Casey's General Stores, Inc. (CASY): Business Model Canvas [10-2024 Updated]

Welcome to an in-depth exploration of the Business Model Canvas for Casey's General Stores, Inc. (CASY), a leading player in the convenience store sector. This canvas outlines how Casey's creates value through its extensive network of locations, tailored customer relationships, and strategic partnerships. Discover how they leverage their resources to deliver a unique blend of fuel and fresh food offerings while engaging with local communities. Dive in to uncover the key elements that drive their success!

Casey's General Stores, Inc. (CASY) - Business Model: Key Partnerships

Fuel suppliers for consistent supply

Casey's General Stores relies on a network of fuel suppliers to ensure a consistent supply of gasoline and diesel. In the first quarter of fiscal 2025, the company reported retail fuel revenue of $2,555,642, which was an increase of $128,309 (5.3%) compared to the previous year, driven by an increase in the number of gallons sold by 58,545 (8.2%).

Food and beverage vendors for product offerings

To enhance its product offerings, Casey's partners with various food and beverage vendors. During the same period, prepared food and dispensed beverage revenue increased by $32,316 (8.7%), attributed to strong sales of hot sandwiches and bakery items, along with an increase in same-store sales of 4.4%.

Distribution centers to manage logistics

Casey's operates three distribution centers located in Ankeny, Iowa; Terre Haute, Indiana; and Joplin, Missouri. These centers manage the logistics for grocery, general merchandise, and prepared food items supplied to stores. The company emphasizes efficient logistics to support its operational needs.

Local governments for compliance and permits

Casey's collaborates with local governments to ensure compliance with regulations and obtain necessary permits for store operations. This partnership is crucial for maintaining operational legality and community relations, particularly as the company expands its footprint.

Technology partners for payment and inventory systems

Integrating technology partners is essential for Casey's operational efficiency. The company has invested in modern payment and inventory systems to enhance customer experience and streamline operations. As of July 31, 2024, Casey's reported a net income of $180,198, reflecting an increase of $10,961 (6.5%) year-over-year, partly due to improved operational efficiencies.

Partnership Type	Key Metrics	Impact on Revenue
Fuel Suppliers	Retail fuel revenue: $2,555,642	Increased by $128,309 (5.3%)
Food & Beverage Vendors	Prepared food revenue: $405,129	Increased by $32,316 (8.7%)
Distribution Centers	Operational efficiency	Supports overall revenue growth
Local Governments	Compliance rates	Ensures uninterrupted operations
Technology Partners	Net Income: $180,198	Increased by $10,961 (6.5%)

Casey's General Stores, Inc. (CASY) - Business Model: Key Activities

Operating convenience stores across 17 states

As of July 31, 2024, Casey's General Stores operates a total of 2,674 stores across 17 states. The majority of these stores are located in the Midwest, particularly in Iowa, Missouri, and Illinois.

Managing fuel sales and pricing strategies

Fuel sales are a significant component of Casey's business model. In the first quarter of fiscal 2025, the company sold 772,536 gallons of fuel, generating $2,555,642,000 in revenue from fuel sales. The revenue from fuel increased by 5.3% compared to the previous year, attributed to an increase in gallons sold by 58,545 gallons (8.2%).

Offering prepared food and grocery items

Prepared food and grocery items are critical to Casey's value proposition. For the first quarter of fiscal 2025, the revenue from prepared food and dispensed beverages was $405,129,000, an increase of 8.7% year-over-year. The same-store sales for prepared food increased by 4.4%, driven by strong sales of hot sandwiches and bakery items.

Marketing and promotions to attract customers

Casey’s employs various marketing strategies to drive customer traffic. The company reported an increase in same-store sales of grocery and general merchandise by 1.6%, facilitated through promotions and marketing initiatives. The company also leverages its Casey’s Rewards program, which as of July 31, 2024, had a deferred revenue liability of $56,124,000 related to outstanding points.

Store acquisitions and new constructions

Casey's continues to expand its footprint through acquisitions and new store constructions. In the first quarter of fiscal 2025, the company opened 10 new stores and acquired 9 stores, leading to a total of 2,674 stores operational by July 31, 2024. The company has plans for further acquisitions, including a notable transaction involving 198 retail stores across Texas, Mississippi, Alabama, and Florida, expected to close in 2024.

Key Metrics	Q1 Fiscal 2025	Q1 Fiscal 2024
Total Revenue	$4,097,737,000	$3,869,251,000
Fuel Gallons Sold	772,536 gallons	713,991 gallons
Prepared Food Revenue	$405,129,000	$372,813,000
Grocery Revenue	$1,068,978,000	$996,936,000
Operating Stores	2,674 stores	2,658 stores

Casey's General Stores, Inc. (CASY) - Business Model: Key Resources

Extensive network of 2,674 store locations

As of July 31, 2024, Casey's General Stores operates a total of 2,674 stores across 17 states, primarily concentrated in the Midwest. The expansion includes operating 138 more stores compared to the same period last year, contributing to increased sales and customer reach.

