Investing№ 68TSX: ATD

Couche-Tard

Couche-Tard earns half its gross profit from fuel, at a US margin that has doubled in seven years, and made US$3.0B of cash an owner could take out in FY2026 against a market value of US$53B.

Updated Fiscal year ends in late April39 min readPedrum Shokouhi

Can be disrupted

Research, not investment advice. Figures as of .

Key numbers

  • RevenueUS$76.5B (reported)FY2026; 57% American, 73% of it fuel [3][4]
  • Adjusted EBITDAUS$6.71B (reported)FY2026; US$6.88B over the 52 weeks to July 2026 [4][5]
  • Owner cashUS$3.01B (calculated)FY2026, after tax, interest, leases and capital spending; 96% of net earnings [3]
  • US fuel margin47.49¢ (reported)A gallon, FY2026; it was 23.60¢ in FY2019, and 52.61¢ in Q1 FY2027 [4][6][5]
  • Net financial debtUS$7.1B (reported)19 July 2026, before US$5.0B of leases; 1.77 times EBITDA with leases [5]
  • Stores14,563 (reported)Plus 2,704 licensed Circle K stores, April 2026 [4]

(reported)Reported in a filing (calculated)Calculated from reported figures (estimate)My estimate

The answer

  1. Couche-Tard has about 17,300 Circle K and Couche-Tard stores in its network and is a very good operator, but half its gross profit is fuel, the US margin on that fuel is at a record, and the US$7.3 billion of gross profit it earned from fuel last year is more than the whole company’s adjusted EBITDA of US$6.7 billion (calculated).43
  2. I value it at C$73 a share, in a range of C$35 to C$112, which is US$52, US$25 and US$80; the range is wide because I can’t know where the US fuel margin settles, and the Żabka takeover adds a debt-funded bet I can value only roughly (estimate).457
  3. At C$80.98 the price is 11% above my base value and my base cash flows equal the price only at a discount rate of 7.9%, against the 8.5% I require; it is a debate about whether fuel margins stay near 51 cents a gallon, and my margin-of-safety price is C$51 (estimate).12

Six questions, one line each

Why
It sells fuel, cigarettes, drinks and food to people in a hurry, at 14,563 company, dealer and franchised sites plus 2,704 licensed ones, and has turned a patchwork of takeovers into one buying and supply system.4 →
The moat
Scale in buying and fuel supply, good sites and a fresh-food offer that lifted the store margin to 35.2%, but the US fuel margin doubled in seven years without any visible change in how the stores work, which tells me that part belongs to the market (calculated).46 →
The advantage
Its US company-operated stores earned about 50.8 cents a gallon before card fees against Casey’s 42.6, a gap that may be skill or may be geography, and I can’t separate the two.58 →
Management
Pay follows net earnings, the founder owns 13.45% worth about C$10B, and over ten years the company spent US$14.6B on deals and US$9.4B on buybacks, more than the US$21.3B of owner cash it made (calculated).910 →
Margin of safety
Below C$51, 30% under my base value; my C$35 bear value is 69% of that price, the shares last closed under C$51 in June 2022, and there is no margin of safety at C$80.98 (estimate).1 →
The price
C$80.98 on the TSX in Q4 2026, 14% under the June high of C$93.76, 11% above my base value and a fifth of the way from base to bull.1 →

The business

Couche-Tard sells petrol, diesel, cigarettes, drinks, snacks and hot food to people who are in a hurry, and it does it at scale. On 26 April 2026 it had 9,356 stores in North America, 4,820 in Europe and 387 in Hong Kong, 14,563 in all, plus 2,704 more that carry the Circle K name under licence in 12 other countries.4 About 145,000 people work in the network.10 Alain Bouchard opened his first store in Québec in 1980. The head office is in Laval.10

All company figures on this page are in US dollars, marked US$, because that is how Couche-Tard reports, under IFRS, and 57% of its revenue is American.3 The shares trade in Toronto in Canadian dollars, so the headline price and my values are in C$, and I give the US$ figure beside them. The exchange rate is 1.396, the Bank of Canada’s average on the price date.2 The fiscal year ends in late April. Fiscal 2026, written FY2026, is the 52 weeks to 26 April 2026, and the first quarter of fiscal 2027 ended on 19 July 2026.45

The key fact about the earnings is in the next chart. In FY2026 the company made US$6.91B of gross profit from merchandise and US$7.30B from road fuel, and spent US$7.75B running the stores, before a US$261M one-off legal recovery (calculated).43 Merchandise alone does not cover the cost of running the stores. Fuel does the work. Fuel was 73% of revenue and 50% of gross profit.4

Where the gross profit goes

Fiscal 2026, US$ billions

  • Merchandise, fuel, other gross profit; costs; adjusted EBITDA US$6.91B + 7.30B + 0.24B − 7.75B ≈ 6.71B
Where the gross profit goesFiscal 2026 in US dollars billions. Merchandise gross profit US$6.91B, fuel US$7.30B, other US$0.24B, expenses US$7.75B before the legal recovery, adjusted EBITDA US$6.71B.−8−4048Merch.FuelOtherCostsEBITDAUS$ billions, Merchandise: US$6.91BUS$ billions, Fuel: US$7.30BUS$ billions, Other: US$0.24BUS$ billions, Expenses: −US$7.75BUS$ billions, Adj. EBITDA: US$6.71BWhere the gross profit goesFiscal 2026 in US dollars billions. Merchandise gross profit US$6.91B, fuel US$7.30B, other US$0.24B, expenses US$7.75B before the legal recovery, adjusted EBITDA US$6.71B.−8−4048Merch.FuelOtherCostsEBITDAUS$ billions, Merchandise: US$6.91BUS$ billions, Fuel: US$7.30BUS$ billions, Other: US$0.24BUS$ billions, Expenses: −US$7.75BUS$ billions, Adj. EBITDA: US$6.71BWhere the gross profit goesFiscal 2026 in US dollars billions. Merchandise gross profit US$6.91B, fuel US$7.30B, other US$0.24B, expenses US$7.75B before the legal recovery, adjusted EBITDA US$6.71B.−8−4048Merch.FuelOtherCostsEBITDAUS$ billions, Merchandise: US$6.91BUS$ billions, Fuel: US$7.30BUS$ billions, Other: US$0.24BUS$ billions, Expenses: −US$7.75BUS$ billions, Adj. EBITDA: US$6.71B
Costs are operating, selling, general and administrative expenses with the US$261M net legal recovery put back. Adjusted EBITDA is the company’s measure and adds US$8M of other items. Source Fiscal 2026 MD&A and Note 31 [4][3]. Calculated from reported figures.
Show the numbers
Where the gross profit goes
MerchandiseFuelOtherExpensesAdj. EBITDA
US$ billions (reported)6.917.300.24-7.756.71

Three regions, one playbook

The United States is 63% of gross profit: US$9.18B of US$14.46B. Europe, which includes Hong Kong, is 26%, and Canada is 10% (calculated).3 In the US the company sold 9,675M gallons of fuel in FY2026 at a gross margin of 47.49 cents a gallon. In Europe it sold 17,521M litres at 11.73 cents a litre, and in Canada 5,799M litres at C$0.1559 a litre.4 Europe is bigger in volume and smaller in profit per unit. Its fuel margin moves more, because the company describes its European model as more integrated, with a longer supply chain.45

Stores come in four kinds. Couche-Tard operates 10,730 of them itself. Another 1,354 are on property it controls but run by independent operators, 1,369 are run by independents on their own property, and 1,110 are franchised.4 That mix matters because the first group carries all the store costs and keeps the store profit, and the others pay rent or buy fuel under supply contracts.

What it sells

Merchandise and services were US$19.6B of revenue in FY2026 at a gross margin of 35.2%.4 Cigarettes and other nicotine were the largest category: US$7.1B of revenue and US$1.3B of gross profit, 36% and 19% of the merchandise totals.4 That is the product whose decline the filing lists as a risk, and it explains the effort in food. The company’s “Core + More” strategy, set out in February 2026, keeps fuel, nicotine and drinks as the core and puts food, private label, car washes, mobility and about 750 new stores by 2030 into the “More.”114 I read this as a plan to keep the traffic while the tobacco profit slowly fades.

The deal machine

The business in its current shape is the product of takeovers. A short list of the largest ones: CST Brands in June 2017 for about US$4.4B including debt; Holiday Stationstores in December 2017 for about US$1.6B; 2,175 European sites from TotalEnergies in December 2023 for about €3.4B (US$3.8B); the 112 MAPCO stores in November 2023 for US$469M; and 270 GetGo sites from Giant Eagle in June 2025 for US$1.6B.12104 The company says it has done 75 deals in 20 years.13 The approach in each case has been the same: buy a network of sites that already have fuel and a shop, fit it into Couche-Tard’s purchasing, supply and store formats, and cut costs. I look at whether the returns justify that record in Management.

Two more deals are open. On 31 July 2026 the company launched a cash tender for all of Żabka, Poland’s largest convenience chain, at PLN 32.00 a share, an equity value of PLN 32.6B or about US$8.6B. It would be the largest deal in the company’s history, and I treat it separately in Valuation.75 On 9 October it agreed to buy 50 Québec stores it already runs with Irving Oil, plus 2 in Ontario and fuel supply to 71 of its own stores; the price was not disclosed, so I include nothing for it.14

The state of play now

Results for the first quarter of FY2027, to 19 July 2026, were good. Adjusted earnings a share were US$0.90 against US$0.78, adjusted EBITDA rose 10.5%, and the US fuel margin was 52.61 cents a gallon against 44.00 a year earlier.5 Merchandise margin slipped 0.3 points to 35.1%, same-store merchandise sales grew 1.6%, and same-store fuel volumes in the US fell 1.6%.5 So the quarter was a fuel quarter. The next results come on 24 November 2026.15

The moat

The honest test of a durable business is what happened to its profit when conditions were bad. Couche-Tard has not had a bad decade, so I use the one hard test it did have. Revenue fell 8% in FY2020 and another 15% in FY2021, as fuel prices and driving collapsed. Operating income did not fall at all: it was US$2.49B in FY2019, US$3.16B in FY2020 and US$3.68B in FY2021 (calculated).61617 Part of that is lease accounting, which lifted FY2020 reported operating income. But net earnings also rose, from US$1.83B to US$2.35B and US$2.71B.61617 People who still drove bought fuel, snacks and cigarettes from the same stops, and the company found margin where it could.

Here is the other side. The profit that rose in that test was mostly fuel margin, and the margin kept rising for five years. A business with a durable edge in selling fuel would see the US margin stay level while volumes changed. Instead it went from 23.60 cents a gallon in FY2019 to 47.49 in FY2026, and Casey’s margin rose 3.9 cents in its latest year, to 42.6 cents before card fees.648 Much of that looks like an industry setting, not an edge. Some of it is Couche-Tard’s own doing, such as buying better and optimising prices, and some of it is that retail fuel margins in North America have simply been richer since 2021. I can’t split the two from the outside, and nobody else can either.

