Topic: How To Invest

Power Growth Investor Hotline – Friday, March 25, 2022

Article Excerpt

ALIMENTATION COUCHE-TARD INC., $54.30, is a buy. The retailer (symbol ATD on Toronto) operates 12,264 convenience stores across North America and Europe. In the three months ended January 30, 2022, sales jumped 41.2%, to $18.58 billion from $13.16 billion a year earlier (all figures except share price in U.S. dollars). As 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 rose 25.0%, to $0.70 from $0.56. 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, the company continues to aggressively buy back shares. During the quarter, it repurchased 13.0 million shares for $509.7 million. During the three quarters ended January 30, 2022, it bought back 27.8…