Why Americans Are Obsessed With These Convenience Stores

[0:00] Food has helped Wawa build a fiercely loyal fan base, [0:03] what some call a cult-like following. [0:05] We had a lot of research, we knew the customers, [0:08] we'd done all the homework, [0:09] and the lines around those stores [0:11] and the opening excitement was palpable. [0:15] 7-Eleven is the world's largest convenience store chain. [0:19] Despite that title, [0:20] it has somewhat of a reputation problem. [0:22] It always has that kind of dirty feel. [0:24] You feel the floor is a little bit sticky. [0:26] Japanese parent company Seven and I Holdings [0:29] is facing pressure after disappointing financial results. [0:32] In the U.S., there's a degree [0:33] to which 7-Eleven has rested on its laurels. [0:36] It hasn't really invested [0:38] and it hasn't evolved the proposition. [0:40] Now the company is shifting its focus [0:42] toward transformation. [0:44] This bustling pizza business [0:45] isn't a Domino's or a Pizza Hut. [0:47] It's one of KC's general stores, [0:49] the third largest convenience store chain [0:51] in the U.S. by size. [0:52] It's because we have three businesses in one. [0:55] We're not like a restaurant [0:55] where the only thing you do is food. [0:57] We got a grocery store to run, [0:59] we have fuel. [1:00] So we have a lot of different ways of winning. [1:03] CNBC visited Iowa [1:04] to see why KC's bet big on rural America. [1:07] I have a beefsteak shorty. [1:18] My bag. [1:19] Hello, would you like to try a sample? [1:21] How are you today, sir? [1:22] Do you have an award card today? [1:24] It's 10 a.m. on a Monday, [1:25] and we're at a Wawa, [1:26] one of America's largest convenience store chains, [1:29] right outside of Philadelphia. [1:30] 8.30, have a great day. [1:33] Gobbler's back today, first day, yep. [1:36] Today's the first day of the Gobbler, [1:38] a limited-time offers inspired by Thanksgiving. [1:41] Food has helped Wawa build a fiercely loyal fan base, [1:44] what some call a cult-like following. [1:47] I love Wawa. [1:48] I don't even get gas. [1:51] I get food. [1:52] I love their products, their sandwiches, their coffee. [1:55] Any cult following starts with each customer, [1:59] each visit, each transaction, [2:01] and turning it into something more than it should be. [2:04] We have five minutes with our customers. [2:05] Make it the best five minutes of your day. [2:07] Have a nice day. Thank you. [2:09] The competition has been rapid. [2:11] Revenue has more than doubled, [2:13] and its workforce has grown by nearly 90% over the past decade. [2:16] But competition is fierce. [2:19] Convenience store chains are perfecting food, [2:21] and fast food chains are expanding options [2:23] and offering value deals and more customization. [2:26] You're going to see a continued expansion [2:28] of high-quality food service in the convenience industry. [2:32] And if anything, the quick service restaurants better watch out [2:35] because if you can get better food faster at a gas station, [2:39] that kind of changes everything. [2:41] But with an estimated $18.8 billion in annual revenue [2:45] and nearly 1,200 stores, [2:47] Wawa is holding its own against public players like 7-Eleven and Casey's. [2:51] So can it keep up the momentum? [3:03] Just two miles away, at Wawa's headquarters, [3:06] the Innovation Center is testing new hoagies, or subs, [3:11] sauces, coffees, and smoothies. [3:14] So this is the second round of samples. [3:16] Can we send back out several concepts to our wingmates panel? [3:21] Aside from the dozens of front-runners, the innovation center is testing new hoagies, or subs, sauces, coffees, and smoothies. So this is the second round of samples. Can we send back out several concepts to our wingmates panel? [3:21] So this is the second round of samples. Can we send back out several concepts to our wingmates panel? [3:22] Wawa offers 15 limited-time items every year. [3:28] The Gobbler, around Thanksgiving, is its most popular. [3:32] Coffee is a big deal. [3:34] There are already nine variations at its stores. [3:36] We used to have different third parties. [3:40] Dunkin' or Pizza Hut was part of our offer here, [3:43] and customers said to us, [3:44] we trust you, we trust your food, we trust the brand you are. [3:47] And so now every product we sell here that's food or fresh beverages, [3:51] they're Wawa-branded. [3:52] I think it offers a nice [3:53] Tart flavor. [3:54] All right, I'm gonna get some Slurp Hunt. [4:00] A