LAVAL, Quebec – Alimentation Couche-Tard closed fiscal 2026 with sharply higher fourth-quarter earnings, as growth in food and packaged beverages, stronger fuel margins, and disciplined cost management helped offset continued softness in fuel demand.
The parent company of Circle K reported fourth-quarter net earnings attributable to shareholders of $863.4 million, or 94 cents per diluted share, nearly doubling from $439.4 million, or 46 cents per share, a year earlier. Adjusted net earnings rose 51.2% to approximately $667 million, and adjusted diluted earnings per share increased 58.7% to 73 cents. Results also included a $260.9 million pre-tax recovery tied to the resolution of long-standing legal matters.
“Our focus on delivering on our customer promise through our Core + More strategy is driving strong momentum across our U.S. business, with improved traffic and ongoing growth in key categories such as food and packaged beverages,” said Alex Miller, president and chief executive officer. “Meanwhile, our teams are leaning into the strength and agility of our fuel supply chain as well as our global scale to capture opportunities across our network as market conditions evolve.”
Total merchandise and service revenue increased 7.7% to $4.5 billion in the quarter, with same-store merchandise sales up 3.4% in the United States and 1.1% in Europe and other regions. Canada posted a 0.9% decline, as weakness in the tobacco category offset gains in alcohol sales. Companywide same-store merchandise revenue increased 2.2%.
The retailer said packaged beverages and other nicotine products remained among its strongest-performing categories, helping drive convenience sales growth across its U.S. business. Merchandise gross margin also improved, reaching 34.4% in the United States.
Fuel volumes remained under pressure, with same-store road transportation fuel sales down 2.1% in the United States and 4.4% in Europe, reflecting lower consumer demand amid higher retail prices. However, significantly stronger fuel margins more than offset the lower volumes. U.S. road transportation fuel gross margin increased to 52.44 cents per gallon, while margins also improved in Europe and Canada.
Couche-Tard attributed the margin gains to commodity market volatility and to the strength of its integrated global fuel supply network.
Chief Financial Officer Filipe Da Silva said the company balanced profitability with ongoing investment.
“We delivered a solid fourth quarter to close the year, driven by the quality of our underlying results, even excluding the impact of certain favorable items,” Da Silva said. “Disciplined execution enabled us to maintain our normalized growth of expenses below inflation, protecting profitability while continuing to invest in the business to support improved return metrics.”
For the full fiscal year, adjusted diluted earnings per share rose 14.4% to $3.10, and return on capital employed improved from 12.2% to 13.7%. The company also repurchased 30 million shares for $1.6 billion and increased its annual dividend by 10.5%.
Couche-Tard continued to expand its store network during the year, opening 103 new-to-industry locations and completing 27 relocations or reconstructions, for a total of 130 projects. An additional 34 stores were under construction at year-end. The company also completed several acquisitions, including 299 stores in fiscal 2026 and three fuel terminals in Germany in the fourth quarter. Its global network ended the year with 17,267 sites, including licensed Circle K locations.
The retailer also said that the integration of the former TotalEnergies retail assets in Europe continues to progress, with annual operating synergies reaching approximately €61 million and remaining on track to reach €120 million in fiscal 2027.
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