Home / Business and Economy / Couche-Tard Shifts Focus: Fuel, Food, and Fewer Acquisitions
Couche-Tard Shifts Focus: Fuel, Food, and Fewer Acquisitions
12 Feb
Summary
- Company targets 6-8% annual growth in adjusted earnings by 2030.
- Mergers and acquisitions are no longer central to financial outlook.
- Investment in food strategy and technology is increasing.
Alimentation Couche-Tard Inc. is sharpening its focus on expanding its core convenience store business, prioritizing fuel, nicotine, and beverage sales. The company announced it will also increase investments in its food strategy, alongside a commitment to cost discipline and efficient cash management.
This strategic update sidelines mergers and acquisitions in favor of organic growth, leading to the retailer's stock reaching its highest level since 2024. Couche-Tard now anticipates a compounded annual growth rate of 6% to 8% in adjusted earnings before interest, taxes, depreciation and amortization from fiscal year 2026 to 2030.
While M&A is not off the table, the company is providing clearer visibility into its organic growth plans. Priorities for expansion include markets in the US, Europe, Latin America, and Southeast Asia. This revised outlook replaces previous, more ambitious targets that included significant contributions from acquisitions.
The company is also investing in technology to enhance customer payment experiences and is dedicating 15% of its capital expenditures to electric vehicle charging stations, predominantly in Europe where the market is more mature.
