Valued at a market cap of just about $70 billion, Alimentation-Couche Tard (TSX:ATD) is among the many largest corporations in Canada. Alimentation Couche-Tard operates and licenses comfort shops throughout North America, Europe, and Asia underneath banners together with Circle Ok, Couche-Tard, and Vacation.
The corporate sells gas, meals, drinks, tobacco merchandise, and operates EV charging stations. Based in 1980 and headquartered in Laval, Canada, it maintains a worldwide presence spanning a number of continents.
ATD inventory went public in October 1999 and has since returned 16,000% to shareholders. It means a $1,000 funding in ATD inventory quickly after its preliminary public providing can be price over $160,000 at this time.
Let’s see if ATD inventory can maintain beating the broader market over the following 12 months and past.
Is ATD inventory a great purchase?
Alimentation Couche-Tard delivered improved first-quarter outcomes with constructive same-store gross sales throughout its international community, together with the USA for the primary time in a number of quarters.
The comfort retailer and gas retailer reported same-store merchandise income development of 0.4% within the U.S., 3.8% in Europe, and 4.1% in Canada as its concentrate on worth and simplified meals choices resonated with budget-conscious shoppers.
ATD added almost 270 GetGo shops it acquired from Large Eagle, a big addition to the corporate’s U.S. footprint. Administration highlighted GetGo’s strengths in meals service and loyalty applications as worthwhile learnings that may improve operations throughout the broader community.
ATD opened 10 new shops within the quarter and stays on monitor to ship over 100 new North American places this fiscal 12 months, with almost 65 shops presently underneath building and 1,000 websites within the growth pipeline.
Couche-Tard’s meal deal technique carried out nicely, with 8.6 million meals bundles bought at quarter-end, averaging 750,000 per week, up from 540,000 on the finish of fiscal 2025, indicating development of just about 40%.
ATD introduced a partnership with celeb chef Man Fieri to launch 11 unique menu gadgets throughout lots of of places in 10 northern U.S. states, widening its income streams.
The loyalty program growth accelerated, with Inside Circle membership reaching 11.5 million. The corporate deployed this system to Texas, its largest U.S. market, and carried out a brand new buyer knowledge platform enabling real-time engagement at bodily places.
In Canada, alcohol gross sales surged following legislative adjustments in Ontario, with wine gross sales greater than doubling and powerful liquor efficiency offsetting tobacco declines from illicit commerce.
Administration reaffirmed its $800 million cost-savings goal over 5 years, expressing confidence in exceeding it via initiatives in procurement, back-office optimization, and retailer labour effectivity.
ATD continues to increase its Circle Ok model throughout European markets with 65 websites branded Circle Ok by quarter-end and almost 185 places that includes EV charging infrastructure. Gasoline margins in North America remained aligned with earlier quarters, whereas bigger European markets posted notably robust outcomes.
What’s the ATD inventory value goal?
Analysts monitoring ATD inventory forecast income to extend from $55 billion in fiscal 2025 to $66 billion in 2029. On this interval, adjusted earnings are forecast to increase from $8.20 per share to $11 per share.
If the TSX inventory is priced at 10 instances ahead earnings, which is cheap, it may surge near 60% over the following 4 years. Given consensus value targets, ATD inventory trades at a 15% low cost in October 2025.