US fuel margin

Cents per gallon, all US fuel sales, before card fees

  • US fuel gross margin 47.49¢ in FY2026; 52.61¢ in Q1 FY2027
US fuel marginGross profit on each US gallon, cents, by fiscal year: 18.56 in fiscal 2017, 23.60 in 2019, 29.62 in 2020, 47.51 in 2023, 47.49 in 2026.015304560’17’19’21’23’25US cents a gallon, FY2017: 18.56¢US cents a gallon, FY2018: 19.39¢US cents a gallon, FY2019: 23.60¢US cents a gallon, FY2020: 29.62¢US cents a gallon, FY2021: 35.28¢US cents a gallon, FY2022: 39.62¢US cents a gallon, FY2023: 47.51¢US cents a gallon, FY2024: 45.28¢US cents a gallon, FY2025: 45.39¢US cents a gallon, FY2026: 47.49¢US fuel marginGross profit on each US gallon, cents, by fiscal year: 18.56 in fiscal 2017, 23.60 in 2019, 29.62 in 2020, 47.51 in 2023, 47.49 in 2026.015304560’17’18’19’20’21’22’23’24’25’26US cents a gallon, FY2017: 18.56¢US cents a gallon, FY2018: 19.39¢US cents a gallon, FY2019: 23.60¢US cents a gallon, FY2020: 29.62¢US cents a gallon, FY2021: 35.28¢US cents a gallon, FY2022: 39.62¢US cents a gallon, FY2023: 47.51¢US cents a gallon, FY2024: 45.28¢US cents a gallon, FY2025: 45.39¢US cents a gallon, FY2026: 47.49¢US fuel marginGross profit on each US gallon, cents, by fiscal year: 18.56 in fiscal 2017, 23.60 in 2019, 29.62 in 2020, 47.51 in 2023, 47.49 in 2026.015304560’17’18’19’20’21’22’23’24’25’26US cents a gallon, FY2017: 18.56¢US cents a gallon, FY2018: 19.39¢US cents a gallon, FY2019: 23.60¢US cents a gallon, FY2020: 29.62¢US cents a gallon, FY2021: 35.28¢US cents a gallon, FY2022: 39.62¢US cents a gallon, FY2023: 47.51¢US cents a gallon, FY2024: 45.28¢US cents a gallon, FY2025: 45.39¢US cents a gallon, FY2026: 47.49¢
Fiscal 2020 was restated down 1.57¢ in later filings and earlier years are as first reported, so the step from 2019 to 2020 is partly a change of measure. Card fees run about 6¢ a gallon and sit in expenses. Source Annual statements and MD&A, fiscal 2017 to 2026 [18][12][6][16][17][19][20][21][22][3]; Q1 FY2027 report [5]
Show the numbers
US fuel margin
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026
US cents a gallon (reported)18.56¢19.39¢23.60¢29.62¢35.28¢39.62¢47.51¢45.28¢45.39¢47.49¢

What does protect it

  • Buying and supply. A network this size buys drinks, snacks and fuel on terms a one-store owner can’t get. Couche-Tard has opened three new distribution centres in FY2026, the first in Otsego, Minnesota in November 2025, to put its own merchandise through its own system.104
  • Sites. A convenience store lives on location. It controls the land under its 10,730 company-operated sites, by ownership or lease, and says it leads convenience retail in Canada, the Nordic and Baltic countries and Belgium.4
  • The store itself. The merchandise margin rose from 33.5% in FY2021 to 35.2% in FY2026, as food, drinks and private label took share.194 Same-store merchandise sales were up 1.9% in FY2026 after a 0.4% fall.4 This is the piece I would call earned, and it is steady.
  • Money. The credit rating is BBB+ from S&P and Baa1 from Moody’s, with US$6.6B of cash and unused credit.4 In a downturn that is the capacity to buy sites cheaply.

Where it is thin

Fuel is half the gross profit and the company does not control its price, its cost or its volume. Same-store fuel volumes fell 1.0% in the US and 2.2% in Europe in FY2026.4 Electric cars cut into the fuel volume, and fuel gets more competitive at the pump when margins are rich. The company’s own filing says it plainly: results are sensitive to fuel prices and gross margin, and the market’s limited ability to absorb price changes can move them.4

Nicotine is the second weak point, at US$1.3B of gross profit, 19% of the merchandise total. The filing lists a sustained fall in demand as a risk, and in Canada the company blames tobacco for a 0.9% fall in same-store sales in the last quarter.4 Other nicotine products have grown in the US, but the category is changing quickly.4

And returns have been sliding. Return on capital employed, which counts goodwill, was 15.8% in FY2017, 17.5% in FY2023 and 13.7% in FY2026, with a low of 12.2% in FY2025 (reported).1820422 A business with a clear edge would see returns rise as it grew. Here the company bought ever-larger networks at full prices, and returns drifted down, which suggests the edge is real but is being paid away in deal prices.

The competitive advantage

The question here is what Couche-Tard can do that a rival cannot. In the US the comparison is with a company like Casey’s, which is Midwestern, runs mostly its own stores and sells a lot of prepared food.

Couche-Tard against Casey’s

Latest full-year figures each side publishes. Fiscal years differ by days, and the fuel measures differ, so read the gaps as rough.

Couche-Tard and Casey’s
Couche-TardCasey’s
Fiscal year52 weeks to 26 April 20264Year to 30 April 20268
US fuel margin50.79 cents a gallon over the 52 weeks to 19 July 2026, company-operated stores, before card fees; 44.84 after them. All US sites, FY2026: 47.495442.6 cents a gallon for fiscal 2026: fuel gross profit of US$1,497M over 3,515M gallons, so before card fees8
Fuel margin a year earlier45.40 cents before fees, 39.58 after538.7 cents8
Main profit poolFuel 50% of gross profit, merchandise and services 48%4Inside sales and fuel; inside margin 42.4% in the fourth quarter8
Where else it earnsEurope, 26% of gross profit; Canada 10%3United States only
Next-year stanceGross profit on fuel to grow in line with inflation to FY203011Fiscal 2027: EBITDA up 8% to 10%, same-store gallons down 1% to up 1%8
Source Fiscal 2026 MD&A; Casey’s release [4][8]. Both fuel margins are before card fees.

On the pump there may be an edge. Over the 52 weeks to July 2026 Couche-Tard’s company-operated US stores earned 50.79 cents a gallon before card fees and 44.84 after, which is 8 cents above Casey’s before fees, and the gap a year earlier was 6.7 cents (45.40 against 38.7).58 A gap of that size that lasts two years looks like skill, in buying, in supply and in pricing. But the two chains are in different places. Casey’s is mostly small Midwestern towns, and Couche-Tard is in 48 states, with a different mix of places and competitors. I can’t tell which way that cuts, so I can’t separate geography from skill, so in the model I give the company credit for the margin it earned but I do not assume it keeps all of it.4

The advantages I can see more clearly are three. The first is integration. The company runs fuel supply, trading and logistics itself in Europe and, in good years, captures more of the fuel move: in the fourth quarter its European margin was 13.44 cents a litre against 9.57 the year before, which it ascribed to a longer supply chain.4 That is worth money in volatile times and costs money in calm ones, and the first quarter of FY2027 already shows it easing, at 11.34 cents.5 The second is the ability to take over and repair. TotalEnergies’ stations in Germany, Belgium, the Netherlands and Luxembourg were run for a major oil company, and the company says its annual savings reached €61M in about two years, with €120M expected in FY2027 and €170M in FY2029.4 The third is financial. Few convenience chains can write a US$1.6B cheque in cash, as it did for GetGo, fund it with commercial paper, and be back to 1.77 times net debt to EBITDA a year later.45

Electric cars, and the one place to look

The electric-car threat is real in fuel. The place to see it first is Norway, where 95.9% of new cars sold in 2025 were battery-electric.23 Circle K Norway is its operator there. The company says it opened its 1,000th charging point in Norway in 2026 and is the number two charging destination there, and number one in Sweden.24 In all it has about 4,700 charging points in Europe and North America, and charging volumes rose 55% in the year.24 In North America it has 696 points, and in 2026 it agreed with IONNA that IONNA will take over and upgrade most of the existing US chargers.24 It does not publish fuel volumes or profit for Norway, so I can’t say how fast the fuel profit there is shrinking, or whether charging sales replace it. That is a gap in what I know, and it matters because Norway shows where the rest of Europe might be in 10 to 15 years. In my model Europe’s fuel volume falls 1.5% a year, and in the bear 2.5%.

Where rivals can catch up

The part of the formula that a rival can copy is the store. Fresh food, loyalty programmes and good sites are available to any well-run chain, which is why Couche-Tard is spending on them.11 The company’s own plan is to lift same-store merchandise sales 2% to 3% a year to FY2030, and it grew 1.9% in FY2026 and 1.6% in the latest quarter.1145 That is close to the target, but with 7.1B of nicotine sales at its core it is being reached against a falling product. Whether the food can carry more of the load than the tobacco loses is the question for the next five years.

Management

Two men run Couche-Tard. Alain Bouchard, the founder, is Executive Chairman and was chief executive for 25 years until 2014. Alex Miller has been chief executive since 6 September 2024, taking over from Brian Hannasch, who retired.10 The chief financial officer, Filipe Da Silva, has held the post since July 2023.10 It is a stable team, and the change at the top came without a break in strategy.

Who controls it

Couche-Tard is often described as a company controlled by its founder through shares with extra votes. That was true until September 2022. Then the 10-vote Class A shares were converted into ordinary one-vote shares, after a shareholder vote, and the extra-vote class was repealed.10 Today there is one class. Mr. Bouchard holds 123,573,993 shares, 13.45% of the company, and 13.45% of the votes, and he is the only holder of more than 10% that the company knows of.109 At the Q4 2026 price that stake is worth about C$10.0B (calculated). Directors and executives together own 19%.10 So the founder has influence from a very large stake, a seat as chairman and a long history, but no lock. Other holders have 86.5% of the votes, and in a large deal they would have a say.

How they are paid, and what that pays them to do

Mr. Miller received US$13.49M in FY2026, up from US$10.01M and US$4.64M in the two years before. Mr. Bouchard received US$8.40M, mostly share units and options.9 Total direct pay for the five named officers was US$21.8M, 0.3% of EBITDA.9 I don’t think the amount is the issue; what matters is what the pay rewards.

The yearly bonus is 75% on net earnings against a budget, and 25% on personal goals. Nothing is paid below 90% of the budgeted net earnings, and the payout is capped at 250% for results of 130% or more of budget.9 That is a plan that rewards growth in profit. It doesn’t reward return on capital, earnings a share or cash flow, and it pays on net earnings that a fuel-margin windfall can lift. Mr. Miller’s bonus went from US$0.22M in FY2025 to US$2.84M in FY2026, the year of record fuel margins and the legal recovery.9 I can’t tell from the circular whether the recovery counted toward the bonus. The long-term awards are options (20% a year), performance share units that depend on operating objectives set at the time of grant, and restricted units, with the performance measures not spelled out in the part I read.9 All the share units are settled in cash, so they cost the company cash and do not dilute owners.3 Options outstanding are 2.18M, about 0.2% of the shares.3

The two big officers must own five times their salary. Mr. Miller held 45,688 shares and 101,356 deferred share units worth C$11.3M at the April price, and Mr. Bouchard’s holding is far above any requirement.9 Executives may take up to half their bonus in deferred share units, with a 25% company match, which is a way to push them to own stock.9 The bonus design leans toward growing earnings; the ownership rules lean toward the share price. The first is easier to do with a purchase.

What they did with the money

The record over a full cycle is the best evidence. In ten years Couche-Tard made US$21.3B of cash that an owner could take out (calculated). It spent US$14.6B on acquisitions, US$9.4B on buybacks and US$3.2B on dividends, US$27.2B in all, and borrowed the US$5.9B difference (calculated).181261617192021223

Ten years of cash in and out

US$ millions, fiscal 2017 to 2026, from the cash flow statements.

