Circle K owner Alimentation Couche-Tard has released its fiscal results for the fourth quarter, during which the company saw net earnings of $439.4 million. This is compared to a net income of $453 million in the fourth quarter of fiscal 2024.
Notably, the company saw a significant 2% uptick in total merchandise and service revenues, which came in at a staggering $4.2 billion. While same-store merchandise revenues in the U.S. stayed almost flat, it increased by 3.4% in Europe and other regions, and 3.5% in Canada.
“As we conclude this milestone year, the 45th year since we opened our first store, we are proud of the resilience of our business and the award-winning engagement of our team members,” said Alex Miller, president and CEO, Couche-Tard. “During the fourth quarter, in the face of difficult economic and geopolitical conditions, we held the line in same-store sales in the U.S. and had strong positive results in Canada and Europe. Our initiatives to provide compelling value to our customers with exclusive food and beverage offers are performing well across the network.
Couche-Tard reported promising fuel results in Canada with an increase of 3.7% in its same-store road transportation fuel volumes, with the U.S. and Europe representing decreases of 1.9% and 0.6%, respectively.
“Compared to the same period last year, in our fuel business, we had positive volumes in Canada, and in the U.S., we maintained market share and margins aligned with recent quarters. As we move into the new fiscal year, we remain confident in the strength of our global scale, long-term strategy and customer-centric teams.”
“We closed the fourth quarter and fiscal year with disciplined financial results that reflect the strength and operational effectiveness of our business, supported by continued investment in technology and customer value,” added Filipe Da Silva, chief financial officer, Couche-Tard.
Acquisition Talks
The strong fiscal quarter comes at a pivotal time for Couche-Tard, as talks continue to progress between the Canadian company and Japanese 7-Eleven owner Seven & i Holdings.
In May, the companies signed a non-disclosure agreement (NDA) in an attempt to further discussions and work towards a mutually beneficial deal.
The decision was made to “progress transaction discussions, facilitate due diligence and collaborate on plans to engage with regulators,” Couch-Tard noted in a statement. The company added that there can be no assurance that the discussions will result in a transaction.
“We appreciate the special committee of Seven & i engaging in substantive discussions regarding our proposal and providing access to diligence,” said Miller in May. “We look forward to working collaboratively with Seven & i in the interests of all stakeholders.”
For 7&i, the decision was two-fold — the company wanted to identify a potential divestiture plan should an agreement be reached, and it also wanted to formulate a standalone plan with Stephen Hayes Dacus as CEO, according to chairman of the board Paul Yonamine.
“As we have said previously, we caution that it remains the case that it is critical for the (special committee) to assess if there is a path to a viable divestiture by identifying potential buyers and determining their ability to stand up a real, stand-alone business that will preserve competition and satisfy regulators,” Yonamine continued. “That work is ongoing. Unlocking significant value for shareholders and other stakeholders remains Seven & i’s top priority.”
As it stands, the most recent bid for 7&i came in at around $47 billion in 2024. In March, Couche-Tard made known its willingness to divest up to 2,000 North American c-stores to calm any antitrust concerns.
Da Silva told Bloomberg in March that interest for the sites is “really high,” since the 2,000-store network provides retailers with the opportunity to become one of the largest operator of c-stores in North America.