focus on food is paying off. [4:02] Customers who shop at both Wawa [4:04] and quick service chains Burger King, Wendy's, or Starbucks [4:07] have been shopping more frequently with Wawa [4:09] than with the others since 2023. [4:12] And breakfast is the clear winner. [4:14] Morning meal traffic increased by 5% [4:17] at food-forward convenience stores like Wawa, [4:19] while QSRs only increased by 1% in August 2025. [4:23] The big thing Wawa figured out is [4:25] if you look at all of the negatives [4:27] that were historically associated [4:29] with the gas station industry, [4:30] the bathrooms, maybe the last resort food, [4:33] Wawa flipped all of that [4:34] and decided to turn those into positives. [4:36] Wawa's customer base is also increasing. [4:40] While at competitors 7-Eleven, Circle K, and Sheetz, [4:44] it's shrinking. [4:46] People know each other by name. [4:48] People create this warm environment. [4:50] That, I think, is somehow the secret sauce [4:52] of what creates if there is a cult-like following. [4:55] Up next person, come on. [4:57] And it starts with its employees. [4:58] They own nearly 40% of the company. [5:01] When you're an owner, you're just vested a little bit more. [5:03] There's a higher level of commitment. [5:05] Our most loyal customers, they're here 3, 4, 5, 10 times [5:09] a week. [5:10] You get to know them by name. [5:11] You get to know their family. [5:12] You get to know what's happening and that connection. [5:15] It's not really an expected thing in training. [5:17] It happens because of culture. [5:19] Tell her I said hi too. [5:20] I will. [5:21] Tell her get better soon. [5:29] Wawa began as an iron foundry in New Jersey in 1803 [5:33] before shifting to a dairy business in Pennsylvania nearly [5:35] a century later. [5:36] As home delivery declined, the company [5:39] pivoted again, opening the first Wawa food market in the 1960s. [5:43] When you think of convenience stores of the 154,000 [5:47] about in the United States, many were born out of major oil [5:51] companies. [5:51] Some were born out of the dairy heritage. [5:54] It just gave us, I think, a little bit of a leg up on food [5:56] to begin with. [5:58] In the following decades, Wawa grew slowly [6:00] in its home markets of Philadelphia and South Jersey [6:02] and built a significant presence across three other East Coast [6:05] states. [6:05] Plus Washington, D.C. [6:07] It doubled down on convenience, becoming a 24-7 operation in the [6:11] 70s at a time when most retailers closed early and offering [6:15] surcharge-free ATMs, free air for tires, and finally fuel in the [6:20] 90s. It debuted in Florida in 2012. [6:23] As of 2024, the state holds more Wawas than any other. [6:27] Wawa has become synonymous with Florida heading out to the Midwest. [6:31] We had a lot of research. [6:33] We knew the customers. [6:34] We've done all the homework. [6:36] The lines around those stores and the opening excitement was palpable. [6:41] And those stores have performed almost as well as core market stores [6:45] coming out of the gate. [6:47] But the convenience store business is getting more competitive as the [6:49] industry has consolidated. [6:51] Since 2022, Wawa has been focused on an aggressive expansion plan [6:56] without mergers or acquisitions, growing from six to 12 states, and [7:01] its annual revenue rose by $4 billion in that time frame. [7:04] Store count has grown more than 50% over the past decade. [7:07] The goal is 1,700 locations by 2030. [7:10] Doing that gives us the best chance of success long term. [7:14] It's a little more challenging. [7:15] Sure, M&A might open more doors and more growth for us, but it's never [7:20] been for us to be the biggest. [7:22] It's trying to be the best. [7:24] As opposed to other competitors like Casey's, which focuses on rural [7:27] America, Wawa is in urban areas. [7:30] The company serves nearly 1 billion customers per year, with an annual [7:34] customer traffic growth of 3% since 2015. [7:37] Though Wawa has been methodical about where and when to expand, scaling [7:45] is still risky. [7:46] Quality and customer service must be maintained, or the company risks [7:50] damaging its reputation. [7:52] Any time a company starts to expand far outside of its region in this [7:55] industry, there is going to be that challenge of how do I maintain the [7:59] customer experience that I'm known for? [8:02] With Wawa's heavy emphasis on fresh food, maintaining a strong supply [8:06] chain is imperative. [8:08] Even