Casey’s General Stores is betting bigger on stores, food and tech as it looks to extend its growth streak.
The Ankeny, Iowa-based company recently unveiled a new three-year plan centered on expanding its prepared food business, adding new stores and using technology to run more efficiently.
Casey’s plans to add at least 400 stores over the next three years through acquisitions and new builds. The company operates more than 2,900 convenience stores and says it is the nation’s third-largest convenience store retailer and fifth-largest pizza chain.
"We made a commitment to grow our EBITDA by 8% to 10%, which is top-quintile growth for the S&P 500," CEO Darren Rebelez told FOX Business. "We’ll do that through growing our prepared foods business, growing our store base and running our business more efficiently."
BELOVED CONVENIENCE STORE FOOD HELPING COLLEGE FOOTBALL FANS TACKLE EARLY KICKOFFS
Rebelez said Casey’s is coming off "the best three-year cycle" in company history after beating its prior targets, adding more than 500 stores and joining the S&P 500. The company's stock is up more than 53% year-over-year.
Food remains a key part of Casey’s growth strategy. The company, long known for its pizza, is pushing deeper into made-to-order items such as wings and fries.
Rebelez said wings are now available in 850 stores, with bone-in and boneless options, five sauces, three dry rubs and ranch made from scratch daily.
"We're famous for our pizza, we still have a long runway for growth there with innovation and new items that we've introduced more recently," he said. "But now we have the wings platform."
YUM BRANDS SELLS PIZZA HUT FOR $2.7B, SHARPENS FOCUS ON TACO BELL AND KFC
Casey’s sees its food business as competing more with restaurants than other convenience stores.
"We really don't look at the convenience store industry as a competitor for our prepared foods. We're really competing with the restaurant business," Rebelez said.
In Des Moines, where wings have been available for more than a year, sales are up roughly 20% year over year, according to the company.
Casey’s is also looking to expand "Casey’s Country" by opening stores in current and new markets.
"Our growth strategy is expanding Casey’s Country in a disciplined way," Ena Williams, chief operations officer at Casey’s, said in a statement. "We’ve shown that we can grow through both new stores and acquisitions."
PAPA JOHNS SHUTS DOWN DOZENS OF LOCATIONS ACROSS 17 STATES AS FAST-FOOD COMPETITION INTENSIFIES
The company is additionally investing in artificial intelligence, forecasting tools and digital platforms such as the Casey’s app and Casey’s Rewards to help improve efficiency and strengthen the guest experience.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Rebelez said investors have responded to Casey’s consistency and its hybrid position between convenience retail and quick-service restaurants.
"We sell fuel, we sell grocery and general merchandise, and we have prepared food, so we can compete in either space."