Casey’s is the 3rd largest convenience store (c-store) operator in the U.S. with over 2.4k locations under the Casey’s, GoodStop and Bucky’s brands. Almost all of these locations are Casey’s, which is known for freshly prepared foods like pizza, donuts and hot breakfast items. GoodStop locations are typically smaller and don’t offer prepared food. The company has 43 GoodStop locations. Bucky’s stores came with the Buchanan Energy acquisition in 2021 and are all in the process of being converted into Casey’s or GoodStop locations. The company operates in 16 states, primarily in the Midwest around Iowa, Illinois and Missouri.
This business has not relied on M&A in the past before the new management team came in. Casey's stores are different compared to mom + pop gas stations, Casey's needs extra sqftage for kitchen equipment. Is the Couche Tard or 7-11 playbook feasible for Caseys?
The company acquired an average of ~20 stores per year prior to fiscal 2022 (when they acquired over 200). There is capital required to refurbish the acquired locations to sometimes include space for the kitchen as you mentioned. I'm not sure if they'll ever be as acquisitive as Couche-Tard, especially since they tend to stick to smaller deals.
Also, how much of Casey's footprint overlaps with concepts such as WaWa and Sheetz? I feel like the value proposition from the prepared food perspective is better at WaWa and Sheetz? (Personal experience)
Alimentation Couche Tard did a test in Norway to test the impact of EVs, given the longer charging times compared to refueling, they reported a 40% higher conversion rate of people who refuel AND buy something at the store.
Thank you so much for writing and sharing this!
This business has not relied on M&A in the past before the new management team came in. Casey's stores are different compared to mom + pop gas stations, Casey's needs extra sqftage for kitchen equipment. Is the Couche Tard or 7-11 playbook feasible for Caseys?
The company acquired an average of ~20 stores per year prior to fiscal 2022 (when they acquired over 200). There is capital required to refurbish the acquired locations to sometimes include space for the kitchen as you mentioned. I'm not sure if they'll ever be as acquisitive as Couche-Tard, especially since they tend to stick to smaller deals.
Also, how much of Casey's footprint overlaps with concepts such as WaWa and Sheetz? I feel like the value proposition from the prepared food perspective is better at WaWa and Sheetz? (Personal experience)
Alimentation Couche Tard did a test in Norway to test the impact of EVs, given the longer charging times compared to refueling, they reported a 40% higher conversion rate of people who refuel AND buy something at the store.