Convenience store chain Casey’s General Stores Inc. reported a decline in prepared foods same-store sales in the second quarter of Fiscal 2018 and lowered its guidance in the category.
Ankeny, Iowa-based Casey’s, which is known for its pizza and other prepared foods, had hoped to increase its same-store prepared food and fountain sales 4 to 6 percent in Fiscal 2018, but sales in the second quarter were up just 2.1 percent.
“Softer traffic in the back half of the quarter affected overall results in the category,” says Terry Handley, Casey’s president and CEO.
Prepared food and fountain revenue was up, however, climbing 5.5 percent to $262 million. Profits rose 2.7 percent to $160.5 million.
As a result of the lighter store traffic in the second quarter, Casey’s is lowering its prepared food and fountain same-store guidance from 4 to 6 percent to 2 to 4 percent.
Company-wide, Casey’s diluted earnings per share were $1.28 in the second quarter, down from $1.44 in the same quarter last year.
Casey’s, the fourth-largest c-store chain and fifth-largest pizza chain in the U.S., has 2,000 stores in 15 states.