About Casey's General Stores

Casey’s General Stores, Inc. (Casey’s) operates convenience stores. The company operates its stores primarily under the names ‘Casey's’ and ‘Casey’s General Store’ (collectively, with the stores below referenced as ‘GoodStop’, ‘Bucky's’ or ‘Minit Mart’, referred to as ‘Casey's’ or the ‘company’) throughout 16 states, primarily in Iowa, Missouri, and Illinois. All convenience stores carry a broad selection of food items (including, but not limited to, freshly prepared foods such as regular and breakfast pizza, donuts, hot breakfast items, and hot and cold sandwiches), beverages, tobacco and nicotine products, health and beauty aids, automotive products, and other nonfood items. The company’s some store locations offer car washes. In addition, all but some store locations offer fuel for sale on a self-service basis. During 2022, the company introduced certain stores branded or rebranded as ‘GoodStop (by Casey’s)’. Similar to most of the company’s store footprint, the ‘GoodStop’ locations offer fuel for sale on a self-serve basis, and a broad selection of snacks, beverages, tobacco products, and other essentials. However, these locations typically do not have a kitchen and have limited prepared food offerings. Some stores operate under the ‘GoodStop’ brand. The company is also temporarily operating certain locations acquired from Buchanan Energy during 2022 under the name ‘Bucky's’ and certain locations acquired from Minit Mart LLC during 2023 under the name ‘Minit Mart.’ The company is in the process of transitioning all ‘Bucky's’ and ‘Minit Mart’ locations to either the ‘Casey's’ or ‘GoodStop’ brand. These locations typically have similar offerings to the ‘Casey’s’ or ‘GoodStop’ branded stores. The company also operates stores selling primarily tobacco and nicotine products, liquor-only store, and grocery store. The company has dealer locations, where Casey’s manages fuel wholesale supply agreements to these stores. These locations are not operated by Casey's. The company operates three distribution centers - in Ankeny, Iowa adjacent to the company’s corporate headquarters, which the company refers to as its Store Support Center, in Terre Haute, Indiana and in Joplin, Missouri - from which certain grocery and general merchandise and prepared food and dispensed beverage items are supplied to the company’s stores by the company-operated delivery fleet. The company also self-distributes the majority of fuel to the company’s stores. The company has a fleet of 397 tractors used for distribution. The company owns most of its real estate, including substantially all of the company’s stores, all three distribution centers, a construction and support services facility located in Ankeny, Iowa, and the Store Support Center facility. The company derives its revenue primarily from the retail sale of fuel and the products offered in the company’s stores. The company’s sales historically have been strongest during the first and second fiscal quarters (May through October) relative to the third and fourth fiscal quarters (November through April). Casey's Marketing Company (‘CMC’), Casey's Services Company (‘CSC’), and Casey’s Retail Company (‘CRC’) are wholly-owned subsidiaries of Casey’s, while CGS Stores, LLC and Heartland Property Company, LLC are wholly-owned subsidiaries of CMC. CRC owns and/or operates certain stores in Illinois, Kansas, Michigan, Minnesota, Nebraska, North Dakota, and South Dakota, holds the rights to the company's trademarks, service marks, trade names, and other intellectual property, and performs most ‘corporate’ functions of the enterprise. CMC owns and/or operates stores in Arkansas, Indiana, Iowa, Kentucky, Missouri, Ohio, Oklahoma, and Wisconsin; and is responsible for all of the company’s wholesale operations, including all three distribution centers and management of the wholesale fuel network. CGS Stores, LLC owns and/or operates stores in Tennessee. CSC provides a variety of construction, maintenance and transportation services for all stores. Store Operations Products Offered The company designs, develops and delivers value to its guests through a differentiated product assortment where the right products are optimally placed, priced and promoted to drive traffic, revenue and profit. The company has installed full kitchens in almost all of the company’s stores, other than those branded as ‘GoodStop’. The company's flagship product is its handmade pizza. It was available in 98% of the company’s stores as of April 30, 2023. In addition, the company has expanded its prepared food offerings, which include made to order cheesy breadsticks, sandwiches and wraps, chicken wings, chicken tenders, breakfast croissants and biscuits, breakfast pizza, breakfast burritos, hash browns, burgers, and bakery items, including donuts, cookies and brownies, as well as other seasonal items. During the year ended April 30, 2023 (fiscal 2023), the company launched new limited time offers to include the company’s ‘Ultimate Beer Cheese Breakfast Pizza’, as well as the company’s ‘BBQ Brisket Pizza.’ Additional stores selling pizza will come on line as newly acquired stores are remodeled and kitchens are added. Finally, as of April 30, 2023, the company was selling donuts in 97% of the company’s stores in addition to cookies, brownies, and other bakery items. Each Casey’s store typically carries over 3,000 packaged food, beverage and non-food items. The selection is a blend of differentiated private label products (which now included over 300 items as of April 30, 2023), as well as favored national and regional brands, many of which can be found in larger format stores. The company’s assortment includes product across the following categories: non-alcoholic beverages (soft drinks, energy, water, sports drinks, juices, coffee, tea and dairy); alcoholic beverages (beer, wine and spirits); packaged foods (snacks, candy, packaged bakery and other food items); tobacco and nicotine products; frozen foods (ice, ice cream, meals and appetizers); and non-foods (health and beauty aids, automotive, electronic accessories, housewares and pet supplies); and services (ATM, lotto/lottery and prepaid cards). All but some stores offer retail motor fuel products for sale on a self-service basis. Gasoline and diesel fuel are sold under the Casey’s name at the majority of the company’s locations. The company offers the Casey's Rewards program to bring value to guests and improve the digital guest experience. As part of this program, guests can earn points from online, in-store, or at the pump purchases. Points earned can be redeemed for donations to a local school of the guest's choice, fuel discounts, or Casey's Cash, which can be used on many products sold in the company’s stores. The Rewards program is delivered through Casey’s mobile application. In addition to earning points, guests may receive other program benefits, such as special offers and bonus points. At the end of the fiscal year, the company had surpassed 6.4 million members enrolled in the program. Store Design Casey’s constructs stores that are primarily freestanding and, with a few exceptions to accommodate local conditions, conform to standard construction specifications. The current larger store design measures approximately 2,550 square feet devoted to sales area, 550 square feet to kitchen space, 400 square feet to storage, and 2 large multi-stall public restrooms. There is also a smaller store design that is generally designated for smaller communities that measures approximately 1,350 square feet devoted to sales area with the remaining areas similar in size, and 2 single user restrooms. Store lots have sufficient frontage and depth to permit adequate drive-in parking facilities on one or more sides of each store. Each new store typically includes 4 to 6 islands of fuel dispensers and storage tanks with capacity for 44,000 to 70,000 gallons of fuel. The merchandising display follows a standard layout designed to encourage a flow of guest traffic through all sections of every store. All stores are air-conditioned and have modern refrigeration equipment. Nearly all locations feature a bright sign which displays the Casey’s or GoodStop name and trade/service marks. Almost all stores remain open at least sixteen hours per day, seven days a week. Hours of operation may be adjusted on a store-by-store basis to accommodate guest traffic patterns. As of April 30, 2023, the company operated some stores on a 24-hour basis, and some have expanded hours. Store Locations The company historically has located many of its stores in smaller towns not served by national-chain convenience stores. Retail Fuel Operations Retail fuel sales are an important part of the company’s revenue and earnings. Approximately 66% of total revenue for the year ended April 30, 2023 was derived from the retail sale of fuel. Distribution and Wholesale Arrangements CMC supplies all stores with groceries, food, health and beauty aids, and general merchandise from the company’s three distribution centers. The stores place orders for merchandise electronically to the Store Support Center, and the orders are filled with shipments in Company-operated delivery trucks from one of the distribution centers, based on route optimization for the fleet network. Most of the company’s existing and proposed stores are within the three distribution centers' optimum efficiency range—a radius of approximately 500 miles around each distribution center. In fiscal 2023, a majority of the food and nonfood items supplied to stores through the distribution centers were purchased directly from manufacturers. In addition to the products discussed above, CMC supplies all fuel to the company’s stores, and supplies fuel on a wholesale basis as part of a dealer network to 76 locations. Competition Examples of convenience store chains competing in the larger towns served by Casey’s include Quik Trip, Kwik Trip/Star, Kum & Go, and other regional chains. Trademarks and Service Marks The names ‘Casey’s’, ‘Casey’s General Store’, and ‘GoodStop (by Casey's)’, the marks consisting of the Casey’s design logos (with the words ‘Casey’s’ and ‘Casey’s General Store’), the weathervane, and certain of the company’s private label product names, are registered trademarks and service marks under federal law. These marks are of material importance in promoting and advertising the company’s business. In addition, the company has a number of other registered and unregistered trademarks and service marks that are significant to the company from an operational and branding perspective (e.g. ‘Casey’s Pizza’, ‘Casey's Here for Good’, ‘Casey’s Rewards’, ‘Casey’s Cash’, etc.). History Casey's General Stores, Inc. was founded in 1959. The company was incorporated in Iowa in 1967.