ALIMENTATION COUCHE-TARD $78.27 - Toronto symbol ATD.B

ALIMENTATION COUCHE-TARD $78.27 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couche-tard.com; Shares outstanding: 179.4 million; Market cap: $14.9 billion; Dividend yield: 0.5%) reports that its earnings excluding one-time items jumped 45.6% in the quarter ended October 13, 2013, to $249.0 million, or $1.32 a share. A year earlier, it earned $171.0 million, or $0.91.

The company benefited from higher fuel volumes and merchandise sales.

Couche-Tard also raised its quarterly dividend by 14.3% with the December 2013 payment, to $0.10 from $0.0875. The shares yield 0.5%. The increase followed a 16.7% hike in September 2013.

The company’s outlook is positive. It continues to introduce more-profitable products at its North American stores, including improved fresh and takeout food. There is lots of potential for the company to sell similar items through the Statoil gas station chain in Norway, which it bought in June 2012.

Couche-Tard was our #1 buy for 2012. It has risen over 156% for us since then, but we think it has more gains ahead.

Alimentation Couche-Tard is a buy.

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.