Canada's Couche-Tard Q1 results beat on acquisitions, higher fuel margins

Alimentation Couche-Tard

01/09/2026 22:18

Overview
Canada convenience store operator's fiscal Q1 revenue rose 25%, beating analyst expectations
Adjusted net income for fiscal Q1 beat analyst expectations
Company announced plans to acquire Żabka Group, Poland's largest convenience retailer, for $8.6 bln

Outlook
Company expects Żabka acquisition to close before end of fiscal 2027, expanding presence in Central and Eastern Europe
Company continues to invest in customer value and initiatives to drive store traffic
Company says inflationary pressures and investments in food service and store readiness will impact expenses

Result Drivers
FUEL MARGINS - Higher road transportation fuel gross margins in the U.S. and Canada drove profit growth, per management
MERCHANDISE SALES - Positive same-store merchandise sales growth in the U.S. supported by energy drinks and other nicotine products, per CEO Alex Miller
ACQUISITIONS - Contribution from acquisitions boosted revenue and gross profit, per company disclosure

Company press release: ID:nPn7tVTP1a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$21.70 bln
$20.80 bln (14 Analysts)
Q1 Adjusted Net Income
Beat
$827 mln
$800.71 mln (7 Analysts)
Q1 Adjusted EPS
Beat
$0.90
$0.89 (15 Analysts)
Q1 Net Income
 
$828.50 mln
 
Q1 Gross Profit
 
$3.60 bln
 
Q1 Merchandise & Service Revenue
 
$4.90 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"
Wall Street's median 12-month price target for Alimentation Couche-Tard Inc is C$102.00, about 22.2% above its August 31 closing price of C$83.47
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)