Casey's General Stores, Inc. (NASDAQ:CASY) delivered better-than-expected Q1 results, with EPS coming in at $3.19, better than the consensus estimate of $2.96, stemming from strong fuel profitability and improving in-store performance. Revenue for the quarter was $3.18 billion, above the consensus estimate of $3.02 billion.

Importantly, gallons and the prepared food business continue to experience a steady recovery (albeit fuel gallons remain below pre-pandemic levels) coupled with solid SSS trends in grocery.

Analysts at Deutsche Bank raised their price target on the company’s shares to $256 from $246 following the results.

While cost inflation is pressuring some retailers, the brokerage believes the company is well-positioned with its self-distribution model providing greater flexibility and resulting in less out of stocks.