Alimentation Couche-Tard (ATD.TO)

The world's 2nd-biggest convenience store operator. Highly profitable at 25% ROE. Compounded earnings per share at 21% over the last decade. They price sharply on fuel to lure customers to buy high-margin products in their stores, like coffee, cigarettes, donuts. Remain smart acquirers in a fragmented industry. This year, they bought 2,200 stores in Germany, Belgium, Luxembourg and Holland. Organic growth continues to rise.

(Analysts’ price target is $77.07)

Great defensive company. Global leader. Geographically diversified. 14K stores in 24 countries. Buys and integrates assets  like a well-oiled machine. $10B in cash. ROE well above market. Small dividend yield is OK, as company likes to grow.

Current share price is a good place to buy.
Very well run company with excellent capital allocation skills.
No price target - but $80 range would be safe.
Strong business for the long term investor. 
Provides international exposure through asset base. 

Beautiful and strong chart, up and to the right. Permanent part of your portfolio. Breakout to new highs targets $75. These are the kinds of charts you want to be looking for as you hunt for names to put in your portfolio.

The caller was wondering if the rising numbers of EV's will affect the business. Internal combustion cars will be around for a long time and Couche-Tard will adapt to the EV market. He feels it is fairly priced.

He missed CTC.A on macro concerns. Great business, one-stop shop, attractive loyalty program. Good company, not expensive, so you can own it for a while.

ATD has done pretty well, but he'd prefer CTC.A for the next year or so.

Expecting quarterly results at the end of June.
Expansion has been rapid (13,000 stores) in USA & Canada.
2nd largest convenience store business in North America.
Very good at M&A with lots of opportunities.  
Recent acquisition of Total convenience stores in Europe also positive.
Expecting a stock price re-rating. 

 

In a recession, consumers will buy down, which benefits ATD who is the second-biggest owner of convenience stores globally. Likes their geographic reach. Are piloting an EV charging station program in Norway, testing there, which could expand across the world. Also, they've developed their in-house brands, like sushi, including healthy snacks to eat while you wait for your EV to charge.

Dividend is low because they continue to go out and buy. As long as the company thinks it can earn a better rate of return on its purchases, it shouldn't increase the dividend. Lots to like: scale, good at acquisitions, global, loyalty program. Gas margins do add variability. At all-time highs, but can continue to grow.

16x cash earnings share price a fair price (current share price).
Strong business for the long term investor.
2nd largest convenience store business in world.
Founder owned business.
Strict M&A operators.

Great operator and consolidator in a fragmented industry. Just expanded in Europe, a pretty good acquisition. Power washes are high-margin add-ons. Undemanding multiple of 17x earnings. Compounded earnings growth at 19% over the last 5 years. Keeps moving up and to the right, higher highs and higher lows. Still a buyer.

Good long-term chart, up and to the right. Use weakness to add exposure. Breaking out to new highs is telling you something, that we're in a bull market.

High quality. Global leader. Geographically well diversified. Largest company in Canada by revenue. Very well managed. Very high ROE (well above market average) and fairly strong balance sheet. Fuel represents about 75% of total revenues. Reasonable multiple of 16x earnings. Buy here, and certainly on a pullback.

7,500 stores in North America + 2,000 in Europe. Will add more after buying Total Energies, to extend them into Germany, Belgium and Holland. Smart acquirers while maintaining a healthy balance sheet (but could lower debt more). They just bought 112 location in the U.S. and they can continue to keep buying and growing.