also attracts customer loyalty, sometimes transforming Casey into a dinner destination rather than a simple gas stop.
The management of management in 2019, providing leadership with history at Ihop and 7-Eleven, injected a new strategy and operational discipline. Under the CEO Darren Rebelez, Casey’s launched a three -year strategic plan expanding on the expansion of the number of stores, the modernization of food offers and the increase in operational efficiency, including the reduction in employee hours. The experimentation of the menu, such as the introduction of thin crust pizzas and chicken wings, aims to capture a larger part of wallet while avoiding the cannibalization of food margins – a risk that so far has not been materialized. The company’s acquisition growth strategy quickly accelerated, adding 154 stores during fiscal year, most via mergers and acquisitions, capped by its greatest acquisition of all time: Fikes Wholesale (CEFCO), with 198 locations, a lot in Texas. This acquisition pushes not only Casey in new geographies, but also offers a potential for synergy because 125 of CEFCO stores already have ready kitchens for pizza deployments and the improvement of margins.
Despite these strengths, skeptics wonder if the acquired sequence of Casey can be excessive. However, the company’s manageable lever effect (~ 2x EBITDA), the long growth track (this is a fraction of the size-tard or 7-Eleven size), and an operational advantage integrated into fresh food Give this overestimated fear. In fact, the rural heritage of Casey has become a competitive force because it between dense markets where competitors like Murphy USA do not offer prepared food. The unique combination of fuel, convenience and convincing food from Casey gives it a lasting advantage that is difficult to reproduce quickly for other channels, making it one of the most differentiated retail stories on the market today.
