My Favourite Canadian Stock Pick for Long-term Wealth

Alimentation Couche-Tard (TSX:ATD) stock stands out as a deep-value winner for long-term investors.

Key Points
  • New investors should focus on buying high‑quality companies and holding them for the long term (10+ years) rather than trying to time trades.
  • Alimentation Couche‑Tard (TSX:ATD) is singled out as a favorite long‑term pick—its strong M&A track record and potential to expand via food‑focused convenience concepts (or targeted acquisitions like Wawa/Casey’s) could drive durable growth.

To build real long-term wealth, new investors should not seek to become any sort of trading wizard, with the agility to move into stocks ahead of a big run and the foresight to get out before the next inevitable downturn. Indeed, it’d be ideal to sell at the tops and buy at the lows, but, in reality, it’s tough to do. And for the many new investors looking to get started, I’d argue that it’s a better use of time to look for those truly solid companies and hang onto their shares for life.

Indeed, investors can get out of a stock quite quickly these days. And with commission fees on the descent, one can trade in or out quite affordably, depending on one’s broker. Indeed, perhaps hefty commissions are a good thing if they incentivize deeper thought about an investment before purchase. In any case, this piece will look at one of my favourite long-term stock picks for investors seeking to invest for at least the next 10 years.

Undoubtedly, that’s a lengthy horizon that’s not realistic for many. However, if you’re a young investor who doesn’t expect any hefty costs in the future, I think the following names are worth adding to a watchlist in this final quarter of 2025.

Middle aged man drinks coffee

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Alimentation Couche-Tard

Alimentation Couche-Tard (TSX: ATD) has to be one of my favourite retailers of all time. The convenience retailer has grown a lot over the decades, thanks in part to smart deal-making. But more recently, not as many deals have been happening, either due to regulatory hurdles or other factors. Still, I continue to believe it’s far better for a proposed deal to fall through than for one that’s too pricey to get the green light. Add enough sweetener to the original offer price, and you might risk overpaying, limiting synergies, or, worse, eroding value.

Over time, Couche-Tard has proven that investors can trust it to deliver a good bang for their investment dollars. Still, one big issue with the name is that it has been so long since the last big exciting deal.

Personally, I think Couche-Tard might want to focus its efforts on expanding its presence in North America, preferably through a convenience retailer with a “secret sauce” to grow in an environment where food, not fuel, is key to taking things to the next level.

Taking inspiration from food-focused convenience store rivals

Indeed, there are many convenience stores with cult-like followings. From American rivals like Wawa to Casey’s General Stores (NASDAQ: CASY), you really don’t need to look far for inspiration, as the future convenience stores become more competitive with quick-serve restaurants. I’ve often remarked on smaller U.S.-based convenience chains like Casey’s, Wawa, and Sheetz. These convenience store models, I think, change what it means to be a convenience store in 2025. And I think Couche-Tard knows how important it is to have food do more of the heavy lifting.

In short, it’s the delicious food that draws in crowds, perhaps even more so than convenience. And if Couche-Tard can innovate on food, I do think Circle K could be a disruptive force again.

Perhaps Couche-Tard doesn’t need to acquire 7 & i Holdings or Casey’s (a Casey’s deal fell through more than a decade ago) to gain a leg up. Arguably, management is already on the right track, and I think they’re just getting started. As such, I wouldn’t bet against the convenience retailer as it pivots to restaurant-quality food.

Personally, I think their next big deal should be a restaurant chain or a convenience retailer that’s perfected food, like a Wawa, or perhaps Couche-Tard might want to give Casey’s another look, even though the price of admission is way steeper now. In some cases, it may be wise to pay up for a top-notch firm, not only for the stores, but for the talent.

Fool contributor Joey Frenette has positions in Alimentation Couche-Tard. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool has a disclosure policy.

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