Casey's General Stores (CASY) reported better-than-expected fiscal Q1 results, driven largely by stronger fuel volumes and margins, with in-store performance also slightly ahead of expectations, RBC Capital Markets said.

The company's execution, store mix, growth in small markets, and ongoing Fikes integration supported earnings of $5.77 per share, up 20% from last year, 14% above RBC's forecast and about 8% above consensus, the brokerage said in a note Monday.

Same-store sales rose 4.3%, with prepared food and fountain sales up 5.6% and grocery sales up 3.8%, led by bakery, pizzas, and beverages, according to the note.

Fuel same-store gallon growth was 1.7%, above the 0.5% forecast and company outlook, while fuel margin reached 41 cents per gallon, two cents above forecast and higher than the industry average.

Despite the strong quarter, fiscal 2026 guidance was reaffirmed at earnings before interest, taxes, depreciation, and amortization of $1.2 billion to $1.34 billion, slightly below consensus estimates. The firm noted it is not unusual for Casey's to leave full-year guidance unchanged.

Operating expenses and other costs were largely in line with expectations, except for a lower-than-expected tax rate, according to the note.

RBC kept its price target on Casey's General Stores at $542 and has a sector perform rating on the stock

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