CASYCasey's

Instances or reports of food-safety issues, such as foodborne illnesses, food tampering, food contamination or mislabeling, hygiene and cleanliness failures, presence of communicable disease, or investigations or other actions by food safety regulators, at our stores, distribution centers, vendors or suppliers, either during growing, manufacturing, packaging, transportation, storage, preparation or service, have in the past significantly damaged the reputations and impacted the sales of companies in the food, food processing, processing and manufacturing, grocery, convenience, quick service and “fast casual” restaurant sectors, and could affect us as well.

Recent difficulties and shortages in the general labor market for such individuals, in particular hourly Team Members and drivers, and the failure to continue to attract and retain these individuals, especially at reasonable compensation levels in the current rising wage environment, could have a material adverse effect on the operation of individual stores, distribution network, our business and results of operations.

Our business is subject to extensive governmental laws and regulations that include, but are not limited to, those relating to environmental protection and remediation; the preparation, transportation, storage, sale and labeling of food and other products; consumer protection and anti-trust laws and regulations; minimum wage, overtime overtime, immigration and other employment employment, labor and labor employee benefits-related laws and regulations; the Americans with Disabilities Act; legal restrictions on the sale of alcohol, tobacco and nicotine products, money orders, lottery/lotto and other age-restricted products; compliance with the information security, privacy and artificial intelligence law and regulations and Payment Card Industry Data Security Standards and similar requirements; compliance with the Federal Motor Carriers Safety Administration regulations; and, securities laws and Nasdaq listing standards.

Any instances of, or reports linking us to, foodborne illnesses or food tampering, contamination, mislabeling or other food-safety issues such occurrences could damage the value of our brand and severely hurt sales of our prepared or other food products and possibly lead to product liability and personal injury claims, litigation (including class actions), government agency investigations and damages.

Additionally, increases in labor, mileage, insurance, fuel, and other costs related to the supply and transportation of food ingredients could adversely affect the profitability of our stores.

We store fuel in storage tanks at our retail locations and in the fuel terminal acquired in the recent Fikes transaction. terminal.

As a result, our competitors may have a greater ability to bear the economic risks inherent in our industry and may be able to respond better to changes in the economy and new opportunities within the industry, including those related to electric vehicle charging stations. industry.

In addition, we rely on our vendors and suppliers to provide safe, quality ingredients and products and to comply with applicable food food, food-safety, and food safety other laws and industry standards.

Our continued success depends on our ability to remain relevant with respect to consumer needs and wants, attitudes toward our industry, and our guests’ preferences for new and innovative items and for ways of doing business with us, particularly with respect to digital engagement, contactless delivery, third-party delivery, curbside pick-up and other non-traditional ordering and delivery platforms.

Any increase in the cost or sustained high levels of the cost of cheese, proteins or other commodities could adversely affect the profitability of stores, particularly if we are unable unable, unwilling, or it is unreasonable, to increase the retail price of our products to offset such costs.

While we believe there are adequate reserve quantities and alternative suppliers available, shortages or interruptions in the receipt or supply of products caused by unanticipated or changing demand, such as occurred during the COVID-19 pandemic, problems in production or distribution, financial or other difficulties of suppliers, cyber-related events, social unrest, inclement weather or other economic conditions, including the availability of qualified drivers and distribution center Team Members, could adversely affect the availability, quality and cost of products, and our operating results.

Consequently, we currently are, and may in the future become a party to, certain consumer protection, employment, personal injury, food safety, product liability, accessibility, data security and privacy and other legal actions in the ordinary course of our business.

The increase in operating cash flows, compared to the prior year, flows was favorably impacted further offset by an increase in operating cash flows a decrease of $44,029 due to the timing of inventory purchases, as well as an increase in $29,949 $58,778 related to receivables, primarily due to fuel pricing and the timing of vendor rebate payments in comparison to the prior year.

