Darren Rebelez, CEO of Casey’s General Stores, discusses their strategic plan, expanding convenience stores, challenges in explaining business model, unique attributes, potential expansion, handling inflation, strategic plans, company culture, iconic pizza, and breakfast pizza with beer cheese sauce.
Casey's General Stores focuses on strategic expansion in areas within the effective distribution radius of its three distribution centers.
Despite inflationary pressures, Casey's has found its consumer base to be resilient, with the majority of its customers earning $50,000 a year or more.
Deep dives
Casey's General Stores: A Unique Convenience Store Chain
Casey's General Stores is a convenience store chain based in Iowa with 2,500 stores primarily located in rural communities in the Midwest. The company supplies basic needs and groceries, operates as a pizzeria, and has full liquor licenses in some stores. Casey's has seen significant growth, outperforming the S&P 500, with its stock price soaring from $100 to $235 in the past five years. Despite being lesser known on the coasts, Casey's continues to tell its story to shareholders, emphasizing its offerings, such as making pizza dough from scratch in-store.
Expansion Plans and Consumer Resilience
Casey's focuses on strategic expansion in areas within the effective distribution radius of its three distribution centers. With 2,000 out of 2,500 stores in just nine states, the company sees plenty of white space for growth. Despite inflationary pressures, Casey's has found its consumer base to be resilient, with the majority of its customers earning $50,000 a year or more. The company also factors in the economy and cost of living when deciding on new locations, ensuring alignment with its targeted demographic.
Casey's Growth Strategy and Supply Chain Challenges
Casey's growth strategy involves a combination of improving the base business through same-store sales and expanding with new stores through organic growth and acquisitions. The company takes advantage of opportunities presented by the highly fragmented convenience store industry, where smaller operators may struggle with inflationary pressures and supply chain challenges. While supply chains have improved since the pandemic, some delays still exist, particularly for tractor-trailer trucks and items requiring longer lead times. Casey's remains focused on employee engagement and relieving job pressure, investing in its culture and providing benefits to its team members.
Darren Rebelez, CEO of Casey’s General Stores, discusses the company's three-year strategic plan and expanding the convenience store business. Hosts: Carol Massar and Matt Miller. Producer: Paul Brennan.