Alimentation Couche-Tard releases 2027 Q1 results
Alimentation Couche-Tard has released its financial results for the first quarter of fiscal 2027, showing growth in net earnings and steady overall performance across its retail operations.
For the 12-week period ended July 19, 2026, the company recorded net earnings attributable to shareholders of $828.5 million US, up from $782.5 million US in the same quarter of the previous fiscal year. Diluted earnings per share reached $0.90 US compared to $0.82 US last year. Adjusted net earnings for the quarter were $827 million US, marking a 12.2% increase year over year.
Strong revenues and fuel margins support growth
Total revenues for the global convenience store operator surged 25.1% to $21.7 billion US. Higher average road transportation fuel selling prices, contributions from recent business acquisitions and organic retail growth helped drive the total revenue gain.
Total merchandise and service revenues hit $4.9 billion US, rising 4. %. Consolidated same-store merchandise revenues grew 1.6% overall. In the US, same-store merchandise sales increased 1.7% due to demand for energy drinks and nicotine products. Europe and other international regions saw same-store merchandise sales rise 1.2%.
READ: Couche-Tard's "Core + More" strategy drives growth in Q4
In Canada, same-store merchandise revenues remained flat. Gains in packaged beverages and alcohol were balanced out by competitive and regulatory impacts on the tobacco category. Canadian merchandise and service gross margins fell 0.6% to 33.3%, which the retailer attributed to category shifts and targeted pricing strategies to support value for consumers.
Fuel gross margins provided strong financial support. In Canada, road transportation fuel gross margin grew by 2.58 Canadian cents per litre to reach 16.79 Canadian cents per litre, supported by store execution and promotional activities. Same-store fuel volumes in Canada grew 1.1%. US fuel margins reached 52.61 US cents per gallon, up 8.61 US cents per gallon, while US same-store fuel volumes dropped 1.6%.
Network expansion and strategic acquisitions
Couche-Tard expanded its store network during the quarter. The company completed 12 store constructions and eight store reconstructions, while acquiring two corporate stores. As of July 19, 2026, another 42 locations were under construction across its global network, which includes 17,220 sites under its corporate and licensed banners.
After the end of the quarter, the company announced plans to acquire Żabka Group, Poland's largest convenience operator. The deal values Żabka at $8.6 billion US and would add over 13,000 stores across Poland and Romania operating under a franchise model.
Alex Miller, president and chief executive officer, said: "We are encouraged by the start to fiscal 2027 and the continued progress we are making through Core + More. We delivered our fifth consecutive quarter of positive same-store merchandise sales growth in the U.S., supported by continued momentum in food, energy drinks and other nicotine products. Our fuel business remained a source of strength, delivering solid profitability and demonstrating the resilience of our network. We are also looking forward to welcoming Żabka Group into the Couche-Tard family, which will strengthen our capabilities in food, digital engagement and supply chain and complement our organic growth initiatives while expanding our scale in Central and Eastern Europe."