A：Casey's initiative to support the community is the Feeding America campaign in partnership with DoorDash, which will benefit over 140 local food banks in their footprint.

A：The key financial results for the third quarter ended January include diluted earnings per share at $3.49, an increase of 50% from the prior year; net income of $130 million; and EBITDA of $309 million, which is 27.5% higher than the prior year.

A：Prepared food and dispensed beverages remained strong in the third quarter, supported by a compelling value proposition and continued innovation. Sales were up 4.3% or 9.2% on a two-year stack basis with an average margin of 58.3%.

A：Same store sales were up 5% for the third quarter on a quest year stack basis with an average margin of 58.3%. This was driven by strong performance in prepared food and dispensed beverages, as well as grocery and general merchandise.

A：The financial results for the quarter were $3.91 billion in total revenue, an increase of $12 million or 0.3% from the prior year. Gross profit was $1.01 billion, an increase of $94 million, or 3.1%, from the prior year. Inside sales rose 5.7%, and gross profit margins improved across all categories when compared to the prior year.

A：The main factors contributing to the increase in gross profit include higher inside gross profit of $51 million, or 8.9%, and higher fuel gross profit of $40.2 million, or 15%. Inside gross profit margin increased by 130 basis points to 42.2%, with prepared food and dispensed beverage and grocery and general merchandise margins also showing improvements.

A：The performance in the current quarter's grocery and general merch categories was driven by solid sales, with the non-alcoholic beverages segment seeing strength, particularly in energy drinks and flavor-enhanced waters. In grocery and general merch, there was growth across all income cohorts, with the lower-income cohorts buying at a slower rate but still showing growth.

A：The retail pricing strategy in the nicotine category has seen manufacturers passing through price increases to the company, which has maintained its value proposition in prepared food. The company has not needed to lean into price heavily and will continue to focus on being a value proposition. However, they acknowledge that pricing may be used to preserve margins contractually.

A：Severe winter weather did not appear to have a significant impact on sales behavior during the quarter, as there was no noticeable change in consumer stocking up behavior.

A：The health of the customer varies across income cohorts, with the upper-income cohorts stronger, yet growth also seen across the low-income cohorts. Middle and upper-income cohorts are performing similarly, with little change in their shopping behavior. Lower-income cohorts are growing but at a slower rate than other cohorts, except in the prepared foods category where they are growing as strong, if not stronger.

A：The anticipated fourth-quarter sales guidance is related to the year-to-date performance, with the inside range midpoint of the guidance being around where the company is, or maybe a touch higher. The company does not typically give precise quarterly numbers but is indicating that the fourth quarter should look close to the year-to-date inside experience.

A：Cost of goods management has positively impacted margins due to effective planning with suppliers and a change in sales mix, with fastest growth in the non-alcoholic beverages subcategory which has high margin rates. The nicotine category has also contributed positively with a decrease in lower-margin combustible cigarette mix and an increase in the higher-margin pouch and vapor business.

A：The company has not seen any signs at this stage of any change in guest behavior in response to recent fuel price increases.

A：The current retail price of gas is in the low 3 dollars a gallon range on average, which is still 30 cents below the starting point when the Ukraine war began.

A：The outlook for fuel prices suggests they may increase further, but even if they approach 5 dollars a gallon, there is no significant behavior change yet. As prices rise, consumers may become more discerning and see the value proposition in stores more frequently.

A：Store traffic has been positive despite recent events and the rise in fuel prices, attributable to effective merchandising, the food team, and store operations.

A：The wings program will have a more measured rollout over time, with a focus on installing equipment in stores and training staff. The full rollout to the remaining stores is expected to be completed over the next two years.

A：The wings program aims to maintain a gap in pricing relative to national brand competitors to encourage trial and adoption, increase unit velocity, and create an incremental occasion beyond pizza. The program has seen positive indicators such as sales to customers who only buy wings and increased visit frequency.

A：The company is right where expected in terms of synergy capture from the acquisition, with early wins in G&A and fuel benefits. Most synergies have been realized and additional stores are being converted to capture more synergies, particularly in prepared food, with the majority of these benefits expected to start showing in the first half of the next fiscal year.

