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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:77Outperform
Price Target:
C$81.00
â–²(11.74% Upside)
Alimentation Couche-Tard Inc's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust revenue growth, efficient operations, and strategic expansion efforts are key strengths. While technical indicators suggest a neutral trend, the reasonable valuation and positive earnings sentiment support a favorable outlook.
Positive Factors
Strategic Expansion
Expanding the store network enhances market presence and revenue potential, supporting long-term growth and competitive positioning.
Loyalty Program Growth
Growing the loyalty program strengthens customer retention and engagement, driving repeat sales and enhancing brand loyalty.
Revenue Growth
Robust revenue growth indicates successful market strategies and product offerings, contributing to sustained financial performance.
Negative Factors
Free Cash Flow Concerns
Negative free cash flow growth may limit the company's ability to fund operations and expansion, posing a risk to long-term liquidity.
Fuel Volume Decline
Declining fuel volumes could impact revenue from a key segment, affecting overall profitability and market competitiveness.
Nicotine Revenue Decline
Regulatory challenges and declining nicotine sales could reduce revenue streams, impacting financial stability in affected regions.
Alimentation Couche-Tard Inc (ATD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$67.37B
Dividend Yield1.1%
Average Volume (3M)1.53M
Price to Earnings (P/E)18.9
Beta (1Y)0.56
Revenue Growth2.25%
EPS Growth4.76%
CountryCA
Employees149,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.08
Shares Outstanding925,760,740
10 Day Avg. Volume1,091,688
30 Day Avg. Volume1,527,454
Financial Highlights & Ratios
PEG Ratio-5.43
Price to Book (P/B)3.32
Price to Sales (P/S)0.68
P/FCF Ratio18.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$86.20Price Target Upside18.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue primarily through the sale of fuel and convenience store products. Its revenue model is diversified into several key streams: first, the retail sales of fuel, which accounts for a substantial portion of its income, particularly in regions with high traffic and demand. Second, the convenience store sales encompass a variety of merchandise including food, beverages, and personal care items. The company also benefits from ancillary services such as lottery sales, car washes, and foodservice operations. Strategic partnerships with suppliers and brands enhance its product offerings and promotions, driving customer traffic and sales. Additionally, Couche-Tard's aggressive expansion strategy through acquisitions of other convenience store chains has bolstered its market share and revenue potential, further contributing to its financial performance.
Alimentation Couche-Tard Inc Earnings Call Summary
Earnings Call Date:Nov 24, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 24, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter for Alimentation Couche-Tard with significant achievements in same-store sales growth and network expansion. The company showed resilience in the food category and successfully expanded its loyalty program. However, there were challenges in fuel volumes and specific market performance in the U.S. The positive aspects outweighed the lowlights, indicating a robust performance overall.Q2-2026 Updates
Positive Updates
Positive Same-Store Sales Growth
For the second consecutive quarter, Alimentation Couche-Tard reported positive same-store sales across all geographies: U.S. up 1.2%, Canada up 5.4%, and Europe and other regions up 0.5%.
Expanding Store Network
The company opened 29 new stores since May and is on track for more than 100 new locations in North America this fiscal year. There are 73 stores currently under construction, with a pipeline of 1,000 potential sites.
Strong Food Category Performance
Same-store food growth in North America had its best performance in over a year, with more than 10 million meal deals sold this quarter, up from 8.6 million in Q1.
Record Meal Deals Sales
The company surpassed 1 million meal deals sold per week in North America at the start of Q3, indicating growing relevance of their food offering.
Effective Cost Management and EBITDA Growth
Adjusted EBITDA for Q2 increased by approximately $94 million or 6.2% compared to the corresponding quarter of fiscal 2025, supported by effective cost management and organic growth.
Successful Loyalty Program Expansion
The Inner Circle loyalty program surpassed 12.5 million members in the U.S. with more than 1 million new customers added in the second quarter.
Negative Updates
Fuel Volume Decline in U.S. and Europe
Same-store road transportation fuel volumes were down 0.6% in the U.S. and 1.8% in Europe, although Canada saw an increase of 1.1%.
Challenges in Specific U.S. Markets
The company faced challenges in growth in Southern states like Texas and Arizona, which were slightly negative in the quarter, impacting overall performance.
Nicotine Revenue Decline in Canada
Nicotine revenue in Canada declined due to the illicit tobacco trade and government restrictions on pouches in the convenience channel.
