Total merchandise and service revenues increased $273.1 million, or 6.6%, to $4.4 billion compared to the same quarter in 2024, Alimentation Couche-Tard said Tuesday during its second-quarter earnings call for fiscal 2025.
Meanwhile, the owner of Circle K said same-store merchandise revenues decreased by 1.6% in the United States, by 1.5% in Europe and other regions and by 2.3% in Canada.
All regions were impacted by “constraints on discretionary spending due to challenging economic conditions for low-income consumers and the continuous decline in the cigarette industry,” the Laval, Quebec-based company said.
- Alimentation Couche-Tard is No. 2 on CSP’s 2024 Top 202 ranking of U.S. c-store chains by store count.
Alimentation Couche-Tard's net earnings for the quarter were $708.8 million compared with $819.2 million for the same quarter of fiscal 2024, the company said during its earnings call. The quarter ended Oct. 13. In the call, it also reaffirmed its intentions to acquire Seven & i Holdings, owner of 7-Eleven, and shared that it had entered a binding agreement to acquire 20 company-owned and operated convenience retail and fuel sites operating under the Hutch’s brand
Elsewhere in the second quarter:
- Merchandise and service gross margin decreased by 1% in the United States to 33.8%, impacted by the investment in promotional offers for its customers, by 0.4% in Europe and other regions to 38.2%, and increased by 0.4% in Canada to 33.6%.
- Total road transportation fuel revenues were $12.9 billion, an increase of $727.8 million compared with the same quarter in 2024.
- Gross profit was $3.2 billion, up by $214.5 million, or 7.3%, compared with the same quarter of fiscal 2024.
- Merchandise and service gross profit was $1.5 billion, an increase of $76.7 million compared with the same quarter of fiscal 2024.
In other earnings news, the company said same-store road transportation fuel volumes decreased by 2.2% in the United States, impacted by lower industry demand and the hurricanes impacting the Southeast, while it increased by 0.1% in Europe and other regions and by 0.5% in Canada.
“While parts of our convenience and fuel business continues to be challenged this quarter as consumers carefully watched their spending, we remain confident in the advantages of our globally diversified network and long-term strategic growth brand plans,” Alex Miller, president and CEO of Alimentation Couche-Tard, said. “In our European markets, most categories performed positively, as did fuel volumes in Europe and Canada. Fuel margins also remained healthy across the network.
“Throughout the quarter we focused relentlessly on providing value to our customers, including introducing bundle meal deals in the U.S., expanding our private brand offer at affordable price points and continuing popular fuel day promotions,” he continued.
While parts of Couche-Tard's convenience and fuel business were challenged in second-quarter of fiscal 2025 as consumers carefully watched their spending, Miller said he remains confident in the advantages of Couche-Tard's globally diversified network and long-term strategic growth plan.
Laval, Quebec-based Alimentation Couche-Tard operates in 29 countries and territories, with more than 16,700 stores, of which almost 13,100 offer road transportation fuel. Its network includes more than 7,100 stores in the United States, primarily under the Circle K and Holiday Stationstores banners, and approximately 2,100 in Canada under the Circle K, Mac’s and Couche-Tard banners. In Europe, under the Circle K and other banners, Couche-Tard operates a retail network in Scandinavia, Ireland, Poland, the Baltics and Russia with more than 2,700 stores and unmanned automated fuel stations. And under licensing agreements, more than 2,200 stores operate under the Circle K banner in 15 other countries and territories (Cambodia, Egypt, Guam, Guatemala, Honduras, Hong Kong, Indonesia, Jamaica, Macau, Mexico, Mongolia, New Zealand, Saudi Arabia, the United Arab Emirates and Vietnam). This brings Couche-Tard’s total worldwide network to approximately 14,400 stores.
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