Topic: How To Invest

Power Growth Investor Hotline – Friday, December 3, 2021

Article Excerpt

ALIMENTATION COUCHE-TARD INC., $47.51, is a buy. The retailer (symbol ATD.B on Toronto) operates 12,270 convenience stores across North America and Europe. In the three months ended October 10, 2021, sales jumped 33.5%, to $14.22 billion from $10.66 billion a year earlier (all figures except share price in U.S. dollars). As the imposition of social distancing measures continued to ease in the various regions that Couche-Tard operates in, foot traffic for its locations climbed. Fuel volumes also rose rapidly. Excluding one-time items, earnings per share fell 1.5%, to $0.65 from $0.66. The higher sales were offset by lower transportation fuel profit margins in the U.S. The company’s outlook remains positive, and earnings should rise as it further integrates its recent acquisitions. Couche-Tard also plans to continue to launch fresh-food initiatives and promotions to boost sales. Meanwhile, investors will see their quarterly dividend rise 25.7% with the December 2021 payment, to $0.11 (Canadian) a share from $0.0875. The shares now yield 0.9%. Couche-Tard is still…