Distribution centers in key regional areas

Casey's operates three distribution centers situated in strategic locations to facilitate efficient supply chain management. These centers are located in:

• Ankeny, Iowa (adjacent to the corporate headquarters)
• Terre Haute, Indiana
• Joplin, Missouri

These distribution centers are crucial for supplying grocery, general merchandise, and prepared food items to the stores, enhancing operational efficiency.

Strong brand recognition in the Midwest

Casey's has established a robust brand presence in the Midwest, which is reflected in its customer loyalty and sales performance. The brand is synonymous with convenience and quality, particularly in smaller communities where many stores are located.

Experienced management team

The management team at Casey's is characterized by its extensive experience in the retail and convenience store sectors. This expertise is vital for navigating the competitive landscape and driving strategic initiatives aimed at growth and operational excellence.

Technology infrastructure for operations

Casey's invests significantly in technology to enhance operational efficiency and customer experience. This includes point-of-sale systems, inventory management software, and an integrated supply chain system that supports real-time data analysis for better decision-making.

Key Resource	Description	Impact
Store Locations	2,674 stores across 17 states	Increased market reach and sales growth
Distribution Centers	Three centers in Iowa, Indiana, and Missouri	Efficient supply chain management
Brand Recognition	Strong presence in the Midwest	Customer loyalty and sales performance
Management Team	Experienced leadership in retail	Strategic growth and operational excellence
Technology Infrastructure	Advanced systems for operations	Operational efficiency and enhanced customer experience

Casey's General Stores, Inc. (CASY) - Business Model: Value Propositions

Convenient access to fuel and groceries

As of July 31, 2024, Casey's operates 2,674 stores across 17 states, primarily concentrated in the Midwest. The company provides convenient access to fuel, with a focus on smaller communities where many stores are located in areas with populations of less than 20,000. The retail fuel revenue for the first quarter of fiscal 2025 increased by $128,309 (5.3%) over the prior year, attributed to an increase in fuel gallons sold by 58,545 gallons (8.2%).

Freshly prepared food options

Freshly prepared food is a significant value proposition for Casey's. The revenue from prepared food and dispensed beverages reached $405,129 in the first quarter of fiscal 2025, marking an increase of $32,316 (8.7%) from the previous year. This growth is supported by same-store sales increasing by 4.4%, driven by strong demand for hot sandwiches and baked goods.

Competitive pricing on fuel and merchandise

Casey’s maintains competitive pricing strategies across its offerings. In the first quarter of fiscal 2025, the average revenue less cost of goods sold per gallon decreased to 40.7 cents, down from 41.6 cents in the prior year, indicating management's focus on cost control while remaining competitive in pricing. Total revenue for the company increased to $4,097,737, a rise of $228,486 (5.9%) compared to the same period in fiscal 2024.

Community-focused service and support

Casey’s emphasizes community engagement through its service model. The company supports local initiatives and builds relationships in the communities it serves, which enhances customer loyalty. The company's growth strategy includes acquiring stores in various states, enhancing local presence and service.

Expanding electric vehicle charging stations

As part of its commitment to sustainability and adapting to changing consumer demands, Casey's has expanded its electric vehicle (EV) charging infrastructure. As of July 31, 2024, there are 178 charging stations at 41 stores across 13 states. This initiative reflects the growing consumer demand for alternative fuel options and positions Casey’s as a forward-thinking retailer in the convenience store space.

Value Proposition	Details	Financial Impact
Convenient access to fuel and groceries	2,674 stores in 17 states	Fuel revenue increased by $128,309 (5.3%)
Freshly prepared food options	Revenue from prepared food reached $405,129	Increase of $32,316 (8.7%) in same-store sales
Competitive pricing on fuel and merchandise	Average revenue less cost of goods sold per gallon: 40.7 cents	Total revenue increased to $4,097,737
Community-focused service and support	Engagement in local initiatives	Enhanced customer loyalty and store growth
Expanding electric vehicle charging stations	178 charging stations at 41 stores	Positioning as a forward-thinking retailer

Casey's General Stores, Inc. (CASY) - Business Model: Customer Relationships

Loyalty programs to enhance customer retention

Casey's General Stores operates the Casey’s Rewards program, which allows customers to earn points for every dollar spent. As of July 31, 2024, the Company recognized a contract liability of $56,124 related to outstanding points from the program. The rewards program is strategically designed to encourage repeat purchases and enhance customer loyalty, contributing to overall revenue growth.

