Thu, May 14, 9:47 PM
- Consolidation in the grocery industry could pick up even more, observes Supermarket News.
- A large merger between Albertsons and Safeway (NYSE:SWY) has been followed by talks between Delhaize (NYSE:DEG) and Ahold (OTCQX:AHONY).
- The increased push by Wal-Mart and Target in the sector has added pressure to leverage store growth through M&A.
- "There is mounting pressure in the supermarket industry to consolidate operations to drive better purchasing power and leverage distribution and technology platforms," notes Wolfe Research.
- Kroger (NYSE:KR) is seen as a likely candidate to look for a chain to acquire.
- Previously: Ahold, Delhaize confirm merger talks (May 12)
- Grocery stocks: RNDY, SVU, VLGEA, WFM, CASY, IMKTA, OTCPK:PUSH, TFM, SFM, WMK.
Wed, Apr. 22, 3:10 PM
- Convenience stores saw a 0.1% increase in same-store tobacco sales last year after a strong Q4.
- The mark ended a multi-year streak of declining tobacco sales.
- The tobacco category makes up the highest percentage of in-store spending at convenience stores.
- Lower gas prices are believed by some analysts to have boosted consumer demand, while the exit of CVS Health from the category may have also played a small factor.
- Kwik Check Food Stores CEO Kevin Smartt says "flat is the new up" for tobacco growth, but warns on margin pressure.
- Convenience store chain owners: KR, CASY, PTRY, OTCPK:ANCUF, CST, MUSA
Fri, Mar. 20, 1:40 PM| 1 Comment
Tue, Mar. 10, 10:20 AM
- Casey's General Stores (CASY -7.4%) trades lower after FQ3 revenue missed the expectation of analysts.
- The sharp drop in gas prices cut into sales despite higher traffic at pumps and inside the company's stores.
- Shares have recovered somewhat from a wild after-hours session which saw Casey's down almost 11% at one point.
- Previously: Casey's General Stores beats by $0.19, misses on revenue (Mar. 09 2015)
- Previously: Food sales and gas margins up at Casey's in FQ3 (Mar. 09 2015)
Mon, Mar. 9, 5:55 PM
- Casey's General Stores (NASDAQ:CASY) reports it recorded a record fuel margin in FQ3.
- Same-store gallons were up 2.2% during the period with an average margin of $0.22 per gallon.
- Merchandise and grocery comp sales rose 7.7% Y/Y off of favorable consumer trends and a lift from increased cooler space.
- Prepared food and fountain same-store sales +9.5% with an average margin of 58.7%.
- Previously: Caseys General Stores beats by $0.19, misses on revenue
- CASY -0.3% after hours after running up a 3.72% gain during the daily session ahead of the earnings report.
Mon, Mar. 9, 4:09 PM| 1 Comment
Sun, Mar. 8, 5:35 PM
Fri, Jan. 30, 3:26 PM
- Products from PepsiCo (PEP -2.1%) will be on full display this Super Bowl Sunday - before, during, and after the mammoth TV event.
- The company plans to run 11 Mountain Dew Kickstart spots during the extended SB pre-game show.
- Doritos and Gatorade will have their usual high-visibility presence, while Tostitos gets its introduction to the spectacle.
- A lead-in commercial just before the Pepsi-sponsored halftime show has a chance to be one of the most watch commercials of the game.
- In an appeal to millennials, the company is running a student cooking competition using PepsiCo products and unloading massive marketing efforts around the crowdsourced Crash the Super Bowl competition.
- One group that doesn't mind the significant efforts of PepsiCo to generate Super Bowl buzz is C-stores (KR, CASY, PTRY, OTCPK:ANCUF, CST, MUSA).
- Traffic to C-stores this weekend is forecast to be up over 8% Y/Y.
- Mountain Dew Kickstart Ad
- PepsiCo Super Bowl teaser ad
Wed, Jan. 21, 7:37 AM
- Grocery store chains stand to lose from the decision by the Supreme Court to reject a case on the swipe fee cap, according to analysts.
- Almost 70% of purchases in grocery stores are paid for by consumers with credit or debit cards.
- Operating margins in the industry tend to be very low.
- In some cases, the interchange fee which goes to the processing bank is higher than the profit margin on the grocery item.