A：The CapEx investment for the wings program is considered light, mainly involving the installation of commercial fryers in existing stores. Labor impact is managed through a labor modeling process that forecasts demand and allocates labor hours accordingly, potentially avoiding the need for additional full-time equivalents (FTEs) at this stage.

A：Yes, the company is on track to open 80 stores for the year and does not need to open 60 stores in the fourth quarter to meet their goals. They are well-positioned to achieve their objectives for the year, which includes meeting the guidance for store openings and adding a total of 500 new stores by the end of the fiscal year.

A：The company plans to achieve sustainable growth in units through a combination of organic growth from running their 'mothership' operations, including same store sales, fuel profitability, and operational efficiency. They also aim for about a 4% growth from new units each year. In the current fiscal year, they deliberately slowed down to focus on integrating recent acquisitions. However, they expect to return to a 4% unit growth rate in the future.

A：The company plans to continue growing new units, running the business efficiently, and growing inside sales as the main levers for top-line and bottom-line growth. They expect to share more details about their three-year plan in New York City, but they anticipate that as the business grows and volumes increase, there may be a need to add labor back to maintain guest satisfaction. Similarly, if the business experiences setbacks, they would adjust labor hours to match the demand. For now, they are not focused on maintaining the same store labor hours but on operational efficiencies that ensure guest satisfaction.

A：The business aims to manage labor costs and hours by avoiding continuous reductions in same store labor hours, which they have nearly achieved over the three-year strategic planning cycle. They plan to maintain labor efficiency as the business grows and adjust labor hours up or down based on business demand and incremental sales. There is a balance between continuing to work on efficiencies and having the flexibility to add labor when necessary to preserve guest satisfaction levels.

A：Reduced labor hours have positively impacted same store sales by keeping guest satisfaction scores high. As the business grows and volumes increase, the company plans to add some labor back to meet the new demands without expecting a continuous reduction in labor hours. The goal is to balance efficiency and quality of service.

A：The company uses approximately 11.5 million pounds of cheese per quarter, amounting to about 45 million pounds annually. They are 80% locked in on cheese for the current quarter and the following ones, which aligns with their strategy to maintain some favorable pricing. They have an additional 20% capacity to buy spot when conditions are advantageous.

A：From a balance sheet perspective, the company is in a position to undertake another large deal, supported by a low leverage ratio and ample liquidity. However, practically speaking, starting a deal of a similar size to the one involving Fis would take time. Although there is a finite number of potential chains of that size that are actionable, the company is actively engaged with potential sellers. The high bar set for asset quality, mainly around the ability to accommodate a kitchen and the physical size of the buildings, limits the potential acquisitions.

A：As of the current status, 25 stores out of an initial goal of 50 have been converted, with an average of three conversions per week. This implies that the integration will be substantially completed by the end of the current fiscal year, with the remaining stores expected to be integrated in the following fiscal year. This indicates a capability to execute on larger deals should the opportunity arise.

A：Casey's is positioned advantageously in the market, with its three-pronged business strategy in fuel, grocery, and prepared foods compared to competitors who focus solely on the restaurant business. This allows Casey's to absorb costs better and leads to a stronger value proposition, especially with menu price increases documented in the industry. In the convenience store industry, Casey's faces strong competition but excels with its unique, high-value prepared foods offering that includes pizza, which is hard to execute and is not widely available across the industry.

A：Oil price fluctuations do not significantly change the company's long-term growth algorithm as these cycles typically normalize over time. In the short term, the impact on financial guidance is difficult to predict due to the variability of prices. For the current quarter, the company is monitoring the situation closely, as the impact will depend on future events, which are uncertain. The company aims to manage the situation appropriately and adjust to any cost swings.

A：The company has a continuous improvement team focused on making store operations more efficient, which can reduce labor needs. However, as the business grows, more labor is required to stock and sell the additional products. The company aims to manage labor expenses closely, adding where necessary and reducing where it's not needed. While the team focuses on steady state and not expecting the same level of labor reductions as in the past, they remain committed to tight expense management.

A：The company is tracking within the fuel volume range it initially guided for, rather than at the high end. The performance has been positive year to date, with the company taking market share. In the realm of tobacco sales, there's a positive commentary on the performance of tobacco alternatives. This category has seen a slowdown in the decline of combustibles and an increase in inflation on the combustible side, combined with growth in alternatives, resulting in the overall category beginning to show positive growth.