Company Guidance
In the call, Alimentation Couche-Tard provided guidance reflecting strong performance in the second quarter of fiscal year 2026. Key metrics include sustained positive same-store sales growth in every geography, with the U.S. up 1.2%, Canada up 5.4%, and Europe and other regions up 0.5%. The company also highlighted their expansion efforts, with 29 new stores opened since May and an additional 73 stores under construction, aiming for over 100 new locations in North America this fiscal year. Fuel margins remained healthy, with road transportation fuel gross profit at $0.4586 per gallon in the U.S. and CAD 0.1507 per liter in Canada. The meal deals platform is a significant growth driver, reaching over 1 million deals sold per week in North America. Additionally, the company surpassed 12.5 million members in its Inner Circle loyalty program and is expanding its e-mobility network in Europe with nearly 3,900 charge points. The call also noted a focus on cost management and strategic investments, maintaining SG&A expenses in line with inflation.Alimentation Couche-Tard Inc Financial Statement Overview
Summary
Alimentation Couche-Tard Inc shows strong revenue growth and profitability, supported by efficient operations and a balanced capital structure. While the company maintains healthy margins and a solid return on equity, attention is needed on improving free cash flow generation to ensure long-term financial stability.Income Statement
Alimentation Couche-Tard Inc demonstrates strong revenue growth with a TTM increase of 64.1%, indicating robust expansion. The gross profit margin of 18.3% and net profit margin of 3.6% are stable, reflecting efficient cost management. EBIT and EBITDA margins are healthy at 5.3% and 8.1%, respectively, showcasing operational efficiency. However, the net profit margin has slightly decreased compared to previous periods, suggesting potential pressure on profitability.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio of 0.97 indicates a balanced approach to leveraging, with manageable debt levels relative to equity. Return on equity is strong at 17.6%, reflecting effective use of shareholder funds. The equity ratio of 37.9% suggests a solid capital structure, though there is room for improvement in reducing leverage further.78
Positive
Cash Flow
Operating cash flow to net income ratio of 0.56 and free cash flow to net income ratio of 0.56 indicate adequate cash generation relative to earnings. However, the free cash flow growth rate is negative at -2.1%, highlighting a potential area of concern for future liquidity. The company needs to focus on improving free cash flow generation to support ongoing operations and growth.70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 72.86B | 69.26B | 71.86B | 62.81B | 45.76B |
| Gross Profit | 13.02B | 12.10B | 12.05B | 11.00B | 10.12B |
| EBITDA | 5.28B | 5.02B | 5.18B | 4.52B | 4.52B |
| Net Income | 2.58B | 2.73B | 3.09B | 2.68B | 2.71B |
Balance Sheet | |||||
| Total Assets | 38.32B | 37.40B | 28.99B | 29.47B | 28.37B |
| Cash, Cash Equivalents and Short-Term Investments | 2.32B | 1.89B | 940.68M | 2.18B | 3.03B |
| Total Debt | 13.96B | 14.69B | 9.47B | 9.40B | 9.59B |
| Total Liabilities | 23.22B | 24.02B | 16.45B | 17.08B | 16.20B |
| Stockholders Equity | 14.95B | 13.25B | 12.53B | 12.39B | 12.17B |
Cash Flow | |||||
| Free Cash Flow | 2.74B | 2.84B | 2.48B | 2.23B | 3.05B |
| Operating Cash Flow | 5.08B | 4.76B | 4.25B | 3.86B | 4.35B |
| Investing Cash Flow | -1.60B | -6.53B | -2.23B | -1.74B | -1.48B |
| Financing Cash Flow | -2.56B | 2.18B | -3.28B | -2.89B | -3.65B |
Alimentation Couche-Tard Inc Technical Analysis
Neutral
72.49
Price Trends
72.18
Positive
71.94
Positive
71.11
Positive
Market Momentum
0.18
Positive
49.43
Neutral
38.61
Neutral
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 72.49 is below the 20-day moving average (MA) of 73.26, above the 50-day MA of 72.18, and above the 200-day MA of 71.11, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 38.61 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | C$67.37B | 18.92 | 17.53% | 1.10% | 2.25% | 4.76% | |
69 Neutral | $9.23B | 12.82 | 13.16% | 4.17% | -0.13% | 13.73% | |
64 Neutral | C$9.23B | 17.35 | 13.16% | 3.16% | -0.13% | 13.73% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
TSE:ATD
Alimentation Couche-Tard Inc
72.49
-6.17
-7.84%
TSE:CTC
Canadian Tire
225.01
26.32
13.25%
TSE:CTC.A
Canadian Tire
170.14
25.19
17.38%
Alimentation Couche-Tard Inc Corporate Events
Business Operations and StrategyFinancial Disclosures
Alimentation Couche-Tard Reports Strong Q2 2026 Results
Positive
Nov 24, 2025
Alimentation Couche-Tard Inc. announced its financial results for the second quarter of 2026, highlighting a strong performance with increased revenues and profitability. The company attributed its success to strategic acquisitions and operational efficiencies, which have bolstered its market position and enhanced shareholder value.
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.