Casey's, a popular convenience store chain in the Midwest, is rapidly expanding. This expansion means more stores for quick snacks and fuel, saving you money and time.
At an investor event in New York on Tuesday, the retail chain Casey's announced its strategy for growth. They want to expand and consider smaller acquisitions to increase their business.
Casey's Aims for 350 New Stores by 2026 for Growth
During this meeting, Casey's shared plans to increase their stores by 350 by 2026. Darren Rebelez, the CEO, quickly discussed the company's financial goals for the upcoming three years in front of the investors.
These goals focus on earnings before interest, taxes, depreciation, and amortization (EBITDA), a measure of a company's overall financial performance.
Casey's had previously achieved this financial target between 2020 and 2023. Rebelez confidently stated, "We plan on delivering top quintile EBITDA of eight to 10% - again."
Following Rebelez, the chief financial officer Steve Bramlage explained how Casey's intends to reach these targets. By 2026, the company aims to expand its store count by 350 through building new stores and acquiring existing ones.
Bramlage emphasized the company's strong financial position: "We have ample liquidity to be opportunistic for potential acquisitions and remain nimble to continue to invest behind building new units." This approach indicates Casey's readiness to adapt and grow in the competitive retail market.
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Casey's Eyes Expansion Beyond Midwest, Targets New States
In a recent meeting with investors, Casey's Chief Financial Officer revealed the company's growth strategy. This growth involves buying smaller convenience store chains to expand Casey's extensive network.
These targeted chains are relatively small, generally having between one and 50 stores. However, Casey's also plans to mix in some larger acquisitions.
While Casey's is predominantly known in the Midwest, the company is setting its sights beyond the 16 states it currently operates in. The expansion could introduce Casey's stores to new regions.
Potential new areas for Casey's include western states like Colorado and eastern states like Pennsylvania. The company is also considering a push into southern states, with Louisiana, Alabama, and Georgia.
This expansion plan shows Casey's ambition to grow its presence across various regions, offering more customers a place to stop and shop.
Casey's Strategy: Small and Large Acquisitions
During a recent presentation, Casey's executives shared their acquisition strategy. While they are open to big purchases, like their acquisition of 94 Bucky's convenience stores in 2020, they primarily focus on buying "small" operators. These are businesses with anywhere from 1 to 50 stores.
Steve Bramlage, Casey's Chief Financial Officer, explained their current approach. "That is the existing playbook we've been running," he said. However, he also noted that Casey's is financially and operationally capable of making larger acquisitions if they align with the company's strategy and the price is right.
Casey's General Stores has been expanding its reach through several key acquisitions. On September 28, 2021, the company acquired 40 convenience stores from Pilot Travel Centers. This asset transaction marks a significant addition to Casey's network.
On April 28, 2021, Casey's General Stores and Buck's Intermediate Holdings agreed to sell six retail fuel assets in Nebraska and Iowa. These assets were purchased by Western Oil II LLC, showcasing Casey's strategic adjustments in its asset portfolio.
Another notable acquisition occurred on March 22, 2021, when Casey's General Stores completed the purchase of 49 convenience stores in Oklahoma from Circle K Stores. The deal, valued at US$39 million, is a testament to Casey's commitment to expanding its footprint and enhancing its market presence in key areas.
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