Shares of Casey's General Stores Inc. (NASDAQ: CASY) surged by 5.04% on Wednesday, driven by the company's impressive second-quarter fiscal 2025 earnings results and the recent acquisition of the Fikes convenience store chain, which positions it for further growth.

Casey's General reported a 14% year-over-year increase in diluted earnings per share to $4.85, while net income rose 14% to $181 million, and EBITDA grew 14% to $349 million. Despite a 2.9% decline in total revenue due to lower fuel prices, the company's focus on driving inside sales and operational efficiencies paid off.

Inside sales, which include prepared foods, beverages, and groceries, rose by 9% to $1.47 billion. The prepared food and dispensed beverage category saw sales increase by 9.2% to $418 million, driven by strong demand for Casey's refreshed sandwich lineup and competitive pricing. The grocery and general merchandise segment also performed well, with sales climbing 8.8% to $1.05 billion, aided by favorable product mix and effective promotions.

Casey's ability to expand gross profit margins, particularly in the grocery and general merchandise category, where margins improved by 160 basis points, contributed significantly to the bottom-line growth. The company's ongoing efforts to streamline operations and control costs also played a role, with same-store operating expenses, excluding credit card fees, increasing by just 2.3%.

The recent acquisition of Fikes, the largest in Casey's history, is expected to drive further growth in the coming quarters. While the integration costs will lead to modest dilution in the third quarter, the addition of Fikes is projected to contribute over $200 million in inside sales and approximately 200 million gallons of fuel in the second half of fiscal 2025.