Pizza, fountain and prepared-food sales at Casey’s c-stores open for at least a year rose by an average of 10.3 percent during the first quarter ended July 31, the chain said Tuesday.
It noted that margins on the foodservice business rose to 62.5 percent, exceeding the chain’s targeted annual rate of 60 percent.
Aggregated foodservice sales totaled $223.4 million, for an annual run rate falling just sort of $1 billion.
Management attributed the surge in foodservice sales to “major” store remodels and a switch to 24-hour operations.
The figures underscore how successfully c-stores are raiding quick-service chains’ traditional market. Casey’s has been a frontrunner in that trend. Stores sell pizza via delivery as well as takeout, and the brand has experimented with units that forego the usual c-store products to focus almost exclusively on pizza.
Casey’s total revenues were about $2 billion, yielding a net income of $61.8 million.