Ten years of cash in and out
US$ millionsShare of uses
Owner cash made (cash from operations, less capital spending net of sales, less lease principal)18321,310
Acquisitions14,60654%
Buybacks9,40535%
Dividends3,19212%
Total spent on the three27,204100%
Spent beyond owner cash, met by borrowing5,893
Source Annual statements, fiscal 2017 to 2026 [18][12][6][16][17][19][20][21][22][3]. Calculated.

What it got for the money is mixed in a way that is typical for a serial buyer. Diluted earnings a share rose from US$1.06 to US$3.37, 13.7% a year, and the diluted share count fell from about 1,140M to 933M, down 18% (calculated).18163 That is good. The shares rose less, from C$34.06 at the end of October 2016 to C$80.98, about 9% a year before dividends (calculated).1 Return on capital fell from 15.8% to 13.7% over the period, which suggests the deals cost close to what they were worth.184 Buybacks were large: US$1.6B in FY2026 alone, 30.0M shares, an average of about US$52, or about C$72.4 Most were done at prices below today’s C$80.98, which is to the company’s credit, and the biggest years were US$2.4B in FY2023 and US$1.8B in FY2022.1920 I would call the record fair.

The Seven & i episode is the best single test of discipline. The company offered ¥2,600 a share in cash, a 47.6% premium, for the owner of 7-Eleven, a bid the press put at about US$47B.1325 After almost a year of being refused, it said that its due diligence had received 14 files on the US business in 10 weeks, and withdrew on 16 July 2025.13 The shares had fallen from C$83.57 before the approach became public to C$68.32. On the day it withdrew they rose 8.3% to C$74.00 (calculated).1 The market preferred no deal. The management that made the offer also walked away, and that is the pattern I want to see.

The test now is Żabka. At US$8.6B for the equity it is nearly twice CST Brands, the largest earlier deal at about US$4.4B with debt, and it is in a country where Couche-Tard already operates. The company expects leverage of about 3.0 times net debt to EBITDA at closing, against 1.77 times now, and a return to its target range in the second year.75 It states three hurdles: US$250M of savings by year three, higher earnings a share by year two, and a double-digit return on capital in year three before lease accounting. Holders of 57% of Żabka have signed to tender, so the sale is likely, and the price was set by negotiation with them. Those are the right hurdles. I come back to them in Valuation and in the table in section VII.

Financials

Three things in Couche-Tard’s statements don’t mean what they first seem to. Revenue follows fuel prices, so it more than doubled from US$37.9B to US$76.5B in ten years without telling us much. Lease accounting changed in FY2020, when IFRS 16 moved rent out of operating costs, so EBITDA and debt before and after that year can’t be compared. And the company’s adjusted figures take out items it calls one-offs, which in FY2026 were a US$261M legal recovery and a US$66M gain on a sale that regulators required (reported).416 Net earnings of US$3.14B for FY2026 were US$2.89B with those removed.4

Earnings before interest, tax and depreciation, and net earnings

US$ millions, fiscal years ending late April

  • Operating income plus depreciation US$7.00B in FY2026
  • Net earnings US$3.14B
Earnings before interest, tax and depreciation, and net earningsOperating income plus depreciation, and net earnings, by fiscal year. The first rose from US$2.37B in fiscal 2017 to US$7.00B in fiscal 2026, net earnings from US$1.21B to US$3.14B.02B4B6B8B’17’19’21’23’25Operating income plus depreciation, FY2017: US$2,365MOperating income plus depreciation, FY2018: US$2,948MOperating income plus depreciation, FY2019: US$3,560MOperating income plus depreciation, FY2020: US$4,499MOperating income plus depreciation, FY2021: US$5,034MOperating income plus depreciation, FY2022: US$5,224MOperating income plus depreciation, FY2023: US$5,758MOperating income plus depreciation, FY2024: US$5,570MOperating income plus depreciation, FY2025: US$5,912MOperating income plus depreciation, FY2026: US$7,000MNet earnings, FY2017: US$1,209MNet earnings, FY2018: US$1,674MNet earnings, FY2019: US$1,834MNet earnings, FY2020: US$2,354MNet earnings, FY2021: US$2,706MNet earnings, FY2022: US$2,683MNet earnings, FY2023: US$3,091MNet earnings, FY2024: US$2,730MNet earnings, FY2025: US$2,580MNet earnings, FY2026: US$3,144MEarnings before interest, tax and depreciation, and net earningsOperating income plus depreciation, and net earnings, by fiscal year. The first rose from US$2.37B in fiscal 2017 to US$7.00B in fiscal 2026, net earnings from US$1.21B to US$3.14B.02B4B6B8B’17’18’19’20’21’22’23’24’25’26Operating income plus depreciation, FY2017: US$2,365MOperating income plus depreciation, FY2018: US$2,948MOperating income plus depreciation, FY2019: US$3,560MOperating income plus depreciation, FY2020: US$4,499MOperating income plus depreciation, FY2021: US$5,034MOperating income plus depreciation, FY2022: US$5,224MOperating income plus depreciation, FY2023: US$5,758MOperating income plus depreciation, FY2024: US$5,570MOperating income plus depreciation, FY2025: US$5,912MOperating income plus depreciation, FY2026: US$7,000MNet earnings, FY2017: US$1,209MNet earnings, FY2018: US$1,674MNet earnings, FY2019: US$1,834MNet earnings, FY2020: US$2,354MNet earnings, FY2021: US$2,706MNet earnings, FY2022: US$2,683MNet earnings, FY2023: US$3,091MNet earnings, FY2024: US$2,730MNet earnings, FY2025: US$2,580MNet earnings, FY2026: US$3,144MEarnings before interest, tax and depreciation, and net earningsOperating income plus depreciation, and net earnings, by fiscal year. The first rose from US$2.37B in fiscal 2017 to US$7.00B in fiscal 2026, net earnings from US$1.21B to US$3.14B.02B4B6B8B’17’18’19’20’21’22’23’24’25’26Operating income plus depreciation, FY2017: US$2,365MOperating income plus depreciation, FY2018: US$2,948MOperating income plus depreciation, FY2019: US$3,560MOperating income plus depreciation, FY2020: US$4,499MOperating income plus depreciation, FY2021: US$5,034MOperating income plus depreciation, FY2022: US$5,224MOperating income plus depreciation, FY2023: US$5,758MOperating income plus depreciation, FY2024: US$5,570MOperating income plus depreciation, FY2025: US$5,912MOperating income plus depreciation, FY2026: US$7,000MNet earnings, FY2017: US$1,209MNet earnings, FY2018: US$1,674MNet earnings, FY2019: US$1,834MNet earnings, FY2020: US$2,354MNet earnings, FY2021: US$2,706MNet earnings, FY2022: US$2,683MNet earnings, FY2023: US$3,091MNet earnings, FY2024: US$2,730MNet earnings, FY2025: US$2,580MNet earnings, FY2026: US$3,144M
Lease accounting changed in fiscal 2020 (IFRS 16), which lifts the first series by the lease cost from then on. Fiscal 2023 had 53 weeks. Fiscal 2026 includes a US$261M legal recovery and a US$66M gain on sale. Source Annual statements and MD&A, fiscal 2017 to 2026 [18][12][6][16][17][19][20][21][22][3]
Show the numbers
Earnings before interest, tax and depreciation, and net earnings
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026
Operating income plus depreciation (calculated)US$2,365MUS$2,948MUS$3,560MUS$4,499MUS$5,034MUS$5,224MUS$5,758MUS$5,570MUS$5,912MUS$7,000M
Net earnings (reported)US$1,209MUS$1,674MUS$1,834MUS$2,354MUS$2,706MUS$2,683MUS$3,091MUS$2,730MUS$2,580MUS$3,144M

With those cautions, the picture is of a business that has grown steadily and with few bad years. Earnings before interest, tax and depreciation went from US$2.37B in FY2017 to US$7.00B in FY2026, and net earnings from US$1.21B to US$3.14B, 11.2% a year (calculated).183 Most of the rise came in two steps: the acquisitions of CST and Holiday in FY2018, and the fuel margin from FY2021. The only real fall was in FY2024 and FY2025, when net earnings slipped to US$2.73B and US$2.58B despite the TotalEnergies deal. In FY2025 expenses rose 9.5% against 7.6% for gross profit.224 In FY2026 the margin returned.

Six years of the numbers

US$ millions unless marked. Fiscal years end in late April. Per-share figures before FY2020 are split-adjusted.

Selected financials
FY2017FY2020FY2023FY2024FY2025FY2026
Revenue1816202122337,90454,13271,85769,26472,85776,507
Operating income plus depreciation (calculated)2,3654,4995,7585,5705,9127,000
Net earnings (reported)1,2092,3543,0912,7302,5803,144
Diluted earnings a share, US$ (reported)1.062.093.062.822.713.37
Cash from operations (reported)1,9263,7214,3454,8175,0375,363
Capital spending, net of sales (reported)8991,3181,5421,8562,1921,772
Lease principal (reported)26380439479513582
Owner cash (calculated)1,0002,0222,3642,4822,3323,009
Dividend declared, C$ a share (reported)0.1740.2650.5300.6650.7600.840
Return on capital employed, % (reported)15.815.017.513.212.213.7
US fuel margin, cents a gallon (reported)18.5629.6247.5145.2845.3947.49
Source Annual statements and MD&A [18][16][20][21][22][3]. Fiscal 2020 on is after IFRS 16; fiscal 2023 had 53 weeks.

What an owner can really take out

Net earnings is an accounting number. The cash an owner could take is operating cash flow, which is already after interest and tax and, here, after stock pay, less what has to be spent on the stores, less the principal paid on leases. For FY2026 that was US$5.36B, less US$1.77B of capital spending net of sales of property, less US$0.58B of lease principal: US$3.01B (calculated).3 That is 96% of net earnings. For ten years the figures are US$21.3B of owner cash against US$24.0B of net earnings, 89% (calculated).181261617192021223 This is a business where reported earnings turn into cash fairly well.

Three adjustments matter for FY2026. The US$261M legal recovery came into cash and I count it: stripped of tax it is about US$200M, which takes owner cash to about US$2.8B (estimate). A working-capital outflow of US$549M took cash the other way; the company puts it down to higher working capital needs, and it is unlikely to repeat if fuel prices are steady.34 And US$1.99B of capital spending includes growth spending: depreciation on owned property and equipment was US$1.55B, which is my guide to what it costs to stand still, so about US$0.4B was spent on growth, such as new stores and distribution centres (estimate).3 Put together, FY2026 owner cash was about US$2.8B to US$3.3B, or 5.3% to 6.2% of the market value, and I use the middle.

