Casey's General Stores Ponders Acquisitions

ANKENY, IA-Casey’s General Stores executives are looking at buying other convenience-store concepts for growth, even at a time when operators might not be ready to sell. “We remain optimistic about the long-term acquisition opportunities,” said William Walljasper, the company’s CFO, during its second-quarter earnings call.

In the near term, though, pricing might be too high, based on the large margins many convenience-store owners are reaping from gasoline sales. However, Walljasper said that he expects margins to drop to more historical levels next year.

During the quarter, which ended Dec. 4, Casey’s benefited from high gasoline margins, which pushed its profits in the category up 61.4%, to $92 million. This occurred even as same-store gallons sold were down 1.6% from the same year-ago period.