Casey's General Stores (CASY) 10 Dec 242025 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Second Quarter FY 2025 Casey's General Stores Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Brian Johnson, Senior Vice President of Investor Relations and Business Development. Please go ahead.

Good morning, and thank you for joining us to discuss the results from our second quarter ended October 31, 2024. Vice Relations Senior Business Johnson, Brian President, and Investor Development. I'm Officer. Board today as and Financial are me Chair, Steve Darren Chief well With as Rebelez, President Officer; Chief Bramlage, Executive

today a factors certain known Before results and possible materially These but of include statements plans acquisitions, or risks, uncertainties on investor we the integration may forward-looking may statements number of Private detailed Casey's uncertainties forward-looking any other quarterly to statements recent with financial conflict of or that and from unknown factors, forward-looking the statements any our governmental call annual made relating the statements the as integration and future expressed intention and XX-Q results or transaction, Form or breakdown growth as forward-looking information, as not constitute statements, for related remind measures are Act Securities assumed stores. There events, Investor duration quarter of begin, the second risks, statements, on of current you future forward-looking to, financial Litigation on call and the website. Any turn any made and reconciliation this potential disclaims that a can to us our on by or impact plan available Reform XX-K Form to found and reports increase said, revise synergies, strategies, strategic of during I views be our and expense future of the the chain, I'll as this by well and the Darren? to liquidity and this referenced Fikes meaning periods, needs, company's as to now other non-GAAP discuss the the to respect our within operations, related SEC expectations opportunities that ability of conditions, our implied to call impact described our relet in results. performance whether operating at would in of our benefits or Ukraine a call cause strategic over or obligation our actual at to plan, otherwise. A update business Darren www.caseys.com including, those from the with report results differ future Relations events sources link. With are for result and the to limited during supply realize recent XXXX. to under the of quarter which well as on execute second website as our in filed most future and new of GAAP the actions like

results strong quarter in and discuss We're moment. good excited to everyone. Brian, the second Thanks, a morning,

our Casey's thank X First, Fikes however, the Casey's delivering for welcoming team for team officially Patriots and Warriors. in funds to to another family. Each we raised PepsiCo. I to members, team support million, $X the generous and we the to over want raised guests outstanding to and year, at This follow hope November, families, quarter the organizations addition to partners veterans their children thanks for

you engagement I'm shop myself, for this the draws veteran a for year. each veterans and Casey's. response grateful at campaign As personally you Thank when helping

at finished and the was $XXX $XXX income results the from EBITDA Now quarter. earnings was $X.XX net per discuss million share, Diluted let's per share million.

metrics year. from up these prior of XX% were All the

prepared performance, model. of merchandise and store, Casey's drive the Our innovation controlling again differentiated to results was general the grocery continued expand operating of while profit We driver business strength to the expenses. quarter of were food primary example gross strong an simultaneously second category dollars in were able excellent margin while the expansion. Inside

doing is the excellent gallons. team margins fuel and an market fuel while over geographic gallon, balancing the outperforming same-store with side, volume $X.XX in job the fuel per margin On

XX.X% our Margin Analyst led we and an the margin outside basis an confident X-year stack dispensed and way our Same-store up of in discussed beverage October, basis, the results showing X.X% both we XX.X%. up average is sales Hot As XX.X%. on the margin prepared inside Day strategic with food are average ability in or with at X-year on very plan to in were results basis stack as of execute Sandwiches now and a were store. I'd to continued to share XX%. X% of Inside and performed headwind. their second categories. and of the from well, X.X% for in like on modest or each XX some details same-store was a performance, go a over our prior strong the sales the up up quarter X-year up approximately also due cheese the over points coal nearly Beverages down Dispensed XX% year our

product merchandise an increase to were and average basis, prior general up X.X% category. a of both and in margin the strategic in in XX.X%, mix positive sales from the liquor points XXX categories. nonalcoholic and approximately year Same-store of our of the Notably, We on grocery momentum basis excellent with alcoholic an asset and the and saw X-year energy teams. protection or work specifically due X.X% sourcing stack beverages,

our excellent an assortment Our merchandising our team needs. optimizing meet is guest job doing to

gallons fuel same-store per gallon. margin sold X.X%, were a fuel, of with down For $X.XXX

sold geographic approximately are we our fuel to shows market taking volume the data indicating continue region in outperform X% region gallons that OPIS share. Mid-Continent on the quarter, as down We

quarter, In on doing increase basis. a card team ] continue the management and is the volume fee and X.X% saw of field shot results Our to excluding and an credit same-store, a on expense [ margin show it. Operating just second tremendous a remains focus.

