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Alimentation Couche-Tard Inc
(TSX:ATD)
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Rating:72Outperform
Price Target:
C$91.00
▲(6.82% Upside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by solid financial performance (steady growth, resilient operating profitability, and strong free cash flow) and a positive earnings call with confident growth and efficiency targets. Offsetting these strengths, technical indicators show a clear near-term downtrend and weak momentum, while valuation appears fair with only a modest dividend yield.
Positive Factors
Strong cash generation
Healthy operating and free cash flow provide internal funding for store expansion, technology, acquisitions and shareholder returns. Continued free cash flow growth strengthens financial resilience and supports management’s ability to invest without relying solely on external financing.
Negative Factors
Meaningful leverage limits flexibility
Although leverage is improving and manageable for a stable retailer, debt still represents a meaningful claim on the capital structure. Weaker operating conditions or persistently higher rates could constrain investment, acquisitions and shareholder returns through greater financing demands.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Healthy operating and free cash flow provide internal funding for store expansion, technology, acquisitions and shareholder returns. Continued free cash flow growth strengthens financial resilience and supports management’s ability to invest without relying solely on external financing.
Read all positive factors
Alimentation Couche-Tard Inc (ATD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$75.29B
Dividend Yield1.02%
Average Volume (3M)1.53M
Price to Earnings (P/E)17.3
Beta (1Y)0.73
Revenue Growth11.59%
EPS Growth26.58%
CountryCA
Employees145,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)3.43
Shares Outstanding918,230,100
10 Day Avg. Volume1,747,702
30 Day Avg. Volume1,532,269
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)3.41
Price to Sales (P/S)0.72
P/FCF Ratio16.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$101.08Price Target Upside18.66% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)3.28
Revenue Forecast (FY)C$84.07B
Alimentation Couche-Tard Inc Business Overview & Revenue Model
Company Description
Alimentation Couche-Tard Inc. oversees and authorizes the operation of convenience stores across multiple regions. These retail outlets provide customers with a broad range of goods, including tobacco products, groceries, candies, snacks, beer, wi...
How the Company Makes Money
Couche-Tard primarily makes money through two main revenue streams: (1) convenience retail merchandise and foodservice sales, and (2) fuel sales (often described as “road transportation fuel” or “motor fuel”) at its forecourt sites.
1) Convenien...
Alimentation Couche-Tard Inc Earnings Call Summary
Earnings Call Date:Jun 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
The call presented broad operational and financial momentum: strong same-store sales growth in the U.S., meaningful adjusted EBITDA and adjusted net earnings expansion, material progress on foodservice, packaged beverages, nicotine and EV charging, and clear digital and supply-chain initiatives that support future margin improvements. Management highlighted substantial liquidity, disciplined capital allocation, aggressive store expansion and ongoing M&A activity. Offsets include region-specific volume weakness (fuel), Canada’s tobacco/modern nicotine headwinds, temporary food margin pressure, a higher effective tax rate, and the fact that reported net earnings were aided by a ~$260M one-time gain. Overall the positives — recurring sales and margin improvements, category momentum, network expansion, and scalable digital/EV trends — materially outweigh the challenges discussed.Positive Updates
Strong Top-Line Growth and Same-Store Sales
Consolidated same-store sales grew 2.2% year-over-year in Q4 FY2026; U.S. same-store sales led at +3.4% (best U.S. quarterly result in 3 years); Europe & other regions +1.1%; Asia delivered positive same-store sales. Canada was -0.9% but excluding tobacco sales were +1.3%.
Negative Updates
Canada Same-Store Sales Pressure and Nicotine Market Challenges
Canada same-store sales declined -0.9% in the quarter, mainly due to persistent pressure in tobacco and modern nicotine. Management cited regulatory dynamics and illicit trade impacting Canadian nicotine results; gross margin in Canada decreased 60 basis points to 33.5%.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Top-Line Growth and Same-Store Sales
Consolidated same-store sales grew 2.2% year-over-year in Q4 FY2026; U.S. same-store sales led at +3.4% (best U.S. quarterly result in 3 years); Europe & other regions +1.1%; Asia delivered positive same-store sales. Canada was -0.9% but excluding tobacco sales were +1.3%.
