Topic: How To Invest

Power Growth Investor Hotline – Friday, September 15, 2023

Article Excerpt

ALIMENTATION COUCHE-TARD INC., $73.39, is a buy. The retailer (symbol ATD on Toronto) operates 12,337 convenience stores, mostly in North America and Europe. In the three months ended July 23, 2023, Couche-Tard’s revenue fell by 16.3%, to $15.62 billion from $18.66 billion a year earlier (all figures except share price in U.S. dollars). The decline came mostly from lower overall fuel sales. Excluding one-time items, earnings fell 4.2%, to $838.0 million from $875.0 million. Sales of higher-profit-margin convenience store offerings partly offset the lower fuel revenue. Per-share earnings rose 1.2%, to $0.86 from $0.85, on fewer shares outstanding. Couche-Tard recently agreed to acquire retail assets in Europe from French energy giant Total Energies SE for 3.1 billion euros ($4.5 billion Cdn.). Under the proposed deal, it will take over TotalEnergies’ retail networks in Germany and the Netherlands, comprising more than 1,500 service stations. TotalEnergies and Couche-Tard would also form a joint venture to own and operate over 600 service stations in Belgium and Luxembourg. The…