In 2025, Market turbulence has clouded short-term sentiment across sectors, including retail. However, long-term investors know that volatility often creates opportunity. If I were restricted to buying only one retail stock from the TSX today, my choice would be Alimentation Couche-Tard (TSX: ATD).
Despite being slightly off its highs right now, it maintains solid long-term fundamentals, scalable operations, and strong margins. It’s exactly the type of business you want to own through economic cycles — a retailer with efficient global operations and room to grow.
In this article, I’ll outline why Couche-Tard stock deserves a permanent spot in a long-term portfolio and why now could be the smartest time to buy it.
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Couche-Tard stock is falling after a 16-year run
So far in 2025, Couche-Tard stock is heading for what could become its first down year in 17 years.
That’s right — after delivering positive annual returns every single year since 2009, ATD stock is showing a rare patch of weakness this year. Of course, we’re still far from the calendar year’s finish line, but the stock’s performance so far paints a different picture from its usual steady climb.
Its shares are currently hovering around $68.51 apiece, down roughly 15% year to date. With this, it has a $64.7 billion market cap and a 1.1% annualized dividend yield.
What’s behind the recent weakness?
A large part of ATD stock’s recent weakness could be due to broader economic pressures and temporary disruptions.
In the third quarter (ended February 2, 2025) of its fiscal 2025, the company’s U.S. same-store road transportation fuel volumes fell by 3% YoY (year over year), largely due to unusually severe winter storms that disrupted travel across Couche-Tard’s southern U.S. markets.
Meanwhile, Couche-Tard’s fuel revenues for the quarter were pressured by lower average selling prices, which offset gains from improved margins and the added contribution of recent acquisitions. So, while the surface-level numbers suggested softness, the company’s underlying operations stayed resilient and, in some areas, even strengthened.
Strong margins and stable financials
Last quarter, Couche-Tard’s total revenue rose 6.5% YoY to US$20.9 billion. Similarly, its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 11.3% YoY to US$1.6 billion with the help of healthy fuel margins and strong contributions from recent acquisitions.
Also, its margins across the board looked solid. In the U.S., the company’s fuel gross margin ticked up to 44.28 cents per gallon, while merchandise and service margins held up well despite softer traffic.
Why it’s still a top long-term retail bet
While ATD stock may be falling now, the company itself is not slowing down. In the third quarter alone, Couche-Tard added 38 stores through acquisitions, opened 31 new locations, and had 56 more under construction.
It’s also making solid progress on integrating its major European acquisition from TotalEnergies, which is expected to deliver nearly US$179 million in annual cost savings by fiscal 2029.
That’s the kind of behind-the-scenes work that boosts its long-term outlook, even if it doesn’t immediately show up in ATD stock price.
So, yes, 2025 might go down as the first off-year for Couche-Tard stock in a long time. But when a business this steady and globally diversified faces short-term turbulence, long-term investors should be ready to load up.