team The results areas be The store Steve? executing like and a to quarter. again. I'd were to from Steve more efficient turn X% our once to second labor the high to discuss financial the improvement is is continuous now those same-store call Our at operations results on themselves. opportunities for team identifying the speak down hours level. over

the from sales of prior XX.X% of favorably during hard were on X% decline basis. Total gallons stores fuel it. was $X.X of as team fuel, also $X.XX now Total offset approximately our year in as higher year. through prior X.X% a proud Thanks, million retail we nearly of billion, the X-year We're Results from halfway operating Darren. decrease are which revenue momentum into for inside an or of price the the primarily were of to tremendous due the the plan, work I'm quarter strategic year-over-year billion, $XXX $XXX or X% quarter the was carrying our half quarter. more higher by inside second for a million well increase sales and the and impacted by Good a morning. sold. that's very

an prepared $XX.X the modest quarter X% million as of same-store $X.XX was primarily hours. $X.X were amortization. Casey's increase expense X.X%. partially chain X% That's of Approximately excluding in growth depreciation $X.XX margin It's basis and compared X.X% million was up XX.X%. increase rate an prior Insight in year, the primary points increase quarter total the increase and was had X.X% year higher to sales to quarter our an X% goods Beverage for driver increase cost in fuel million from Merchandise in quarter Beverage of the XX.X%, operating the not quarter per prior operated quarter, sales of the or benefit in and XXX and $XXX the the sold, million due from increase points compared increased the was income down includes to repeat. as of per up to was XX second profit million the effective versus by This per gross of the million to profit by sell for less quarter. the good is $X.XXX employee gallon did the to on is a increase Fuel of to than pound more the from due That down was XX%, basis up quarter, X.X% was in increases for as year. fuel Retail $X.XX of in Insight margin for per prior which year. Same-store the retail in Merchandise a average. by $XX the tax decline prior that's profit decrease compared General quarter. by onetime were prior sold For driven accounted million food XX.X% but $XX approximately in higher Fuel $XXX.X newer and sales the cheese a prior EBITDA we million stores. primarily increase partially reduction X% year. margin prior the additional or gallons from gross food XX.X%, to million $X.XX in that's an year by in year. prior per profit versus to gross an Dispensed prior approximately Net and That's Total year. while wages and gallon and increase XX and XX.X% almost ago, modest XX.X%, This offset profit down million. units from from gallon. gross revenue unit favorable from as RINs increase prior up of were million asset an year year. by gross the offset of X.X%. operating total year. driven the a points. The was expenses and $XXX.X $XXX fuel was basis $XX year. a XXX $X.XX was performance. profit basis General which Depreciation versus primarily the more of tend million prior down $X.X that's million Grocery The the year protection million, That's define slight $XX.X margin of mix stores the change to increase $XX in XX was prior due of by an from same or quarter by $X.XX million. or price is prior in or driven fuel pound sale the headwind that XX.X%. $XXX.X year. gross of expense was $XXX $X points Dispensed of Prepared was the We The fuel was in the $XX to billion, rose Grocery a $X.XX million, primarily The

We condition. Our excludes had note on impact the calculation balance within facilities. October to sheet is still which plan the the October balance, ratio cash per in restricted debt-to-EBITDA is the the end. On of XX, targeted $X.XX we property, liquidity excellent of company's total likely ratio. is the billion. Please do we XX, amended to year quarter spending as And liquidity in in shares of covenants and included planned within of X, achieve account cash XX. to leverage restricted held long-term X.Xx assets and closing, originally as will we of on leverage escrow equipment. an not day for which The the the subsequent credit of We will cash closed the delever November the to that next Xx first and the until recently on plant available was fights, October acquisition repurchase relates

of For $XXX communicated net of transaction, equipment, generated in Board the guidance. $XXX of of the to purchases generating Directors by and company $XXX updating December activities previously operating the the million, maintain per to Fikes fiscal quarter, million due in cash voted quarterly flow the share, year. At the cash million we in our less of primarily dividend compared free are meeting, closing the resulted year $XXX to of the prior $X.XX million property

