Fuel Margin Surprise Powers Couche-Tard's Best Quarter in Years
Long-term supply chain investments and the Core+ More strategy drive exceptional results as management enters fiscal 2027 with confidence.
ATD.TO · Earnings Call · 2026-06-23
A Surprisingly Strong Quarter
Couche-Tard delivered an exceptional fourth quarter, with adjusted EBITDA up 28.9% and U.S. merchandise same-store sales at their best level in three years. The standout was fuel: the company's U.S. fuel margin came in roughly 30% above what industry data suggested, a testament to a decade of supply chain and trading investments. As CEO Alex Miller put it, “when volatility exists, we are well positioned to capture the advantages there and margin that becomes available with that volatility.” — Alex Miller, Chief Executive Officer · 2026-06-23The Fuel Engine
The ability to outperform the OPIS (industry) benchmark is not new—last September, Miller noted “We beat OPUS in the U.S. by $0.045” — Alexander Miller, President and Chief Executive Officer · 2025-09-03—but the scale of the beat in Q4 was amplified by geopolitical tensions and supply disruptions. CFO Filipe Da Silva highlighted that the capability extends beyond the U.S.: “we are even further investing in additional terminals... we are confident that we will continue to over perform there.” — Filipe Da Silva, Chief Financial Officer · 2026-06-23 The purchase of three fuel terminals in Germany during the quarter underscores the commitment to owning infrastructure that provides optionality.Core+ More Is Taking Hold
Beyond fuel, the company's Core+ More strategy is showing tangible results. Foodservice same-store sales grew over 5%, with the Meal Deal platform reaching nearly 1.2 million bundles per week. This is translating into better merchandise margins and traffic. In the U.S., same-store sales rose 3.4%, with the CEO noting “In the United States, we achieved our best performance in years, and we saw traffic growth in the fourth quarter.” — Alex Miller, Chief Executive Officer · 2026-06-23 The EV charging network also continues to scale, with charging transactions up over 50% and utilization improving. Management's long-term investments in distribution centers are also starting to pay off. As Miller noted in a prior call, “These facilities are going to improve our COGS as we go forward” — Alexander Miller, Chief Executive Officer · 2025-11-25—a theme that is now showing up in the margin profile.Looking Ahead
Management is confident entering fiscal 2027, with momentum continuing into Q1. The growth algorithm calls for more than 10% organic EPS growth, and the company delivered against every level of it this quarter. While M&A remains a potential catalyst, Miller was clear:Instead, the focus is on execution, cost discipline, and continued investment in food, digital, and supply chain. As the company laps tough fuel comparables, the durability of its competitive advantages will be the key question for investors.we're not relying on M&A to deliver our growth algorithm and hopefully, we're increasingly showing you that.