Alimentation Couche-Tard announces first quarter earnings for fiscal year 2026
Alimentation Couche-Tard Inc. announced strong first quarter earnings for the year at the close of markets on Tuesday, driven by what the company’s president and CEO says were positive store sales driven by improved foodservice offerings and in Canada, a strong fuel business.
Net earnings were US$782.5 million for the first quarter of fiscal 2026 compared with US$790.8 million for the first quarter of fiscal 2025. Adjusted net earnings were approximately US$737.0 million compared with US$790.0 million for the corresponding quarter of last year, representing a decrease of 6.7%.
Total merchandise and service revenues of US$4.7 billion were reported, an increase of 4.5%. Same-store merchandise revenues increased by 0.4% in the United States, by 3.8% in Europe and other regions, and by 4.1% in Canada. Merchandise and service gross margin increased by 0.9% in the United States to 34.6%, while it decreased by 0.9% in Europe and other regions to 38.9%, and by 0.9% in Canada to 33.9%.
Same-store road transportation fuel volumes decreased by 0.9% in the United States, and by 1.3% in Europe and other regions, while it increased by 2.2% in Canada.
"We are pleased by our improved performance in this first quarter of the new fiscal year,” said Alex Miller, president and chief executive officer of Alimentation Couche-Tard. “Across our network, we are reporting positive same store sales, which includes our U.S. market for the first time in several quarters. This progress is propelled by our focus on providing compelling value and ease, especially in our food and beverage offers, to win our customers who continue to watch their spendings. In our fuel business, we had overall good results, especially in Canada and our larger European markets, while in North America, fuel margins remained aligned with previous quarters. We were also proud to close this quarter on 270 sites operating under the GetGo Café + Market brand, and we are already working closely with those teams to learn more about GetGo's popular food and loyalty programs as we start to grow together."
Another highlight of this quarter was the completion of the acquisition of 270 company-owned and operated convenience retail and fuel sites operating under the GetGo Café + Market brand from supermarket retailer Giant Eagle Inc., for US$1.6 billion. GetGo Café + Market sites are in the states of Indiana, Maryland, Ohio, Pennsylvania and West Virginia, in the United States.
As part of the acquisition, the company obtained U.S. Federal Trade Commission regulatory approval for the acquisition involving an agreement to sell 34 Circle K-branded company-owned and operated convenience retail and fuel locations and one GetGo Café + Market property, in Pennsylvania, Indiana and Ohio, in the United States.
Filipe Da Silva, chief financial officer, added: "We are encouraged by our first quarter results, which were partly driven by an enhanced gross profit margin resulting from better food program execution and reduced spoilage. Combined with our disciplined cost control and a sharp focus on efficiency keeping expense growth below the rate of inflation, we are optimistic about our operational priorities. Our TotalEnergies assets once again produced solid sequential performance, with synergy delivery tracking ahead of plan. With our share repurchase program now in full motion, we view it as another way to create sustainable long-term shareholder value while optimizing our balance sheet."
This story will be updated as more information becomes available throughout the day.
