Alimentation Couche-Tard Reports Mixed Financial Results for Q1 Fiscal 2026

Laval, QC, September 2, 2025 — Alimentation Couche-Tard Inc., a leading player in the convenience store sector, has released its financial results for the first quarter of the fiscal year 2026, ending July 20, 2025. This report highlights a mixture of progress and challenges faced by the corporation as it navigates a competitive market landscape.

Executive Insights

Alex Miller, the President and Chief Executive Officer, expressed satisfaction with the results, citing a significant uptick in same-store sales across their network, most notably the first increase in the U.S. market in several quarters. He attributed this positive shift to the company’s strategic focus on delivering value, especially in food and beverage offerings, designed to cater to customers who are increasingly budget-conscious in a fluctuating economic environment.

Furthermore, Miller noted the corporation's fuel segment performed well, particularly in Canada and major European markets, while margins in North America remained consistent with prior quarters. A noteworthy highlight from this quarter was the expansion of their operations, as they successfully integrated 270 additional sites under the GetGo Café + Market brand into their portfolio.

Filipe Da Silva, Chief Financial Officer, echoed similar sentiments of cautious optimism regarding the quarterly results. He pointed out the increased gross profit margins, which resulted from improved management of food programs and reduced spoilage rates. The company’s commitment to stringent cost control has allowed it to keep expense growth below inflation, thereby ensuring operational efficiency.

Financial Highlights

The financial data for the first quarter reflects a modest decline in net earnings, which were reported at $782.5 million, down from $790.8 million in the same quarter last year. This resulted in earnings of $0.82 per diluted share compared to $0.83 the previous year. Adjusted net earnings also saw a decrease of 6.7%, standing at approximately $737.0 million against $790.0 million from the prior year.

In terms of revenue, total merchandise and service sales increased by 4.5% to reach $4.7 billion. This growth was supported by a 0.4% increase in same-store merchandise revenues in the United States. On the other hand, fuel sales exhibited a notable slump, with revenues dropping to $12.5 billion, partly due to decreasing average fuel selling prices, reflecting consumer demand dynamics.

Market Dynamics

The company highlighted that road transportation fuel gross margins saw significant variations across regions. In the U.S., the gross margin fell to 44.00 cents per gallon, a decrease attributed to competitive pressures. Conversely, Europe displayed an increase in profits per liter sold, standing at 11.41 cents, driven by better market conditions.

The mixture of growth in certain areas coupled with declines in others emphasizes the volatile nature of the convenience store market. Analysts and stakeholders are closely monitoring the company’s trajectory as it takes steps to optimize its operations through strategic initiatives, including cost management and exploring synergies from recent acquisitions.

Looking Ahead

As part of its long-term growth strategy, Couche-Tard's board of directors has declared a quarterly dividend of CA 19.5¢ per share, further demonstrating confidence in the company’s operational trajectory. The leaders of Couche-Tard have underlined their commitment to delivering sustainable shareholder value while effectively addressing challenges posed by market dynamics.

The corporation will host a webcast on September 3, 2025, to provide deeper insights into the quarterly performance, allowing analysts and interested stakeholders to engage directly with management. This web session will be an opportunity for discussions surrounding strategies moving forward, particularly as Couche-Tard continues to evolve within the convenience and mobility sector.

In summary, while Alimentation Couche-Tard’s latest financial results portray a mixed picture with challenges in net income, the overall growth in revenues and ongoing strategic expansions underscore the corporation's resilience and forward-thinking approach in a competitive industry landscape.