contribution the primarily expected third mentioned expense the to is to in deal to accretive For Casey's million therefore, costs specifically $XX $XX primarily from integration the additional $XX transaction. higher million related financing EBITDA be in than of and incur third EBITDA XXXX, will million dilutive to to in previously modestly the to expects modestly original Fikes the due transaction, outlook the the is quarter. be expected, an quarter, fourth Fikes half of quarter. Interest onetime second fiscal contribution to Fikes costs. be in again, the from due the

for outlook, in is including the deal the year, least to expected the to $XX expected now that Casey's to costs. onetime fiscal fiscal $XX Total operating XX% between year total impact increase at and are and For EBITDA integration XX%. expenses XX% Fikes acquisitions, includes million to XXXX of million approximately increase

expect expected to for are While increase X% XX% interest year. XXX to $XX is updating purchases still the metrics. expenses, fees, and rate million fiscal for amortization approximately same-store following to credit XX% and expected for tax The add card Net the of Casey's to is be to approximately only to be be is approximately excluding expected approximately the are year. Depreciation stores not outlook approximately fiscal year. We the operating $XXX PP&E million. expense is million year. the expected be approximately that expected to $XXX its for Note for

between is We is previously of expense gallons X% to operating to existing to sold sales same-store The X% of integration expected XXX of communicated year. the positive inside $XXX X% and therefore, X% million the prior The the yield for fuel costs. between Casey's the our business, margins expects X% due to expect approximately which inside of of over of to a to and approximately related to the half company 'XX. fiscal total to increase be same-store X% gallons Fikes XX%, to be Of onetime to million of inside to X% the over to X%. Overall, negative the fuel sales total expected X% and Fikes is contribute comparable increase, second contribute increase from approximately acquisition and increase XX% expected increase. expected, decrease that's X% to is

for of midpoint annual the the results range. sales November were were follows: Our inside near as same-store outlook

points. fuel hundred mid- but the time enter of prior between of to are the we Currencies versus and year fuel the is same-store XXs. gallons the margin several near still lower annual and high by fuel volume, range for are unfavorable improved CPG costs both the As low modestly have year basis outlook seasonally end

and due the primarily to increase Our $XX costs. is integration and onetime third million of an XX% million expense expectation approximately $XX Fikes to acquisition deal that's quarter the and of total operating

As Fikes in a the incremental over as back result earnings of interest Darren. will to the the and fourth these closing expected. I'll costs our and now expense, quarters dilutive be third call we to turn

entire to and to outstanding like Thanks, stores Steve. want have and Casey's again, on board Casey's welcome another network. quarter, to Fikes forward you looking thank these the the integrating to to family. excited for team I team the I'd We're our into are

executing transaction the in the half has we're exciting done is it. plan, line closing a of executing on team key on largest is the the company's laid out and X-year first to Our June half out the the an the announcing extremely of we the forward finishing looking second in right and and strong. Growth in strategic history pillar job incredible XXXX. with of plan strategic is plan of

our strong We like value. Inside sheet acquisitions produce store, excellent balance continue we'll toward integrate committed to and are leverage to execute ratio also continue maintaining delever a to we these Xx work to results. shareholder to targeted ability quickly. We will build and believe the

are value. team our as food category identifying double-digit lineup shining General On we star at growth. products efficiencies and guests. job to working excellent in our high-quality the business, for with offer Grocery our promotions and the same-store flocking offering to side respect the is we Beverage meaningful doing the where plan. third great over within supplier guests a a an of refreshed effective sandwich pillar With our of is Dispensed remains merchandising our right we strategic products quarter prepared One had the trains inside Merchandise, and believe differentiator industry. Enhancing another develop the of operational to energy the partners Overall, nonalcoholic beverage is

results the second tenth make in great The hours. continuous to quarter organization a The as operations has our operations execute a store team's team in and consecutive take labor job team rigorous quarter with never process to your ability things to doing same-store we've We'll get our our work. Sum Our improvement results collaborating non-value-added questions. plan and is to a are done of deliver with compelling shareholders. now more the the efficient. more felt store reduction with rid this marked differentiated confident up, simplify

Bobby [Operator And comes Instructions] Raymond from our first James. of question Griffin

the getting deal line. on finish Congrats the Fikes over

the Merchandise me, I Grocery first and of from bit to So General a wanted guess just dive I kind little to margin. in

in over Another second great quarter a quarter, XX%. row

business a back side coming the takes opportunities out this and bar there where there? of of business be -- puts is maybe in more of with saw structural bit this changes things some So in up at, especially this view margins talk step about the like the that? can the we a like little the and could some with your you more And

into of in But is Bobby, Darren. on mix that there's What Yes. planning, examples. just joint driver with partners what business going couple kind the I of Grocery things a a this some we've have And give translates we're board on categories. I'll there. biggest the you supplier think across higher-margin and obviously, we I'd General done job mix. impact shift is tell of great some is a that you ultimately is few items the in and in Merchandise, in seeing really, the a to working

