Couche-Tard to focus on core platforms while pursuing targeted investments
Alimentation Couche-Tard Inc. presented its 2026 Business Strategy Update in Toronto on Wednesday, outlining a new framework aimed at supporting long-term profitable growth.
The company introduced its “Core + More” strategy, which focused on strengthening its core platforms while pursuing targeted investment opportunities. The approach is designed to amplify existing strengths, like scale and network, while expanding into areas positioned for future growth.
“Core + More is a focused strategy that builds on our leadership in core categories while investing in the areas that will position Couche-Tard to win the customer for years to come,” said Alex Miller, president and chief executive officer of Alimentation Couche-Tard Inc. "By enabling it all with the capabilities, technology, data and supply chain that support our stores, we can amplify what we do best for customers today and unlock new growth for tomorrow.
"This strategy is about turning the full power of our scale, network and people into greater value for our shareholders, and I'm incredibly proud of the talent and commitment of our team as we begin this next chapter," he said in a release.
Miller said the company’s core categories—including nicotine products, beverages and fuel—remain the primary drivers of traffic across its network.
“The core is the primary drivers of our traffic today,” he said during the strategy presentation. “We are bullish on nicotine. Across our footprint, nicotine is growing, and it's growing in spaces at much higher margin profiles than traditional cigarettes. And we are a destination. It is a place we are massively outperforming the market today.”
READ: Couche-Tard to add 500 new stores by 2028
He also pointed to continued momentum in beverage sales, particularly in energy and functional drinks.
“Thirst is just growing. The innovation is just fantastic for us,” Miller said. “What’s happened in energy and functional drink—the new products, the things that are happening—that is our space. We are adding cold capacity. We really feel good about our journey on thirst.”
On fuel and mobility, Miller acknowledged that traditional gasoline demand was expected to decline over time, but said the company was positioned to benefit from the transition.
“We know liquid fuel demand in our core markets is going to slowly decline,” he said. “But we are taking share in liquid fuel, and you put EV on top of that, we are actually growing that mobility pillar at a nice rate."
"The great thing about our EV customers is they like our stores, and they like the other things that we do, and it is driving increased trips to our sites.”
The update followed Couche-Tard’s decision last year to withdraw its proposal to acquire Seven & i Holdings Co. Ltd., the parent company of 7-Eleven, after nearly a year of discussions.
READ: Couche-Tard, Seven & i Holdings end takeover talks
Miller also highlighted progress in the company’s foodservice business, an area where analysts and investors have questioned its long-term growth potential.
Food journey
“I know you're skeptical about our journey on food,” he said. “We've had some nice growth in the first two quarters, and I can tell you that growth has accelerated. We've got the playbook down. We've got it now in 2,800 stores, and we're putting it in another 900 stores. We are going to stay focused on food. It is a natural place for us.”
He said investments in the supply chain were helping expand assortment while controlling costs.
“Our investments in the supply chain give us access to broader assortment at advantaged cost of goods, and that is a primary focus for us over this five-year period,” Miller said.
Chief financial officer Filipe Da Silva said the company believed it had “the right recipe” to support profitable growth, with clearly defined and measurable targets across the organization.
“Our focus remained on consistent operational execution and long-term value creation,” Da Silva said, adding that the Core + More strategy provided a framework for supporting earnings growth and disciplined capital deployment.
READ: Couche-Tard to focus on foodservice, beverage alcohol to drive sales in the coming years
The company said its outlook for fiscal 2026 through 2030 included compound annual growth of 4% to 5% in merchandise and service revenues, and 6% to 8% in adjusted profit. It also projected that free cash flow for fiscal 2026 would exceed US$2.5 billion.
Couche-Tard, which operates the Circle K convenience store chain, said the targets reflected its focus on disciplined growth and long-term value creation.
