Couche-Tard Quarterly Profit Down 23%

Alimentation Couche-Tard announced today that despite rising revenue, its quarterly profit dropped 23% due to lower U.S. gasoline margins, Reuters reported.

Couche-Tard, North America’s second-biggest convenience store chain, operates more than 5,400 convenience stores, with some 3,600 of those also selling gasoline. The company earned $54.8 million, or 29 cents a share, in its third-quarter, down from $71.1 million, or 36 cents a share, a year earlier, which was well below analyst estimates of 38 cents a share.

The company, which operates under the Circle K banner in the U.S. and Mac’s in Canada, had revenue growth of 26.2% to $4.94 billion with help from a jump in gasoline prices and a stronger Canadian dollar. Analysts had expected $4.89 billion in revenue, according to Thomson Reuters I/B/E/S.

Couche-Tard said fuel gross margins for company-operated stores in the U.S. fell 29.3% to 12.88 cents a gallon but rose 17.8% to 5.16 Canadian cents per liter in Canada. ($1=$1.03 Canadian)

 

 

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