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Why Casey’s Is Crushing It (And Probably Making Better Pizza Than Domino’s)
By the Numbers:
- Over 2,600 stores and counting
- $1.2 billion in EBITDA in FY 2025
- 5th largest pizza chain in America
- 26 consecutive years of dividend increases
- Over 40% of gross profit from pizza, donuts, and other glorious carbs
The Small-Town Giant You’ve Been Ignoring
If you live in New York or L.A., you probably think “Casey’s” is a guy who sells vape pens out of his van. But if you live anywhere within a 500-mile radius of Iowa, Casey’s General Stores is your fuel stop, your pizza joint, your beer run, your donut dealer—and possibly your entire social life.
What began as a single store in Boone, Iowa, now quietly commands a $18B+ market cap and a stranglehold on Middle America’s convenience economy. It’s not just “doing well”—it’s beating Domino’s at pizza sales in many rural zip codes.
How? Let’s break it down.
1. They Own the Town (Because No One Else Wanted It)
Casey’s strategy is dead simple: build in small towns with populations under 5,000, where Walmart is too fancy and Subway already gave up.
The result? Minimal competition, loyal customers, and monopoly margins on pizza, soda, and 87-octane fuel.
They’re basically the Warlord of Waverly, Iowa.
2. Their Food Is the Margin Monster
Gas is the bait. Pizza is the profit.
Prepared food accounts for less than 25% of revenue, but over 40% of gross profit. Casey’s made-from-scratch pizzas, sandwiches, and breakfast burritos aren’t just edible—they’re cult favorites.
And it shows: their food segment has higher margins than Domino’s—without the delivery overhead or cheesy tech gimmicks.
Also, their breakfast pizza might be the only thing in America that brings both ranchers and vegans together.
3. Vertical Integration, Baby
Unlike most gas station chains, Casey’s owns its distribution centers, supply chain, and a big chunk of its logistics operation. That means better inventory control, fresher donuts, and more efficient costs per store.
They’re not just a gas station brand. They’re a vertically integrated convenience-food empire, disguised as your local pizza counter.
4. They Don’t Waste Money on TikTok Ads
While competitors are throwing ad dollars at influencers who can’t pump gas, Casey’s keeps it old-school. Marketing spend is modest, and loyalty comes from physical presence, not digital clout.
And that’s where they win: low CAC, high retention, and customer love built on sausage gravy, not slogans.
5. Acquisition Mode Is Always On
Casey’s isn’t just building new stores. It’s buying up tired regional chains and rebranding them—fast. In FY 2025, it acquired 198 stores from Fikes/CEFCO, adding to a growing portfolio that now spans 17 states.
And because their operations are plug-and-play, each new location quickly turns into a cash machine.
6. Cash Flow King of the Corn Belt
With $546 million in net income and 13% EBITDA growth in FY 2025, Casey’s is the kind of stock that doesn’t need hype. It prints cash, expands methodically, and raises its dividend every year like it’s on autopilot.
You’ll never see it trending on WallStreetBets—but you will see it crushing your portfolio if you ignore it.
The Bottom Line:
Casey’s isn’t really all that stunning. It’s successful.
It dominates by sticking to the unglamorous basics: small towns, low competition, high-margin food, and tight operational control. It doesn’t want to be the next Uber. It wants to sell you pizza and gas while quietly compounding shareholder value in the background.
And judging by the financials? It’s working.
DISCLAIMER: This analysis of the aforementioned stock security is in no way to be construed, understood, or seen as formal, professional, or any other form of investment advice. We are simply expressing our opinions regarding a publicly traded entity.
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