Alimentation Couche-Tard Q3 Review: Impressive Results And Blockbuster Acquisition

Nikola Lapenna profile picture
Nikola Lapenna


  • ATD:CA quietly reported strong earnings on March 15, 2023, without much fanfare, given the world's focus on banking stability & the liquidity of U.S. regional banks.
  • The company announced record revenues, but a slight profit dip due to high inflationary costs on merchandise, notably due to food/beverage promotional programs.
  • ATD:CA also announced a €3.1Bn ($4.5Bn) acquisition of TotalEnergies SA retail assets, at a multiple of ~8x EV/EBITDA.
  • While SG&A costs inched higher, the underlying business remains strong, and the acquisition further bolsters the company as a global leader in full-fledged convenience store hubs. I re-iterate a "Buy" rating with a $77 price target. All numbers in CAD unless otherwise noted.

Circle K retail gas station location. Circle K is a subsidiary of Alimentation Couche-Tard and is based in Quebec I



Alimentation Couche-Tard (TSX:ATD:CA) (OTCPK:ANCTF) jumped 3% on March 16, 2023 after the company announced Q3 earnings and a new acquisition - though external market dynamics will likely impact the stock in the near term. My Q2 update and


ATD:CA Q3 Presentation


ATD:CA Q3 Presentation


CIBC Analyst Ratings Page


Author WACC Projections

Income Statement

Author Income Statement Forecast


Author Share Price Forecast

This article was written by

Nikola Lapenna profile picture
With over three years of finance and consulting experience, Nikola is laser focused on finding value in forgotten and beaten down public equities. His professional experience includes corporate credit risk analysis, consulting for government entities, and venture capital analysis in the med-tech space. An avid golf fan, Nikola enjoys picking stocks that need a "mulligan"; a sluggish quarter that sees market sentiment trend downward doesn't scare Nikola. Nikola is not a licensed financial advisor and nothing in his commentary here on Seeking Alpha should be regarded as advice. All of his opinions are his own, and not on behalf of any other entities.

Disclosure: I/we have a beneficial long position in the shares of ATD:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: My opinions only, and I am not a licensed financial advisor.

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