Net earnings against cash an owner could take

US$ millions. Owner cash is operating cash flow, less capital spending net of sales of property, less lease principal

  • Net earnings US$3.14B in FY2026
  • Owner cash US$3.01B
Net earnings against cash an owner could takeNet earnings and owner cash by fiscal year. Over ten years net earnings totalled US$24.0B and owner cash US$21.3B. Owner cash was US$3.01B in fiscal 2026.01B2B3B4B’17’19’21’23’25Net earnings, FY2017: US$1,209MNet earnings, FY2018: US$1,674MNet earnings, FY2019: US$1,834MNet earnings, FY2020: US$2,354MNet earnings, FY2021: US$2,706MNet earnings, FY2022: US$2,683MNet earnings, FY2023: US$3,091MNet earnings, FY2024: US$2,730MNet earnings, FY2025: US$2,580MNet earnings, FY2026: US$3,144MOwner cash, FY2017: US$1,000MOwner cash, FY2018: US$1,083MOwner cash, FY2019: US$2,102MOwner cash, FY2020: US$2,022MOwner cash, FY2021: US$2,675MOwner cash, FY2022: US$2,240MOwner cash, FY2023: US$2,364MOwner cash, FY2024: US$2,482MOwner cash, FY2025: US$2,332MOwner cash, FY2026: US$3,009MNet earnings against cash an owner could takeNet earnings and owner cash by fiscal year. Over ten years net earnings totalled US$24.0B and owner cash US$21.3B. Owner cash was US$3.01B in fiscal 2026.01B2B3B4B’17’18’19’20’21’22’23’24’25’26Net earnings, FY2017: US$1,209MNet earnings, FY2018: US$1,674MNet earnings, FY2019: US$1,834MNet earnings, FY2020: US$2,354MNet earnings, FY2021: US$2,706MNet earnings, FY2022: US$2,683MNet earnings, FY2023: US$3,091MNet earnings, FY2024: US$2,730MNet earnings, FY2025: US$2,580MNet earnings, FY2026: US$3,144MOwner cash, FY2017: US$1,000MOwner cash, FY2018: US$1,083MOwner cash, FY2019: US$2,102MOwner cash, FY2020: US$2,022MOwner cash, FY2021: US$2,675MOwner cash, FY2022: US$2,240MOwner cash, FY2023: US$2,364MOwner cash, FY2024: US$2,482MOwner cash, FY2025: US$2,332MOwner cash, FY2026: US$3,009MNet earnings against cash an owner could takeNet earnings and owner cash by fiscal year. Over ten years net earnings totalled US$24.0B and owner cash US$21.3B. Owner cash was US$3.01B in fiscal 2026.01B2B3B4B’17’18’19’20’21’22’23’24’25’26Net earnings, FY2017: US$1,209MNet earnings, FY2018: US$1,674MNet earnings, FY2019: US$1,834MNet earnings, FY2020: US$2,354MNet earnings, FY2021: US$2,706MNet earnings, FY2022: US$2,683MNet earnings, FY2023: US$3,091MNet earnings, FY2024: US$2,730MNet earnings, FY2025: US$2,580MNet earnings, FY2026: US$3,144MOwner cash, FY2017: US$1,000MOwner cash, FY2018: US$1,083MOwner cash, FY2019: US$2,102MOwner cash, FY2020: US$2,022MOwner cash, FY2021: US$2,675MOwner cash, FY2022: US$2,240MOwner cash, FY2023: US$2,364MOwner cash, FY2024: US$2,482MOwner cash, FY2025: US$2,332MOwner cash, FY2026: US$3,009M
Operating cash flow is after interest and tax, and after stock pay, which is cash-settled. Fiscal 2026 owner cash includes the legal recovery and a US$549M working-capital outflow. Before fiscal 2020 the lease cost is already inside operating cash flow. Source Annual statements and MD&A, fiscal 2017 to 2026 [18][12][6][16][17][19][20][21][22][3]
Show the numbers
Net earnings against cash an owner could take
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026
Net earnings (reported)US$1,209MUS$1,674MUS$1,834MUS$2,354MUS$2,706MUS$2,683MUS$3,091MUS$2,730MUS$2,580MUS$3,144M
Operating cash flow (reported)US$1,926MUS$2,163MUS$3,084MUS$3,721MUS$4,087MUS$3,945MUS$4,345MUS$4,817MUS$5,037MUS$5,363M
Capital spending (reported)US$994MUS$1,169MUS$1,145MUS$1,408MUS$1,189MUS$1,664MUS$1,804MUS$1,943MUS$2,327MUS$1,990M
Sales of property (reported)US$95MUS$132MUS$216MUS$90MUS$181MUS$403MUS$262MUS$87MUS$135MUS$218M
Lease principal (reported)US$26MUS$43MUS$52MUS$380MUS$404MUS$444MUS$439MUS$479MUS$513MUS$582M
Owner cash (calculated)US$1,000MUS$1,083MUS$2,102MUS$2,022MUS$2,675MUS$2,240MUS$2,364MUS$2,482MUS$2,332MUS$3,009M

The company’s own free cash flow, which it defines as EBITDA less net capital spending, interest, lease principal, tax and dividends, was US$1.80B in FY2025 and, by my rebuild of the same sum, about US$3.1B in FY2026, against a target of more than US$2.5B (calculated).113 That is after dividends and before the buybacks and deals it chooses to make.

A note on the fuel margin and card fees

The fuel margin the company headlines is before card fees, which sit in expenses. For company-operated US stores in the first quarter the margin was 53.87 cents before fees and 47.30 after, a fee of 6.57 cents, and over the 52 weeks to July it was 50.79 before and 44.84 after, up from 45.40 and 39.58 a year earlier.5 Fees rise with the pump price, so a spike in prices lifts them. I keep fees in expenses, as the company does, and I put every margin on this page on the headline measure.

Where the cash went

What the cash went to

US$ millions, cash paid

  • Acquisitions US$14.6B in ten years
  • Buybacks US$9.4B
  • Dividends US$3.2B
What the cash went toAcquisitions, buybacks and dividends by fiscal year. Ten-year totals: acquisitions US$14.6B, buybacks US$9.4B, dividends US$3.2B.02B4B6B’17’19’21’23’25Acquisitions, FY2017: US$1,332MAcquisitions, FY2018: US$5,381MAcquisitions, FY2019: US$13MAcquisitions, FY2020: US$90MAcquisitions, FY2021: US$434MAcquisitions, FY2022: US$323MAcquisitions, FY2023: US$848MAcquisitions, FY2024: US$4,297MAcquisitions, FY2025: US$164MAcquisitions, FY2026: US$1,724MBuybacks, FY2017: US$0MBuybacks, FY2018: US$193MBuybacks, FY2019: US$0MBuybacks, FY2020: US$471MBuybacks, FY2021: US$1,047MBuybacks, FY2022: US$1,842MBuybacks, FY2023: US$2,392MBuybacks, FY2024: US$1,349MBuybacks, FY2025: US$538MBuybacks, FY2026: US$1,572MDividends, FY2017: US$145MDividends, FY2018: US$162MDividends, FY2019: US$181MDividends, FY2020: US$216MDividends, FY2021: US$268MDividends, FY2022: US$330MDividends, FY2023: US$378MDividends, FY2024: US$453MDividends, FY2025: US$505MDividends, FY2026: US$553MWhat the cash went toAcquisitions, buybacks and dividends by fiscal year. Ten-year totals: acquisitions US$14.6B, buybacks US$9.4B, dividends US$3.2B.02B4B6B’17’18’19’20’21’22’23’24’25’26Acquisitions, FY2017: US$1,332MAcquisitions, FY2018: US$5,381MAcquisitions, FY2019: US$13MAcquisitions, FY2020: US$90MAcquisitions, FY2021: US$434MAcquisitions, FY2022: US$323MAcquisitions, FY2023: US$848MAcquisitions, FY2024: US$4,297MAcquisitions, FY2025: US$164MAcquisitions, FY2026: US$1,724MBuybacks, FY2017: US$0MBuybacks, FY2018: US$193MBuybacks, FY2019: US$0MBuybacks, FY2020: US$471MBuybacks, FY2021: US$1,047MBuybacks, FY2022: US$1,842MBuybacks, FY2023: US$2,392MBuybacks, FY2024: US$1,349MBuybacks, FY2025: US$538MBuybacks, FY2026: US$1,572MDividends, FY2017: US$145MDividends, FY2018: US$162MDividends, FY2019: US$181MDividends, FY2020: US$216MDividends, FY2021: US$268MDividends, FY2022: US$330MDividends, FY2023: US$378MDividends, FY2024: US$453MDividends, FY2025: US$505MDividends, FY2026: US$553MWhat the cash went toAcquisitions, buybacks and dividends by fiscal year. Ten-year totals: acquisitions US$14.6B, buybacks US$9.4B, dividends US$3.2B.02B4B6B’17’18’19’20’21’22’23’24’25’26Acquisitions, FY2017: US$1,332MAcquisitions, FY2018: US$5,381MAcquisitions, FY2019: US$13MAcquisitions, FY2020: US$90MAcquisitions, FY2021: US$434MAcquisitions, FY2022: US$323MAcquisitions, FY2023: US$848MAcquisitions, FY2024: US$4,297MAcquisitions, FY2025: US$164MAcquisitions, FY2026: US$1,724MBuybacks, FY2017: US$0MBuybacks, FY2018: US$193MBuybacks, FY2019: US$0MBuybacks, FY2020: US$471MBuybacks, FY2021: US$1,047MBuybacks, FY2022: US$1,842MBuybacks, FY2023: US$2,392MBuybacks, FY2024: US$1,349MBuybacks, FY2025: US$538MBuybacks, FY2026: US$1,572MDividends, FY2017: US$145MDividends, FY2018: US$162MDividends, FY2019: US$181MDividends, FY2020: US$216MDividends, FY2021: US$268MDividends, FY2022: US$330MDividends, FY2023: US$378MDividends, FY2024: US$453MDividends, FY2025: US$505MDividends, FY2026: US$553M
Fiscal 2018 is CST Brands and Holiday; fiscal 2024 is TotalEnergies’ European sites and the MAPCO stores; fiscal 2026 is GetGo. Source Annual statements and MD&A, fiscal 2017 to 2026 [18][12][6][16][17][19][20][21][22][3]
Show the numbers
What the cash went to
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026
Acquisitions (reported)US$1,332MUS$5,381MUS$13MUS$90MUS$434MUS$323MUS$848MUS$4,297MUS$164MUS$1,724M
Buybacks (reported)US$0MUS$193MUS$0MUS$471MUS$1,047MUS$1,842MUS$2,392MUS$1,349MUS$538MUS$1,572M
Dividends (reported)US$145MUS$162MUS$181MUS$216MUS$268MUS$330MUS$378MUS$453MUS$505MUS$553M

I covered the totals under Management. The point for the statements is that the balance sheet was the funding source. Net interest-bearing debt, including leases, was US$13.3B at the end of FY2026 and US$12.2B in July, from US$6.7B at the end of FY2020 (reported).4519 Against EBITDA that is 1.99 times, then 1.77 times, which is conservative for a retailer, and the credit ratings are BBB+ and Baa1.45 Debt payments, principal and interest, come to US$1.3B in FY2027, US$1.4B in FY2028 and US$1.5B in FY2029, against US$6.6B of cash and unused credit.4 The company had repaid a €750M note on 6 May 2026 and issued €750M, US$1.2B and C$500M in the year.4 Interest on the debt was US$521M and on leases US$189M in FY2026.3 A debt-funded Żabka deal, taking leverage to about 3.0 times, would move this table, and it is the one real change to the balance sheet ahead.

