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Alimentation Couche-Tard Inc (TSE:ATD)
TSX:ATD
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Alimentation Couche-Tard Inc
(TSX:ATD)
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Rating:78Outperform
Price Target:
C$84.00
â–²(16.34% Upside)
Alimentation Couche-Tard Inc's strong financial performance and positive technical indicators are the primary drivers of its solid stock score. The company's strategic expansions and effective cost management further bolster its position. While valuation is fair, challenges in specific regions and segments present moderate risks.
Positive Factors
International Growth
Strong international growth indicates effective market penetration and adaptation to regional demands, supporting long-term revenue expansion.
Cash Flow Generation
Robust cash flow generation enhances financial flexibility, enabling strategic investments and debt management, crucial for sustained growth.
Technological Advancements
Investments in technology improve operational efficiency and customer engagement, providing a competitive edge in the evolving retail landscape.
Negative Factors
U.S. Merchandise Revenue Decline
Declining U.S. merchandise revenues reflect challenges in a key market, potentially impacting overall profitability if not addressed.
Decreased Net Earnings
A decrease in net earnings indicates pressure on profitability, which could hinder future growth initiatives and investor confidence.
Increased Operating Expenses
Rising operating expenses can erode profit margins, necessitating cost control measures to maintain financial health and competitiveness.
Alimentation Couche-Tard Inc (ATD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$69.41B
Dividend Yield1.08%
Average Volume (3M)1.43M
Price to Earnings (P/E)19.4
Beta (1Y)0.46
Revenue Growth2.74%
EPS Growth-0.73%
CountryCA
Employees149,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.07
Shares Outstanding948,064,400
10 Day Avg. Volume1,807,950
30 Day Avg. Volume1,427,379
Financial Highlights & Ratios
PEG Ratio-2.41
Price to Book (P/B)4.06
Price to Sales (P/S)0.77
P/FCF Ratio18.65
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$83.77Price Target Upside16.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Alimentation Couche-Tard Inc Business Overview & Revenue Model
Company DescriptionAlimentation Couche-Tard Inc. operates and licenses convenience stores. Its convenience stores sell tobacco products, grocery items, candies and snacks, beer, wine, beverages, and fresh food offerings; road transportation fuels; and aviation fuels, as well as energy for stationary engines. The company operates its convenience stores chain under the Circle K, Couche-Tard, Holiday, Ingo, and Mac's brands. It is also involved in the sale of lottery tickets, calling and gift cards, postage stamps, and bus tickets; issuance of money orders; and provision of automatic teller machines and car wash services. As of April 24, 2022, it operated and licensed 12,166 convenience stores, which include 9,808 company-operated stores in North America, Europe, and Asia, as well as approximately 1,800 stores operated under the Circle K banner in Cambodia, Egypt, Guam, Guatemala, Honduras, Indonesia, Jamaica, Macau, Mexico, New Zealand, Saudi Arabia, the United Arab Emirates, and Vietnam. The company was formerly known as Actidev Inc. and changed its name to Alimentation Couche-Tard Inc. in December 1994. Alimentation Couche-Tard Inc. was founded in 1980 and is headquartered in Laval, Canada.
How the Company Makes MoneyAlimentation Couche-Tard Inc. generates revenue through its extensive network of convenience stores that sell a variety of products including fuel, food, and beverages. The company's primary revenue streams include the sale of fuel, which constitutes a significant portion of its income, and the sale of merchandise within its stores. Additionally, the company benefits from strategic partnerships and acquisitions that expand its market reach and enhance its offerings. Couche-Tard's ability to effectively manage its supply chain and optimize store operations also contributes to its profitability. The company leverages its strong brand presence and customer loyalty programs to drive sales and maintain a competitive position in the convenience retail market.
