Casey's General Stores, Inc. (CASY): A Bull Case Theory

 We came across a bullish thesis on Casey’s General Stores, Inc. on Speedwell Memos’s Substack by Speedwell Research. In this article, we will summarize the bulls’ thesis on CASY. Casey’s General Stores, Inc.'s share was trading at $566.81 as of December 2nd. CASY’s trailing and forward P/E were 36.55 and 35.71 respectively according to Yahoo Finance.

Casey’s General Stores, founded in 1968 by Don Lamberti and Kurvin C. Fish, began as a small-town gas station and convenience store in Iowa and evolved into one of America’s leading convenience retailers. Built on the principles of small-town focus, cleanliness, and customer loyalty, Casey’s capitalized early on underserved rural markets by offering non-perishable goods and later, fresh food prepared on-site—a move that transformed it into a destination rather than a stopover.

After going public in 1983, the company expanded aggressively through new builds and acquisitions, and its 1985 introduction of “made-from-scratch” pizza marked the beginning of its dominance in the prepared food segment. By the mid-2000s, Casey’s was operating over a thousand stores across the Midwest, supported by a vertically integrated logistics network that improved margins and ensured consistent product quality across its locations. During the 2008–09 financial crisis, its focus on local customers insulated it from economic downturns, solidifying its reputation for resilience.

The company rebuffed takeover attempts from Couche-Tard and Seven & I Holdings in 2010, preserving its independence and strategy. Under CEO Darren Rebelez since 2019, Casey’s has accelerated digital adoption with mobile ordering, delivery, and a loyalty program exceeding 9 million members. Following major acquisitions—including the $1.15 billion purchase of Fikes Wholesale in 2024—Casey’s now operates nearly 2,900 stores across 20 states. Generating over $16 billion in revenue with a 5% operating margin, it ranks as the third-largest convenience retailer and fifth-largest pizza chain in the U.S., driven by its profitable prepared food and grocery offerings.

Previously we covered a bullish thesis on Casey’s General Stores, Inc. (CASY) by Two Natural Capital in May 2025, which highlighted its food-first strategy, rural market dominance, and strong M&A-led growth. The company’s stock has appreciated approximately 21.64% since our coverage as the thesis played out. Speedwell Research shares a similar view but emphasizes Casey’s long-term evolution and operational resilience.

Casey’s General Stores, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held CASY at the end of the second quarter which was 35 in the previous quarter. While we acknowledge the potential of CASY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.