How Casey’s Turned Small-Town Pizza Into a $28 Billion Business

Casey’s General Stores Inc., based in Ankeny, Iowa, has a market capitalization of approximately $28 billion after its stock price rose more than 50% over the past 12 months. The Fortune 500 retailer operates nearly 3,000 stores across 19 states, primarily in the Midwest and South.

The company’s network is concentrated in smaller communities: nearly half of its locations are in municipalities with populations under 5,000, and roughly two-thirds operate in towns with fewer than 20,000 people. Approximately 50% of Casey’s stores have no national pizza chain competitor within their designated competitive trade area, according to Chief Merchandising Officer Tom Brennan.

Casey’s emphasis on prepared food has helped it navigate persistent consumer price inflation. U.S. Consumer Price Index data showed that food-away-from-home prices increased approximately 14% over a three-year evaluation period, while Casey’s raised its prepared food and beverage prices by 5%. Fuel and merchandise operations allow the company to absorb cost pressures while maintaining food volume growth.

Bank of America estimates that Casey’s prepared food and dispensed beverage division produced a 58% gross margin in fiscal year 2025. The company’s overall store gross margin was roughly 23.5%. Brennan describes the operating structure as “three legs of the stool,” with prepared food, general merchandise, and retail fuel combining to stabilize enterprise earnings.

The company’s food business has expanded well beyond its original offerings. Pizza arrived on Casey’s menus in 1984, followed roughly two decades later by breakfast pizza made with sausage gravy, scrambled eggs, and cheese. Regional products now include taco pizza, a four-cheese pizza using provolone, mozzarella, cheddar, and a post-bake cheese seasoning blend, as well as chicken items.

A new product line called Sauced Wings began as a pilot program in January 2025 and has since reached nearly 900 stores. Casey’s plans a full system rollout over the next two years.

The pricing approach comes as national quick-service pizza chains face top-line pressure. Food industry market research firm Technomic reported that the roughly $31 billion U.S. quick-service pizza market recorded negative sales growth in 2025 after flat performance the previous year. Reporting published in January 2026 described a broader shift in consumer spending away from traditional delivery and carryout pizza brands.

Based on prepared food and dispensed beverage sales volume, Bank of America ranks Casey’s as the fifth-largest pizza seller in the United States. Casey’s is also the country’s third-largest convenience store operator, behind 7-Eleven and Circle K owner Alimentation Couche-Tard, and has the fourth-largest number of commercial liquor licenses in the U.S.

The company’s operating model began in 1968, when Donald Lamberti and Kurvin C. Fish converted a former service station and opened the first Casey’s location in Boone, Iowa. Their expansion strategy targeted rural communities without traditional supermarket or restaurant options, creating Casey’s distinct geographic footprint.

Casey’s is now pursuing additional growth in the South, focusing on small towns along the Interstate 35 corridor in Texas. The company operates approximately 550 stores in Iowa, whose population is roughly 3 million. Executives view Texas, with nearly 30 million residents, as a primary market for replicating the store network.

Retail growth has also changed the company’s customer demographics. Engagement metrics show a 600-basis-point increase in Gen Z customer reach over the past three years, aided by organic user-generated content on TikTok and YouTube centered on convenience store food options.

Brennan serves on the retail board of the National Association of Convenience Stores (NACS) and previously held executive positions at 7-Eleven. He said consumer acceptance of fresh food service in convenience retail has expanded nationwide, following regional models including Wawa and Sheetz in the Mid-Atlantic and Buc-ee’s in the South.