Return on capital and on equity

Percent, as the company calculates them

  • Return on capital employed 13.7% in FY2026
  • Return on equity 20.2%
Return on capital and on equityCompany-measured return on capital employed and return on equity by fiscal year. Return on capital employed was 15.8% in fiscal 2017, 17.5% in 2023 and 13.7% in 2026.0%10%20%30%’17’19’21’23’25Return on equity, FY2017: 22.5%Return on equity, FY2018: 24.8%Return on equity, FY2019: 21.9%Return on equity, FY2020: 24.8%Return on equity, FY2021: 24.3%Return on equity, FY2022: 21.8%Return on equity, FY2023: 24.7%Return on equity, FY2024: 21.2%Return on equity, FY2025: 18.3%Return on equity, FY2026: 20.2%Return on capital employed, FY2017: 15.8%Return on capital employed, FY2018: 12.0%Return on capital employed, FY2019: 12.6%Return on capital employed, FY2020: 15.0%Return on capital employed, FY2021: 15.9%Return on capital employed, FY2022: 15.4%Return on capital employed, FY2023: 17.5%Return on capital employed, FY2024: 13.2%Return on capital employed, FY2025: 12.2%Return on capital employed, FY2026: 13.7%Return on capital and on equityCompany-measured return on capital employed and return on equity by fiscal year. Return on capital employed was 15.8% in fiscal 2017, 17.5% in 2023 and 13.7% in 2026.0%10%20%30%’17’18’19’20’21’22’23’24’25’26Return on equity, FY2017: 22.5%Return on equity, FY2018: 24.8%Return on equity, FY2019: 21.9%Return on equity, FY2020: 24.8%Return on equity, FY2021: 24.3%Return on equity, FY2022: 21.8%Return on equity, FY2023: 24.7%Return on equity, FY2024: 21.2%Return on equity, FY2025: 18.3%Return on equity, FY2026: 20.2%Return on capital employed, FY2017: 15.8%Return on capital employed, FY2018: 12.0%Return on capital employed, FY2019: 12.6%Return on capital employed, FY2020: 15.0%Return on capital employed, FY2021: 15.9%Return on capital employed, FY2022: 15.4%Return on capital employed, FY2023: 17.5%Return on capital employed, FY2024: 13.2%Return on capital employed, FY2025: 12.2%Return on capital employed, FY2026: 13.7%Return on capital and on equityCompany-measured return on capital employed and return on equity by fiscal year. Return on capital employed was 15.8% in fiscal 2017, 17.5% in 2023 and 13.7% in 2026.0%10%20%30%’17’18’19’20’21’22’23’24’25’26Return on equity, FY2017: 22.5%Return on equity, FY2018: 24.8%Return on equity, FY2019: 21.9%Return on equity, FY2020: 24.8%Return on equity, FY2021: 24.3%Return on equity, FY2022: 21.8%Return on equity, FY2023: 24.7%Return on equity, FY2024: 21.2%Return on equity, FY2025: 18.3%Return on equity, FY2026: 20.2%Return on capital employed, FY2017: 15.8%Return on capital employed, FY2018: 12.0%Return on capital employed, FY2019: 12.6%Return on capital employed, FY2020: 15.0%Return on capital employed, FY2021: 15.9%Return on capital employed, FY2022: 15.4%Return on capital employed, FY2023: 17.5%Return on capital employed, FY2024: 13.2%Return on capital employed, FY2025: 12.2%Return on capital employed, FY2026: 13.7%
The capital measure counts all assets less non-interest liabilities, goodwill included. The company’s definitions changed over the decade, and later filings restate fiscal 2019 and fiscal 2024. Source Annual statements and MD&A, fiscal 2017 to 2026 [18][12][6][16][17][19][20][21][22][3]
Show the numbers
Return on capital and on equity
FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026
Return on capital employed (reported)15.8%12.0%12.6%15.0%15.9%15.4%17.5%13.2%12.2%13.7%
Return on equity (reported)22.5%24.8%21.9%24.8%24.3%21.8%24.7%21.2%18.3%20.2%

The price in numbers

The price in numbers

At C$80.98, US$58.01. Shares 917.96M plus 2.55M options for per-share values.

The price in numbers
MeasureValueBasis
Market valueC$74.3B, US$53.2B917.96M shares on 27 August 20265
Net financial debtUS$7.13BDebt US$10.33B less cash US$3.20B, 19 July 20265
Lease liabilitiesUS$5.05BCurrent and long-term, 19 July 20265
Enterprise value, with leasesUS$65.7BMarket value, net debt, minority put US$0.29B, leases
Adjusted EBITDA, last 12 monthsUS$6.88B52 weeks to 19 July 20265
Enterprise value to EBITDA9.5 timesWith leases, to match EBITDA before lease cost (calculated)
Adjusted earnings a share, last 12 monthsUS$3.22FY2026 US$3.10, less Q1 FY2026 US$0.78, plus Q1 FY2027 US$0.9045
Price to earnings18.0 timesOn adjusted earnings (calculated)
Owner cash, FY2026US$3.01B, 5.7% of market valueSee Financials (calculated)
DividendC$0.86 a year, 1.1%Quarterly C$0.2155
Source Q1 FY2027 report; fiscal 2026 MD&A [5][4]. Calculated.

On those numbers the shares trade at 18 times adjusted earnings and 9.5 times EBITDA with leases counted, and the owner cash yield is between 5% and 6%. The fall from the June high of C$93.76 to C$80.98 has taken the price back to roughly where it was in early March 2026.1 It rose 11.7% on 23 June 2026, the day after the FY2026 results, and has since given up all that gain and a little more (calculated).126 I don’t know why, and the filings do not say. The timing coincides with the Żabka tender, announced on 31 July, and the first-quarter results in early September.

The share price over ten years

Last close of each calendar quarter, TSX, log scale, split-adjusted

  • Close, Q4 2026 C$80.98
The share price over ten yearsQuarter-end closes on a log scale, from C$31.17 to C$80.98.$20$32$50$79$126’17’18’19’20’21’22’23’24’25’26The share price over ten yearsQuarter-end closes on a log scale, from C$31.17 to C$80.98.$20$32$50$79$126’17’18’19’20’21’22’23’24’25’26The share price over ten yearsQuarter-end closes on a log scale, from C$31.17 to C$80.98.$20$32$50$79$126’17’18’19’20’21’22’23’24’25’26
The highest close was C$93.76 on 24 June 2026, the day after the fiscal 2026 results lifted the shares 11.7%. The worst fall in ten years was 33% to 23 March 2020. Prices exclude dividends. Source TSX closes [1][26]. Calculated from reported closes.

Valuation

First, how this goes badly wrong

Before any numbers, I ask what would hurt an owner most, and I count three ways.

The fuel margin gives back its gains while costs keep rising. The US margin was 23.60 cents a gallon in FY2019 and 47.49 in FY2026.64 Each cent is about US$97M of gross profit, 1.4% of EBITDA (calculated).4 If it settles near 42 cents, EBITDA falls by about US$0.5B, and the stores can’t easily make that up while expenses grow 3% a year. This is the one that matters most, and the company has no control over it.

Takeovers at full prices, paid with debt. Return on capital has slid from 17.5% in FY2023 to 13.7%, and Żabka would take leverage from 1.77 to about 3.0 times EBITDA.457 A deal that costs more than it earns is easy to hide inside a growing group. If Żabka turned out to be worth 17% less than the price, that alone is US$1.5B, or C$2.3 a share.

The store engine stalls. Merchandise gross profit is US$6.9B, and 19% of it is nicotine.4 Costs have to grow slower than that profit, or earnings fall even with steady fuel. Same-store sales grew 1.9% in FY2026, and the company’s target of 2% to 3% sits just above it.114

What an owner can really take out

The cash an owner could take in FY2026 was about US$2.8B to US$3.3B, after stock pay (which is paid in cash and so already deducted), after interest and tax, after lease principal and after the capital needed to keep the stores going and some growth.3 I use US$3.05B as the middle, US$3.3 a share, or C$4.6 (estimate). Adjusted earnings a share were US$3.10. The two are close, which is good news about quality. The bad news is that both rest on a fuel margin that is at a record. In the model, owner cash before interest is US$3.3B in FY2027 and US$3.1B in FY2028 in the base case, because I let the margin fall back.

What I can’t judge

I can’t say where the US fuel margin goes. Nobody can. It has been at least 45 cents for four years, and that is long enough to be a new level, but short enough to be a cycle. So I show a ladder and not one number. Every cent of margin sustained from FY2028 is worth C$1.79 a share. From 40 cents to 52 cents is a range of C$62 to C$83.

The fuel margin is the main input

Base case with the US fuel margin set to each level from FY2028, then growing 2% a year. Value per share in C$.

Value by US fuel margin
US margin from FY2028, cents a gallonValue per share, C$Against the price
38C$58−28%
40C$62−24%
43C$67−17%
46C$73−10%
49C$78−4%
52C$83+3%
FY2026: 47.49 cents; Q1 FY2027: 52.61. Casey’s, for scale, earned 42.6. Source My model; fiscal 2026 MD&A; Casey’s [4][5][8]. Values are my estimates.

I also can’t judge how fast electric cars take the fuel pools in Europe, because the company does not publish Norway’s fuel volume. And I can’t see inside Żabka beyond its public accounts. Those are the main reasons the range is wide.

How the cases are built

I build each case year by year. Merchandise gross profit comes from sales growth and margin. Fuel gross profit comes from volume and the margin per gallon or litre, in the US, Europe and Canada separately. Expenses grow at a stated rate from FY2026’s US$7.75B, with the legal recovery put back. EBITDA less tax at 23.5%, lease payments, and capital spending is the cash before interest. I discount it at 8.5% and take off net debt of US$7.4B. Leases are a cost in my cash flows, so I do not also count them as debt. The 8.5% is the Government of Canada ten-year yield of 3.84% plus about 4.7 points, and it is the same rate I use for Costco on this site.27 I stop at FY2036 and then grow the final year’s cash at 2.5% in the base case. FY2027 counts only its second half, because the first has been reported. Currency is held at April 2026 averages.

My three cases

Fiscal years, US$ millions unless marked. Values per share in C$ at 1.396, with US$ beside.

Bear, base and bull
BearBaseBull
US fuel margin, FY2029, cents a gallon (estimate)42.046.049.0
US fuel margin, FY2036 (estimate)46.652.858.2
Merchandise sales growth, FY2028 to FY2030 (estimate)3.2% a year4.2%4.8%
Merchandise gross margin, FY2030 (estimate)34.8%35.4%36.0%
Expense growth, FY2028 to FY2030 (estimate)about 3.0% a year2.7%2.2%
Adjusted EBITDA, FY2030 (estimate)5,8037,1268,274
Adjusted EBITDA, FY2036 (estimate)5,7208,05910,331
Owner cash before debt service, FY2030 (estimate)2,2913,2534,081
Owner cash before debt service, FY2036 (estimate)2,1683,9075,595
Growth after FY2036 (estimate)2.0%2.5%3.0%
Value of the business, US$ millions (estimate)31,94254,57179,154
Less net debt and minority put, US$ millions7,4237,4237,423
Żabka, net of price paid, at 90% odds, US$ millions (estimate)-1,3508101,980
Value per share, US$ (estimate)25.252.180.1
Value per share, C$ (estimate)C$35C$73C$112
Source Fiscal 2026 MD&A; Q1 FY2027 report [4][5]. All cases are my estimates; owner cash here is before interest.

