Casey's General Stores, Inc. (NASDAQ:CASY) Q1 2020 Earnings Conference Call Transcript

Sep 10, 2019 • 10:30 am ET

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Casey's General Stores, Inc. (NASDAQ:CASY) Q1 2020 Earnings Conference Call Transcript

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Presentation
Executive
Darren Rebelez

to the Company.

We continue to progress with our digital engagement program and have completed several key milestones over the last quarter. As we mentioned in the last earnings call, we completed the integration of our new e-commerce website at the start of our first quarter. In addition to this, we rolled out our new mobile app during the first quarter. This platform provides an enhanced guest experience by streamlining the ordering and checkout process and allowing the guests to pay online. In addition, the system automatically engages cross-sell opportunities for the guests during every order. Currently, over 28% of our pizza orders are transacted online, up from approximately 18% a year ago. These new tools will provide opportunities for us to better understand the buying preferences of our guests. We're currently in the process of building out our consumer insights and analytics team to better leverage these data and insights.

During our second fiscal quarter, we will begin the process to launch our loyalty program. We will start by implementing an employee pilot, followed by a pilot in a select geography. Building upon what we learn from these pilots, we will then move forward with the expansion of the new loyalty program to all of our stores. We are confident this approach will enable us to provide the best experience for our guests upon the full launch of the program. The integration of the new suite of digital platforms for our guests will create a seamless experience, both online and in-store that enhances our digital capabilities and facilitates personalized marketing and rewards. This digital platform allows to gain a better understanding of our guests' shopping behavior, to better serve them. We expect this platform will increase our average basket size and drive additional traffic.

Another element of our value creation plan is a disciplined approach to capital allocation and increasing shareholder value through dividends and share repurchases. Our capital allocation strategy will continue to prioritize investments with attractive return profiles, including our value creation programs, as well as disciplined store growth through new store construction and strategic acquisition opportunities.

In closing, we continue to take transformational steps to enhance store performance and deliver long-term profitable growth. We will continue to review and add skill sets to successfully execute on our strategy to drive significant long-term shareholder value. We will now take your questions.