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Couche‑Tard Beats Estimates as U.S. Retail Recovers and Fuel Margins Reach Five‑Year High

Management says its global supply network plus opportunistic fuel sourcing produced outsized margins that will support a five‑year plan targeting 10% plus annual EPS growth.

Overview

  • The company reported US$19.5 billion in revenue and US$863.3 million in net earnings for the quarter, with adjusted profit per share beating analyst forecasts.
  • U.S. same‑store merchandise sales rose 3.4 percent year‑over‑year, its strongest U.S. retail result in three years driven by higher store traffic and stronger sales of drinks, nicotine products, and food.
  • Couche‑Tard recorded about US$0.52 per gallon in U.S. gasoline margins, well above an industry average near US$0.35, which analysts link to opportunistic sourcing as crude markets moved because of the Middle East conflict.
  • The company is expanding supply capacity by adding terminals and using its fleet and global logistics hubs to flexibly buy and move fuel, a capability executives say let them capture margin opportunities.
  • Management reiterated a five‑year strategy launched in February that aims for more than 10 percent annual adjusted EPS growth, a plan that could sustain profits but will be watched for its effects on prices and local store investment.