Casey's plans to add 400 new stores over next 3 years
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Photo: Courtesy of Casey's
Casey's says it plans to add 400 stores over the next three years, doubling down on the rural and suburban markets that helped turn the Ankeny-based chain into one of the nation's largest convenience retailers.
Driving the news: The company's "sweet spot" is communities of under 20,000 people, where competition is thinner and its combination of gas, groceries and food gives it an edge, CEO Darren Rebelez shared during an investor presentation on Wednesday.
By the numbers: Casey's plans to build or acquire at least 400 stores by fiscal year 2029.
- Roughly two-thirds of its existing stores are in towns with 20,000 people or fewer.
- About 75% of towns under 20,000 people within Casey's existing distribution footprint in the Midwest and South don't have a location.
How it works: While restaurant chains typically seek out denser population centers, Rebelez says Casey's smaller markets give it the upper hand. For example, half of Casey's stores do not have a national wings or pizza competitor within 5 miles.
- It's also easier for the company to acquire more rural, independent convenience stores, many of which lack scale to compete, he says. In 2024, they acquired 198 CEFCO stores, expanding into smaller Texas markets.
- Middle-income households in many of Casey's Midwest and South markets also have greater spending power than those in costlier urban areas.
The big picture: The company has acquired 736 stores over the past decade, including 387 in just the past three years.
- They're also eyeing a bigger presence in Texas, with Rebelez saying 1,000-2,000 stores could be a possibility.
- "We love Texas," he said.