Alimentation Couche-Tard (TSX:ATD) is one of the largest corporations in Canada, building successful stores over the past two decades. Over this time, the company has grown exponentially and offered high returns to its shareholders. However, the question arises whether this trend will continue in 2025!
Well, go through this article to understand whether Alimentation Couche-Tard can be the best-performing large-cap Canadian stock in 2025.
What Does Couche-Tard Do?
Alimentation Couche-Tard is a retail company operating a convenience store network in North America and Europe. It deals in food, non-food items, and transportation fuels. Alimentation Couche-Tard distributes products through independent operators, merchandising and franchisees, and offers carwash services.
Over the last 10 years, Alimentation Couche-Tard has been a top performer on the Toronto Stock Exchange and offered consistent growth to its shareholders through its innovation and expansion strategies in the European markets.
Strong performance over the past year
In June 2024, Alimentation Couche-Tard announced its financial reports for the fiscal year 2024. In the financial report, the company highlighted revenue of US$69.2 billion and operating income of US$3.8 billion. Furthermore, the net financial expenses for the year were US$387.9 million and net earnings US$2.7 billion.
Alimentation Couche-Tard also highlighted the financial earnings for the fourth quarter of 2024. In the report, the company reported net earnings attributable to shareholders of US$43 million, or US$0.47 per diluted share. The adjusted net earnings attributable to the shareholders for the period came in at US$461 million, or US$0.48 per common share.
What could lead to outperformance in 2025?
With more than 16,700 stores in North America and Europe, Alimentation Couche-Tard has a market capitalization of CA$81 billion. The retailer has shown immense resilience and expansion over the past few years, making it a top contender for the best-performing large-cap Canadian stock in 2025. The company had impressive growth in 2023, reporting a revenue increase of 14.4% to $71.9 billion. Moreover, Alimentation Couche-Tard has reached steady earnings growth of CA$3.12 per common share.
The recent expansion of Alimentation Couche-Tard on the European market through the Total Energies deal showcases its strategic acquisitions to enhance its operations. In addition, Alimentation Couche-Tard is diversifying its business to earn more revenue by offering car wash services and electric vehicle charging facilities. It also plans to reach CA$10 billion EBITDA by fiscal 2028, which will help the company generate more revenue and distribute higher dividends to shareholders.
Furthermore, Alimentation Couche-Tard’s adjusted earnings per share and revenue increased at a CAGR of 15.2% and 6.2%, respectively. All these factors enabled the company to deliver 495% returns to shareholders over the past 10 years at an annualized rate of 19.5%.
Bottom line
Overall, you can invest in Alimentation Couche-Tard to diversify your investment portfolio and double your investment amount on the Toronto Stock Exchange. The company can be among the best-performing large-cap Canadian stocks in 2025. However, investors should still seek advice from financial experts to maximize the potential returns from such investments.
