Casey's General Stores, Inc. (CASY): ANSOFF MATRIX [Dec-2025 Updated]

Honestly, you need a clear roadmap for Casey's General Stores, Inc., not just buzzwords, so I've mapped their next moves using the Ansoff Matrix, drawing from their fiscal year 2025 performance. They are clearly focused on squeezing more from existing stores-think driving frequency from those 9 million Rewards members and pushing that prepared food revenue, which already jumped 10.3%-but the real action is in expansion. Management is serious about hitting that 500 new unit goal by the end of FY2026, building on the 198 CEFCO acquisition, while also testing big swings like EV charging networks and new food-only formats, which management defintely views as an effective play. What this means for you is a clear view of where the company is playing safe and where it's taking calculated risks to grow beyond the current 37.6 cents per gallon fuel margin. Read on to see the actionable steps for each quadrant.

Casey's General Stores, Inc. (CASY) - Ansoff Matrix: Market Penetration

Market Penetration focuses on selling more of our existing products in our existing markets. For Casey's General Stores, Inc., this means driving deeper engagement with the current customer base through promotions, loyalty, and optimizing current store operations.

Increase same-store inside sales, which grew 2.6% in fiscal year 2025, via targeted promotions.

For the full fiscal year 2025, annual inside same-store sales rose 2.6%. This was supported by strong performance in specific categories during the fourth quarter ended April 30, 2025. The inside margin for that fourth quarter stood at 41.2%. Total inside gross profit for the fourth quarter increased 12.5% to $582.4 million compared to the prior year.

Drive higher frequency from the over 9 million Casey's Rewards members using personalized offers.

The Casey's Rewards platform successfully grew to over 9 million members by the fiscal year-end of 2025. This loyalty base is a key driver for repeat visits and personalized offer effectiveness.

Expand prepared food hours, especially for pizza, to capture more evening and late-night demand.

Performance in prepared food categories showed strength, with hot sandwiches and bakery leading the inside sales growth for the fiscal year. For the fourth quarter of fiscal 2025, total prepared food and dispensed beverage sales rose by nearly 10% to $392 million. To capture more demand, the company converted an additional 145 stores to 24-hour operations during the third quarter. This brought the total store base operating 24 hours a day to approximately 20% as of that reporting period.

Optimize fuel pricing to maintain the Q4 2025 margin of 37.6 cents per gallon while increasing volume.

In the fourth quarter of fiscal 2025, the fuel margin achieved was 37.6 cents per gallon. Fuel same-store gallons saw a modest increase of 0.1% for the same quarter. This margin performance contributed to total fuel gross profit increasing 21.4% to $307.8 million in the fourth quarter. For the entire fiscal year 2025, the average fuel cents per gallon was 38.7 cents.

Remodel existing stores to add kitchens, converting them to the higher-margin food-forward format.

The ongoing remodel program, which includes adding kitchens, contributed to gross profit increases. The company built or acquired 270 stores in fiscal year 2025, which was the most in its history. This expansion included the acquisition of 198 CEFCO convenience stores.

Here's a quick look at the overall financial scale for fiscal year 2025:

The focus on existing stores means maximizing sales per square foot through better product mix and service hours. You can see the impact in the category performance:

• Grocery and general merchandise margin: 34.8% (Q4 2025)
• Inside margin (Q4 2025): 41.2%
• Inside margin expectation for FY 2026: Approximately 41%
• Inside same-store sales expectation for FY 2026: Increase of 2% to 5%

Finance: draft the projected Q1 2026 inside margin variance analysis by next Tuesday.

Casey's General Stores, Inc. (CASY) - Ansoff Matrix: Market Development

Aggressively pursue the goal of adding 500 new units by the end of fiscal year 2026 through M&A and new builds.

Casey's General Stores has set a three-year strategic plan target to add approximately 500 locations by the end of fiscal year 2026. The company is planning to open at least 80 new c-stores in fiscal 2026 to help achieve this goal. This aggressive pace follows a record year for development in fiscal 2025, where the company added 270 stores, the largest expansion in its history. As of April 30, 2025, Casey's operated 2,904 stores.

Systematically enter the 75% of small towns (500-20,000 population) within the current distribution footprint.

