Canadian convenience store Alimentation Couche-Tard reported a profit of $146.4-million (U.S.), up 24% for the fourth quarter, driven mainly by acquisitions, but the results came in below analysts’ expectations.
In the U.S., Couche-Tard, which owns and operates the Circle K brand, also saw sales increases. Sales at established stores rose 2%, excluding tobacco products. Same-store road transportation fuel volume was up 1% in the U.S.
Excluding items, the company’s profit rose to about $115.5 million as acquisitions helped increase merchandise sales and margins for motor fuel.
Total revenue jumped 45% to $8.78 billion, but came in below the average analyst estimate of $8.87 billion.
Laval, Quebec-based Couche-Tard operates more than 6,000 convenience stores in North America under banners that include Mac’s and Circle K, the majority of which sell motor fuel.
Couche-Tard also operates more than 2,000 fuel stations in Scandinavia, Poland, the Baltics and Russia, following the acquisition of Norway’s Statoil Fuel & Retail.
Couche-Tard’s in-store merchandise includes tobacco products, fresh food offerings such as quick service restaurants, beer and wine, grocery items, candy, snacks and beverages.