Alimentation Couche-Tard Reports Strong Q1 Fiscal 2027 Results
LAVAL, QC, Sept. 1, 2026 /CourierPR/ -- Alimentation Couche-Tard, the largest retail chain in North America, has reported strong financial performance for its first quarter of fiscal year 2027, highlighting steady growth in both fuel and merchandise sales. The company’s results, presented at a recent press conference, underscore its strategic focus on expanding its convenience retail footprint while maintaining operational resilience.
President and CEO Alex Miller expressed optimism about the quarter, stating, "We are encouraged by the start to fiscal 2027 and the continued progress we are making through Core + More. Our U.S. stores have seen positive same-store merchandise sales growth for the fifth consecutive quarter, driven by a robust performance in food and beverage categories, including energy drinks and nicotine products."
Miller continued, "Our fuel business, a cornerstone of our operations, continues to demonstrate its strength and resilience, delivering solid profitability and highlighting the network's adaptability in a dynamic market environment. We are also excited about the recent acquisition plans for Żabka Group, Poland's largest convenience retailer. This move will enhance our capabilities in food, digital engagement, and supply chain, further strengthening our position in Central and Eastern Europe."
Chief Financial Officer Filipe Da Silva added, "The first quarter demonstrates our balanced approach to the business, with adjusted EBITDA growth of 10.5% and an 15.4% increase in adjusted diluted earnings per share, while maintaining normalized expense growth well below inflation. We remain committed to our strategic priorities and focused on sustainable long-term earnings growth."
Financial highlights for the quarter include: - Net earnings attributable to shareholders of $828.5 million, or $0.90 per diluted share, compared to $782.5 million or $0.82 per diluted share in the same quarter last year. - Total merchandise and service revenues of $4.9 billion, up 4.1% year-over-year. - Same-store merchandise revenues increased by 1.7% in the U.S. and 1.2% in Europe and other regions, while remaining stable in Canada. - Merchandise and service gross margins were 34.1% in the U.S., 33.3% in Canada, and 39.6% in Europe and other regions.
Despite a 1.6% decrease in same-store road transportation fuel volumes in the U.S. and a 4.3% decrease in Europe and other regions, Couche-Tard saw an increase in road transportation fuel gross margins, particularly in Europe, where margins rose by 11.34 cents per liter.
In a significant development, Couche-Tard announced plans to acquire Żabka Group, Poland's largest convenience retailer, with over 13,000 stores across Poland and Romania. The transaction, valued at approximately $8.6 billion, is expected to close before the end of fiscal 2027, bolstering Couche-Tard's presence in Central and Eastern Europe.
"These results reflect the strong execution of our strategy and the ongoing commitment to drive value for our shareholders," Miller concluded. "We are well-positioned to continue our growth trajectory and deliver on our long-term goals."
The company also highlighted its ongoing investments in customer value and traffic-driving initiatives, as well as its renewed share repurchase program, allowing for the repurchase of up to 74.2 million shares over the next year.