The opportunity in smaller markets remains significant, as Casey's General Stores previously noted that within its distribution radius, it did not operate in 75% of towns with a population between 500 to 20,000 as of June 2023. Historically, the company has focused heavily on these areas, with nearly 60% of its stores operating in towns with fewer than 5,000 people. Furthermore, the portion of stores in towns greater than 20,000 population was less than 20%. This historical concentration underscores the market development focus on similar, underserved small-town geographies.

Accelerate expansion in new southern markets like Texas, Alabama, and Florida, following the 198 CEFCO acquisition in FY2025.

The acquisition of Fikes Wholesale, owner of 198 CEFCO Convenience Stores, completed on November 1, 2024, significantly accelerated entry and presence in southern markets. The all-cash transaction was valued at $1.145 billion, with a net after-tax purchase price of $980 million. This deal added 148 locations in Texas and 50 stores across Alabama, Florida, and Mississippi. Specifically, this included 27 stores in Alabama, 13 in Florida, and 10 in Mississippi. This followed an earlier entry into Texas via the purchase of 22 Lone Star Food Stores in November 2023. Proof-of-concept conversions in Texas showed that Casey's pizza performed 'exceptionally well' in these new markets.

Leverage the existing vertical supply chain to ensure efficient product delivery to new states.

Casey's General Stores supports its geographic reach with a self-distribution model built around its supply chain assets. The company operates three distribution centers (Ankeny, Iowa; Terre Haute, Indiana; and Joplin, Missouri). This network is supported by a fleet of 400 tractors for grocery and fuel distribution. The management strategy is to locate new stores within 500 truck miles of one of these distribution centers to maintain efficiency. The CEFCO acquisition also included a fuel terminal and a commissary to specifically support operations in Texas.

Target small, one-to-three store acquisitions, which management defintely views as an effective play.

Management views small-deal Mergers and Acquisitions (M&A) as a 'very effective play' to grow below replacement cost, especially with higher construction costs. For its store development guidance, Casey's assumes a 50/50 split between new-to-industry (NTI) stores and small-deal M&A. The preferred acquisition targets are small operators with networks ranging from 1 to 50 locations. By acquiring these smaller chains and investing capital to remodel them and add kitchens, Casey's can effectively create a 'new Casey's at below replacement cost'.

• Targeted small acquisitions are typically deals involving one to three stores.
• The company operates three distribution centers to service its footprint.
• The distribution fleet includes 400 tractors for product delivery.

Casey's General Stores, Inc. (CASY) - Ansoff Matrix: Product Development

You're looking at how Casey's General Stores, Inc. is driving growth by innovating what's inside the store, which is where the real margin lives. The focus here is on developing new products and expanding existing high-margin categories.

The push to roll out successful limited-time offers (LTOs) chain-wide is key. While the pilot program for chicken wings and fries beyond the Des Moines market is a strategic move, we know that chicken wings are already part of the expanded prepared food offerings, which saw revenue rise by 10.3% in fiscal year 2025.

Expanding private-label offerings is a direct play to boost margin dollars. Casey's General Stores, Inc. is building on a base that already included over 300 snack and beverage options as part of its three-year strategic plan. To be fair, the private label penetration reached over 9% in units and gross profit dollars in the grocery and general merchandise category in fiscal year 2023, and the expectation is that this focus continues to drive margin improvement in FY2025.

For premium dispensed items, the introduction of new, high-margin coffee blends and seasonal beverages across the chain is designed to capture more of the high-margin dispensed beverage spend. This category, combined with prepared food, contributed 58% of revenue less cost of goods sold (excluding depreciation and amortization) for the three fiscal years ended April 30, 2025.

Developing fresh, grab-and-go meal kits for dinner leverages the significant kitchen infrastructure already installed in almost all Casey's General Stores, Inc. locations, other than those branded as 'Bucky's,' 'GoodStop,' and 'Lone Star Food Store.' This development is aimed at capturing more of the dinner occasion, supporting the overall prepared food growth.

To increase prepared food revenue further, which already grew 10.3% in FY2025, adding more hot sandwich options is a clear action. Hot sandwiches and bakery items were specifically called out as leading the inside same-store sales growth in the fourth quarter of FY2025, which saw inside margin hit 41.2% for that quarter.

