Alimentation Couche-Tard Shares Rise as U.S. Merchandise Sales Turn Positive in F1Q

By Adriano Marchese

Shares of Alimentation Couche-Tard were higher Wednesday morning after U.S. merchandise sales improved in the fiscal fist quarter, ending a seven-quarter streak of declines, which appears to be continuing into the second quarter.

Shares were recently up 6% at 73.36 Canadian dollars ($53.22).

"What's driving that is our laser focus on food," Chief Executive Alex Miller told investors Wednesday, citing meal bundles that highlight value without squeezing margins, as well as stronger digital and loyalty-program engagement.

Same-store merchandise sales in the U.S. edged up 0.4% in the three months ended July 20, which Miller said was boosted by a gain in momentum in the final month that has carried into the current period. Miller said the operator of Circle K stores has logged 10 straight weeks of positive same-store sales in the U.S. and Canada.

Total merchandise and service revenue rose 4.5% to $4.69 billion, with Canada up 4.1% and Europe 3.8%.

"Same-store sales growth in Canada and Europe remain solid," TD Cowen Analyst Michael Van Aelst said in a report. "Canada is benefiting from people staying in the country--as opposed to traveling to the U.S.--and the legislative changes allowing alcohol sales in Ontario convenience stores." Europe, he added, is benefiting from legislative changes barring cigarette sales in the Netherlands' big-box stores.

Late Tuesday, Couche-Tard reported overall net income fell to $782.5 million, or 82 cents a share, from $790.8 million, or 83 cents a share, in the comparable quarter a year ago, while adjusted earnings were 78 cents a share. Analysts polled by FactSet were expecting 76 cents a share.

Revenue fell 5.1% to $17.35 billion, below the $17.9 billion expected by analysts, driven largely by a lower average selling price for road transportation fuel, which was partly offset by contributions from acquisitions, the company said.

The results come after Couche-Tard abandoned its roughly $47 billion pursuit of 7-Eleven's Japan-based parent, Seven & I, in July, ending its year-long pursuit to merge and create a giant convenience-store empire spanning countries and continents.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

September 03, 2025 10:49 ET (14:49 GMT)