Alimentation Couche-Tard posted net earnings of $828.5 million for its fiscal first quarter ended July 19, 2026, with adjusted diluted earnings per share climbing 15.4% to $0.90 from $0.78 in the year-ago period — results the company credited to stronger fuel margins, acquisition contributions, and disciplined cost control across its roughly 17,200-location global convenience network.
Total merchandise and service revenues reached $4.9 billion, a 4.1% increase, while consolidated same-store merchandise revenues rose 1.6%. U.S. same-store sales grew 1.7%, marking the fifth consecutive quarter of positive comparable-store performance. Management attributed the gain to momentum in energy drinks and other nicotine products, partially offset by deliberate value-pricing decisions in a selective consumer spending environment. Europe and other regions posted 1.2% same-store merchandise growth, while Canada was flat as packaged beverage and alcohol gains were offset by tobacco headwinds from regulation and competition.
Fuel Margins Carry the Quarter
The fuel business was a standout contributor. U.S. road transportation fuel gross margin reached 52.61 cents per gallon, an increase of 8.61 cents versus the prior-year quarter, driven by supply chain optimization and favorable market conditions. Canada's fuel margin improved by CA 2.58 cents per liter to CA 16.79 cents. Europe and other regions saw a slight decline of 0.07 cents per liter. Same-store fuel volumes declined 1.6% in the U.S. and 4.3% in Europe amid high retail prices, while Canada edged up 1.1% supported by promotions and market growth. Total revenues for the quarter climbed 25.1% to $21.7 billion, boosted largely by higher average fuel selling prices and the contribution from the GetGo acquisition.
Adjusted EBITDA grew 10.5% year-over-year, and the company kept normalized operating expense growth to 2.7% — below the inflation rate across its network — by absorbing acquisition-related costs and higher electronic payment fees while continuing to invest in food service acceleration and store readiness programs. Chief Financial Officer Filipe Da Silva highlighted this balance, noting that expense discipline supported sustained long-term earnings growth alongside strategic investment.
Żabka Deal Reshapes European Footprint
The quarter's most consequential development came after the books closed: on July 31, 2026, Couche-Tard, through its wholly owned subsidiary Circle K Polska, launched a voluntary tender offer to acquire all shares of publicly traded Żabka Group, Poland's largest convenience retailer. The offer values Żabka at approximately PLN 32.6 billion ($8.6 billion). Founded in 1998 and headquartered in Poznań, Żabka operates more than 13,000 convenience stores across Poland and Romania through an entrepreneurial franchise model. Shareholders owning approximately 57% of Żabka's outstanding shares have entered hard irrevocable agreements to tender. The deal, expected to close before the end of fiscal 2027, is planned to be financed through available cash and existing and new credit facilities.
For operators and foodservice suppliers tracking convenience store industry trends, the Żabka acquisition signals Couche-Tard's intent to deepen its food, digital engagement, and supply chain capabilities in Central and Eastern Europe — a region where franchise-driven c-store formats are expanding rapidly. CEO Alex Miller noted that Żabka would complement the company's Core + More organic growth strategy while adding meaningful scale to its European operations. With 42 new stores already under construction and a food service acceleration program under way, the company's hospitality and retail expansion strategy continues to evolve well beyond traditional fuel-and-tobacco convenience formats.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
