How Alimentation Couche-Tard’s Earnings Beat, Dividend Hike, and Buyback Will Impact (TSX:ATD) Investors

• In November 2025, Alimentation Couche-Tard reported higher quarterly net income of US$740.6 million and earnings per share of US$0.79, lifted its quarterly dividend to C$0.215, and completed a C$1.19 billion buyback of 22,700,000 shares representing 2.39% of its float.
• Together, rising profits, a 10.3% dividend increase, and meaningful share repurchases highlight management’s emphasis on returning capital to shareholders while signaling confidence in the business.
• Next, we’ll examine how this earnings beat and dividend hike influence Couche-Tard’s investment narrative and its outlook on capital returns.

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Alimentation Couche-Tard Investment Narrative Recap

To own Alimentation Couche-Tard, you need to believe its global convenience network can keep lifting in-store profitability while adapting to lower fuel and tobacco reliance. The latest quarter’s modest earnings growth, dividend increase, and sizable buyback support this narrative, but they do not materially change the near term balance between the key catalyst of higher-margin in-store growth and the ongoing risk from declining road fuel demand and shifting regulation on nicotine products.

The 10.3% dividend increase to C$0.215 per share stands out as the clearest connection to this earnings release, since it directly reflects the company’s capacity to return more cash to shareholders from its current profit base. For investors focused on Couche-Tard’s capital return story, the higher dividend, combined with a completed C$1.19 billion repurchase of 22,700,000 shares, sits alongside the longer term growth drivers in food, private label, and EV charging.

Yet, even with rising dividends and buybacks, investors should be aware that growing exposure to the energy transition and tighter nicotine regulations could...

Read the full narrative on Alimentation Couche-Tard (it's free!)

Alimentation Couche-Tard's narrative projects $77.0 billion revenue and $3.1 billion earnings by 2028. This requires 2.3% yearly revenue growth and about a $0.5 billion earnings increase from $2.6 billion today.

Uncover how Alimentation Couche-Tard's forecasts yield a CA$85.30 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Eleven members of the Simply Wall St Community currently see fair value for Couche-Tard anywhere between C$66.71 and C$116.05, highlighting very different expectations. When you set those views against the reliance on higher margin in store sales to offset fuel volume and tobacco risks, it becomes clear why checking multiple perspectives on the company’s performance really matters.

Explore 11 other fair value estimates on Alimentation Couche-Tard - why the stock might be worth 10% less than the current price!

Build Your Own Alimentation Couche-Tard Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Alimentation Couche-Tard research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Alimentation Couche-Tard research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alimentation Couche-Tard's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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