Gasoline: Casey's annual goal is to increase same-store [image-nocss] gasoline gallons sold 2% with an average margin of 10.8 cents per gallon. Same-store gallons sold were up 0.2% for the second quarter and up 0.3% in the first six months. Myers said, "We experienced a significant decrease in the average retail price per gallon during the quarter and are encouraged by the improved same-store gallons sold in October." Favorable market conditions continued in the second quarter resulting in an average margin of 13.7 cents per gallon and 14.7 cents year to date. Midyear total gallons sold rose 1.3% to 634.8 million while gross profit increased to $93.1 million compared with $92 million a year ago.
Grocery & Other Merchandise: The annual goal is to increase same-store sales 7% with an average margin of 33.2%. Same-store sales were up 4.9% for the second quarter and up 4.8% year to date. Total sales for the quarter were up 6% with an average margin of 33.9% and gross profit rose 8.5% to $89.8 million. "We benefited from enhanced profitability in the beer and beverage categories and increased pack versus carton sales in cigarettes," said Myers. Year-to-date total sales were $539.1 million with an average margin of 34%; up 42 basis points from the same period last year.
Prepared Food & Fountain: The goal is to increase same-store sales 6.8% with an average margin of 61.2%. Same-store sales in the second quarter were up 9.3% with an average margin of 60.6%. Total sales for the quarter rose 11% to $87.8 million. "Strategic price increases and continued popularity of menu offerings allowed us to improve gross profit in a difficult market," said Myers. "We are beginning to see commodity cost pressures soften and we are hopeful this trend will continue." Total sales year to date were up 12.2% to $173.4 million with an average margin of 60.5%. Same-store sales increased 10.8%.
Operating Expenses: In the second quarter, operating expenses increased 10.3% to $127.3 million. "Expenses were affected by several large health insurance claims, higher diesel fuel costs, and a 22% rise in credit card fees," said Myers. "We anticipate more favorable credit card fees in the latter half of the fiscal year given the current lower gasoline price environment." For the year, expenses were up 9.6%.
Expansion: The goal for fiscal 2009 is to increase the total number of Casey's stores 4%. As of October 31, the company had acquired 11 stores and completed four new-store constructions. "We are on pace to build approximately 20 stores by the end of the fiscal year," Myers said. "The remaining balance of our unit growth goal will be through acquisitions. We believe the disparity between buyer and seller expectations is narrowing, which should present more opportunities."
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