so, the company must rely on third party suppliers to deliver product. [8:12] Every Spicy, or [8:24] every [8:40] snack. [8:41] And it's only the fast food chain that has the upper hand. [8:42] You can't do a take-home shopping in first place without your communities, or deliever. [8:43] Indiana, twice daily in Tennessee, and travel center Buc-ee's in the [8:47] south. They're going to bump up against some people who really locked [8:51] down certain regions and cut their teeth and sort of made a name for [8:54] themselves innovating on their own terms. [8:56] And I don't know if anyone knows how this is going to shake out, to be [8:59] quite honest. The company has also had a few misses, like its pizza in [9:04] 2023, which is still getting negative reviews or the drive through [9:08] concept it piloted in 2020. [9:10] Those stores didn't offer customization and you couldn't go inside. [9:13] Wawa is still figuring out how to adapt the system. [9:15] If we don't have misses, we're not trying hard enough. [9:17] And we do, certainly. [9:18] So in the last few years, we launched a drive through only store [9:22] concept. We've tried three of them. [9:25] They have come and mostly all gone. [9:28] But from a great failure, you learn. [9:30] So now with our mobile app, we've given customers the ability to order [9:34] whatever they want. [9:35] High inflation poses a major risk. [9:37] Between 2019 and 2025, Wawa raised prices by about 22 percent, aligning [9:42] with most competitors. [9:43] And as Americans respond by pulling back spending, value meals have [9:47] made a comeback, including at convenience stores. [9:50] You have to confront a company that has a well-oiled model that's been [9:54] pressure tested in aggressive, tough markets. [9:57] And they're going to come in and build state of the art, new to [9:59] industry stores, have all the modern amenities. [10:02] And then on top of that, they're going to go in and hire really great [10:04] employees and they're going to pay them fairly. [10:07] And yeah, that's a tough model to compete against. [10:10] We have to pay attention to McDonald's for sure. [10:13] And we want to deliver more value, better quality at a better price, and [10:17] you can have even better service. [10:19] That's been the formula for us to take share to win share and will continue [10:23] to be. We have a broader set of menu and it allows us to innovate in ways [10:28] with different products that maybe a QSR quite can't. [10:42] 7-Eleven is the world's largest convenience store chain. [10:46] Despite that title, it has somewhat of a reputation problem, namely in the [10:50] U.S., where it was founded. [10:52] I don't think I can buy anything here in good spirits. [10:54] To be honest, it's not for me. [10:56] It always has that kind of dirty feel. [10:58] You feel the floor is a little bit sticky. [11:00] The lights are kind of dingy. [11:01] There's hot dogs rotating under a hot light that's been probably there for the [11:06] most of the day. [11:08] Japanese parent company Seven and I Holdings is facing pressure after disappointing [11:12] financial results. [11:14] Shares have fallen more than 18 percent in 2025. [11:17] And in July, after a year of negotiations, Canadian retailer Alimentation Couchetard [11:22] pulled back its $47 billion bid. [11:25] To acquire Seven and I, now the company is shifting its focus toward [11:29] transformation, aiming to make its U.S. [11:31] 7-Elevens, where most of its revenue comes from, more like its Japanese [11:35] stores, which have become something of a cultural phenomenon. [11:38] The focus will be on the in-store experience. [11:40] A key component of that is food. [11:43] And its new first non-Japanese CEO is leading the charge. [11:47] Expect to see a more of a Japanese style of the 7-Eleven start to flow [11:51] through. They've got somebody who understands the U.S. [11:54] market. So I think they've got a fair chance of improving the U.S. [11:59] operations. [12:10] Founded in Irving, Texas, in 1927, 7-Eleven pioneered the convenience store [12:15] concept. It was an early adopter of the franchise model, kept long operating [12:19] hours and built brand awareness with iconic products like the Slurpee and Big [12:24] Gulp. In 1973, a Japanese grocery store signed a franchise deal with 7-Eleven and [12:29] opened its first stores in the country. [12:31] Over the next two decades, the company acquired enough shares to become the majority [12:35] owner of the American convenience