Casey’s bets on food innovation, technology and disciplined expansion

ANKENY, Iowa – Casey’s is entering its next phase of growth with a strategy that further cements its transformation from a traditional convenience retailer into one of the nation’s largest foodservice operators.

At its Investor Day, the company unveiled a three-year strategic plan that calls for continued investment in prepared food, technology and store expansion, while setting ambitious financial targets through fiscal 2029. Casey’s aims to deliver compound annual EBITDA growth of 8% to 10%, generate approximately $2 billion in free cash flow and add at least 400 stores through a combination of new construction and acquisitions.

The plan follows what executives call one of the strongest periods in the company’s history. Since introducing its previous three-year strategy in 2023, Casey’s has exceeded every major financial and operational objective. The retailer added 504 stores, achieved a 16% compound annual EBITDA growth rate, generated approximately $1.7 billion in free cash flow, expanded inside margins by roughly 230 basis points, and earned a place in the S&P 500.

Those results have positioned Casey’s as the nation’s third-largest convenience retailer and fifth-largest pizza chain, with nearly 3,000 stores in 19 states.

“Our success over the last three years reinforces what makes Casey’s unique: a differentiated model that brings together restaurant-quality food, best-in-class convenience, and fuel at scale,” said Darren Rebelez, president and chief executive officer of Casey’s. “As we enter our next three-year plan, we are focused on expanding our food business, growing our store base, and leveraging technology to improve efficiency and execution. We believe these priorities will enable us to continue gaining market share, driving profitable growth, and delivering long-term value for our shareholders.”

Food remains the centerpiece of Casey’s strategy and is increasingly the company’s competitive advantage. While the retailer built its reputation on made-from-scratch pizza, management is expanding its prepared-food platform to include chicken wings, fries and additional made-to-order offerings, while continuing to grow its private-brand portfolio.

The company is also positioning itself as a destination for meals throughout the day, rather than simply a stop for fuel and convenience items. Executives repeatedly emphasized Casey’s unique position at the intersection of convenience retailing and quick-service restaurants, a strategy that continues to drive higher-margin inside sales.

“Our food business is at the center of Casey’s three-year growth strategy and continues to be one of our strongest differentiators,” said Tom Brennan, chief merchandising officer at Casey’s. “Prepared foods and nonalcoholic beverages are driving strong inside sales, and we’re continuing to build on the loyalty we’ve earned through our more than 40 years in the pizza business with new offerings like wings and fries. In Des Moines, where wings have been available for more than a year, sales are up 20% year over year, reinforcing the significant opportunity we see as we expand the platform across our nearly 3,000 stores and further establish Casey’s as a food destination.”

Growth will come not only from stronger inside sales but also from a larger store base. Casey’s plans to add at least 400 stores over the next three years through disciplined acquisitions and new-store development, continuing a strategy that has reshaped the company’s geographic footprint. The acquisition and integration of CEFCO, Casey’s largest transaction to date, significantly expanded its presence in Texas and the South and demonstrated the company’s ability to absorb large acquisitions.

“Our growth strategy is expanding Casey’s Country in a disciplined way,” said Ena Williams, chief operations officer at Casey’s. “We’ve shown that we can grow through both new stores and acquisitions. That includes the successful integration of CEFCO, our largest acquisition to date, which strengthened our presence in Texas and expanded Casey’s reach across the South. That flexibility allows us to pursue the best opportunities as market conditions evolve.”

Technology is the third pillar of the strategy. Casey’s plans to expand the use of artificial intelligence and data-driven tools to improve demand forecasting, inventory planning, and store execution, while redesigning kitchens to streamline food preparation. Investments will also continue in the Casey’s mobile app and Casey’s Rewards platform as the retailer strengthens digital engagement with customers.

“We’re intentional about how we invest in technology, focusing on solutions that improve the experience for our guests while enabling our teams to operate more efficiently,” said Williams. “Whether it’s using AI to help improve forecasting and inventory planning, redesigning kitchens to help team members prepare more food with less friction, or enhancing digital tools like our app and Casey’s Rewards, we’re investing in practical innovations that improve efficiency, strengthen guest experience, and support long-term growth.”

Analysts generally responded favorably to the strategy despite a modest decline in Casey’s share price after Investor Day. Several noted that the company’s financial targets appear achievable given its recent performance and highlighted prepared foods, loyalty, digital engagement, and disciplined acquisitions as long-term growth drivers. Casey’s also enters the new planning period with approximately $1.4 billion in available liquidity and leverage below its long-term target, providing ample capacity to fund acquisitions and capital investments while continuing shareholder returns.

In the convenience industry, Casey’s latest strategy underscores a broader shift among leading retailers. Success is increasingly driven by restaurant-quality food, digital engagement and operational efficiency rather than fuel alone. Casey’s believes that combination will continue to differentiate the brand as it pursues another three years of accelerated growth.