Alimentation Couche-Tard Inc Earnings Call Summary
Earnings Call Date:Sep 02, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Positive
The call highlighted significant positive developments such as the acquisition of GetGo stores, positive same-store sales in the U.S., and robust growth in food services. However, challenges remain, particularly in southern U.S. states and with regard to fuel margins. The sentiment is mixed but leans towards positive due to the outweighing highlights.Q1-2026 Updates
Positive Updates
Positive Same-Store Sales in the U.S.
The U.S. market reported positive same-store sales for the first time in several quarters, indicating a positive trend and successful strategies in place.
Acquisition of GetGo Stores
Couche-Tard closed the acquisition of nearly 270 GetGo stores, enhancing growth opportunities and expanding the brand's footprint.
Strong Performance in Canada
Same-store merchandise revenues increased by 4.1% in Canada, driven by strong growth in the alcohol category.
Expansion in Europe
Continued expansion of Circle K branding in Europe with 65 sites branded and over 30 car wash and EV charging sites established.
Robust U.S. Food Program
The North American meal deals saw a 40% increase, showcasing strong food service growth and significant margin improvement.
Negative Updates
Challenges in Southern U.S. States
Reduced traffic in southern border states like Florida, Texas, and Arizona, impacting fuel sales.
Decline in U.S. Fuel Margins
Road transportation fuel gross margin in the U.S. decreased due to competitive pressures, especially in southern markets.
Impact of Illicit Trade in Canada
Tobacco sales in Canada continue to be impacted by illicit trade and the removal of popular nicotine products.
Decline in European Fuel Volumes
Same-store road transportation fuel volumes decreased by 1.3% in Europe and other regions, reflecting challenging market conditions.
Company Guidance
During the first quarter of fiscal year 2026, Alimentation Couche-Tard reported positive same-store sales across its network, with a notable 0.4% increase in the United States, 3.8% in Europe and other regions, and 4.1% in Canada. The company also saw a 40% increase in meal deal sales in North America, with 8.6 million food bundles sold, contributing to a significant improvement in food gross margins by approximately 500 basis points. In the fuel segment, same-store road transportation fuel volumes decreased by 0.9% in the U.S. and 1.3% in Europe, while increasing by 2.2% in Canada. European fuel margins improved, averaging USD 0.1141 per liter, partly due to better fuel market conditions. Additionally, the company's Inner Circle loyalty program in the U.S. reached nearly 11.5 million members, and its European EV charging network expanded to nearly 3,660 charge points, marking a 50% increase in charging transactions compared to the previous year. Overall, the first quarter highlighted strong execution in food service, strategic expansion in fuel and EV infrastructure, and effective cost management, despite a slight decrease in adjusted net earnings to $757 million.Alimentation Couche-Tard Inc Financial Statement Overview
Summary
Alimentation Couche-Tard Inc demonstrates strong financial performance with consistent revenue and cash flow growth. The company maintains a stable balance sheet with manageable leverage and effective capital allocation. While net profit margins have faced slight pressure, operational efficiency remains strong, positioning the company well for future growth.Income Statement
Alimentation Couche-Tard Inc has shown consistent growth in revenue, with a notable increase from $62.8 billion in 2022 to $72.9 billion in 2025. The gross profit margin improved, reaching approximately 17.9% in 2025, indicating effective cost management. However, the net profit margin slightly decreased to 3.5% in 2025, reflecting pressure on net income. EBIT and EBITDA margins remained stable, suggesting operational efficiency.85
Very Positive
Balance Sheet