store chain. [12:38] Seven and I was formed in 2005. [12:40] Today, it's the largest convenience store chain in the U.S. [12:44] and the biggest retailer in the world by store count. [12:47] 7-Eleven is obviously a global leader in the convenience store space. [12:52] If you can improve the density, bring in more people, you'll be able to derive [12:57] better margins. That's the backdrop to their expansion in the States. [13:02] Net income dropped about 17 percent and nearly 450 underprivileged. [13:06] Performing stores were shut down in fiscal year 2024 in its North America market, which is [13:11] majority of the U.S. In first quarter 2025, both same store sales and year over year [13:17] traffic were down. [13:19] In the U.S., there's a degree to which 7-Eleven has rested on its laurels. [13:23] It hasn't really invested and it hasn't evolved the proposition. [13:27] I think they're now under pressure to do that because investors are clamoring for [13:30] returns. And the U.S. [13:31] is one market where they can make inroads. [13:38] The company's weaker performance. [13:39] In the U.S. can be traced back to a few unique challenges. [13:43] Seven and I has less control over its U.S. [13:45] businesses as most are franchised. [13:47] Some franchisees won't agree with the changes, and that does make it more [13:51] complicated to bring them along and to ensure that there is a degree of [13:56] consistency in the changes that you want to make. [13:59] Competition is another. [14:01] The U.S. convenience store industry is highly fragmented. [14:04] Not only has it consolidated substantially, but hyperlocal or regional chains like [14:09] Wawa, K-Di, and Zip. [14:10] They have built loyal followings by offering strong food options and customer [14:15] service. [14:15] They were just very focused on expansion. [14:18] Now, when you're focused on those things, you can generate pretty good growth. [14:21] But what doesn't always happen is that you don't evolve the store concept and [14:26] format in a way that's suited to changing consumer needs. [14:30] And I think 7-Eleven fell into that trap. [14:34] The convenience store industry dynamics have also evolved over the years. [14:38] Dollar stores have expanded into rural areas. [14:40] And key categories have seen sales declines. [14:43] At the same time, more and more consumers get their groceries delivered, undermining the [14:48] convenience these chains used to offer. [14:50] 7-Eleven is also dealing with the fallout from the failed mega merger with Alimentacion [14:55] Couchetard, the Circle K owner. [14:57] ATD withdrew the multibillion dollar offer due to what it called a lack of engagement from [15:02] 7-Eleven's leadership, though the company disputes the claim. [15:06] The alternative is to wait for the company to try and achieve the potential. [15:11] That they're planning to do. [15:16] 7-Eleven is working to streamline operations and strengthen its finances in preparation for a potential IPO in 2026. [15:23] 7 and I is planning to spin off the business but stay on as a majority shareholder, which is part of why it's course [15:28] correcting in the meantime. The company has launched several transformation plans. [15:33] The latest, from 2025, is focused on turning its stores into food destinations. [15:39] Since 2019, it's been working on adding restaurants, building or renovating kitchens, modernizing food and beverage [15:44] options and accelerating digital and delivery. [15:47] It owns three fast food chains, Laredo Taco Company, which it inherited from a Sunoco [15:52] acquisition, raise the Roost, a Southern inspired chicken chain, and Speedy Cafe. [15:57] It's been slowly adding some of these restaurants to its stores as they have driven higher sales and traffic. [16:02] The company plans to open 1300 new food focus stores in North America by 2030. [16:07] Having restaurants in some locations, it becomes a place that people come to as well, and then you get them in the store and you start buying other stuff. [16:14] But that's not all, though. [16:14] But having said that, there's costs involved [16:17] with the restaurant. [16:18] So it'd be interesting to see whether that works out. [16:21] In May, 2025, Stephen Dacus [16:23] became Seven and I's first non-Japanese CEO. [16:26] Hailing from leadership roles at Walmart [16:28] and several Japanese food-focused companies, [16:31] Dacus has launched a plan [16:32] to make the U.S. stores more Japanese, starting with food. [16:35] That includes