The stock of Alimentation Couche-Tard (TSE:ATD) is up 5% after the Canadian convenience store operator reported strong financial results and announced plans to open 500 new outlets.
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The Montreal-based company reported earnings per share of $0.79, which was up from $0.75 a year earlier. The company, which reports its financial results in U.S. dollars, announced third-quarter revenue of $17.9 billion, up 3% from $17.4 billion in the same period of 2024.
Total merchandise and service revenue came in at $4.7 billion during the quarter, up 6.6% from the same period a year ago. CEO Alex Miller said in an earnings release that the company reported same-store sales growth across all of its geographic locations for a second consecutive quarter.
The company also bought back $900 million of its own shares during Q3. ATD stock is down 10% this year.
Alimentation Couche-Tard’s Plans for More Stores
Along with its latest financial results, Alimentation Couche-Tard announced plans to open 500 new stores worldwide by 2028. The company currently has 17,270 stores across the globe under brands such as Circle K and Ingo. Couche-Tard is on track to open 100 new locations in North America this year, with another 73 stores under construction.
Plans for the new stores come after Alimentation Couche-Tard earlier this year withdrew its $47 billion offer to acquire Japan’s Seven & i Holdings (SVNDY), owner of the 7-Eleven convenience store chain. Analysts and regulators expressed doubts that Couche-Tard would be able to purchase Seven & i given Japan’s stringent rules designed to protect its domestic companies.
Is ATD Stock a Buy?
The stock of Alimentation Couche-Tard has a consensus Strong Buy rating among 11 Wall Street analysts. That rating is based on nine Buy and two Hold recommendations issued in the last three months. The average ATD price target of C$84.27 implies 13.10% upside from current levels.
