Valued at a market cap of almost $70 billion, Alimentation-Couche Tard (TSX:ATD) is among the largest companies in Canada. Alimentation Couche-Tard operates and licenses convenience stores across North America, Europe, and Asia under banners including Circle K, Couche-Tard, and Holiday.
The company sells fuel, food, beverages, tobacco products, and operates EV charging stations. Founded in 1980 and headquartered in Laval, Canada, it maintains a global presence spanning multiple continents.
ATD stock went public in October 1999 and has since returned 16,000% to shareholders. It means a $1,000 investment in ATD stock soon after its initial public offering would be worth over $160,000 today.
Let’s see if ATD stock can keep beating the broader market over the next 12 months and beyond.
Is ATD stock a good buy?
Alimentation Couche-Tard delivered improved first-quarter results with positive same-store sales across its global network, including the United States for the first time in several quarters.
The convenience store and fuel retailer reported same-store merchandise revenue growth of 0.4% in the U.S., 3.8% in Europe, and 4.1% in Canada as its focus on value and simplified food offerings resonated with budget-conscious consumers.
ATD added nearly 270 GetGo stores it acquired from Giant Eagle, a significant addition to the company’s U.S. footprint. Management highlighted GetGo’s strengths in food service and loyalty programs as valuable learnings that can enhance operations across the broader network.
ATD opened 10 new stores in the quarter and remains on track to deliver over 100 new North American locations this fiscal year, with nearly 65 stores currently under construction and 1,000 sites in the development pipeline.
Couche-Tard’s meal deal strategy performed well, with 8.6 million food bundles sold at quarter-end, averaging 750,000 per week, up from 540,000 at the end of fiscal 2025, indicating growth of almost 40%.
ATD announced a partnership with celebrity chef Guy Fieri to launch 11 exclusive menu items across hundreds of locations in 10 northern U.S. states, widening its revenue streams.
The loyalty program expansion accelerated, with Inner Circle membership reaching 11.5 million. The company deployed the program to Texas, its largest U.S. market, and implemented a new customer data platform enabling real-time engagement at physical locations.
In Canada, alcohol sales surged following legislative changes in Ontario, with wine sales more than doubling and strong liquor performance offsetting tobacco declines from illicit trade.
Management reaffirmed its $800 million cost-savings target over five years, expressing confidence in exceeding it through initiatives in procurement, back-office optimization, and store labour efficiency.
ATD continues to expand its Circle K brand across European markets with 65 sites branded Circle K by quarter-end and nearly 185 locations featuring EV charging infrastructure. Fuel margins in North America remained aligned with previous quarters, while larger European markets posted particularly strong results.
What is the ATD stock price target?
Analysts tracking ATD stock forecast revenue to increase from $55 billion in fiscal 2025 to $66 billion in 2029. In this period, adjusted earnings are forecast to expand from $8.20 per share to $11 per share.
If the TSX stock is priced at 10 times forward earnings, which is reasonable, it could surge close to 60% over the next four years. Given consensus price targets, ATD stock trades at a 15% discount in October 2025.
