Dollarama (TSX:DOL) has been one of the most rewarding Canadian stocks for patient investors. While it doesn’t promise overnight miracles, it continues to deliver impressive long-term results. With a decade-long return of over 650%, it has quietly built wealth for shareholders by sticking to a simple promise – everyday items at low, fixed prices. In fact, the stock has surged 146% over the last three years alone.
Even as economic conditions shift, Dollarama has found ways to keep growing its revenue, earnings, and footprint. And its recent move into Australia and continued success with Dollarcity in Latin America have opened up new lanes of growth. In this article, I’ll take a look at what’s been fueling Dollarama’s momentum and why it still looks like a solid bet for the next three years and beyond.
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Why Dollarama stock continues to rally
Dollarama stock is currently trading at $199.34 per share, valuing the company at around $54.6 billion. It offers a modest annualized dividend yield of 0.2%, paid quarterly, which shows it’s more of a growth stock than an income play. But its growth story has been really powerful as the stock has climbed over 40% in the last 12 months, backed by its solid financials and growth fundamentals.
In the third quarter of its fiscal year 2026 (three months ended on November 2, 2025), Dollarama’s sales jumped 22.2% YoY (year-over-year) to nearly $1.9 billion. In addition to its home market, this strong growth was mainly driven by a strong contribution from its Australian operations through The Reject Shop. More importantly, the company’s same-store sales in Canada rose 6% YoY, reflecting a healthy mix of more transactions and slightly higher spending per visit.
Dollarama opened 19 new stores in Canada and 6 in Australia during the quarter, pushing its global store count to over 2,700. Despite higher expenses, its gross margin remained healthy at 44.8%.
As a result, the company posted a solid 16.6% YoY increase in its adjusted net profit to $321.7 million. That consistency, even in a shifting economic environment, clearly reflects its focus on managing costs and scaling its model.
Strong tailwinds from Latin America and Australia
It’s not just Canada where Dollarama is building scale. Its majority-owned Latin American operation, Dollarcity, continues to perform well. With over 680 stores, Dollarcity posted a 21.1% YoY increase in sales in the third quarter. Meanwhile, Dollarama’s share of Dollarcity’s net profit grew 56.5% YoY.
The company’s recent acquisition of The Reject Shop in Australia has opened up an entirely new market. Though the Australian segment is still in early stages and not yet profitable, Dollarama is continuing to lay the foundation for long-term growth, using its playbook to eventually drive efficiencies and scale. The company plans to grow this network to 700 stores in Australia by 2034, and that could be a key driver for its future financial and stock performance.
Where will Dollarama stock be three years from now?
Dollarama is already one of Canada’s strongest consumer stocks, but what’s even more exciting about this company is how early it still is in its global growth journey. Its long-term target is 2,200 stores in Canada by 2034, while Dollarcity aims to hit 1,050 stores in Latin America by 2031.
These goals show how this top Canadian discount retailer is thinking bigger than ever. Beyond that, its solid balance sheet, a free cash flow base of over $1.1 billion, and disciplined capital allocation could make its next three years just as strong as the last three – or even better.
