Alimentation Couche-Tard Inc

“The transaction with Circle K Stores Inc. represents a significant milestone in the company’s 48-year history”, said Chris Sadler, owner of Cracker Barrel Convenience Stores.

Earnings were US$324.4 million for the first 12 weeks of fiscal 2017 ended July 17, compared to US$297.8 million for the first quarter of fiscal 2016.

Lower fuel prices didn’t hurt gross fuel margins, the company said.

The deal, financial terms of which are not being disclosed, was reached by Alimentation Couche-Tard, a Canadian convenience store operator, of which Circle K Stores Inc.is a wholly-owned indirect subsidiary. They would become part of Circle K’s Gulf Coast region.

Alimentation Couche-Tard Inc. saw revenue slip by more than 6 per cent in the first quarter on lower fuel average selling prices and a higher USA dollar, among other factors.

Couche-Tard attributed the increased profit to higher fuel margins, continued growth of its existing network and acquisitions.

Last week, the Laval, Que. -based Couche-Tard announced the biggest deal in its history – a US$4.4 billion friendly acquisition of CST Brands, which is headquartered in San Antonio and has more than 2,000 stores in the USA and Eastern Canada.

The stores now operate under the Cracker Barrel banner, and include 12 quick-service restaurants. “This acquisition would be a great addition to Couche-Tard’s expansion and growth plans for the Gulf Division.” commented Brian Bednarz, Vice President Operations, U.S. Division of the Gulf Coast Region.

Alimentation Couche-Tard Inc (OTCMKTS:ANCUF) has earned a consensus rating of “Buy” from the eleven ratings firms that are presently covering the company.

Excluding the CST and Cracker Barrel acquisitions, Couche-Tard’s network includes 7,863 convenience stores throughout North America and 2,708 stores in Europe.

In addition, under licensing agreements, nearly 1,500 stores are operated under the Circle K banner in 13 other countries and territories worldwide ( China, Costa Rica, Egypt, Guam, Honduras, Hong Kong, Indonesia, Macau, Malaysia, Mexico, the Philippines, the United Arab Emirates and Vietnam ), which brings the total network to over 12,000 stores.