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Who’s Winning in Data Analytics?

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4.71.7K Ratings

🗓️ 9 June 2021

⏱️ 11 minutes

🧾️ Download transcript

Summary

Casey’s General Stores wraps up the fiscal year with a rock solid 4th quarter. Chipotle raises wages and menu prices.

Clay Bruning analyzes those stories and discusses where companies like Sumo Logic and Datadog fall in the spectrum of attractiveness for investors interested in data analytics businesses.

To celebrate Michael J. Fox’s birthday we’re offering 50% off our Stock Advisor service. (Yes, really.) Just go to http://StockIdeas.fool.com.

Transcript

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0:00.0

It's Wednesday, June 9th. Welcome to Marketfoolery. I'm Chris Hill with me today. Clay

0:07.1

Burning in the house. Good to see you. Hey Chris, how's it going? It's going well. We've

0:12.5

got data analytics to discuss. We've got some restaurant news. We're going to begin

0:16.6

in the Midwest with Casey's general stores. Casey's wrapped up the fiscal year with a solid

0:23.2

fourth quarter. Profits and revenue came in higher than expected. Same store sales were

0:27.8

up nearly 13%. I mean, I get the stock is down a little bit today. This, this seem like

0:33.9

a good quarter. Yeah, it did. And it was a pretty good year overall. And to me, this

0:41.3

is just kind of a rock solid business. They're consistently growing, you know, not at a

0:45.3

staggering pace. I think, you know, five to 10% clip on an annual basis, consistently

0:51.2

generating profit and using that to fund investments. Most notably, they're acquiring

0:57.3

more stores. I think this past quarter, they announced they're going to acquire about

1:02.0

50 stores, circle case stores, which I'm familiar with from my time in North Carolina.

1:09.3

So just kind of a rock solid business. They pay the dividend. And I think they actually

1:13.5

could be a beneficiary to an extent of inflation in terms of being able to pass off some

1:19.2

of those costs to customers. So, you know, like I said, just rock solid business, you

1:24.2

know, that should should be just fine. And it seems like one of those businesses, certainly

1:30.0

if you look at this quarter, I mean, part of the story for Casey's was a nice increase

1:34.6

in foot traffic in the stores as more people get vaccinated as more states open up. This

1:41.0

seems like, and by the way, people are traveling, they need to put gas in the tank, you know,

1:47.8

get some snacks, get some pizza, that sort of thing. It seems like Casey's, I don't want

1:52.5

to put any pressure on them, but it seems like they are set up for a pretty nice second

1:56.7

half to 2021. Yeah, absolutely. So like you said, foot traffic is open up. Something

...

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