US fuel margin in my three cases

US cents a gallon: bear to bull, with the base marked

  • Bear to bull 42¢ to 58¢ in FY2029
  • Base 46.0¢ in FY2029
US fuel margin in my three casesBase falls from 48.5 to 46.0 cents a gallon in fiscal 2029 and then grows 2% a year. Bear falls to 42.0, bull holds 49. Fiscal 2026 was 47.49.3036424854’27’29’31’33’35Base, FY2027: 48.5¢Base, FY2028: 46.5¢Base, FY2029: 46.0¢Base, FY2030: 46.9¢Base, FY2031: 47.9¢Base, FY2032: 48.8¢Base, FY2033: 49.8¢Base, FY2034: 50.8¢Base, FY2035: 51.8¢Base, FY2036: 52.8¢US fuel margin in my three casesBase falls from 48.5 to 46.0 cents a gallon in fiscal 2029 and then grows 2% a year. Bear falls to 42.0, bull holds 49. Fiscal 2026 was 47.49.3036424854’27’28’29’30’31’32’33’34’35’36Base, FY2027: 48.5¢Base, FY2028: 46.5¢Base, FY2029: 46.0¢Base, FY2030: 46.9¢Base, FY2031: 47.9¢Base, FY2032: 48.8¢Base, FY2033: 49.8¢Base, FY2034: 50.8¢Base, FY2035: 51.8¢Base, FY2036: 52.8¢US fuel margin in my three casesBase falls from 48.5 to 46.0 cents a gallon in fiscal 2029 and then grows 2% a year. Bear falls to 42.0, bull holds 49. Fiscal 2026 was 47.49.3036424854’27’28’29’30’31’32’33’34’35’36Base, FY2027: 48.5¢Base, FY2028: 46.5¢Base, FY2029: 46.0¢Base, FY2030: 46.9¢Base, FY2031: 47.9¢Base, FY2032: 48.8¢Base, FY2033: 49.8¢Base, FY2034: 50.8¢Base, FY2035: 51.8¢Base, FY2036: 52.8¢
Fiscal 2026 was 47.49¢ and the first quarter of fiscal 2027 was 52.61¢. Everything drawn here is my estimate. Source Fiscal 2026 MD&A; Q1 FY2027 report [4][5]. Assumptions are my estimates.
Show the numbers
US fuel margin in my three cases
FY2027FY2028FY2029FY2030FY2031FY2032FY2033FY2034FY2035FY2036
Bear (estimate)47.0¢44.0¢42.0¢42.6¢43.3¢43.9¢44.6¢45.2¢45.9¢46.6¢
Base (estimate)48.5¢46.5¢46.0¢46.9¢47.9¢48.8¢49.8¢50.8¢51.8¢52.8¢
Bull (estimate)50.0¢49.0¢49.0¢50.2¢51.5¢52.8¢54.1¢55.4¢56.8¢58.2¢

Three comparisons help. My base EBITDA grows from US$6.7B in FY2026 to US$7.1B in FY2030, 1.5% a year, against the company’s target of 6% to 8%.11 The target assumes fuel profit grows with inflation from a record base, plus a US$850M cost programme. My base lets the margin fall back first. My bull reaches US$8.3B, 5.4% a year, a little under the low end of their range. And my base values the equity at US$48B, against a market value of US$53B (calculated).

Żabka, as a separate line

The tender prices Żabka’s equity at US$8.6B, 7.8 times its last-12-months adjusted EBITDA of US$1.1B.7 That is equity over EBITDA, not enterprise value. Żabka’s own second-quarter call put its net financial debt without leases at PLN 2.3B at 30 June, with cash above PLN 1.6B. An aggregator’s balance sheet adds lease liabilities of about PLN 5.7B, which gives debt including leases near PLN 9.6B and net debt near PLN 8.0B, about US$2.1B (calculated).28 That puts the enterprise value near US$10.7B, or 9.7 times EBITDA with leases counted, about the multiple Couche-Tard itself trades at. So the price is roughly fair against the buyer’s own valuation, and the case for gain rests on US$250M of savings and sales gains by year three.7

I do not value Żabka from the ground up. I have not seen its cash flow statement, and I cannot value it better than the owners who negotiated the price. I treat the price as fair and value only what Couche-Tard adds or loses. In the base case the US$250M comes through half in time: about US$190M after tax, capitalized, less one year’s cost to achieve it, is a gain of about US$0.9B. In the bear, Żabka is worth 17% less than the price and no savings arrive: a loss of US$1.5B. In the bull, the full savings and modest growth give US$2.2B. I weight each by a 90% chance that the deal closes, because holders of 57% have signed to tender and the approvals the company listed, from the European Commission or Poland’s regulator and Romania’s investment screen, were pending at the last public update I found. A secondary report says the offer period was extended on 19 October to 2 December and that Poland’s competition office received a filing on 16 October; I could not confirm either against the official notices.729 If it does not close, all three cases lose that line. I leave out the Irving Oil stores because the price is not disclosed.14 Taken together, Żabka moves my base by about C$1 a share. The leverage and the management attention matter more than the value line.

What the price needs

Each line changes one thing in my base case until the value equals the TSX close.

What the price needs
IfThen the value is the price atMy base case
US fuel margin is level from FY2028, then grows 2% a year50.7 cents a gallon46.0 cents in FY2029 (46.5 in FY2028), from 47.49 in FY2026
Growth after FY2036 is higher3.3% for ever2.5%
The discount rate falls7.9%8.5%
Each US cent a gallon of margin is worthUS$1.28 (C$1.79) a shareFuel is 7.3 billion of 14.5 billion gross profit
Source My model [4]. Calculated from my estimates.

The price needs one of three things. The US margin has to settle at about 50.7 cents a gallon from FY2028 and then keep growing, which is above any full year yet and below the latest quarter. Or growth after FY2036 has to be 3.3%, nearly a point above the 2.5% I use, for ever. Or I have to accept 7.9% instead of 8.5%. None of these is silly. All three are bets that the present is normal.

My base case at other rates

Value per share in C$, every other input as in my base case.

My base case at other rates
Discount rateGrowth after FY2036: 1.5%2.0%2.5%3.0%3.5%
7.5%C$78C$83C$89C$96C$106
8.0%C$71C$75C$80C$86C$93
8.5%C$65C$69C$73C$77C$83
9.0%C$60C$63C$67C$70C$75
9.5%C$56C$58C$61C$64C$68
At 7.5% and 3.5% growth for ever, the most generous corner, the value is C$106, about a third above the price. Source My model [4]. Values are my estimates.

What it is worth, against the price

Value per share in Canadian dollars, my estimates, against the TSX close in Q4 2026

  • Bear to bull C$35 to C$112
  • Base C$73
  • Price C$80.98
  • Margin of safety below C$51
What it is worth, against the priceValue per share in Canadian dollars: bear C$35, base C$73, bull C$112. Price in Q4 2026: C$80.98, 11% above the base value. Margin-of-safety price C$51.BEARC$35BASEC$73BULLC$112Price C$80.98What it is worth, against the priceValue per share in Canadian dollars: bear C$35, base C$73, bull C$112. Price in Q4 2026: C$80.98, 11% above the base value. Margin-of-safety price C$51.BEARC$35BASEC$73BULLC$112Price C$80.98What it is worth, against the priceValue per share in Canadian dollars: bear C$35, base C$73, bull C$112. Price in Q4 2026: C$80.98, 11% above the base value. Margin-of-safety price C$51.Margin-of-safety zone: below C$51C$0C$40C$80C$120Bear to bull: C$35 to C$112Bear case: C$35 per shareBEARC$35Base case: C$73 per shareBASEC$73Bull case: C$112 per shareBULLC$112Price in Q4 2026: C$80.98Price C$80.98Close in Q4 2026
Each case includes Żabka at 90% odds of closing. In US dollars the range is US$25 to US$80, base US$52, at C$1.396. Source TSX close; Bank of Canada [1][2]. Values are my estimates.

The margin of safety, and the price against the range

My margin-of-safety price is C$51, US$37. It is 70% of my base value. At that price an owner would have a 30% cushion against being wrong about the fuel margin, and the price would be 46% above my bear. The shares last closed below C$51 in June 2022.1 It would also be 11 times adjusted earnings. At C$80.98 there is no margin of safety. The price is 11% above my base, 28% below my bull, and 2.3 times my bear. My weighted value, with 25% on the bear, 50% on the base and 25% on the bull, is C$73.

The price reflects a real debate. One side says US fuel margins have moved up for good: they have been at or above 45 cents for four fiscal years, Casey’s sees the same, and the first quarter of FY2027 reached 52.61. That side would say my base is too low, and my bull is the central case. The other side says margins were 24 cents in FY2019 and that a boom in margin is an invitation to competitors to cut price, with electric cars waiting behind. That side would say my bear is more likely than I give it. I give the first side more of the weight than the second, and I still end up with a base below the price, because costs are not going to wait. The market could be right, and I name the case for it: this is a well-run company, earning a record, with a founder who owns a seventh of it and has just shown he will walk away from a bad deal.

The next best use of the same dollar

The closest comparable on this site is Costco. Its base return, from today’s price to 2036 with owner cash counted, is 0.7% a year in my work, and Walmart’s is negative 0.9%. Couche-Tard’s base return is 7.5% (estimate). That beats both and the 3.84% on a ten-year Canadian bond by about 3.7 points, and it falls short of the 8.5% I ask for. It differs from the 7.9% above because that is the rate at which my base cash flows equal the price, while this return assumes the value I put on the business in October 2036. Costco may well be the better business, and its price leaves a lower return. Couche-Tard is a good business at a fair-to-full price. Those are separate questions, and I answer them separately: the quality is high and the price is a little above what I think it is worth. I give neither a grade.

If the bull case needs many things at once, I multiply them out. For the bull I need the US margin to hold near 49 cents (about 45% likely, by my guess), expenses to grow no more than 2.2% a year (40%), merchandise sales to grow 4.8% a year against 1.9% in the last year (35%), and Żabka to deliver its savings (50%). Together that is 3% if they are independent. They are not independent, since a strong consumer helps three of them, so I call it about 10%, not 25% (estimate). My weighting of the bull at 25% is generous on that arithmetic.

Where this could be in 5 and 10 years

Value per share in 5 and 10 years

My estimates in each year’s Canadian dollars. Value is the present value, at that date, of the cash the business makes after it, less today’s net debt held flat, at 8.5% with 2.5% growth at the end in the base, per today’s share count, with the Żabka line included. Owner cash is the cash left after tax, leases, capital spending and interest on that debt. Return a year starts from C$80.98 and adds price growth to cash paid.

Value in 5 and 10 years
CaseValue per share, October 2031Value per share, October 2036Owner cash per share, to October 2036Return a year, to October 2036
BearC$35C$39C$33−1.5%
BaseC$82C$94C$52+7.5%
BullC$132C$155C$70+13.3%
Source Values and returns are my estimates (estimate).

For the base to be right at 5 years, the US margin has to be near 47 cents in FY2030 and 48 in FY2031, and merchandise sales have to grow about 4% a year. EBITDA is then US$7.3B in FY2031, and the business is worth C$82 a share, C$9 more than today, because five years of cash have gone out and the value of the rest has grown (estimate). For it to be right at 10 years, EBITDA reaches US$8.1B and owner cash before interest US$3.9B in FY2036, and the value is C$94. Bear and bull differ on the fuel margin and on how fast costs grow: in the bear EBITDA stays near US$5.8B, in the bull it reaches US$10.3B by FY2036. The four numbers that drive it are fuel margin, expense growth, the share of that growth that needs capital, and the 8.5% rate.

The most likely way my base is wrong is the fuel margin. Four cents more from FY2028 lifts year 10 to C$103, and four cents less cuts it to C$85 (estimate). These are estimates of value, not forecasts of the share price. The market price can sit above or below value for years.

