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Casey’s Increases Dividend, Building Plans

ANKENY, Iowa — Casey’s General Stores on Tuesday said it would increase its dividend payment by 18% and expand into Arkansas for the first time — initiatives that would demonstrate the convenience operator’s potential to produce value for shareholders who are now considering a buyout offer from a larger rival.

ANKENY, Iowa — Casey’s General Stores on Tuesday said it would increase its dividend payment by 18% and expand into Arkansas for the first time — initiatives that would demonstrate the convenience operator’s potential to produce value for shareholders who are now considering a buyout offer from a larger rival.

As previously reported, Casey’s board of directors has recommended shareholders reject the $36-per-share offer from Quebec-based rival Alimentation Couche-Tard.

In financial results announced Tuesday, Casey’s reported net earnings of $116.9 million for the fiscal year that ended April 30, on sales of $4.6 billion. Increases in same-store sales for groceries and prepared foods — facilitated by a new store design — highlighted the sales results, the company said. Quarterly net earnings of $21.9 million, or 43 cents per share, exceeded analyst estimates.

The company said it intended to increase its total number of stores by 4% to 6% in fiscal 2011, and replace 20 stores and complete 20 remodels. The new stores would extend to Arkansas for the first time. Casey’s currently operates 1,500 stores in nine Midwest states.

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