- Trade groups repping the grocery industry wanted a cap of $0.07-$0.12, instead of the $0.21 approved by the Fed.
- Previously: Supreme Court passes on looking at swipe fees cap (Jan. 20 2015)
- Grocery store stocks: IMKTA, NGVC, TFM, SFM, SWY, DEG, SFS, WFM, SVU, KR, CASY, WMK, VLGEA.
Wed, Jan. 14, 9:17 AM
- A slide in retail sales during December was impacted by weakness with the electronics stores (BBY, CONN, HGG) and building materials/garden equipment (HD, LOW) categories.
- The biggest drag on the index was the gasoline stations component (CASY, PTRY]]) which recorded a 6.5% M/M and 14.2% Y/Y decline in December.
- Good news for the restaurant sector (MCD, QSR, YUM, SONC, WEN) as sales were up 0.8% M/M and 8.2% Y/Y during the month.
Fri, Jan. 9, 8:35 AM
- The House passed a bill to redefine a full-time worker under the Affordable Care Act to 40 hours a week from 30 hours.
- The legislation could impact millions of workers as companies adjust hours and employee policies around the issue.
- The measure was passed by a vote total of 252-172.
- Senate Majority Leader Mitch McConnell has indicated the bill will see a vote in his chamber.
- The White House has threatened to veto the bill on its view it will reduce the number of workers covered by healthcare.
- Most industry groups within the restaurant and food industry have issued support for the legislation.
- Related stocks: CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, CASY, IMKTA, SFS, KR, WMK, SVU, WFM, SWY, VLGEA, TFM,NGVC, BIG, ZU, TUES, WMT, PSMT, COST, TGT, DLTR, BURL, FDO, DG, FRED, WBA, RAD, CVS, HABT, NDLS, PBPB.
Tue, Jan. 6, 4:16 PM
- GasBuddy.com projects gas prices will average $2.64 per gallon in 2015.
- Most economists see a boost in U.S. retail spending from the gas savings with the exception of regions highly dependent upon the energy industry.
- While some Q4 reports from restaurant chains and retailers may show a marginal lift in sales due to the drop in gas prices, insiders think quantifying the impact will be more art than science.
- The following sub-sectors have been tapped by analysts as potential under-the-radar beneficiaries of the gas price effect.
- C-stores:KR, CASY, PTRY, OTCPK:ANCUF, CST, MUSA.
- Theme parks: SIX, FUN, DIS, CMCSA, PLAY.
- Beverages: KO, PEP, COT, DPS, BUD, SAM, BREW, TAP, MNST.
Dec. 11, 2014, 9:30 AM
- Retail sales struck their biggest gain since March on broad strength.
- What's working: Strong growth was seen in auto parts (PBY, ORLY, AZO, AAP, MNRO) with the broad parts category showing year-over-year sale growth of over 8% in November. Sales were up 6.8% Y/Y for health and personal care stores (ULTA, SBH, CVS, WAG, RAD) during the month.
- What's not working: Department stores (DDS, M, SSI, BONT, SHLD, JCP, KSS, JWN) went backwards with sales off 1.1% from a year ago. No surprise, but sales at gas stations (CASY, KR, PTRY) also fell off from a year ago.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, UCC, PMR, UGE, RCD, SZK.
Dec. 10, 2014, 4:10 PM| Comment!
Dec. 10, 2014, 10:22 AM
- The S&P 500 Retail ETF (NYSEARCA:XRT) is up 0.3% today despite the negative action in the broader market.
- A forecast for sustained lower oil prices is the major reason for the upswing.
- Top 20 XRT holdings showing gains: Limited Brands (LB +0.6%), Whole Foods Markets (WFM +0.4%), Casey's General Stores (CASY +0.3%), Ross Stores (ROST +0.7%), Kroger (KR +0.9%), Advance Auto Parts (AAP +0.4%), Target (TGT +0.4%), Zumiez (ZUMZ +0.3%), CST Brands (CST +1.3%).
Dec. 9, 2014, 5:35 PM
CASY vs. ETF Alternatives
Casey's General Stores Inc, together with its subsidiaries, operates convenience stores under the Caseys General Store name in 14 Midwestern states. Its stores offers a selection of food, beverage, and tobacco products, as well as other nonfood items.
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