If the within and subcategory higher alcohol subcategories come lowest-margin the which of you imports as to take margin. at fastest-growing of part Inside with though, beer, the premium that's alcohol. within probably of the premiums, a look softest is that been an super alcohol is beer, tend and example,

go to a other growing and you about liquor as have those both higher XX% If at the are subcategories, well. wine, clip those margin and

continue we you're of kind higher-margin the hanging margins that in accelerate in and lower just as there, to margin are the areas seeing growth shift. So

basis XXX And so driven improvement mix. on that year-over-year, point was a primarily

have be a declining within You margin been they're would to And category, cigarettes, a again, dynamic go similar and lowest cigarettes the years. example combustible for subcategory you have number of where and tobacco. the other are that declining

alternatives flip growing the pace. in fastest vapor, at side, nicotine the are which On

much a In higher to those triple-digit alternatives almost rate. are with margin nicotine and fact, tend come increases

seeing really with done combustible cigarettes. And nice really then done work lastly, of so of lot expansion And shrink. in even those over last technology to seeing overall, we've reporting So some protection our job team though identify we're that exception-based sources margin or and a the on on asset and route has you're tobacco out. decline actually a other year shrink rate

when XXX So that improvement basis end you you with where that's all point up in margin. together, put

your would to other to that I say is large so question And this it mix I because extent, is on go. a shift continuing is structural? to say,

of? guess aspect I deal the seasonality that a I And X for EBITDA final helpful. think aware just should me the $XX were very some then the investors we change. deal of when implied on Fikes of That's some on given my for itself, announced into guidance the there and be you is that kind that their is the to just was math million doing quick back what's

I sure, is EBITDA aware be So in deal? should was we make as aspect still of? just to you business around any announced Is guys that it trending there million the want seasonality $XX-ish when

is mothership seasonality with There we some it's probably as not Yes, as this quite Casey's significant just call as north but far they're what Steve. Bobby, Fikes. there's would seasonality. is because some the we still as -- far not as not are,

ramping half of number. a a ramping number open. had so we're that on. construction going They with. would that start the full basing previously, $XX that not of half some which as in general not for But year, cetera, either is That's just not had be had year stores consistent plans, to our and from as the et or the of So be that been we that to some million them on open store the XX rule a good That's had quite were about about talked the been dynamics and big first right, the included our year. there's that all remember second stores, contributions business with or under number

again congrats appreciate I and quarter. great Absolutely. on a the details,

Goldman comes of Sachs. question Bonnie next Our Herzog from

All right.

maintained, sales guess the of you this at a X% inside the I second same-store half to half. an first For year, X% for the acceleration midpoint, of in the does versus imply guidance which bit

traffic versus lines, on your heading and traffic December. or in your the any you color And of for So And quarter then how maybe could touch outlook for of And year? rest last far will be along maybe what the again, just -- so in or into those curious on levels November year then this? the trended next the quarter? drivers fiscal

Steve. quarter was start us. Traffic in the with for positive that. I'll

same-store at experience, right the in November November, we literally at right Our range. middle were X% for right so sales the of inside

were sales. the range below in we inside first certainly, end quarter same-store So the obviously low on the of

So obviously. the launch second get that, in year. the of current range. right feel November, our a the some and kind we're of nose good third from we into right on We middle the that is quarter has But biggest of the aware which comparability in lot et weather the new the is cetera, initiatives quarter of the ] as on of [ of of team to thought the nose was middle month is the range, the the pretty stuff kind about exogenous of calendar programs, the on of various part

it within that So the like felt to range good range. us felt just still

year's of of in We already. certainly aware the are that's lapping we day, leap dynamic, quarter the the prior there. that there's in know fourth that but obviously,

like So forward. need have of to year-to-date we that pretty was range. It November it there felt based on feels really we through and kind going safe what know change what no

on. just clarify then pass it Okay. I'll can something And I

with consumer of context Are the the in then talked consumer behavior. seeing you seeing just any you behavior, this? are of about, of all strengthening you in Just what context change, any the

about normal. them. of consumer have We're With the buy a to little store the a They're Darren. we last as talked we continuing same exposure consumers, it's frequency visit again, But respect bit directionally, the the continuing have are to quarter. consumer, of still balance to income about to at the disproportionate which consumer shop. as of Bonnie, on They're lower there consumer. same hanging would we're is in the softness to what for that -- that don't X/X about the seeing continuing