its iconic egg salad sandwiches. [16:38] Warabea, the fresh food manufacturer [16:41] that makes 7-Eleven Japan's ready-to-eat meals, [16:43] is opening its third U.S. facility in 2026. [16:47] 7-Eleven has sort of woken up and said, [16:49] hey, actually, we just don't have the competitive advantage [16:52] that we used to have. [16:54] We need to change and evolve [16:55] so that we can get customers back, we can increase spending. [16:59] And it's probably something they should have done [17:02] five, 10 years ago, [17:04] but the second best time to start is now. [17:10] Renovating stores, adding kitchens, [17:13] and improving product offerings [17:14] are costly and time-consuming. [17:16] The food service [17:17] is going to be gradual. [17:19] We're seeing slightly better spend numbers, [17:21] but we're not seeing the foot traffic improve, [17:25] so that needs to be watched. [17:27] Between July 2022 and July 2025, [17:31] 7-Eleven didn't see any sustained customer growth [17:34] at its U.S. stores, according to Indigari, [17:36] which tracks credit and debit card data. [17:38] Convenient stores like Casey's and Wawa [17:41] have long offered quality food at decent prices. [17:43] These rivals might play in different markets than 7-Eleven, [17:47] but they've mastered one important segment in the U.S. [17:49] that 7-Eleven hasn't. [17:51] The U.S. is a very, very intensely competitive market [17:56] in food service, in convenience, in retail generally. [17:59] For the convenience players, the battle is like, [18:02] hey, you spend $10 with us every week. [18:05] How can we get that to $15 [18:07] and actually take away some of your share of wallet [18:09] from other retailers? [18:10] Then there's the potential IPO. [18:12] Going public would help 7-Eleven and I raise money [18:14] by taking on more debt, capital that is needed to build more stores. [18:15] Then there's the potential IPO. Going public would help 7-Eleven and I raise money by taking on more debt, capital that is needed to build more stores. [18:17] Then there's the potential IPO. Going public would help 7-Eleven and I raise money by taking on more debt, capital that is needed to build more stores. [18:18] But more importantly, to pay for all of its planned upgrades. [18:22] And it would allow the company to go through a correction [18:24] without dragging down the other parts of its business. [18:27] But the IPO is not a sure bet, [18:29] especially since Alimentacion Couchetard [18:31] withdrew its acquisition of 7-Eleven. [18:34] A tough economic environment in North America [18:37] could affect the decision too, according to Dacus. [18:40] This isn't the best kind of market to be reinventing in, [18:43] although there is an opportunity for 7-Eleven there [18:46] because it doesn't play. [18:48] If it can find a point of differentiation, [18:50] maybe healthier food, [18:52] maybe different types of cuisine options, [18:55] maybe stuff that people take out and can eat on the go [18:57] or can take home for a meal. [18:59] But I don't think investors are concerned [19:01] that 7-Eleven is in trouble [19:02] because the fact is it isn't in trouble. [19:05] It's just a business that needs to refresh itself [19:08] and to keep itself relevant. [19:10] And that's what it's trying to do in the US. [19:28] This bustling pizza business [19:29] isn't a Domino's or a Pizza Hut. [19:31] We sell lots and lots of pizza. [19:33] It's one of Casey's General Stores, [19:36] the third-largest convenience store chain in the US by size, [19:40] with an $18.8 billion market cap. [19:43] Hi, guys, I'm gonna show you my top five things [19:45] that I get from a Casey's gas station. [19:47] Casey's has built somewhat of a cult following, [19:49] and not only because of its made-from-scratch pizza, [19:52] it's also based on how and where it opens stores. [19:55] More than two-thirds of them are located in towns [19:57] with less than 20,000 people. [19:59] Where would they go if they didn't have a Casey's here? [20:02] There's, in town, there's no other place to go. [20:05] This is it, the one-stop-shop. [20:08] They're just the hometown hero. [20:09] Do you need to go there to just get gas? [20:13] No, they're the fifth-largest pizza chain [20:15] in the United States. [20:17] Casey's stock has soared more than 130% [20:20] between September 2022 and September 2025. [20:24] In its Q1 2026 earnings, released September 8th, 2025, [20:28] the company continued its strong momentum. [20:31] Net sales grew 