Community engagement through local events

Casey’s actively participates in community engagement initiatives, hosting local events that foster relationships with customers. These events not only enhance the brand’s visibility but also promote a sense of community. The Company’s stores, many located in smaller communities, often engage in sponsorships and local activities, which are crucial for building goodwill and customer loyalty.

Customer feedback channels to improve services

Casey’s utilizes multiple channels for customer feedback, including online surveys and in-store feedback kiosks. This feedback is critical for continuous improvement in service quality. By analyzing customer responses, the Company can identify areas for enhancement and adapt its offerings to better meet customer needs.

Personalized promotions based on purchase history

The Company employs data analytics to offer personalized promotions to customers based on their purchase history. This targeted marketing approach has proven effective in increasing customer engagement and driving sales. For instance, tailored promotions on favorite products can significantly boost same-store sales.

Strong focus on customer service training

Casey’s places a strong emphasis on customer service training for its employees. The Company recognizes that exceptional customer service is a key differentiator in the convenience store industry. As of July 31, 2024, Casey’s had a workforce that underwent extensive training programs aimed at improving service delivery, which is reflected in customer satisfaction metrics.

Customer Relationship Strategy	Implementation Details	Impact on Revenue
Loyalty Programs	Casey’s Rewards program with a liability of $56,124	Increased repeat purchases
Community Engagement	Local events and sponsorships	Enhanced brand loyalty
Customer Feedback	Surveys and feedback kiosks	Improved service quality
Personalized Promotions	Data-driven marketing strategies	Higher customer engagement
Customer Service Training	Extensive employee training programs	Increased customer satisfaction

Casey's General Stores, Inc. (CASY) - Business Model: Channels

Physical stores for direct customer interaction

As of July 31, 2024, Casey's operates a total of 2,674 convenience stores across 17 states, primarily serving smaller communities with populations under 20,000. The stores provide a direct interaction point for customers, offering various products including fuel, groceries, and prepared food.

Online platforms for promotions and information

Casey's leverages its online platforms to promote its products and communicate with customers. The company reported total revenue of $4,097,737 in the first quarter of fiscal 2025, with significant contributions from online promotions for grocery and general merchandise sales, which increased by 7.2% year-over-year.

Mobile app for loyalty and rewards programs

The Casey's mobile app enhances customer engagement through loyalty programs. As of July 31, 2024, the company recognized a contract liability of $56,124 related to its Casey's Rewards program. This program encourages repeat business and customer retention by offering rewards for purchases made through the app.

Social media for brand engagement and advertising

Casey's utilizes social media platforms for brand engagement and advertising. The company has reported a steady increase in its customer base, which correlates with enhanced social media marketing efforts. The first quarter of fiscal 2025 saw a net income increase of 6.5% to $180,198, partly attributed to effective marketing strategies.

Partnerships with delivery services for convenience

Casey's has formed partnerships with various delivery services to enhance convenience for customers. This strategy aligns with the growing trend of online ordering and delivery, contributing to an increase in prepared food and dispensed beverage revenue, which rose by 8.7% in the first quarter of fiscal 2025.

Channel	Description	Impact on Revenue
Physical Stores	2,674 convenience stores in 17 states	$4,097,737 total revenue for Q1 FY2025
Online Platforms	Promotions and product information	Grocery and general merchandise revenue increased by 7.2%
Mobile App	Loyalty and rewards program management	Contract liability of $56,124 from Casey's Rewards
Social Media	Brand engagement and advertising	Net income increased by 6.5% to $180,198
Delivery Partnerships	Convenience in food delivery	Prepared food revenue rose by 8.7%

Casey's General Stores, Inc. (CASY) - Business Model: Customer Segments

Local residents in small to mid-sized towns

Casey's primarily serves local residents in small to mid-sized towns, with over half of its stores located in communities with populations of less than 20,000. As of July 31, 2024, the company operates 2,674 stores across 17 states, focusing on the convenience needs of these communities.

Commuters seeking quick fuel and snack options

Commuters are a significant customer segment for Casey's, as the stores provide easy access to fuel and quick snack options. The company sold 772,536 gallons of fuel in the first quarter of fiscal 2025, reflecting a 0.7% increase in same-store fuel gallons sold. This indicates a steady demand from commuters looking for convenient fueling solutions.

Families looking for convenient meal solutions

Families represent another key segment, as Casey's offers a variety of prepared food options. In the first quarter of fiscal 2025, prepared food and dispensed beverage revenue reached $405,129, marking an increase of 8.7% from the previous year. This growth was driven by strong sales of items such as hot sandwiches and bakery products, catering to families seeking quick meal solutions.

Health-conscious consumers preferring fresh options

Health-conscious consumers are increasingly targeted by Casey's, as the company has expanded its offerings of fresh and healthier food options. The shift towards healthier choices is reflected in the sales of grocery and general merchandise, which totaled $1,068,978 in the first quarter of fiscal 2025, up from $996,936 in the prior year. This segment values nutritious and convenient meal options, aligning with Casey's efforts to diversify its product range.

