Alimentation Couche-Tard has reset its long-term financial targets, replacing a fixed EBITDA goal with a new growth framework extending to fiscal 2030. The strategy emphasizes earnings expansion, network growth and operational efficiency.
BNN Bloomberg spoke with Martin Landry, managing director, equity research, consumer products and merchandising at Stifel, who said the updated plan reflects improving earnings momentum and a more flexible approach to forecasting in a shifting consumer environment.
Key Takeaways
- Management replaced its prior $10 billion EBITDA target with a growth algorithm calling for more than 10 per cent compounded annual EPS growth through fiscal 2030.
- Nicotine products, particularly higher-margin pouches, are expected to support two to three per cent annual merchandise sales growth over the next four years.
- The company plans to add 750 new stores over five years, with new builds generating significantly higher EBITDA than the chain average.
- Expansion of direct distribution through three new centres is expected to improve sourcing flexibility and enhance margins.
- Despite a fragmented industry with only about seven per cent market share, management signalled disciplined merger and acquisition activity amid elevated valuations.
Read the full transcript below:
LINDSAY: Canadian multinational convenience store operator Alimentation Couche-Tard has announced a business strategy update, resetting its long-term growth targets. To discuss, we’re joined by Martin Landry, managing director at Stifel. Thanks for being with us.
MARTIN: Thanks for having me.
LINDSAY: What stood out to you in the latest update? You mentioned management introduced a new growth algorithm. Can you explain that?
MARTIN: The previous five-year plan, introduced in 2023, targeted $10 billion in EBITDA by 2028. The company faced a tougher consumer environment in the U.S., with customers reducing trips and spending, so it reset expectations. Instead of a hard EBITDA target, management introduced a growth algorithm to help model performance through fiscal 2030. It calls for compounded annual EPS growth of more than 10 per cent over that period. It’s simple and was well received.
LINDSAY: There was also discussion about same-store sales growth drivers, including nicotine. How significant is that category?
MARTIN: It may seem counterintuitive, but nicotine is a growth driver. In the U.S., consumers are shifting toward nicotine pouches, which carry higher price points and margins roughly twice those of cigarettes. Tobacco, including modern oral nicotine products, remains a growth category for the convenience channel. That underpins guidance for two to three per cent annual merchandise sales growth over the next four years.
LINDSAY: The company also plans to add new stores. How ambitious are those plans?
MARTIN: Management plans to add 750 stores over the next five years, about five per cent network growth. These new builds generate roughly three times the EBITDA of an average store. That supports both revenue and profitability growth.
LINDSAY: What about new distribution centres?
MARTIN: Couche-Tard currently supplies stores directly in Texas, Arizona and Quebec. It plans to expand into additional Midwest regions by building three new distribution centres to serve about 1,600 stores. Greater control over sourcing and delivery timing should improve efficiency and be margin accretive.
LINDSAY: The loyalty program has reached 12 million members. What role does that play?
MARTIN: The company has made significant progress in digital over the past 18 months. With 12 million active members, it can target promotions more effectively, both at the pump and in store. That drives revenue uplift and supports margins through better personalization.
LINDSAY: What about mergers and acquisitions after the unsuccessful bid for the owner of 7-Eleven?
MARTIN: M&A has been central to the company’s growth over the past 25 years. The convenience industry remains fragmented, with Couche-Tard holding about seven per cent market share. There are consolidation opportunities, but valuations have risen in both public and private markets. Management says the pipeline is active, but it will remain disciplined on price.
LINDSAY: Are there other headwinds to watch?
MARTIN: The company experienced several quarters of negative earnings growth, but we’re now seeing an inflection, with earnings and U.S. merchandise sales trending positively. That momentum is attracting attention, and management indicated it is continuing into the third quarter.
LINDSAY: Martin Landry, managing director at Stifel. Thanks for your time.
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This BNN Bloomberg summary and transcript of the Feb. 12, 2026 interview with Martin Landry are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
