Casey’s profit leaps 41%, beats expectations
Ankeny, Iowa In the throes of resisting a takeover bid by rival Alimentation Couche-Tard, convenience store operator Casey’s General Stores reported Tuesday that its net income rose 41% in the fourth quarter on soaring sales.
Net income for the quarter ended April 30 was $21.9 million, up from $15.6 million in the year-ago period. Earnings beat Wall Street expectations.
Sales rose 33.5% to $1.18 billion, from $883.4 million. Same-store sales increased 3.1%.
For the year, profits were $117 million, up from $85.7 million a year ago. The retailer acquired 37 stores during the fiscal year and built 18 new stores.
Casey's has said the April buyout offer from Canada's Alimentation Couche-Tard, parent to Circle K and Couche-Tard banners, is too low. It has also sued Couche-Tard, saying the Canadian company violated U.S. securities laws by manipulating Casey's stock price during the takeover offer.
Facing resistance, Couche-Tard took its offer directly to Casey's shareholders earlier this month and says the suit is without merit and will defend itself.
Casey's operates about 1,500 convenience stores in the Midwest under the brands HandiMart, Just Diesel and Casey's. Couche-Tard has nearly 6,000 Circle K and Couche-Tard stores in Canada and the United States.