Total revenue for fiscal 2025 2026 increased by $1,077,986 (7.3%) since $1,620,202 (10.2%) compared to the prior fiscal year, primarily driven by $952,018 $1,034,139 of additional revenue from the Fikes acquisition, which included 198 additional convenience stores and a wholesale fuel network. during the first six months of fiscal 2026.

Approximately 10% 5% of the increase is due to operating 246 40 more stores than the comparable period in the prior year, including transaction costs related to as well as a full-year contribution from stores added in the Fikes acquisition. acquisition, compared to only six months in the prior year.

Cash flow from operations was favorably impacted by improved revenue less cost of goods sold (excluding depreciation and amortization) of $404,492, $568,638, offset by an increase in operating expenses of approximately $263,843 and $285,070, an increase in cash paid for interest of approximately $23,149. $23,948, and an increase in cash paid for taxes of $48,247, due to an increase in income before taxes.

Cash provided by financing increased $995,978, The change from the comparable period of the prior year, year was primarily due to the proceeds from long-term debt of $1,100,000, which was used $1,100,000 received to partially fund the Fikes acquisition. acquisition in the prior year.

As of April 30, 2025, 2026, Casey’s General Stores, Inc. and its direct and indirect wholly-owned subsidiaries operate convenience stores primarily under the names "Casey's" and "Casey’s General Store" (collectively, with the stores below referenced as "GoodStop", "CEFCO", "Bucky's", or "Lone Star Food Store", referred to as "Casey's" or the "Company") throughout 20 19 states, approximately half of which are located in Iowa, Missouri and Illinois.

The increase decrease in cash used in investing activities was attributable to an increase in acquisition related activity, with the Fikes acquisition closing acquisition, which closed during the fiscal year. prior year and had a purchase price of $1,165,752.

Finance lease liabilities (Note 7) $108,920 $115,197 3.67% Senior Notes (Series A) due in 7 installments beginning June 17, 2022, and ending June 15, 2028 87,000 63,000 3.75% Senior Notes (Series B) due in 7 installments beginning December 17, 2022 and ending December 18, 2028 29,000 21,000 3.65% Senior Notes (Series C) due in 7 installments beginning May 2, 2025 and ending May 2, 2031 50,000 45,000 3.72% Senior Notes (Series D) due in 7 installments beginning October 28, 2025 and ending October 28, 2031 50,000 45,000 3.77% Senior Notes (Series F) due August 22, 2028 250,000 2.85% Senior Notes (Series G) due August 7, 2030 325,000 2.96% Senior Notes (Series H) due August 6, 2032 325,000 5.23% Senior notes (Series I) due November 2, 2031 150,000 5.43% Senior notes (Series J) due November 2, 2034 100,000 Variable rate term loan facility, requiring quarterly installments beginning June 30, 2027 and ending April 21, 2028 200,000 Variable rate incremental term loan facility, requiring quarterly installments ending October 30, 2029 839,375 796,875 Debt issuance costs (5,750) $2,508,545 (4,478) $2,431,594 Less current maturities 94,925 $2,413,620 101,357 $2,330,237

Net cash provided by operating activities was $1,377,540 for the year ended April 30, 2026, compared to $1,090,854 for the year ended April 30, 2025, compared to $892,953 for the year ended April 30, 2024, an increase of $197,901. $286,686.

Prepared food and dispensed beverage revenue increased by $150,162 (10.3%), $165,066 (10.2%), due to an increase in same-store sales of 3.5% 5.2% driven by improved sales of hot sandwiches, bakery, and whole pizzas, as well as an increase of approximately 6.8% 5.0% due to store growth.

Grocery Prepared food and general merchandise dispensed beverage revenue less related cost of goods sold (excluding depreciation and amortization) increased to 35.0% 58.6% of revenue from 34.1% 58.2% during fiscal 2025 2026 compared to the prior year. year, driven primarily by improved waste.

Principal on the Senior Notes Series G I and Series H J is payable in full on August 7, 2030 November 2, 2031 (Series G) I) and August 6, 2032 November 2, 2034 (Series H), J), respectively.