Read all positive updates
Company Guidance
The company reiterated confident forward guidance: management expects to achieve its growth algorithm (including greater than 10% organic EPS growth in FY27) while delivering $850 million of EBITDA improvements by 2030 across merchandise, COGS-NFR, store ops, G&A and controllable costs; it will reinvest ~30–35% of EBITDA into the organic business, prioritize M&A within a 2–2.5x leverage framework (current leverage 1.99), and deploy excess capital to a new share repurchase program after maintaining financial flexibility (cash >$3.0B plus $3.5B revolver). Targets and operational plans include completing 750 new stores through 2030 (130 projects done in FY26; this quarter: 37 new builds + 13 relocations; 34 stores under construction), accelerating TotalEnergies synergies (underlying run‑rate >€60M now, €120M target by FY27 and €170M by FY29), and scaling digital, loyalty and EV (Inner Circle 15M members in 5,000+ stores; age‑verified 3.2M; >4,000 Circle K charge points / >4,700 fast chargers; 2.2M quarterly and >8M FY charging transactions; uptime >97%). Financial momentum underpins the guidance (Q4 adjusted net earnings $667M or $0.73 diluted, Q4 adjusted EBITDA +$350M / +28.9% YoY, FY adjusted EBITDA +$643M / +10.8%, FY adjusted diluted EPS $3.10 up 14.4%, ROE 20.2%, ROCE 13.7%), and the board approved a CAD 0.215 quarterly dividend.Alimentation Couche-Tard Inc Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 80.53B | 76.51B | 72.86B | 69.26B | 71.86B | 62.81B |
| Gross Profit | 14.15B | 14.46B | 13.02B | 12.10B | 12.05B | 11.00B |
| EBITDA | 7.19B | 7.16B | 5.28B | 5.02B | 5.18B | 4.52B |
| Net Income | 3.18B | 3.14B | 2.58B | 2.73B | 3.09B | 2.68B |
Balance Sheet | ||||||
| Total Assets | 42.71B | 43.52B | 38.32B | 37.40B | 28.99B | 29.47B |
| Cash, Cash Equivalents and Short-Term Investments | 3.25B | 3.14B | 2.32B | 1.89B | 940.68M | 2.18B |
| Total Debt | 15.37B | 16.45B | 13.96B | 14.69B | 9.47B | 9.40B |
| Total Liabilities | 25.91B | 27.21B | 23.22B | 24.02B | 16.45B | 17.08B |
| Stockholders Equity | 16.67B | 16.18B | 14.95B | 13.25B | 12.53B | 12.39B |
Cash Flow | ||||||
| Free Cash Flow | 3.67B | 3.37B | 2.74B | 2.84B | 2.48B | 2.23B |
| Operating Cash Flow | 5.57B | 5.36B | 5.08B | 4.76B | 4.25B | 3.86B |
| Investing Cash Flow | -1.93B | -3.48B | -1.60B | -6.53B | -2.23B | -1.74B |
| Financing Cash Flow | -2.63B | -1.07B | -2.56B | 2.18B | -3.28B | -2.89B |
Alimentation Couche-Tard Inc Technical Analysis
Negative
85.19
Price Trends
89.39
Negative
84.71
Negative
80.72
Positive
Market Momentum
-2.13
Positive
28.63
Positive
23.00
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 85.19 is below the 20-day moving average (MA) of 86.97, below the 50-day MA of 89.39, and above the 200-day MA of 80.72, indicating a neutral trend. The MACD of -2.13 indicates Positive momentum. The RSI at 28.63 is Positive, neither overbought nor oversold. The STOCH value of 23.00 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | C$75.29B | 17.27 | 19.91% | 1.02% | 11.59% | 26.58% | |
67 Neutral | C$10.07B | 15.00 | 11.53% | 3.74% | 1.05% | -6.66% | |
63 Neutral | C$10.07B | 15.00 | 11.53% | 3.42% | 1.05% | -6.66% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
TSE:ATD
Alimentation Couche-Tard Inc
82.00
8.45
11.49%
TSE:CTC
Canadian Tire
210.00
-27.60
-11.62%
TSE:CTC.A
Canadian Tire
191.99
26.97
16.34%
Alimentation Couche-Tard Inc Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Couche-Tard Delivers Earnings Growth and Moves to Acquire Poland’s Żabka Group
Positive
Sep 1, 2026
Couche-Tard reported a solid start to fiscal 2027, posting net earnings attributable to shareholders of $828.5 million, or $0.90 per diluted share, up from $782.5 million, or $0.82 per diluted share, a year earlier. Adjusted net earnings rose 12.2...
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.