An increase in inside-same-store sales boosted Casey’s General Stores Inc.’s third-quarter earnings and profit margins, prompting the Ankeny-based retailer to revise its fiscal 2026 outlook for the second consecutive quarter.

Casey’s reported net income of nearly $130.1 million in the third quarter that ended Jan. 31, up 49.3% from the same period a year ago when net income was nearly $87.1 million, company executives reported this week. Total revenue in the third quarter rose to nearly $3.92 billion, up slightly from $3.9 billion a year ago.

The increase in revenue was aided by strong sales performances of whole pizzas, hot sandwiches and non-alcoholic beverages, Darren Rebelez, Casey’s chairman, president and CEO, said during the earnings call. “We continued the momentum from the prior quarter.”

Inside same-store sales increased 4% compared to the prior year, and 7.9% on a two-year stack basis. In addition, same-store fuel sales were up 0.4%.  Casey’s executives credited expanding profit margins in both inside store and fuel sales as keys to the growth in profitability.

Casey’s is now projecting fiscal 2026 earnings before interest, taxes, depreciation and amortization to increase 18% to 20%, Rebelez said. He said same-store sales are expected to increase 3.5% to 4.5%, and profit margins of between 41.5% and 42.5% are anticipated.

During the earnings call, Rebelez explained how the war in the Middle East could affect fuel sales and profitability.

“Volatility is par for the course in this business,” he said. Changes in crude oil prices – the main ingredient in gasoline – affect wholesale fuel prices, which in turn influence the retail prices consumers pay at the pump, he said.

Earlier this week, the price per barrel of crude oil exceeded $120, the first time the price per barrel has been $100 or more since July 2022. Retail prices of gasoline tend to go up and down slower than wholesale prices, he said.

“We don’t really start to see any level of demand destruction until we’re approaching $5 a gallon,” Rebelez said. “As we sit here today, we’re right around $3 a gallon in our [Casey’s] footprint. We have quite a way to go before we become concerned from a volume standpoint.”

A year ago, Casey’s began testing a new product – chicken wings  – in its Des Moines-area market, Rebelez said.

“Our culinary team has done a great job in getting the flavor profile right with five sauces and three dry rubs that have resonated with our guests,” he said. “Our goal with the wings has been to complement pizza and create an incremental occasion within our prepared foods business. We do not have financial metrics to share on the wings yet. The platform has been largely incremental as our pizza units in the stores where we sold wings were of high single digit percentages in the quarter.”

Chicken wings are now being offered at 550 Casey’s stores. Rebelez said the new menu item will be added to Casey’s remaining 2,350 stores over the next two years. 

Also, during the quarter, Casey’s Rewards surpassed 10 million members. 

Casey’s, the third largest convenience store chain in the U.S., operates over 2,900 stores in 19 states.

More about Casey’s third-quarter results can be found in its news release.