From Small-Town Iowa to National Powerhouse
Casey’s General Stores, headquartered in Ankeny, Iowa, began as a single leased service station in 1959. Founder Don Lamberti’s decision to focus on small towns rather than urban centers shaped the company’s trajectory. Even today, more than 70% of Casey’s locations are in towns with populations under 20,000, where competition is limited and convenience stores double as community hubs. That rural-first strategy gave Casey’s an edge competitors like 7-Eleven and Wawa never fully pursued.
Turning Gas Stations Into Pizza Kitchens
The chain’s real breakthrough came in the early 1980s when it shifted from being just a convenience store to a food service powerhouse. By 1984, Casey’s had introduced made-from-scratch pizza prepared fresh in-store, along with bakery items and breakfast offerings. Over time, the pizza operation became so successful that Casey’s is now the fifth-largest pizza chain in the United States—outranking better-known national brands. Its menu, ranging from classic pepperoni to Taco pizza, breakfast pizza, and even cauliflower crust, solidified its reputation as more than a gas station with snacks.
Growth Fueled by Expansion and Acquisitions
Today, Casey’s operates nearly 2,900 stores across 16–19 states. Growth has come both through new builds and aggressive acquisitions. In fiscal 2024, Casey’s added 42 new stores and bought more than 100 others, including locations from Minit Mart and Certified Oil. The biggest leap came in 2024 with a $1.145 billion acquisition of nearly 200 CEFCO stores, expanding Casey’s footprint deep into Texas, Alabama, Florida, and Mississippi. By mid-2025, Casey’s doubled down on Texas with seven more planned openings, positioning itself as a direct rival to Buc-ee’s and other regional giants.
Wall Street Rewards the Strategy
Investors have taken notice. Between September 2020 and September 2025, Casey’s share price surged nearly 200%, reflecting confidence in its food-first model. In the most recent quarter, the company posted earnings per share of $5.77—up 19% year-over-year—and revenue of $4.58 billion. Same-store inside sales rose 5.6%, driven primarily by pizza, bakery, and beverages. Analysts expect 10–12% EBITDA growth, and while valuations remain high at about 35 times earnings, investor enthusiasm has kept momentum strong.
Risks on the Horizon
Casey’s faces challenges even as it thrives. The chain must successfully integrate its new acquisitions without losing operational efficiency. Rising competition from convenience store rivals and fast-food chains expanding their food menus could also cut into Casey’s advantage. And with its stock trading at elevated levels, any stumble in execution or consumer demand could trigger sharper corrections.
The Future of Pizza in the Heartland
Casey’s rise shows that national empires don’t always need to start in major cities. By focusing on underserved rural communities and betting big on food service, the Iowa-based chain turned itself into a pizza empire hiding in plain sight. If it can continue managing growth and fend off competitors, Casey’s may remain both a Wall Street darling and a small-town staple for years to come.