X past think guidance we midpoint. the X month at ultimately, midpoint that the is to we've back this quarter, getting the point, So year. for to this appropriate in that will range we're on We I of at the land Steve's the think November --

from of Melius Our next Jacob question Aiken-Phillips comes Research.

and I into a the just dynamic food bit competitive wanted prepared there. to go

Just or of increase if need invest of the to wondering the margin in other Pizza, some there? may QSRs seeing the you like what you're with competition terms and feel promotional gross

is closely. the keeping it Yes, I segment I'd competition eye this an QSRs. pizza We're the pretty into of And There's on rest Darren. Jacob, the guess then break segments. and the there's X

more as just it's With relative are the QSR, to of rest the a discussed But lot what on of we've become the doing. value-oriented environment. a compelling obviously, line much is previously, proposition pretty our value basis others a pricing

sandwiches And strength. so that most in I really if sandwich of players have we're you think extreme heavily those typically the the where QSR thing, that's and value. sort seeing of mean are that invested and

proposition. that's of pricing innovation and our more reflective so value And the line

So healthy don't feel carry any products to get pretty already the to more we need margin. have we And aggressive those a than are.

than our our say competitive of at our that always any major geography even pizza that wouldn't gotten don't probably about you it across more pizza On remind we of I competitors. we half the is. it's pricing stores, side, the I'd And in look have one and

of their to pressure in about perspective our And So a under of layer we standard platform. we're offers be then, our menu via at $X pricing below day. variety promotional $X stores. a just half, the every And in rewards other all from of tend we any pricing to not half real course,

value proposition pretty see from And as terms any an reflective of a volume value and our mode. don't perform to right And more see we so normal is as of aggressive need in margin long [indiscernible], the now standpoint. like get what our sales to operating continues you

if updates incorporating wondering appreciate time your the for or upstream then Fikes rebannering I fuel that. on for just stores line their capabilities? into the assets any of had And you some

discussed tent a of Yes. as integration. First, And that's will we obviously, longest years. of had the pole -- terms that's few take they the we overall pretty have remodeling stores, going And as to successful respect X in food That With the the well. probably a before, in program. to

quickly informed stores how integrating platforms to to an of work scope going so of the the understand together and apply have can X we we're so few And a perform chain. remodel they really really rest those to

permitting And to XX jurisdiction. And on little of do months XX a depending work then can to process anywhere so there. bit from take the

a pretty line there's long So time there.

a will side, little quickly more and thing. activities of fuel the we pricing that over procurement On and take as that happen sort integration

anticipate So end of more on you should the remodel here than side. thinking we today to But in years integration really, X I would where benefit a little line from sooner to the X the sit time be process. that

comes of question next Our from Bonadio Anthony Wells Fargo.

quarter. Nice

it, just million. little onetime the It like X% call which back So more to growth, looks a that wanted implies to EBITDA bit headwind $XX talk includes, about a now guidance. half in X% from million cost $XX

has changed capture your And half? back contribution year. trying anything back synergy half then business work you're thoughts existing the about of thinking the as through from in just initial revision to guess, about from the So bridge 'XX how I fiscal on fundamentally guidance, you the Casey's better any Fikes, to the guys

year, related to second tried for the kind than originally better to changed. guided I that. on half of the think, to. performance assumptions start nothing I'll Steve. I mothership mean I acknowledge fundamentally has is of This -- our we we no, is

than be growth that's lower by with and some operations had the incentive compensation. OpEx even guided to so, and basis points originally is the XXX or Casey's incremental going we legacy to So

have margin the earlier really feel to inside think Darren's certainly that. We seen good -- legacy about we good really So performance business the in I comment stores.

