Couche-Tard reports strong alcohol sales in Ontario despite dip in revenues
Alimentation Couche-Tard Inc. reported its fourth-quarter and fiscal year 2025 results posting that it had earned US$442.3 million during the fourth quarter, down from US$454.5 million during the same quarter last year.
Couche-Tard’s net earnings attributable to shareholders came in at US$439.4 million during the quarter, compared to US$453 million during the same period last year and revenue came in at US$16.3 billion during the fourth quarter, down 7.5% on an annual basis.
The company said in a release that the decline in revenue was due partly to softer fuel demand in the U.S.
"As we conclude this milestone year, the 45th year since we opened our first store, we are proud of the resilience of our business and the award-winning engagement of our team members,” said Alex Miller, president and chief executive officer of Couch-Tard in a statement accompanying the release of the results last night. “During the fourth quarter, in the face of difficult economic and geopolitical conditions, we held the line in same-store sales in the United States and had strong positive results in Canada and Europe. Our initiatives to provide compelling value to our customers with exclusive food and beverage offers are performing well across the network.”
When it came to same-store sales, the overall picture was mixed in the United States as consumers cut back on discretionary spending, due to economic uncertainty and the slowly emerging fallout from increases in tariffs.
“Compared to the same quarter last year, same store merchandise revenues decreased by 0.4% in the United States, while they increased by 3.4% in Europe and other regions, and by 3.5% here in Canada,” Miller said in a presentation to business analysts. “The U.S. same store performance continued to be impacted by challenging economic and inflationary conditions as consumers carefully watched their spending.”
Canada proved to be more resilient, with the increase in revenue driven by the food sales and by the expansion of beverage alcohol sales in the province of Ontario. Food sales were particularly advantageous for Couche-Tard and meal deals and an ever-widening set of fresh food offerings attracted customers to its convenience operations.
“Canada also showed good signs of growth with food bundle sales up over 50% from the previous quarter,” Miller said. “I am proud to share that now as we start the new fiscal year, we are already up to nearly 800,000 meal deals sold each week in North America . . . hot food units are increasing in percentage of those bundles as we strengthen the execution and popularity of our food offer.”
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Miller added that Couche-Tard will continue to focus on building its fresh food offerings, adding new SKUs to the mix to meet the increasing demand by consumers looking for more than just a quick snack when they come into their locations.
In Ontario, what has driven increasing sales at its locations has been the opening of the beverage alcohol market in the province by the government, allowing convenience stores to sell a range of beers and wines to consumers. Miller says that has encouraged his teams in Ontario and other provinces to develop new meal packages and promos, and fresh food offerings that can be paired with beverage alcohol products to drive additional sales. These additional revenues have been especially welcome as sales of nicotine products continue to fall in Canada.
“Canada continued to have a strong performance in beer sales following the recent change in legislation in Ontario, Canada's largest market,” he said. “The impressive same store sales growth in alcohol in Canada more than offset the decline in tobacco in the region, which continues to be impacted by illicit trade and removal of popular products in the other nicotine products categories.”
Miller also took time to address the ongoing negotiations between Couche-Tard and Seven & i Holdings. He offered no new information as to the progress of the talks, only that Couche-Tard is committed to acquiring 7-Eleven’s parent company.
“As you know, we announced that we had signed a non-disclosure agreement with Seven & i to progress transaction discussions, facilitate due diligence and collaborate on plans to engage with regulators,” Miller said. “Over the last several weeks, we have begun those discussions and look forward to continuing to work with the special committee of Seven & i. We have also outlined what we believe is a clear path to U.S. regulatory approval. As we mentioned last quarter, it is worth repeating that while there has been extensive media coverage of our interest in Seven & I, internally a very small team is involved in these efforts as the vast majority of the business is laser focused on our global operations.”