Here are some key financial results from Casey's General Stores, Inc.'s fiscal year 2025 execution:

You can see the operational focus driving those financial results:

• Inside Same-Store Sales Growth (FY2025): 2.6%
• Prepared Food and Dispensed Beverage SSS Increase (FY2025): 3.5%
• Inside Gross Margin (FY2025 Q4): 41.2%
• Total Stores Added (FY2025): 270
• Store Count Target by End of FY2026 (from 3-year plan): 350 additional stores

Finance: draft 13-week cash view by Friday.

Casey's General Stores, Inc. (CASY) - Ansoff Matrix: Diversification

You're looking at how Casey's General Stores, Inc. can move outside its core business of convenience stores and pizza, which is the diversification quadrant of the Ansoff Matrix. This is where the risk is highest, but so is the potential reward if you nail a new market with a new offering.

For context, Casey's finished Fiscal Year 2025 with 2,904 stores, generating total revenue of $15.941 Billion and net income of $546.5 million. Their diluted Earnings Per Share (EPS) for that year was $14.64.

Launch a dedicated, high-speed electric vehicle (EV) charging network adjacent to existing stores in new metropolitan areas.

This is a product extension into a new service area, leveraging existing real estate. Casey's is already moving here, partnering with IONNA to install high-speed EV charging stations. They have already broken ground on eight 'Rechargeries' across six states, with plans for these to open by December 2025. These Rechargeries will feature 400-kilowatt power dispensers. This effort builds on existing infrastructure, as the retailer has already brought chargers to over half of its locations.

Acquire a regional wholesale food distributor outside the current 20-state footprint to create a new, non-retail revenue stream.

While Casey's recently acquired Fikes Wholesale Inc. for $1.145 billion, that acquisition was primarily for its 198 CEFCO convenience stores, which expanded the retail footprint into Alabama, Florida, and Mississippi. However, the wholesale opportunity itself is massive. The entire US wholesale food distribution industry is estimated to have combined annual revenue of about $990 billion. A strategic acquisition here would place Casey's General Stores, Inc. in a market segment where regional players compete by specializing in territories, as opposed to the largest players like Sysco, which reports over $68 billion in annual revenue.

Pilot a small-format, food-only concept in high-traffic urban centers, a new market for the company.

Casey's General Stores, Inc. is famous for its pizza, which is a major driver of its business, with over 9 million Casey's Rewards members gravitating toward it. They are currently piloting new food items like chicken wings and fries in the Des Moines market. Historically, a pizza-only concept called Pizza Express in Pleasant Hill, Iowa, was selling between 120 and 140 pizzas a day through pickup and delivery. This tests a new format in urban centers, which are often different from the typical rural/suburban locations where the company has 2,904 stores as of FY 2025.

Here are some key metrics related to the core business that inform this diversification strategy:

Offer third-party logistics (3PL) services utilizing excess capacity in the company's existing distribution centers.

The Fikes Wholesale acquisition, while retail-focused, involved a wholesale entity, suggesting internal logistics expertise. The US Third-Party Logistics (3PL) market size is estimated at $217.62 billion in 2025. If Casey's General Stores, Inc. were to offer 3PL services, it would be entering a market projected to reach $261.75 billion by 2030. This move would aim to monetize existing distribution center capacity, which is a key component of 3PL services alongside warehousing and transportation management.

Invest in a new, non-fuel, non-food service like car washes or quick-lube centers at new-to-market locations.

This involves adding a completely new service line to locations in new geographic areas, like the states of Alabama, Florida, and Mississippi added via the CEFCO deal. While specific financial data for a Casey's car wash or quick-lube pilot isn't available, this strategy targets ancillary services that increase site utilization and customer dwell time, similar to how they are testing EV charging.

• EV Charging Stations Planned for Opening by December 2025: 8
• Power Output of New EV Chargers: 400 kW
• Total Stores as of FY 2025 End: 2,904
• CEFCO Acquisition Price: $1.145 Billion
• US 3PL Market Size Estimate for 2025: $217.62 Billion

Finance: draft 13-week cash view by Friday.