The case for the price

What most people miss

Three things cut in Couche-Tard’s favour and get little attention. First, the stock pay is paid in cash and is already inside the cash flow I use. The share units are settled in cash, options are 0.2% of the shares, and the diluted share count is down 18% in nine years, so owners were not diluted to pay for the earnings.318 Second, leverage has come down while it spent: net debt to EBITDA, with leases, was 1.77 times in July against 2.25 times at April 2024, after paying US$1.6B for GetGo and buying back US$1.6B of shares in FY2026.45 Third, the cash is being earned. Free cash flow on the company’s own definition was about US$3.1B in FY2026 against a target of more than US$2.5B, TotalEnergies savings are on plan at €61M a year with €120M expected in FY2027, and adjusted earnings a share rose 15% in the first quarter while the shares were 14% below the June high.11451

The bull case

In plain words: fuel margins have reset higher for good, the stores are getting better at food and loyalty, costs are under control, and the company has a track record of buying networks and cutting costs. Management put numbers on it in February 2026. From FY2026 to FY2030 it aims for same-store merchandise growth of 2% to 3% a year, merchandise revenue growth of 4% to 5%, fuel gross profit growing with inflation, expense growth at or below inflation, adjusted EBITDA growth of 6% to 8%, and adjusted earnings a share growth of 10% or more.11 It points to a cost programme worth about US$850M of EBITDA, 750 new stores by 2030, and the Żabka deal as accretive by year two.1147 Mr. Miller called it the next stage of the growth journey and Mr. Da Silva said the targets were calibrated and measurable.11

I found no named analyst or fund manager whose published view on this company I could verify, so the bull case on this page is management’s own. The one named holder I can document is CDPQ, which sold 8.7M shares back to the company in July 2024 at C$80.50, a 3% discount, and kept about 3.5% at the time; the sale was described as a portfolio rebalance.10 That tells me about a holder’s timing in 2024 and nothing about today. Mr. Bouchard’s 13.45% is a holding, not a stated reason.10

Against reality

If Couche-Tard hits the low end of its target, EBITDA is US$8.5B in FY2030, and my model then gives about C$116 a share, a little above my bull and 43% above the price. So the price is possible, and it needs less than the full plan. The distance from today is the point. In the 12 weeks to July, adjusted EBITDA was up 10.5%, but last year’s base was weak, and over the 52 weeks it is only 2.5% above FY2026.5 To reach US$8.5B it has to grow 5.7% a year from the last 12 months, for 3.75 years (calculated). That works only if fuel profit keeps growing with inflation from a record, merchandise grows over 4% against 1.9% now, and costs grow less than 2.5% against 2.7% to 3.1% now.

I multiplied out the odds for the bull case in Valuation: about 3% if the four conditions are independent, perhaps 10% with the overlap (estimate). The price asks for less than the bull. It needs the fuel margin and the costs, and does not need Żabka’s savings, so it is more likely than the bull, and still not the central case.

What a 10x would take. Ten times C$80.98 is C$810, a market value of about C$745B, or US$534B. At 18 times earnings that needs about US$29.7B of net income, 9.4 times the US$3.14B of FY2026 (calculated). At today’s net margin of 4.1% that is revenue of about US$720B, more than nine times today’s. In ten years it would take 26% a year. For comparison, the shares rose 9% a year in the last ten years, from C$34.06 to C$80.98, and earnings a share 13.7% a year, with US$14.6B of deals.1183 Couche-Tard sells into fuel and convenience markets that grow a few percent a year, and it would have to own a large part of all of them. Tenfold from here is close to impossible, and I would not build anything on it.

What they have to hit

Six numbers published on a fixed schedule. Thresholds are what this price needs, and they agree with the signposts below.

What they have to hit
IndicatorTodayWhat the case needsWhere to track itNext check
US fuel margin, cents a gallon47.49 in FY2026; 52.61 in Q1 FY202745At least 50.7 sustained from FY2028 (estimate)MD&A, Other operating data, road transportation fuel gross margin, United States; and the eight-quarter table after card feesQ2 FY2027 report, 24 November 202615
Adjusted EBITDAUS$6.88B over 52 weeks to July 20265US$8.5B or more in FY2030, the low end of the 6% to 8% target (estimate)MD&A, EBITDA and adjusted EBITDA table, 52-week columnQ2 FY2027 report, 24 November 2026
Same-store merchandise sales1.9% in FY2026; 1.6% in Q1452% to 3% a year, the company’s own target11MD&A, Growth of consolidated same-store merchandise revenuesQ2 FY2027 report, 24 November 2026
Expense growth, normalized3.1% in FY2026; 2.7% in Q145Inflation or lower, about 2.2% in my bull (estimate)MD&A, Normalized growth of expenses tableQ2 FY2027 report, 24 November 2026
Leverage after Żabka1.77 times net debt to EBITDA5About 3.0 at closing, back in range in year two7MD&A, Leverage ratio; Żabka tender results on the company’s press-release pageOffer period reported extended to 2 December 202629; Q2 report 24 November
Return on capital employed13.7% in FY2026415% or more by FY2029, and a double-digit return at Żabka by year three (estimate)Annual MD&A, Return on capital employed tableFY2027 annual report, expected late June 2027
Source Fiscal 2026 MD&A; Q1 FY2027 report; Feb 2026 release [4][5][11]. Thresholds are my estimates unless marked.

Where I come down

What moved me was cash: owner cash is 96% of net earnings, the balance sheet is strong, and the walk-away from Seven & i was the right call. What did not move me was the record margin; it is a gift from the market, and I treat part of it as temporary. What would raise my values is a US fuel margin at or above 50.7 cents on the reported measure for a full year, with expense growth under 2.5%. Each cent is worth about C$1.8 a share.

Risks, and what would change my view

The three ways this goes badly wrong are at the start of Valuation. These are the rest.

  • Nicotine. US$7.1B of sales and US$1.3B of gross profit, in a category the filing says may be hurt by price rises, taxes, bans and illicit trade.4
  • Electric cars. Norway’s new cars were 95.9% electric in 2025. The company does not publish Norway’s fuel volumes, so the pace of loss is invisible to me.23
  • Legal items. The US$261M net recovery in FY2026 included payments in a card-fee case where the company was a plaintiff, offset by other legacy matters. It is unlikely to repeat.4
  • Leverage. About 3.0 times at the Żabka closing. The company says it will be back in range in the second year, with no expected change in its rating.7
  • The minority put. A US$292M redemption liability, which the filing shows in the FY2027 column of obligations, relates to the Belgian business, and I treat it as debt.4
  • Currency. The company reports in US dollars and earns about 37% of its gross profit outside the United States, in euros, Nordic and Polish currencies, Hong Kong and Canadian dollars.3 A 5% move in the currencies of its cash balances changes net earnings by about US$41M, partly offset by US$26M on its dollar debt.4
  • Succession and control. Mr. Bouchard’s 13.45% has no extra votes, but the company is closely tied to him and to the founder-led culture.10
  • Tax and interest. The tax rate was 22.9% and rose from 22.0%, and variable-rate debt is small, so interest rates matter little in the near term.4

Geopolitical risk, and what it means for the value

Couche-Tard deconsolidated its Russian subsidiaries in April 2022, has no stores of its own in the Middle East, and has no state owner. Its exposure is indirect. It sells fuel in 48 US states, ten Canadian provinces, the Nordic and Baltic countries, Poland, Germany, Belgium, the Netherlands, Ireland and Hong Kong, and it licenses the Circle K name in 12 other countries, including Saudi Arabia and the Emirates.4 The chokepoints are the price of crude and the sea lanes that carry it, trade rules between the US and Canada, and the border between NATO’s eastern members and Russia. The filing names “hostilities and geopolitical tensions in the Middle East” and tariffs, including retaliatory tariffs, as risks.4

The effect of a conflict on this company is not one-way. In the last quarter of FY2026 the fuel margin rose sharply in Europe because of price volatility, which the company credited to its supply chain.4 A spike is first a gift and then a cost, because customers drive less: European same-store fuel volumes fell 4.4% that quarter.4 I rerun the base case for each scenario below. They are not predictions. The price of C$80.98 is above my base, so it already assumes the margins of today persist and treats the volatility windfall as normal. I see nothing in it that allows for any of these cases.

Five geopolitical cases, rerun through the model

Base value per share is C$73. Each row changes only what it names. Odds are my judgement over five years, not forecasts.

Geopolitical scenarios
ScenarioWhat changesOdds, five yearsBase becomesChange
Gulf shipping disrupted for a year or moreUS volumes 3.5% then 3% lower and Europe 3.5% then 2% lower, lost for good; US margin 3¢ higher then 3¢ lower, normal by FY2031; expenses 1 point higher in each of two yearsAbout 1 in 8; my judgement, since the filing names Middle East hostilities and I have no frequency dataC$63−C$10
Trade war and a weaker US consumerMerchandise growth 1.5 points lower for three years; US fuel volumes 1 point lower in each of two years; merchandise margin 0.3 points lower for goodAbout 1 in 4; tariffs and retaliation are already risk factors, and same-store sales grew only 1.9%C$64−C$9
Europe energy or Baltic shockEuropean margin 1¢, 2¢, 2¢ then 1¢ lower, then normal; volumes 2.5 points a year lower for three yearsAbout 1 in 10; a guess, resting on Europe being 26% of gross profit and the Baltics bordering RussiaC$70−C$3
Poland: zloty, war spillover or a retail taxŻabka worth 30% less than the US$8.6B paid, no synergiesAbout 1 in 6; a guess, since I have not seen Żabka’s cash flowsC$68−C$5
The Żabka deal does not closeRemove the Żabka lineAbout 1 in 10; 57% of shares are committed, and the Polish competition filing was received on 14 October with no decision yetC$72−C$1
Source My model; fiscal 2026 MD&A, Business Risks; Żabka release [4][7]. Odds are my estimates.

The largest single loss is a long disruption in the Gulf, where I put the odds at about 1 in 8 over five years on my own judgement, since I have no model for it. The most likely is trade friction, at about 1 in 4, because tariffs are already in the filing and same-store sales grew only 1.9%. Weighted by those odds, trade friction costs more than the Gulf, about C$2 a share against about C$1. Hong Kong, with 387 of 14,563 stores, is small, and the filing does not break out its profit. Żabka sits close to a war and its 13,000 stores earn in zloty and euros, and I show it separately for that reason. Odds here are guesses and the values depend on my model.

What would change my view

Signals that move my values, in either direction.

Signposts
SignalTodayRaises my valueLowers my value
US fuel margin, reported measure47.49 cents in FY2026; 52.61 in Q1 FY202745At or above 50.7 for four quartersBelow 44, near the level of FY2024
Expense growth, normalized2.7% in Q15Under 2.5% for four quartersOver 3.5%
Same-store merchandise sales1.6% in Q1; 1.9% in FY202645Two years above 3%Negative again, as in FY2025
Buybacks0.4M shares, US$26M, in Q1 FY2027; 30.0M shares in FY202654Resumed after Żabka closesNew large deals before leverage is back near 2
Leverage1.77 times net debt to EBITDA5Back near 2.0 within 18 months of closingStill above 2.5 after two years
Return on capital employed13.7%4Above 15% after ŻabkaBelow 12%
Fuel volumesUS −1.0%, Europe −2.2% same-store in FY20264Level in EuropeEurope down more than 3% a year
ŻabkaTender launched; 57% committed7Closed on terms with no price risePrice raised or the deal blocked
Source Fiscal 2026 MD&A; Q1 FY2027 report; Żabka release [4][5][7]. Thresholds are my judgement.

