Alimentation Couche-Tard (ATD.TO)

EPS of 78c beat estimates of 75c; revenue of $17.86B was in line with estimates. The dividend was raised 10%. Canadian stores saw 5% growth. The US was 1.2%, which was much better than the 0.4% the prior quarter and the previous seven quarters (all of which showed declines). Couche-Tard's pricing discipline and scale should keep producing above-peer fuel margins in 2H, though competition in US border regions and softer demand could limit upside. US fuel margins held steady near recent levels in 2Q, underscoring supply-chain resilience, sourcing flexibility and disciplined procurement. Canada and Europe remained more favorable, supported by trading strength, contract renewals in Germany and improved wholesale execution.

With cost growth still below inflation and SG&A normalizing, full-year gross margin should top fiscal 2025, even if 2H gains are muted. Stores momentum improved as US comparable sales rose 1.2% on strong food-service and nicotine promotions, Canada increased 5.4% on alcohol and Europe benefited from meal-deal rollouts and higher EV-charging traffic.
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Disappointed they didn't buy 7-Eleven, but they hold a lot of cash and are seeking another company to buy. Have a great track record in integrating new companies.

Still generates significant amount of income from retail operations. Still ongoing interest in acquiring other US stores. Street analysts rate it a Buy. Strong brand, still has opportunities on a global scale and in digital transformation. Disciplined cost controls. Consistent dividend growth. Scores 8/10 on fundamentals.

Difficult space to be in. Very good business, big global player. But the market doesn't seem to care about these large, slow-moving companies. Investors want momentum and the more interesting spaces. Wait and see how things play out on the acquisition front.

Still making acquisitions in US and other geographies, though not at the scope of the elephant-hunting with 7-Eleven. Might be another chapter to the 7-Eleven story.

Not a management team you want to bet against in finding a way to grow. Trades ~17x PE, right in the middle of its historical average. Needs to get back to its long-term growth outlook -- based on same-store sales growth, acquisitions, and cost control. Not a screaming buy today, but you can keep holding for the long term.

He's a huge fan, owning it almost his entire career. Very attractive valuation. The potential Seven & i acquisition really spooked the market, and a selloff ensued. Not a lot of excitement around the name right now. Could be a bit of economic weakness coming, with an attack on discretionary income.

Generates massive cashflows, which gives them so many options -- buy back shares, increase dividend, make acquisitions. Excellent at allocating capital. All this likely to reasonably boost EPS. Good growth (though not AI-type growth) at roughly 17x PE. Reasonable price for high-quality compounder.

Beaten down on concerns about potential spending. Now seeing a slow recovery. Struggled to beat expectations over the last year. Over the next 12 months, he'd bet that this name would beat expectations rather than a Loblaw. Gas prices are settling, but margins are still OK, so that should benefit the convenience store segment. Decent valuation.

We would be comfortable buying ATD at 18X earnings today, considering its solid long-term history and good outlook for continued growth.
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The proposed acquisition may have been a bit aggressive. May have felt a big acquisition was needed to move the needle. Very well run. May not be a lot of big purchases left in the space unless you overpay or take on a lot of debt. Without acquisitions and integration, may not be that much room for earnings growth.

Growth was waning, needed to do a deal for next opportunity. He sold. Trading a bit above 200-week MA. Tremendous run from 2021-2024, so 18 months of chop is natural. Good operators, wouldn't want to be against them. Not a terrible entry point.

It's a massive positive they won't do the 7-11 deal--too big without issuing equity. Are top-notch buyers, though. The overhang now is economic uncertainty from a weaker consumer. Is a strong company and compounder.

It is dealing with a medium consumer and sluggish environment. he wants to see them continue acquisitions. It is buying back shares.