Here’s our Pick of the Month

Article Excerpt

ALIMENTATION COUCHE-TARD $81.45 (Toronto symbol ATD.B: TSINetwork Rating: Average) (1-800-361-2612; www.couchetard.com; Shares outstanding: 564.4 million; Market cap: $46.8 billion; Dividend yield: 0.6%) operates 12,575 convenience stores throughout North America and Europe. It continues to successfully integrate its major acquisitions and to position itself for future gains. In the three months ended April 28, 2019, sales fell 3.7%, to $13.11 billion from $13.61 billion a year earlier (all figures except share price in U.S. dollars). Excluding one-time items, earnings fell 11.9%, to $295.0 million, or $0.52 a share, from $335.0 million, or $0.59. However, the declines were mostly due to the higher U.S. dollar, which hurt the contributions of the company’s Canadian and European operations. Couche-Tard continues to grow by acquisition, including its 2017 purchase of convenience-store chain CST Brands for $4.4 billion. That growth strategy adds risk, especially with a list of acquisitions as big as CST. However, the company has a long track record of successfully integrating those businesses. The stock trades at 19.0 times…

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