A Unique Investment Opportunity in an Otherwise Boring Industry
Founded in 1959, Casey's General Stores (NASDAQ: CASY) operates primarily in small towns throughout the Midwest, with over 70% of its stores in towns with populations of less than 20,000 people. Focusing on these small markets, Casey's has built the fifth-largest pizza chain in the United States in terms of total kitchen count.
Thanks to these kitchens and the gradual reopening of the country's economy, Casey's posted a record-breaking first quarter, highlighted by earnings before interest, taxes, depreciation, and amortization (EBITDA) of almost $250 million in comparison to its market capitalization of only $7 billion. Despite these huge short-term results, I believe the company's vertical integration offers a promising longer-term competitive advantage that will play out over decades.
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Source Fool.com
