Casey's General Stores is giving pizza lovers another reason to skip traditional pizza chains -- and those restaurants another competitor to worry about.
The Iowa-based convenience-store operator is introducing square, thick-crust pan pizzas across nearly 3,000 locations in 19 states. Casey's says nearly 80% of the small towns it serves lack a nearby national pan-pizza option.
Casey's stock rose nearly 3% in early Monday trading, but has lost much of the gain by mid-afternoon.
Traditional pizza chains have been struggling with weakening demand as budget-conscious Americans cut back on restaurant spending and seek cheaper meals. Quick-service pizza sales dropped 0.3% in 2025, according to a Technomic report.
Papa John's North American comparable sales fell 8.3% in its latest reported quarter. Pizza Hut's U.S. comparable sales slid 2% before Yum! Brands sold the business outside China to private equity in September. Domino's gained market share last year, but its U.S. comparable sales rose just 0.3% last quarter.
Convenience stores are becoming formidable competitors to fast-food restaurants. Casey's already ranks as the nation's fifth-largest pizza chain by location count, behind Domino's, Pizza Hut, Little Caesars, and Papa John's.
Casey's revenue from prepared food and dispensed beverages has surged 63% over the past five fiscal years, with pizza remaining a major growth driver. Its latest crust might give traditional pizza chains another reason to look over their shoulders.
Bank of America analysts have suggested that Casey's may be taking share from Pizza Hut where the chains overlap, citing its lower prices and the convenience of buying pizza, groceries, and gasoline in one stop.
Casey's also began selling chicken wings last year and has since expanded the offering to about 850 stores. The company said pizza volumes at stores offering wings were still growing at a high-single-digit rate, suggesting the new menu item hasn't significantly eaten into pizza sales.
In the latest reported quarter, Casey's same-store sales of prepared food and dispensed beverages rose 4.8% from a year ago, compared with 2.7% growth in grocery and general merchandise. The former segment also carried a much higher gross margin than the latter.
CEO Darren Rebelez said in September that higher gasoline prices have prompted customers to buy fewer gallons per fill-up, but refuel more frequently. Those additional visits could create more opportunities for Casey's to sell prepared food and other merchandise to customers when they stop for gas.
Casey's has been outperforming peers in attracting customers. An October report from location-data provider Placer.ai found that visits to Casey's locations increased 5.1% in the first eight months of 2026, compared with declines of 2.5% at 7-Eleven and 1.6% at Circle K.
The firm's analysis found that chains drawing a larger share of their visits during lunchtime generally outperformed, suggesting that stronger food offerings could be helping attract customers.
Higher fuel margins have also cushioned profits: Casey's fuel gross profit increased nearly 20% last quarter despite a 0.3% dip in same-store gallons sold. Along with higher merchandise and food profits, that helped drive a nearly 28% increase in earnings per share.
Still, investors have turned cautious about whether Casey's can keep the strong growth going. The stock has fallen 20% since mid-August, although it remains 27% up this year as of Friday. Shares plunged 14% on Sept. 9 after same-store merchandise and food sales missed expectations.
When Casey's reports earnings again in December, investors will be watching whether its food business can sustain the momentum. The new pan pizza could provide another boost in the quarters ahead.
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