Casey's General Stores, Inc. (NASDAQ: CASY) reported Q1 EPS of $1.34, $0.10 better than the analyst estimate of $1.24. Revenue for the quarter came in at $2.29 billion versus the consensus estimate of $2.29 billion.

Fuel – The Company’s annual goal is to increase same-store gallons sold 1% with an average margin of 15.3 cents per gallon. For the first quarter, same-store gallons sold were up 3% with an average margin of 19.6 cents per gallon. “We continue to experience a lift in gallons sold due to the fuel saver program,” said Myers. “Despite the reduction in renewal credit values, fuel margins are ahead of our expectations so far this year.” The Company sold 12.5 million renewable fuel credits for $5.7 million during the first three months of the year. Total gallons sold for the quarter were up 8.8% to 464.2 million gallons.

Grocery and Other Merchandise – Casey’s annual goal is to increase same-store sales 5.3% with an average margin of 32.1%. For the quarter, same-store sales were up 7.7% with an average margin of 32.5%. “Sales were strong throughout the entire category during the first quarter,” stated Myers. “We experienced slight margin pressure compared to the prior year due to cigarettes, but still grew gross profit dollars by 12.5%.” Gross profit for the quarter was $155.7 million and total sales were $478.6 million.

Prepared Food & Fountain – The goal for fiscal 2015 is to increase same-store sales 9.5% with an average margin of 60%. For the first quarter, same-store sales were up 11.1% with an average margin of 59.9%. “The strategic price increases we implemented at the start of the fiscal year, along with various operational initiatives, are having a positive impact on sales,” said Myers. “Commodity cost pressures, such as cheese and meat, pulled down margin relative to last year, but overall, we are pleased with the gross profit dollar gains made in this category.” Gross profit increased 13.4% to $116.5 million, and total sales for the category were up 17.1% to $194.6 million.

Operating Expenses – For the first quarter, operating expenses were $244.3 million compared to $216 million for the first quarter a year ago, up 13.1%. “The majority of the operating expense increase is related to new and replaced stores, recent store acquisitions, and the various initiatives the Company continues to roll out to drive inside sales,” said Myers.

Expansion – The Company’s annual goal is to build or acquire 72 to 108 stores and replace 25 existing stores. As of the end of the quarter, the Company had opened 7 new stores and acquired 25 stores. The Company also completed 4 replacements. “We completed the Stop-N-Go transaction in May and the integration of that chain is going very well,” said Myers. “We will continue our disciplined approach to acquisitions as the industry continues to consolidate.” The Company currently has 35 new and 17 replacement stores under construction. Additionally, the Company has 8 store acquisitions, 35 new sites, and 35 replacement sites under contract to purchase. Casey’s recently broke ground on the construction of the second distribution center in Terre Haute, Indiana. It is expected to be operational by the end of fiscal 2016.

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