| By Andy Swan Over-the-top gas stations are a staple of classic Americana just like apple pie, baseball, or cowboy boots – and they're trending with consumers in Summer 2024.
For the weary traveler, these off-ramp meccas are like an oasis in the desert: A trusted spot to refuel the car, find a reliably clean bathroom, fill your belly, and pick up a hokey souvenir on the way out.
Travel industry onlookers expect road trips to pick up this summer. Americans are still hot on experiences. But many are also looking to save a few bucks on their summer trips, according to NerdWallet's 2024 Summer Travel Report – and 42% will do that by opting to drive to their destination.
That's good news for America's "OTT" pitstops.
But there's a turf battle underway between two chains vying for consumer dollars. LikeFolio data suggests one old-school classic is facing tough competition from its supersized contender.
Fair warning: Depending on where you live, you may have strong loyalty for one or both of these brands – and their potential fates... The Current Midwest King Founded in 1968 in Boone, Iowa, Casey's General Stores (CASY) is the dominant force in the Midwest, offering self-service fuel, grocery items, and freshly prepared foods. 
Source: investor.caseys.com Customers are greeted with the sweet aroma of fresh donuts and savory scent of made-from-scratch pizza at its more than 2,600 locations across 17 states.
In fact, Casey's is the fifth-largest pizza chain in the U.S., proudly branding itself as The Official Pizza and Beer Headquarters™ (yes, the company trademarked that).
The Casey's brand has been a staple in Middle America's small towns for decades. 
Casey's in Omaha, NE (Source: iStock) Its convenience stores tend to serve as community hubs. You might see locals picking up their morning coffee or parents grabbing breakfast pizza for the kids. The familiar faces behind the counter add a personal touch, making each visit feel like stopping by a neighbor's place.
Casey's is the third-largest convenience store chain in the U.S.
And thanks in part to this value proposition in small communities, along with its rapid expansion, CASY stock has delivered solid gains – rising 150% over the last five years. 
Source: TradingView However, recent Google Trends data shows a potential kink in its growth plans... 
Source: Google Trends Consumer preferences are shifting toward more expansive and diverse convenience store experiences, with clean facilities and a variety of fresh, unique food options.
And Casey's is now facing rising competition from a particularly formidable rival in that arena... Buc-ee's: The New Contender Founded in 1982 and headquartered in Lake Jackson, Texas, Buc-ee's has quickly gained a reputation for its gargantuan travel centers. These stores, some exceeding 75,000 square feet, feature over 100 fuel pumps, pristine restrooms, and an extensive array of products. 
Buc-ee's in Robertsdale, AL (Source: iStock) Buc-ee's proudly holds world records for the longest car wash and largest convenience store. And walking into one sure does feel like entering a small city. 
The aroma of smoked meats from the barbecue counter fills the air. You might hear the call for "fresh brisket on the board!" as employees slice up and prepare steaming BBQ sandwiches for hungry customers.
Shoppers can also find a variety of jerky and unique snacks like beaver nuggets (sweetened, caramel corn puffs).
The walls are adorned with quirky, Texas-themed merchandise (because of course this business model is straight out of Texas), from t-shirts to home décor. Families can be seen exploring the candy section, kids marveling at the sheer variety of treats available.
With 48 locations, Buc-ee's footprint has some catching up to do. But the company has expanded from its home state of Texas into Tennessee, Missouri, South Carolina, Florida, Georgia, our own Kentucky – and even as far west as Colorado. Where Does This Leave Casey's? Casey's General Stores remains a beloved fixture in many communities. And the company reported strong financial results yesterday that proved why it's the Convenience King.
For the quarter ended April 30, 2024, earnings of $2.34 per share came in well above expectations, and net income soared 55% year over year to $87 million. The company also surpassed $1 billion in EBITDA for fiscal year 2024, an impressive feat.
Casey's President and CEO Darren Rebelez noted "outstanding" sales, "led by strong performance in pizza and bakery as well as alcoholic and non-alcoholic beverages."
For investors who are hot on travel this summer, CASY could make an interesting opportunity.
But the rise of a competent rival like Buc-ee's could pose a future challenge to the Midwest throne.
LikeFolio data signals the potential for trouble: Casey's web traffic, while up 18% on a year-over-year basis, is actually down 15% on a two-year stack. 
For scale, Buc-ee's web traffic is up 34% from 2022 levels.
It's easy to see why Buc-ee's is gaining momentum.
Walking into one is an adventure. The sheer volume and variety can be overwhelming but in an exciting way. It's the kind of place where you can grab a meal, stock up on snacks for a road trip, and even buy gifts and souvenirs... the kind of place you might even drive out of your way to experience.
Bottom line: Buc-ee's turns a simple gas station stop into an event, which is why it's rapidly becoming the new favorite among travelers.
Whether Buc-ee's or Casey's wins will ultimately come down to how consumers "vote" with their hard-earned cash. Consumer spending is like one big election, after all.
But the big election story of 2024 isn't about Buc-ee's versus Casey's. It's not even about Joe Biden versus Donald Trump, as crazy as that sounds.
The real 2024 election story is about the powerful private citizen about to change the course of the presidential race – and usher in an unexpected outcome that could rock the markets.
Follow these five money moves, though, and you can protect yourself and profit from any election fallout that comes our way.
Full story here.
Until next time, |
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