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Casey’s General Stores Raises Dividend By 16%
Along with better-than-expected financial results, Casey’s General Stores (CASY) has raised its quarterly dividend payment by 16.3% to $0.50 U.S. per share.
The new dividend is up from a previous distribution of $0.43 U.S. and will be paid to shareholders of record on August 1 of this year.
The company, which operates a chain of convenience stores and gas stations in the U.S., announced the dividend increase along with strong financial results.
Casey’s reported earnings per share (EPS) of $2.34 U.S., which was well above analyst estimates of $1.74 U.S.
Revenue in the quarter totaled $3.60 billion U.S., which topped Wall Street forecasts of $3.45 billion U.S.
Management said that same-store sales rose 5.6% from a year earlier due to strong demand for the pizza, bakery products, and beverages it sells.
Casey’s had 2,658 stores at the end of the quarter, an increase of 5.4% from 2,521 stores a year ago. The company announced plans to open 100 new stores in the current fiscal year.
Looking ahead, the company said it expects full-year same-store sales growth of 3% to 5%. At the same time, it anticipates that same-store fuel sales will decrease about 1%. Operating expenses are expected to rise 6% to 8%.
The company has $295 million U.S. remaining on its current stock buyback program.
Casey’s General Stores’ stock is up 6% on news of the dividend increase and earnings report.
Prior to today (June 12), the company’s share price had risen 48% over the last 12 months to trade at $326.53 U.S.