Sources

  1. 1ATD.TO daily closes, TSX, 31 October 2016 to 30 October 2026 (opens in a new tab)PriceYahoo Finance chart feed · 30 Oct 2026 · Close on 30 October 2026 C$80.98, Toronto Stock Exchange; split-adjusted history · Accessed 31 Oct 2026↩︎
  2. 2USD/CAD daily average exchange rate, series FXUSDCAD (opens in a new tab)DataBank of Canada · 30 Oct 2026 · 1.3960 on 30 October 2026 · Accessed 31 Oct 2026↩︎
  3. 3Audited consolidated financial statements, fiscal 2026 (opens in a new tab)FilingAlimentation Couche-Tard · 22 Jun 2026 · Statements, Note 11 (financing), Note 25 (stock-based pay), Note 31 (segments) · Accessed 31 Oct 2026↩︎
  4. 4Management discussion and analysis, fiscal 2026 (52 weeks to 26 April 2026) (opens in a new tab)FilingAlimentation Couche-Tard · 22 Jun 2026 · Results, KPIs, non-IFRS reconciliations, liquidity, debt, business risks, outlook · Accessed 31 Oct 2026↩︎
  5. 5Quarterly report, first quarter of fiscal 2027 (12 weeks to 19 July 2026) (opens in a new tab)FilingAlimentation Couche-Tard · 1 Sep 2026 · Q1 results, fuel margins, balance sheet, Zabka agreement, new buyback · Accessed 31 Oct 2026↩︎
  6. 6Audited consolidated financial statements, fiscal 2019 (opens in a new tab)FilingAlimentation Couche-Tard · Jul 2019 · Statements for fiscal 2019; the matching MD&A is at https://corporate.couche-tard.com/image/2019-Management-Discussion-and-Analysis-1.pdf · Accessed 31 Oct 2026↩︎
  7. 7Couche-Tard announces agreement to acquire controlling stake in Zabka Group and launches voluntary tender offer (opens in a new tab)Press releaseAlimentation Couche-Tard via CNW · 31 Jul 2026 · PLN 32.00 a share, equity value PLN 32.62 billion, 57% irrevocables, 3.0x pro forma leverage, synergies, timing · Accessed 31 Oct 2026↩︎
  8. 8Casey’s announces fourth quarter and fiscal year 2026 results (opens in a new tab)Press releaseCasey’s General Stores, Exhibit 99.1 to Form 8-K · 9 Jun 2026 · Fuel gross profit US$1,496.6M on 3,515.2M gallons, 42.6 cents; 38.7 a year earlier; fiscal 2027 outlook · Accessed 31 Oct 2026↩︎
  9. 9Management information circular, 8 July 2026 (opens in a new tab)FilingAlimentation Couche-Tard · 8 Jul 2026 · Pay, share ownership requirements, summary compensation table, Mr. Bouchard’s holding · Accessed 31 Oct 2026↩︎
  10. 10Annual information form, fiscal 2026 (opens in a new tab)FilingAlimentation Couche-Tard · 26 Apr 2026 · Business, history of deals, capital structure and the 2022 share conversion, directors · Accessed 31 Oct 2026↩︎
  11. 11Couche-Tard presents its 2026 business strategy update and new long-term guidance (opens in a new tab)Press releaseAlimentation Couche-Tard · 11 Feb 2026 · Targets to fiscal 2030; free cash flow definition and Fit-to-Serve · Accessed 31 Oct 2026↩︎
  12. 12Audited consolidated financial statements, fiscal 2018 (opens in a new tab)FilingAlimentation Couche-Tard · Jul 2018 · Statements for fiscal 2018; the matching MD&A is at https://corporate.couche-tard.com/image/MDA-anglais-2018.pdf · Accessed 31 Oct 2026↩︎
  13. 13Couche-Tard announces withdrawal of proposal to acquire Seven & i Holdings due to lack of engagement (opens in a new tab)Press releaseAlimentation Couche-Tard · 16 Jul 2025 · Letter to the Seven & i board: 2,600 yen a share, 47.6% premium; diligence record · Accessed 31 Oct 2026↩︎
  14. 14Couche-Tard enters into definitive agreement to acquire retail assets from Irving Oil in Quebec and Ontario (opens in a new tab)Press releaseAlimentation Couche-Tard · 9 Oct 2026 · Sites and approvals; price not disclosed · Accessed 31 Oct 2026↩︎
  15. 15Couche-Tard to release results for its second quarter of fiscal year 2027 on 24 November 2026 (opens in a new tab)Press releaseAlimentation Couche-Tard · 30 Oct 2026 · Next results date · Accessed 31 Oct 2026↩︎
  16. 16Audited consolidated financial statements, fiscal 2020 (opens in a new tab)FilingAlimentation Couche-Tard · Jul 2020 · Statements for fiscal 2020; the matching MD&A is at https://corporate.couche-tard.com/image/2020-Management-Discussion-Analysis.pdf · Accessed 31 Oct 2026↩︎
  17. 17Audited consolidated financial statements, fiscal 2021 (opens in a new tab)FilingAlimentation Couche-Tard · Jul 2021 · Statements for fiscal 2021; the matching MD&A is at https://corporate.couche-tard.com/image/2021-Q4-Management-Discussion-Analysis-En.pdf · Accessed 31 Oct 2026↩︎
  18. 18Audited consolidated financial statements, fiscal 2017 (opens in a new tab)FilingAlimentation Couche-Tard · 19 Jul 2017 · Statements for fiscal 2017; the matching MD&A is at https://corporate.couche-tard.com/image/2017-MDA-En1.pdf · Accessed 31 Oct 2026↩︎
  19. 19Audited consolidated financial statements, fiscal 2022 (opens in a new tab)FilingAlimentation Couche-Tard · Jul 2022 · Statements for fiscal 2022; the matching MD&A is at https://corporate.couche-tard.com/image/2022-Q4-Management-Discussion-Analysis-En.pdf · Accessed 31 Oct 2026↩︎
  20. 20Audited consolidated financial statements, fiscal 2023 (opens in a new tab)FilingAlimentation Couche-Tard · Jun 2023 · Statements for fiscal 2023; the matching MD&A is at https://corporate.couche-tard.com/image/2023-Q4-Management-Discussion-Analysis-En.pdf · Accessed 31 Oct 2026↩︎
  21. 21Audited consolidated financial statements, fiscal 2024 (opens in a new tab)FilingAlimentation Couche-Tard · Jun 2024 · Statements for fiscal 2024; the matching MD&A is at https://corporate.couche-tard.com/image/2024-Q4-Management-Discussion-Analysis-En-1.pdf · Accessed 31 Oct 2026↩︎
  22. 22Audited consolidated financial statements, fiscal 2025 (opens in a new tab)FilingAlimentation Couche-Tard · Jun 2025 · Statements for fiscal 2025; the matching MD&A is at https://corporate.couche-tard.com/download/2025+-+Q4+Management+Discussion+%26+Analysis+-+En.pdf · Accessed 31 Oct 2026↩︎
  23. 23Battery-electric cars dominate Norway – and its fleets (opens in a new tab)Newselectrive · 3 Jan 2026 · Norway new-car sales 95.9% battery-electric in 2025, citing the Norwegian Road Federation (OFV) · Accessed 31 Oct 2026↩︎
  24. 242026 Sustainability Report (opens in a new tab)ReportAlimentation Couche-Tard · 23 Jun 2026 · EV charging points, Norway and Sweden, IONNA partnership · Accessed 31 Oct 2026↩︎
  25. 25Couche-Tard withdraws bid to acquire Seven & i (opens in a new tab)NewsNACS · 17 Jul 2025 · Reported size of the proposal, about US$47 billion · Accessed 31 Oct 2026↩︎
  26. 26Alimentation Couche-Tard (TSX:ATD) price history (opens in a new tab)PriceStockAnalysis · 30 Oct 2026 · Second source for the close: C$80.98 on 30 October, C$80.47 on 29 October · Accessed 31 Oct 2026↩︎
  27. 27Government of Canada benchmark 10-year bond yield, series BD.CDN.10YR.DQ.YLD (opens in a new tab)DataBank of Canada · 29 Oct 2026 · 3.84% on 29 October 2026 · Accessed 31 Oct 2026↩︎
  28. 28Zabka Group (WSE:ZAB) balance sheet, 30 June 2026 (opens in a new tab)DataStockAnalysis · Oct 2026 · Lease liabilities about PLN 5.7 billion and total debt PLN 9.6 billion, so net debt about PLN 8.0 billion; an aggregator, so approximate. Cross-check: Żabka’s Q2 2026 results call (31 Jul 2026, zabkagroup.com) gives net financial debt without leases of PLN 2.3 billion and cash above PLN 1.6 billion, and 2.3 plus 5.7 matches · Accessed 31 Oct 2026↩︎
  29. 29Couche-Tard extends Zabka tender offer: December 2 deadline (opens in a new tab)Newsad-hoc-news · 19 Oct 2026 · Secondary report of a PAP Biznes item: acceptance period extended from 26 October to 2 December 2026, price unchanged at PLN 32; completion planned 7 December. A Reuters headline and Polish press citing the broker’s notice say the same. UOKiK says it received Circle K Polska’s filing on 14 October (made public 16 October), review ongoing. I could not open the Couche-Tard release or the offer notice itself, so the extension is secondary · Accessed 31 Oct 2026↩︎

How the figures are labelled

(reported)Reported: taken from a filing or a price feed, as printed.

(calculated)Calculated: arithmetic on reported figures, such as a margin or a growth rate.

(estimate)Estimate: my judgement, such as a case value or a growth assumption.

The price

Close in Q4 2026: C$80.98, Toronto Stock Exchange, from a chart feed and checked against a second price history [1][26]. Retrieved in Q4 2026. The company reports in US dollars under IFRS; the shares trade in Canadian dollars, so the price and my per-share values are in C$, with US$ beside them. The exchange rate is C$1.3960 per US$, the Bank of Canada’s average on the price date, which gives US$58.01 [2]. Shares are the 917,962,609 outstanding on 27 August 2026 plus 2,546,255 options, 920.5M in all [5]. Net financial debt is US$7.13B at 19 July 2026 plus a US$292M minority put. Fiscal years end in late April; FY2026 is the 52 weeks to 26 April 2026. Per-share figures before FY2020 are halved for the 2-for-1 split.

The valuation

A ten-year cash flow built from three fuel pools and a merchandise line, discounted at 8.5% to 31 October 2026, then growth of 2.0%, 2.5% or 3.0% in the bear, base and bull. Cash arrives mid-year; FY2027 counts only its second half. Cash is EBITDA less tax at 23.5% of EBITDA less depreciation and lease interest, less lease payments (US$771M in FY2026, rising 3% a year), less capital spending net of sales of property (stand-still US$1.55B rising 2.5% a year, plus growth spending of US$500M falling to US$150M in the base). Leases are therefore a cost and not debt. Stock pay is cash-settled and already in the figures. Currency is held at April 2026 averages. Cash earned between 19 July and 31 October 2026 is counted neither in net debt, which is at 19 July, nor in the second half of FY2027, which starts on 31 October; I estimate it at about C$1 a share and have not added it. Żabka is a separate line: its price taken as fair, plus or minus what Couche-Tard gains or loses beyond it, at 90% odds. Irving Oil is excluded. The yearly return in the horizon table is the rate that equates the price with owner cash after interest on today’s net debt, held flat, plus the value in October 2036. The odds in Section VII are my guesses; the weighted value of C$73 uses 25%, 50% and 25%.

The margin-of-safety price is C$51, 70% of the base. No rating: the page states a range and the price, and leaves the decision to the reader.

Research, not investment advice. Figures as of .

Legal information and disclosures

These are my own views as of the update shown on this page. They can change without notice, and I have no duty to update them. Past performance does not indicate future results, and any investment can lose money.

This is for education only. It is not investment, legal, tax or accounting advice, and it is not an offer to sell or a solicitation to buy any security in any jurisdiction. It does not consider your goals or circumstances.

Figures from company filings and other third parties are believed to be reliable, but I have not independently verified them and cannot guarantee them. Bear, base and bull values, and anything marked as an estimate, are my own and rest on assumptions that may prove wrong.

Please do not copy or republish this material without my written consent.