19.5%, [20:34] but inside sales rose 14.2%. [20:37] As consumers spend less on fuel and tobacco, [20:40] convenience stores have looked for ways to boost profits. [20:43] Food service became the answer. [20:45] While some competitors are playing catch-up, Casey's is not. [20:48] It's because we have three businesses in one. [20:50] We're not like a restaurant where the only thing you do is food. [20:53] We got a grocery store to run, we have fuel. [20:55] So we have a lot of different ways of winning in this marketplace. [21:00] CNBC visited Iowa to see why Casey's bet big on rural America, [21:05] with its own success away from rival chains and fast food. [21:22] Today, nearly 60 years after opening its first store, [21:25] Iowa is still Casey's main home. [21:27] No other convenience store chain comes close [21:29] to competing with the company here. [21:31] Hey, I'm Darren. Good to meet you. [21:34] Darren Rabelas took the helm of Casey's in June 2019, [21:37] leading it through the pandemic [21:39] and opening and acquiring hundreds of new stores. [21:42] Since he joined the company, [21:43] Casey's stock is up more than 200%. [21:46] This store opened in April of 2024, and we're out, [21:50] in the far western suburbs of the Des Moines metro area. [21:55] By store count, Casey's is far from overtaking [21:58] first and second place 7-Eleven and Circle K. [22:02] The company has been going after underserved markets [22:04] since its founding. [22:07] We're heading now to a little town called Dallas Center, [22:11] probably 10 minutes or so from this store, [22:13] but very, very different feel. [22:15] This is very much more of a rural community [22:19] and a very small town. [22:22] The average population [22:24] that these stores serve [22:27] is way lower than a 7-Eleven, a Couchetard, [22:32] even some of your other smaller chains. [22:34] They have that competitive moat. [22:37] Being the main convenience store in town [22:38] helps Casey's maintain pricing power [22:40] in categories like fuel and food [22:42] and build a loyal customer base. [22:44] We know them by name. [22:45] We know their habits. [22:47] We know if they're running late to work [22:50] or if they have their day off. [22:52] The majority of its stores [22:53] are intentionally built within a 500-mile road, [22:54] and they're built in the middle of the city. [22:55] They're built in the radius of a distribution center. [22:58] That way, the company doesn't have to rely [23:00] on third-party suppliers. [23:02] The advantages include lower logistics costs, [23:04] better inventory control, [23:06] and consistent product availability across stores. [23:09] The company's acquisitions have helped it enter new markets, [23:12] most recently, the South. [23:14] It bought privately-owned Fikes in an all-cash transaction [23:18] for $1.15 billion in 2024, its largest acquisition ever. [23:23] The deal added nearly 7% to its store count, [23:26] and the company subsequently boosted its new store target [23:29] from 350 stores to 500 stores by 2026. [23:34] We just don't buy anything that's for sale. [23:37] We have a pretty high bar on the asset quality, [23:40] and if the vast, vast majority can't accommodate a kitchen, [23:44] then we're not gonna buy it, because that's who we are. [23:48] We're all about the food. [23:49] M&A is a huge part of the story. [23:52] I mean, they plow all of their free cash flow [23:55] right back into the business, investing. [23:57] We're investing for growth. [24:06] All of this is made in-house in the kitchen, [24:09] so there's a prep shift where they do all this work. [24:14] Casey started making pizza in 1984 [24:17] and has since expanded its offerings to breakfast, [24:20] sandwiches, baked goods, and specialty coffee. [24:23] That has all helped the company compete [24:25] with quick-service restaurants, [24:26] an industry term for fast-food restaurants. [24:29] In 2025, the food service segment [24:32] across all convenience stores is forecasted [24:34] to see higher sales growth than QSRs. [24:37] For a long time, the bar was set very high with food. [24:40] It's harder, but I like doing the harder things [24:44] because it's a lot tougher for everybody else [24:46] to try to replicate. [24:47] It's been kind of a slow burn, [24:49] but from about 2015 on, [24:54] there's been tremendous investment in food service. [24:57] We all talk about the Casey's and Wawa and Sheetz. [25:01] They are frontrunners. [25:03] Casey's prepared food and dispensed beverage