Alimentation Couche-Tard Inc (TSE:ATD)
TSX:ATD
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Alimentation Couche-Tard Inc
(TSX:ATD)
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Rating:67Neutral
Price Target:
C$85.00
▲(9.51% Upside)
Action:DowngradedDate:03/19/26
The score is driven primarily by solid financial performance (strong revenue and free-cash-flow generation) tempered by increased leverage and thin net margins. Earnings-call commentary was broadly positive with clear operating momentum, while technicals are mixed-to-soft near term and valuation support is limited by a higher P/E and modest yield.
Positive Factors
Cash Generation
Consistent, meaningful free cash flow (TTM ~3.36B with +15% growth) supports durable strategic options: funding store expansion, loyalty and meal-deal investments, debt service, buybacks or dividends. Strong cash generation underpins resilience through cyclical retail dynamics.
Negative Factors
Thin Profit Margins
Low net and operating margins mean limited earnings leverage from revenue growth and a smaller buffer versus cost inflation. In a low-margin retail model, margin pressure can quickly erode profitability and constrain reinvestment or shareholder return capacity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Consistent, meaningful free cash flow (TTM ~3.36B with +15% growth) supports durable strategic options: funding store expansion, loyalty and meal-deal investments, debt service, buybacks or dividends. Strong cash generation underpins resilience through cyclical retail dynamics.
Read all positive factors
Alimentation Couche-Tard Inc (ATD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$71.27B
Dividend Yield1.08%
Average Volume (3M)1.53M
Price to Earnings (P/E)15.9
Beta (1Y)0.77
Revenue Growth2.25%
EPS Growth4.76%
CountryCA
Employees149,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.13
Shares Outstanding918,230,100
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$90.54Price Target Upside16.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)2.9
Revenue Forecast (FY)C$75.08B
Alimentation Couche-Tard Inc Business Overview & Revenue Model
Company Description
Alimentation 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...
How the Company Makes Money
Couche-Tard generates revenue mainly through two interconnected retail activities: (1) in-store convenience retail sales and (2) road-transportation fuel (and related) sales. In-store revenue comes from selling consumer goods and prepared food/bev...
Alimentation Couche-Tard Inc Earnings Call Summary
Earnings Call Date:Nov 24, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 30, 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.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%.
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%.
Read all updates
Q2-2026 Updates
Positive
Negative
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%.
Read all positive updates
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
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 73.29B | 72.86B | 69.26B | 71.86B | 62.81B | 45.76B |
| Gross Profit | 13.89B | 13.02B | 12.10B | 12.05B | 11.00B | 10.12B |
| EBITDA | 6.26B | 5.28B | 5.02B | 5.18B | 4.52B | 4.52B |
| Net Income | 2.72B | 2.58B | 2.73B | 3.09B | 2.68B | 2.71B |
Balance Sheet | ||||||
| Total Assets | 40.89B | 38.32B | 37.40B | 28.99B | 29.47B | 28.37B |
| Cash, Cash Equivalents and Short-Term Investments | 1.56B | 2.32B | 1.89B | 940.68M | 2.18B | 3.03B |
| Total Debt | 15.78B | 13.96B | 14.69B | 9.47B | 9.40B | 9.59B |
| Total Liabilities | 25.17B | 23.22B | 24.02B | 16.45B | 17.08B | 16.20B |
| Stockholders Equity | 15.59B | 14.95B | 13.25B | 12.53B | 12.39B | 12.17B |
Cash Flow | ||||||
| Free Cash Flow | 3.36B | 2.74B | 2.84B | 2.48B | 2.23B | 3.05B |
| Operating Cash Flow | 5.55B | 5.08B | 4.76B | 4.25B | 3.86B | 4.35B |
| Investing Cash Flow | -3.86B | -1.60B | -6.53B | -2.23B | -1.74B | -1.48B |
| Financing Cash Flow | -1.97B | -2.56B | 2.18B | -3.28B | -2.89B | -3.65B |
Alimentation Couche-Tard Inc Technical Analysis
Negative
77.62
Price Trends
79.23
Negative
75.92
Positive
73.64
Positive
Market Momentum
-0.73
Positive
43.31
Neutral
25.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATD, the sentiment is Negative. The current price of 77.62 is below the 20-day moving average (MA) of 80.26, below the 50-day MA of 79.23, and above the 200-day MA of 73.64, indicating a neutral trend. The MACD of -0.73 indicates Positive momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of 25.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | C$71.27B | 15.86 | 17.36% | 1.08% | 2.25% | 4.76% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | C$9.65B | 16.32 | 8.99% | 4.10% | -0.13% | 13.73% | |
55 Neutral | C$9.65B | 16.32 | 13.16% | 3.17% | -0.13% | 13.73% |
* Consumer Cyclical Sector Average
TSE:ATD
Alimentation Couche-Tard Inc
77.62
7.43
10.59%
TSE:CTC
Canadian Tire
211.13
2.42
1.16%
TSE:CTC.A
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181.09
37.91
26.47%
Alimentation Couche-Tard Inc Corporate Events
Business Operations and StrategyFinancial Disclosures
Couche-Tard Delivers Strong Q3 2026 Earnings and Expands Store Network
Positive
Mar 17, 2026
Alimentation Couche-Tard reported a strong third quarter for fiscal 2026, with net earnings attributable to shareholders rising to $757.2 million, or $0.82 per diluted share, and adjusted net earnings up 17.2% year over year. Total merchandise and...
Business Operations and StrategyFinancial Disclosures
Couche-Tard Maps Out ‘Core + More’ Growth Strategy and Long-Term Financial Targets
Positive
Feb 12, 2026
Alimentation Couche-Tard unveiled its 2026 Business Strategy Update in Toronto, introducing a “Core + More” plan aimed at reinforcing its core convenience and fuel retail platforms while investing in new growth areas. Management says t...
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.