ALIMENTATION COUCHE-TARD $63.74 - Toronto symbol ATD.B

ALIMENTATION COUCHE-TARD $63.74 (Toronto symbol ATD.B; TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couche-tard.com; Shares outstanding: 179.4 million; Market cap: $11.8 billion; Dividend yield: 0.6%) reports that its sales jumped 48.0% in the three months ended July 21, 2013, to $8.9 billion from $6.0 billion a year earlier.

The gain mostly came from Norway’s Statoil Fuel & Retail ASA, which Couche-Tard bought for $2.7 billion in June 2012 (all figures except share price and market cap in U.S. dollars). It also benefited from higher fuel volumes and merchandise sales.

Excluding one-time items, earnings rose 20.9%, to $220.0 million from $182.0 million. Earnings per share rose 16.0%, to $1.16 from $1.00, on more shares outstanding. The latest earnings beat the consensus estimate of $0.95 a share.

Couche-Tard is raising its quarterly dividend by 16.7% with the September 2013 payment, to $0.0875 from $0.075. The shares will now yield 0.6%.

Alimentation Couche-Tard was our #1 buy for 2012. It has risen over 109% for us since the start of that year. We now see it as a hold.

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