segment [25:05] makes up around 10% of its total [25:07] 15.9 billion dollars. [25:08] The category rose 10.3% from the year prior [25:12] in its full fiscal year 2025. [25:14] If you think about what is a normal kind of relationship [25:17] when you, for a C-store, it's usually tied to pump. [25:21] But Casey's, you know, has a stellar offering. [25:24] Again, I'll go back to that. [25:26] Casey's, one of the few large retailers in town. [25:33] With fast-food prices inflating nearly 40% [25:36] between 2019 and 2025, Casey's has gained customers. [25:40] While fast-food restaurants like McDonald's, [25:42] Burger King, and Wendy's have lost them, [25:45] mobile ordering, delivery, and pickup features [25:48] have made that shift possible. [25:50] In less than five minutes, [25:51] they can check a lot of things off their list in one visit. [25:56] And that's an advantage that C-stores do have. [25:59] Casey's full kitchens and a long history [26:01] of making high-quality prepared food [26:04] allows the company to focus on refining its operations [26:07] rather than building from scratch. [26:09] Competitors 7-Eleven and Circle can't afford to go out and buy food. [26:11] They're just now jumping on freshly made food in the U.S., [26:15] giving Casey's a leg up. [26:17] How have the chicken sandwiches sold since we redid them? [26:21] Oh my God, they're so much better. [26:23] Yeah, we sold hot sandwiches before, [26:25] but we've kind of set a standard that any of our food [26:28] that we're gonna sell has to be as good as our pizza. [26:31] And frankly, when we looked at that category, it was not. [26:34] And so we tore it down to the studs, [26:36] started all over again, and you know what? [26:38] We were up 75% in that category and raised the price. [26:44] And so it just goes to show you, [26:45] when you get the process right [26:47] and you get the product quality there, [26:49] people will come and buy it. [26:51] Casey's also competes with local grocery stores, [26:54] with its nearly 350 private label products. [26:57] As you can see here, [26:59] we've got a pretty good array of products here. [27:02] You also have the entire assortment of the store. [27:05] If you want a 12-pack of beer when you get your pizza, [27:08] what other national pizza chain can you do that at? [27:11] You can't. [27:12] You have to make another stop. [27:18] More convenience stores [27:20] encroaching on each other's territories. [27:22] Casey's is focusing on growth and new markets. [27:25] Around 2,000 of its stores are in only six states. [27:29] Texas, which it first entered in 2023, [27:32] is a major focus at this time. [27:34] It is outnumbered in the state [27:35] by several convenience store chains [27:37] and also competes with travel center Buc-ee's, [27:40] which has a fiercely loyal following. [27:42] Yet the company sees a lot of opportunity there. [27:45] Getting into Texas was a goal of ours for a while. [27:47] You've got a few really big cities, [27:51] Dallas-Fort Worth, Austin, San Antonio, Houston, [27:54] that kind of triangle there. [27:56] Outside of that, from I-35 to the Mexican border [28:00] and I-45 to the Louisiana border [28:02] is nothing but Casey's country. [28:04] And there's literally thousands and thousands of communities [28:08] in our footprint and around the country [28:11] that need a Casey's and don't have one yet. [28:13] A majority of Casey's total revenue stems from fuel, [28:17] but those prices are volatile. [28:18] They're expected to decrease through 2026. [28:20] Yet Casey's is still growing. [28:22] Casey's actually increased sales [28:23] in its full year 2025 and first quarter 2026. [28:27] They posted really strong results [28:29] compared to maybe some of their other counterparts [28:31] who are seeing some weakness right now. [28:35] But fuel alone can't drive growth. [28:37] And that's why Casey's is going all in on food. [28:40] But that means it's now competing harder [28:41] with fast food restaurants. [28:43] As big as we are in the food business, [28:45] I think we're still scratching the surface there. [28:48] When we compare ourselves to the best of the best [28:50] in the restaurant industry, [28:53] we do well, they do well, but there's a gap there. [28:56] And so I firmly believe that we have the right [29:00] to compete at that level. [29:01] And so we still have a runway for growth there. [29:07] So it's my first time trying Casey's pizza. [29:11] Get a lot of ranch on there. [29:16] Mm, it's delicious.