Electric vehicle owners needing charging stations

As part of its growth strategy, Casey's is catering to electric vehicle (EV) owners by adding EV charging stations across its locations. As of July 31, 2024, the company has installed 178 charging stations at 41 stores in 13 states. This initiative reflects the company's commitment to meeting the evolving needs of consumers who are increasingly adopting electric vehicles.

Customer Segment	Key Offerings	Revenue (Q1 FY2025)	Store Count (as of July 31, 2024)
Local residents	Convenience store services	N/A	2,674
Commuters	Fuel and snacks	N/A	2,674
Families	Prepared food	$405,129	2,674
Health-conscious consumers	Fresh options	$1,068,978	2,674
EV owners	Charging stations	N/A	41 (charging stations)

Casey's General Stores, Inc. (CASY) - Business Model: Cost Structure

Store Operating Expenses Including Rent and Utilities

For the first quarter of fiscal 2025, Casey's General Stores reported total operating expenses of $609,474 thousand, which represents an increase of 8.7% compared to the previous year. This increase is partially attributed to operating 138 additional stores compared to the same period last year.

Cost of Goods Sold for Fuel, Food, and Merchandise

The cost of goods sold (COGS) for the first quarter of fiscal 2025 was $3,142,481 thousand, up from $2,991,497 thousand in the prior year, reflecting a significant increase in overall sales volume. The breakdown of revenue and COGS for the various segments is as follows:

Segment	Revenue (Q1 2025)	COGS (Q1 2025)	Revenue less COGS (Q1 2025)
Prepared Food & Dispensed Beverage	$405,129	$169,088	$236,041
Grocery & General Merchandise	$1,068,978	$690,697	$378,281
Fuel	$2,555,642	$2,241,094	$314,548
Other	$67,988	$41,602	$26,386

Labor Costs for Store Staff and Management

Labor costs have been a significant component of Casey's operating expenses. The increase in labor costs is attributed to rising wage rates and an increase in the number of employees due to the expansion of store locations. During the first quarter of fiscal 2025, the total employee expense contributed to approximately 1% of the increase in operating expenses.

Marketing and Advertising Expenses

Marketing and advertising expenses are included within the operating expenses; however, specific figures for these expenses have not been detailed in the most recent financial reports. The overall increase in operating expenses suggests that marketing efforts have also seen a proportional increase in line with store growth and revenue targets.

Depreciation of Assets Including Equipment and Stores

Depreciation and amortization expenses increased to $94,409 thousand for the first quarter of fiscal 2025, compared to $82,905 thousand for the same period in the previous year. This increase is largely due to the expansion of store locations and investment in new equipment.

Casey's General Stores, Inc. (CASY) - Business Model: Revenue Streams

Sales from fuel transactions

For the first quarter of fiscal 2025, Casey's reported retail fuel revenue of $2,555,642,000, reflecting an increase of $128,309,000 (5.3%) compared to the previous year. The volume of fuel sold amounted to 772,536 gallons, representing an increase of 58,545 gallons (8.2%) year-over-year.

Revenue from food and beverage sales

Prepared food and dispensed beverage sales reached $405,129,000 in the first quarter of fiscal 2025, up by $32,316,000 (8.7%) from the same quarter in 2024. This growth was driven by a same-store sales increase of 4.4%, primarily due to strong demand for hot sandwiches and bakery items.

Grocery and general merchandise sales

Grocery and general merchandise sales totaled $1,068,978,000 for the first quarter of fiscal 2025, which is an increase of $72,042,000 (7.2%) compared to the previous year. The same-store sales increased by 1.6%, largely due to higher sales of non-alcoholic and alcoholic beverages.

Car wash services at select locations

Revenue from car wash services included in the 'Other' category amounted to $67,988,000 in the first quarter of fiscal 2025. This figure represents a decrease of $4,181,000 (5.8%) compared to the prior year, primarily due to lower revenue from the dealer network.

Income from loyalty programs and promotions

As of July 31, 2024, Casey's recognized a contract liability of $56,124,000 related to its loyalty program, Casey's Rewards. This amount reflects the future redemption value of points issued to customers and is included in accrued expenses. The company also recognized a liability of $17,230,000 related to outstanding gift cards.

Revenue Stream	Q1 FY2025 Revenue ($000)	Year-over-Year Change ($000)	Year-over-Year Change (%)
Fuel Transactions	2,555,642	128,309	5.3%
Food and Beverage Sales	405,129	32,316	8.7%
Grocery and General Merchandise	1,068,978	72,042	7.2%
Car Wash Services	67,988	(4,181)	(5.8%)
Loyalty Programs and Promotions	56,124 (liability)	N/A	N/A