continue general And rule. not so going we would have as to no think reason a that that's to

we're some an consciously I otherwise we have benefits the so would to different the lower would so of deal. a cash mothership. some in say spending of have building. just will been income that we're some flow to speed capital are sequencing some she payments the that We'll because units new of deleveraging, bit the and tax on items of little we so From decisions largely on goes And contribute it's as statement impact steady perspective, making

we transaction. And transaction, will the on and underway of over specific function a So relates to et with expect next time, in kind out from really taking fuel a have cash consolidated. bit some don't fuel what but we be, we associated of was that's it this and some directly initially flow, of on point very would thought little here as than cetera, we further to game. SG&A I synergies quickly to going to will generally the if think, work commentary bucket centralizing fiscal be debt higher us in any them as a to the today. comes it yet get be get Fikes, applied that out, at already the sit some that going is synergies synergies as had I off the paying pricing gets first, of and the That's procurement related little year

-- As in the and on business. Ultimately, of the the pizza is the remodel as a we get stores. scale real on the store G&A the will greater most line we on the of side be the more the That dependent will introduce kind come inside of the procurement savings with of of schedule. advantage significant synergies as lot sourcing into

synergies be next little move numbers XX second think other I we've than is not per we've to certainly given. just the But reflected that will be be given. half number year, it's that the not that next there'll fuel, a se of the in the But X any in the going bit guidance significant it this don't of months of months, So in would in fiscal realistically. a and

that context Q-to-date mid- additional thinking stores. the XXs, I margins fuel believe just just sales new helpful. just you Got fuel. any And I thoughts And clarify then in. how it. a on XX% to follow-up thoughts growth blend margins guess to any you're in That's super of high how EBITDA on the that, growth. about those includes on just said And

consciously guide fuel we listen, Yes, don't -- margins. to we

is not than Our anybody any else's crystal necessarily. ball better

fuel of obviously, in with a the maybe year. But bit on mixing is mid the profitability a what And just would high half quarter more experienced per so bit geographies Fikes just half full would the expectations. than don't about mixing the to how to the geographies gallon. or for second we obviously little CPG reflected, year We're the in consistent Margin be little the specific of just $X.XX in expect kind than from math Fikes I our a our EBITDA that going have. number. tend we expectations second and to we in the year, XXs. the of Headwind, the business, be $X.XX those lower. guide have between probably fuel There's manage that of in of that the for

next Montani Our ISI. Michael comes question Evercore of from

deal Congrats on completed. quarter and the getting margins. on Fikes the just I the ask wanted to inside

the of prepared timing headwinds, other First of anything of grocery and that the cetera, back well? et there's spot, impact that call side of gen cheese aware the merch off, in foods out seen then we've in improvement into secondly, terms to half margins any to or kind than if headwinds gross year? be as could of And you'd the

this Michael, Darren. Yes. is

over On side, any the to categories, should wouldn't headwinds. through pricing year, some We'll seeing roll real calendar be actions. in some and that General there'll Merchant and able -- largely the not offset We're we as be we that. cost I Grocery increases anticipate

I I think stick. any mix is big there. evolution shifts The anticipate So something wouldn't will do that

our And so I think benefit. that's probably to

can Steve, on cheese side? the side, On you the maybe comment cheese

comment, X don't of the of grocery for there's buttress are little things bit Just mix to sell higher-margin right? our and In the year, coldest us. part of kind products product seasonality much side, thing that in Darren's we home on ice the of as a course,

mix to the a time. of prepared I natural think relative food, significant is as And I cheese more. outside and Again, is second be third the anything there's moment it no, was bit headwind a think we to periods note. So cheese It's than of to summer dilutive less quarter. of don't in here the the at going little probably bit today sit little quarter a

Bank. Deutsche question next of Our Krisztina from comes Katai

nice on Congrats results.

almost opportunities ask Fikes wondering if OpEx, but just now on stores. was to of some them X.X initial on assessment relates you that months, could as at discuss I the acquired wanted I you've these it And to owned stores. your the for So

what XX next that initiatives hour were months? could line to over look to many then see same XX that you do And at labor general opportunity the implement Casey's? the successful of how so Just time saving like

Yes, operating Darren. is Fikes this great good Krisztina, pretty has a job feel we stores. that. about Yes, done their

to good but they would generally, have ourselves these lot and our say lot I operation over the a So a OpEx. tactics employing techniques we've learned different a impact and of last couple technologies years, of

overall. But to and the a might terms we'll see the wouldn't we That's time. benefits. of plans in might fiscal opportunity year have this into take we're still go to approach to some feel I we that that pulling fiscal still operation some of we But do that opportunity Fikes the have we that when some that the those of lot stores. have more of expect balance in So together how going detailed we year, anticipate we as for definitely there. next

about So that. we feel good really

I about then a Got more side just it. food things, bit your prepared could development a calendar That's in you just vendors planning type you newer And helpful. benefits for of process follow-up. of about the you to hoping a relatively And upcoming was think talk discuss the look your on then on your could joint which little I achieve you. the year. is and if

