Rising Fuel Prices Result In Lower Earnings Estimates For CST Brands
Tristan R. Brown
Tristan R. Brown
The End Of The Powerball Run Doesn't Hurt The Outlook For CST Brands
Tristan R. Brown
Tristan R. Brown
Wed, Sep. 14, 2:09 PM
- All eyes in the retail sector will be on the Department of Commerce's report on August sales tomorrow. Economists will be looking for confirmation that the dip into negative territory in July was only transitory. The impact of the recent slowdown in auto sales has been debated, with some analysts saying it's indicative of tight consumer spending, while others feel it reverses the "crowding out" effect of auto purchases.
- The consensus estimate is for a 0.4% M/M gain after backing out the gas and auto categories. The direction of U.S. retail sales will also give Fed watchers their latest talking point.
- If there's a wildcard in the mix, it could be price deflation in the grocery store category (KR, SFM, WFM, SVU, WMK, IMKTA). That pricing weakness could also spill over to affect general merchandise stores (WMT, TGT), drug store chains (WBA, RAD), and even nip at chains like Casey's General Stores (NASDAQ:CASY) and CST Brands (NYSE:CST).
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK.
Mon, Aug. 22, 10:50 AM
- Alimentation Couche-Tard (OTCPK:ANCUF, OTC:ANCTF) says it struck a deal with Parkland Fuel to sell some Canadian assets of CST Brands (CST +0.2%), including convenience stores operated by CST and the Cardlock business.
- The number of stores that will be involved will be determined after the transaction is reviewed by the Competition Bureau of Canada.
- Couche-Tard press release (.pdf)
- Previously: Alimentation Couche-Tard acquires CST Brands in $4.4B deal (Aug. 22)
Mon, Aug. 22, 7:09 AM
- CST Brands, Inc. (NYSE:CST) announces it accepted a buyout offer from Alimentation Couche-Tard Inc. (OTCPK:ANCUF) at $48.53 per share.
- The deal represents a total enterprise value of approximately $4.4B, including the assumption of debt.
- “After the Board’s comprehensive review of strategic alternatives to enhance stockholder value, we are pleased to reach this agreement with Couche-Tard, which we expect to provide immediate and compelling value to our stockholders,” said CST CEO Kim Lubel.
- After the deal closes, Circle K will establish a new business unit in San Antonio.
- Couche-Tard expects to finance the transaction with available cash, its existing credit facilities, and a new term loan.
- The transaction is currently expected in the early part of 2017, subject to the approval of CST's stockholders and regulatory approvals in the U.S. and Canada.
- Source: Press Release
Tue, Aug. 16, 3:48 PM
- Alimentation Couche-Tard (OTCPK:ANCUF) confirms it's in talks with a third party over an acquisition.
- The development follows very closely on yesterday's Wall Street Journal report indicating that the company has serious interest in CST Brands (CST +6.7%).
- Buzz over a deal helped push CST to an all-time high of $48.31.
- Previously: WSJ: Couche-Tard near deal to buy CST Brands (Aug. 15)
Mon, Aug. 15, 10:13 PM
- Circle K owner Alimentation Couche-Tard (OTCPK:ANCUF) is nearing a deal to buy fuel and convenience store chain CST Brands (NYSE:CST), with an announcement possible as soon as this week, WSJ reports.
- The price of the acquisition is not clear, but CST has a market value of ~$3.4B and is the second largest publicly traded fuel and convenience retailer in North America.
- Earlier this year, CST said it had hired bankers to explore strategic options amid pressure from activist shareholders.
Fri, Aug. 5, 7:09 AM
- CST Brands (NYSE:CST) reports U.S. retail merchandise and services revenue rose 21.2% to $474M in Q2.
- Canadian retail merchandise and services revenue grew 4.5% to $70M.
- U.S. merchandise and services gross margin rate improved 110 bps to 33.8%.
- Company-operated retail store base increased 19% Y/Y through acquisitions and new-to-industry store construction.
- U.S. retail store count +232 Y/Y to 1,225.
- Q3 Guidance: U.S. retail merchandise and services gross margin: 33.5% to 34.5%; U.S. retail merchandise and services sales per store per day: $4,400 to $4,500; Canadian retail merchandise and services gross margin: 30.5% to 31.5%; Canadian retail merchandise and services sales per store per day: $2,550 to $2,650.
Fri, Aug. 5, 6:01 AM
Thu, Aug. 4, 5:30 PM
Wed, Jun. 8, 4:35 PM
Tue, Jun. 7, 1:27 PM
- CST Brands (CST +1.5%) is reviewing takeover offers, according to CTFN.
- "Things are still in the round one phase, but the intent for a sale is definitely out there," said Sikich Investment Banking partner-in-charge Chris Geier.
- Geier thinks CST will bite if a buyer comes in with a firm $50 bid.
- The list of potential buyers includes Couche-Tard, 7-11, Marathon Petroleum/Speedway, OXXO Mexico, and ETP/Sunoco.
- Shares of CST already factor in a takeover premium after rallying 18% over the last five sessions.
Thu, Jun. 2, 5:09 PM
- CST Brands (NYSE:CST) surged more than 18% higher in today's trade following a Reuters report that Canada's Alimentation Couche-Tard (OTCPK:ANCUF) and Japan's Seven & I Holdings (OTCPK:SVNDY), owner of the 7-Eleven chain, have submitted indicative offers to acquire the U.S. convenience store retailer.
- The two groups are competing against several other bidders for CST, including a consortium of P-E firms Blackstone (NYSE:BX) and Apollo Global Management (NYSE:APO), according to the report.
- CST reportedly will seek at least one more round of offers before deciding if will sell itself.
Tue, May 24, 2:34 PM
- Retail stocks continue to do a reset ever since Wal-Mart reported strong earnings at odds with some of its peers.
- A category that performed well for Wal-Mart in Q1 was grocery in what some investors are seeing as more of a read on consumer spending habits than a market share grab from the retail giant.
- Grocery store stocks and a few convenience store names are notably out in front of broad market averages today. The list of gainers includes Village Super Market (VLGEA +6.1%), Weis Markets (WMK +2.5%), Ingles Markets (IMKTA +3.3%), Supervalu (SVU +4.3%), Kroger (KR +1.8%), Casey's General Stores (CASY +2.9%), and CST Brands (CST +2.1%),
Mon, May 16, 3:11 PM
Fri, May 6, 6:39 AM
- CST Brands (NYSE:CST) reports U.S. retail merchandise and services revenue rose 20% to $413M in Q1.
- Canadian retail merchandise and services revenue were flat Y/Y at $57M.
- The company saw same-store merchandise and services sales growth of 2.2%in the U.S. & 5.6% in Canada (excluding foreign currency impact).
- U.S. merchandise and services gross margin rate improved 160 bps to 34.1%.
- Acquisition and organic growth added 173 stores to the company's network.
- U.S. retail store count +184 Y/Y to 1,219.
- Q2 Guidance: U.S. retail merchandise and services gross margin: 33% to 34%; U.S. retail merchandise and services sales per store per day: $4,300 to $4,400; Canadian retail merchandise and services gross margin: 31.5% to 32.5%; Canadian retail merchandise and services sales per store per day: $2,400 to $2,500.
Fri, May 6, 6:02 AM
Thu, May 5, 5:30 PM