Couche-Tard Q1: EPS and Revenue Beat Estimates as Fuel Margins Widen
Alimentation Couche-Tard (TSX: ATD) beat on both lines in its first quarter of fiscal 2027. Adjusted diluted EPS came in at $0.90 USD against a Yahoo Finance consensus of $0.89 USD, about 1% above the estimate, and total revenues of $21,704.8 million USD landed roughly 5.8% above the Yahoo Finance consensus of $20.52 billion USD. The results, covering the 12 weeks ended July 19, 2026, came out after the close on Sept 1, so the market has not voted yet. Note before you go looking: Couche-Tard gives no numeric EPS or revenue guidance. Management frames its outlook in operating terms instead.
| Metric | Q1 fiscal 2027 actual | Yahoo Finance consensus | Verdict |
|---|---|---|---|
| Adjusted diluted EPS | $0.90 USD | $0.89 USD (Yahoo Finance earnings calendar) | Beat, about 1% above |
| Total revenues | $21,704.8 million USD | $20.52 billion USD | Beat, about 5.8% above |
| Guidance | None numeric | n/a | Company does not guide on EPS or revenue |
What drove the beat
Adjusted net earnings rose 12.2% to about $827.0 million USD, and adjusted diluted EPS climbed 15.4% from $0.78. Net earnings attributable to shareholders were $828.5 million USD versus $782.5 million. Adjusted EBITDA rose $169.3 million USD, or 10.5%, and revenue was up 25.1% from $17,346.9 million USD.
Couche-Tard’s first-quarter release attributes the adjusted growth to “higher road transportation fuel gross margin, the contribution from acquisitions, positive organic growth in convenience activities and the impact of share repurchases,” partly offset by inflation and operating expense investment.
Fuel did the heavy lifting. The US fuel margin reached 52.61 cents USD per gallon, up 8.61 cents, and US road transportation fuel gross profit rose 23.8% to $1,215.9 million USD. In Canada, a margin of 16.79 cents CAD per litre, up 2.58 cents, lifted fuel gross profit 17.8%. Chief executive Alex Miller said fuel “remained a source of strength, delivering solid profitability.” Couche-Tard sits in our best Canadian blue chip stocks roundup, and this quarter shows why the fuel line can matter more than the store line.
Where the quarter was soft
Merchandise and service revenues of $4.9 billion USD grew 4.1%, but gross profit rose only 3.3%, to $1,716.4 million USD. Merchandise gross margin slipped to 34.1% in the US, down 0.5 points, and to 33.3% in Canada, down 0.6 points. Canadian merchandise and service gross profit fell 4.1% to $199.9 million USD.
Same-store merchandise revenues rose 1.7% in the US, a fifth consecutive positive quarter by the CEO’s count, and 1.2% in Europe and other. Canada was stable, with growth in packaged beverages and alcohol offset by “the impact from regulations and competition on tobacco.”
Volumes were softer still. Same-store fuel volumes fell 1.6% in the US and 4.3% in Europe and other, with only Canada up, at 1.1%. European fuel gross profit fell 3.7% to $457.8 million USD.
Balance sheet, buyback and dividend
Leverage improved to 1.77:1 from 1.99:1 after Couche-Tard repaid EUR 750.0 million ($876.5 million USD) of senior unsecured notes at maturity on May 6, 2026. Return on equity was 19.7%, down from 20.2%, with return on capital employed flat at 13.7%.
The buyback was renewed on July 23, 2026 for up to 74.2 million shares, 10% of the public float, though only 0.4 million shares were repurchased for $26.0 million USD in the quarter. The board declared a quarterly dividend of 21.5 cents CAD per share, record Sept 11 and payable Sept 25, 2026. The release does not state the prior amount, so we cannot call it an increase. Readers screening for long records of annual raises can start with our list of Canadian dividend aristocrats.
Żabka lands after the quarter
On July 31, 2026, after quarter-end, Couche-Tard announced a tender offer for all shares of Żabka Group, Poland’s largest convenience retailer, with more than 13,000 stores in Poland and Romania, valuing it at about PLN 32.6 billion ($8.6 billion USD). Holders of about 57% of Żabka shares have signed hard irrevocable agreements to tender. Miller said the deal “will strengthen our capabilities in food, digital engagement and supply chain and complement our organic growth initiatives while expanding our scale in Central and Eastern Europe.”
What to watch on Sept 2
The conference call is at 8:00 a.m. ET on Sept 2, and because the release landed after the close, the reaction is still ahead. Shares finished at C$84.28 on Sept 1, up from C$83.47 on Aug 31. Data as of Sept 1, 2026 close.
Listen for four things: whether the tobacco pressure on Canadian same-store sales is being managed or absorbed, whether US and Canadian merchandise margins keep sliding, what management says about falling fuel volumes in the US and Europe, and the Żabka timeline given the 57% already committed. Chief financial officer Filipe Da Silva pointed to “maintaining normalized expense growth well below inflation.” The fiscal 2027 business outlook sits in the MD&A on SEDAR+, not in the release. Yahoo Finance consensus for the second quarter is $0.88 USD in adjusted EPS on $24.36 billion USD of revenue, and $3.27 USD for the full year.
What it means for shareholders
The beat is real, and its composition is worth understanding. US fuel gross profit grew 23.8% while consolidated merchandise gross profit grew 3.3%, and fuel margin is a line that moves in both directions. Underneath it, the convenience business produced positive same-store sales in the US and Europe, flat sales in Canada, and thinner merchandise margins in the US and Canada. The balance sheet got stronger, and that is the context for an $8.6 billion USD acquisition now in motion. How attractive the mix looks depends on how much earnings growth you expect fuel to keep supplying, which this release does not answer.
Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions. Company figures are from Couche-Tard’s Sept 1, 2026 release (US dollars); consensus figures are Yahoo Finance consensus; share price as of the Sept 1, 2026 close.
