Casey’s General Stores (CASY) rose meaningfully in the first half due to strong financial performance which benefited from higher fuel sales and accelerating growth in prepared foods. The company’s growth outlook continues to improve due to early success in adding chicken wings as a complementary food option alongside their popular pizza offerings.

Casey’s General Stores has shown strong fiscal third-quarter 2026 financial results, benefiting from robust fuel margins, solid prepared food sales, and continued loyalty program growth. This performance highlights the company's ability to capitalize on its competitive advantages in the convenience store and fuel retailing sector, making it a valuable holding in our portfolio as we focus on high-quality franchises with durable competitive advantages.

Casey’s General Stores contributed to returns, benefiting from its aggressive reinvestment in its stores over the past decade in which it has built its private label brand and broadened its product offerings. This has not only helped improve same-store sales but has also encouraged repeat traffic, allowing the company to buck broader industry trends toward contraction in gas volumes and margins.

Casey’s General Stores demonstrated strong quarterly earnings, contributing positively to our portfolio's performance. The company continues to execute well, which reinforces our belief in its growth potential within the consumer staples sector. We are optimistic about its ability to maintain this momentum, especially as it navigates the current market environment effectively.

During the quarter, we continued adding to a new long position in Casey’s General Stores. At ~2,900 locations, Casey’s is the third largest convenience store chain in the US by store count and the fifth largest pizza chain in the country. We believe the returns and their consistency have been exceptional and stem from a quirky counter-positioning of the business. Casey’s earns more profit dollars per visit, enabling them to price fuel at a discount to independent gas stations and pizza at a discount to competing QSRs. Their recent acquisition of 200 stores from Fike’s marks their entrance into the South, with management commenting that Texas alone could offer 2,000 more units. We see a world-class management team with a differentiated mousetrap and a decade of profitable growth ahead of them.

During the quarter, we continued adding to a new long position in Casey’s General Stores. At ~2,900 locations, Casey’s is the third largest convenience store chain in the US by store count and the fifth largest pizza chain in the country. We believe the returns and their consistency have been exceptional and stem from a quirky counter-positioning of the business. Casey’s earns more profit dollars per visit, enabling them to price fuel at a discount to independent gas stations and pizza at a discount to competing QSRs. Their success in food sales, differentiated employee retention, and community-centric approach position them for significant growth, especially with their recent acquisition of 200 stores and potential for further expansion in Texas.

Casey’s General Stores has demonstrated strong execution, contributing positively to our portfolio during a challenging quarter. As a leader in the consumer staples sector, it has shown resilience amidst market volatility. We believe that its robust business model and strategic positioning will allow it to continue capturing market share and delivering attractive returns, even as economic conditions fluctuate. The company remains a key holding as we seek to invest in high-quality growth opportunities.

Casey’s General Stores has demonstrated strong execution, contributing positively to our portfolio during a challenging quarter. As a leader in the consumer staples sector, it has shown resilience amid market volatility. We believe that its robust business model positions it well for continued growth, especially as consumers prioritize essential goods. The company’s ability to maintain strong performance even in uncertain economic conditions reinforces our confidence in its long-term prospects.

Casey’s General Stores has demonstrated strong execution, contributing positively to the portfolio's performance. The company is positioned well within the consumer staples sector, benefiting from its defensive nature amid market volatility. As the economic outlook becomes more uncertain, we believe that Casey’s will continue to thrive, leveraging its balance sheet strength to capture market share from weaker competitors.

Casey’s General Stores, Inc. posted robust growth and improved margins, driven by successful geographic expansion and impressive same-store sales in new regions, particularly Texas. This performance highlights the company's ability to capitalize on new market opportunities and enhance profitability, making it a strong contributor to the portfolio during the period.