Yes.

all us have they we're large the help that bear think planning little I of a Merchandise capabilities. is what joint The don't we can Grocery General to bring companies that I we're more historically we've to right. that the is broadly were improve the You're prepared -- on is on capabilities foods suppliers But side. tapping a truly used lot process are than think our into newer it bit business. pretty And and seeing

job that's the so side starting innovation And the say, that, think much of doing in I a and would some equation. of we're better I results, yield primarily to

their these in some get So quality team, sophisticated pretty time. innovation, own in get suppliers them really great the when get teams at and culinary costs we with some have our improvements can of in culinary right partner most improvements and same we ingredient some great

And example I of really platform think great platform and the Sandwich the is so sandwich a that. chicken overall Hot

jointly the produce those our getting. and and new, of culinary were team in get higher-quality a performance to us developed ingredient of a to at with culinary better are team and components those the allowed ingredients All manufacturers that cost product the sandwiches the we're kind of

suppliers. process now, lying to continue we're with wrapping and going that all what's up our us. be pretty for about of optimistic we're so a right we're that So X And will of ahead that year or this process

next [Operator of Instructions] Our Corey question comes Tarlowe from Jefferies.

you've was I if momentum? contrast was nice store? sales? And I Steve. what's I Darren, Darren, also could -- curious well? bit you was helped about Casey's X maybe -- curious about little effectiveness could you then you talk a momentum. On it where could just so if you and ramp that for mentioned, Fikes promotions us for had the inside then for you support some seen the energy for doing then X And that's of recently drinks, And think I I driving had is that had to traditional remind you that the as and what Steve, maturity how new for been with just a about

essentially assortment that is I combination this year-over-year. optimization, and a on XX% Yes. management the up drinks, is of energy activity. say that is And Yes, promotional Corey, Darren. assortment that, category would

all assortment, So accelerate been into [ and the in grow entrants new those are we've of ghost have flip the CX and stalwarts very got Bull ] on some new Red performing are category side the and well, pace. assortment. and Monster and products continue a in to newer a lot the

a the of And on really more execution and of is the And others growth activities the stores unique different a a Red reminder, at feel driven which is some and coming Monster, the as in we industry. say new store of Bull less part versus I really our our the into that like result level differentiator items in industry. is the at and I'd promotional being and and by execution So assortment. then as Monster self-distribute position the in in-stock that. side,

accrues really behind part and equation And in benefit, the of that's growth think I so our that energy drinks. the

On the ramping. question on

of for industry ramping of a different have NTI, on certainly expectation build returns, don't quickly be gate. really year. out second invested a positive generate versus be by to in we a in returns returns very year after-tax it But new of to significantly in expect be would we should on first returns the third terms they return kind or fourth of that It the acquisition year, a an So and right of model. how mid-teens capital the the after-tax mature should double-digit by terms

of newer the little with be as a is that's brand specifically, consistent aren't as prepared year general pattern. of an and about of of extra history literally all the a geography bit you and familiar with the would had very ramp probably -- rule, to pizza supportive In quality a decades that foods. recognized a adoption Our NTIs people where as less that just

They've got because at going a business. For be some stores they're returns there, obviously existing X not that. they're different buying little to existing Fikes bit starting that high-returning you're already. in business. buying an very, The We're specifically, very stores busy,

and stores that once, prepared business pizza step you putting those at have change food don't more of a in you're that kind they business So as you're get comparable. a of because the we all remodel something just introducing

show different X-year X- So time stores on back store's kind Casey's on consolidated stores, the individual benefits, going up the those on benefits, permitting of meantime, that an remodeling right, right? the are bit over based those pattern. But above the accrue they to will finish to expectations the to those a SG&A But of of the in lines. if stores, the return P&L benefits, even be necessarily. unit a fuel time don't procurement little We'll of period to

remarks. turn I closing further to I'm like at Rebelez not Darren for it showing time. this to questions would any back

time again wish everyone Okay. I off, Thank team the before the we members for call. us holiday today and join And once sign to and thank season. them taking to want our you happy on call a the on

This disconnect. concludes for participating, you conference today's Thank call. you now and may