The company maintains a strong equity position, with an equity ratio improving to around 39.0% in 2025. The debt-to-equity ratio decreased slightly to 0.93, signifying prudent debt management. Return on equity is healthy, reflecting strong shareholder value creation. The balance sheet shows stability, with manageable leverage levels.78
Positive
Cash Flow
Operating cash flow has shown consistent growth, reaching $5.0 billion in 2025, supporting strong free cash flow generation at $2.7 billion. The free cash flow to net income ratio is robust, indicating efficient cash conversion. The company effectively manages its capital expenditures, supporting sustainable cash flow growth.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.18B | 72.86B | 71.86B | 69.26B | 62.81B | 45.76B |
| Gross Profit | 12.87B | 13.02B | 12.05B | 12.10B | 11.00B | 10.12B |
| EBITDA | 6.01B | 6.08B | 5.82B | 5.73B | 5.27B | 5.05B |
| Net Income | 2.59B | 2.58B | 3.09B | 2.73B | 2.68B | 2.71B |
Balance Sheet | ||||||
| Total Assets | 36.57B | 38.30B | 29.05B | 36.94B | 29.59B | 28.39B |
| Cash, Cash Equivalents and Short-Term Investments | 1.78B | 2.31B | 929.20M | 1.87B | 2.17B | 3.03B |
| Total Debt | 13.91B | 13.96B | 9.47B | 14.47B | 9.44B | 9.60B |
| Total Liabilities | 22.23B | 23.21B | 16.48B | 23.64B | 17.15B | 16.21B |
| Stockholders Equity | 14.20B | 14.95B | 12.56B | 13.19B | 12.44B | 12.18B |
Cash Flow | ||||||
| Free Cash Flow | 2.53B | 2.71B | 2.54B | 2.87B | 2.28B | 2.86B |
| Operating Cash Flow | 4.77B | 5.04B | 4.34B | 4.82B | 3.94B | 4.09B |
| Investing Cash Flow | -1.47B | -1.58B | -2.28B | -6.60B | -1.80B | -1.39B |
| Financing Cash Flow | -2.59B | -2.54B | -3.35B | 2.21B | -2.95B | -3.43B |
Alimentation Couche-Tard Inc Technical Analysis
Neutral
72.20
Price Trends
71.48
Positive
70.92
Positive
72.40
Negative
Market Momentum
0.71
Negative
50.89
Neutral
19.20
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATD, the sentiment is Neutral. The current price of 72.2 is above the 20-day moving average (MA) of 71.77, above the 50-day MA of 71.48, and below the 200-day MA of 72.40, indicating a neutral trend. The MACD of 0.71 indicates Negative momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 19.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ATD.
Alimentation Couche-Tard Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$69.41B | 19.40 | 17.53% | 1.08% | 2.74% | -0.73% | |
73 Outperform | 9.42B | 12.28 | 14.42% | 4.20% | 0.05% | 99.91% | |
72 Outperform | 2.57B | 28.08 | 166.31% | 1.25% | 5.18% | 17.66% | |
68 Neutral | 9.42B | 18.51 | 14.42% | 2.79% | 0.05% | 99.91% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:ATD
Alimentation Couche-Tard Inc
72.20
-2.89
-3.85%
CDNTF
Canadian Tire
185.17
21.30
13.00%
CDNAF
Canadian Tire
122.63
10.76
9.62%
TSE:PET
Pet Valu Holdings Ltd.
37.70
11.86
45.90%
Alimentation Couche-Tard Inc Corporate Events
Business Operations and StrategyFinancial Disclosures
Alimentation Couche-Tard Reports Resilient Fiscal 2025 Results Amid Global Challenges
Positive
Jun 25, 2025
Alimentation Couche-Tard Inc. reported its financial results for the fourth quarter and fiscal year 2025, highlighting resilience amid challenging economic and geopolitical conditions. The company maintained stable same-store sales in the U.S. and achieved positive results in Canada and Europe. Despite a slight decrease in net earnings compared to the previous year, Couche-Tard demonstrated strong operational effectiveness and continued investment in technology and customer value. The integration of TotalEnergies assets progressed as planned, and the company focused on strategic initiatives and cost control to support long-term growth. Key highlights include a 2.0% increase in total merchandise and service revenues, a decrease in same-store merchandise revenues in the U.S., and an increase in fuel volumes in Canada.
The most recent analyst rating on (TSE:ATD) stock is a Buy with a C$88.00 price target. To see the full list of analyst forecasts on Alimentation Couche-Tard Inc stock, see the TSE:ATD Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.