Business Breakdowns
Episode 125 Casey’s General Stores: Fueling Convenience
Business Breakdowns

Episode 125: Casey’s General Stores: Fueling Convenience

Business Breakdowns

Episode 125

Casey’s General Stores: Fueling Convenience

Markus Hansen is a portfolio manager at Vontobel Asset Management. We cover the fragmented convenience store market, why Casey's has become known for its fresh pizza, and how petrol prices are set in the industry.

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(00:02:42) - (First question) - The concept of Casey’s General Store 

(00:06:04) - Casey’s competitors and the market share in different regions

(00:10:52) - The main differences between Casey’s and a regular gas station  

(00:14:09) - A brief history on Casey’s beginnings and its founder

(00:17:25) - A breakdown of the business’ revenue

(00:19:14) - Casey's growth despite the changing environment standards raising operational costs

(00:23:52) - The business’ margin profile

(00:26:53) - How Casey’s General competes with its peers and fuel pricing

(00:29:33) - The focus for Casey’s with regards to expansion opportunities 

(00:33:06) - The hurdles involved with building new gas stations versus acquiring existing stores

(00:35:08) - Casey’s stance on franchising

(00:38:02) - The company’s attractiveness to buyers

(00:40:52) - Casey’s General’s average stock performance

(00:44:26) - Key risks of Casey’s

(00:47:30) - The main lessons learned from Casey’s General Stores

Casey’s General Stores: Fueling Convenience

Introduction

Matt
This is Matt Reustle and today, we are going into the land of convenience stores to break down Casey's General Store. Today, Casey's operates in 16 states in the Midwest and Southern U.S. As of this recording, they have close to a $10 billion market cap and the number three player in their market. To break down Casey's, I'm joined by Markus Hansen, Portfolio Manager and Senior Analyst at Vontobel Asset Management.

We cover the industry of convenience stores, including the competition that exists in this market and the unique geographical considerations. We also cover the financial model, what drives gasoline performance versus in-store purchases, and what do all of the margin profiles look like for the different segments of this business? This is another fascinating story hidden in plain sight. Please enjoy this breakdown of Casey's.

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