Here’s our Pick of the Month

Article Excerpt

ALIMENTATION COUCHE-TARD $61.07 (Toronto symbol ATD.B: TSINetwork Rating: Average) (1-800-361-2612; www.couchetard.com; Shares outstanding: 567.4 million; Market cap: $34.6 billion; Dividend yield: 0.7%) operates 12,740 convenience stores throughout North America and Europe. In the three months ended April 29, 2018, sales jumped 41.5%, to $13.61 billion from $9.62 billion a year earlier (all figures except share price in U.S. dollars). The gain was mostly due to acquisitions, including convenience-store chains CST Brands for $4.4 billion and Holiday Stationstores for $1.6 billion. Earnings per share, excluding one-time items, rose 13.5%, to $0.59 from $0.52. That gain is despite the latest quarter including one less week than a year ago. The most-recent gain was also above the consensus forecast of $0.57. Growth by acquisition adds risk, especially with a string of deals as big as CST and Holiday. However, Couche-Tard has a long track record of successfully integrating those businesses. What’s more, its balance sheet remains strong: its long-term debt of $8.8 billion is just 25.4% of its market…

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