EPS of 86c beat estimates of 78c; revenue of $15.63B was 3% short of estimates. Couche-Tard's supply-chain investments continue to pay off, with US fuel margins reaching up to 50.05 cents per gallon, the highest in its history. Coupled with better inside-store profitability, this was able to offset lower fuel margins in Canada, Europe and other countries amid volatility in the global gasoline market and less efficiency in those regions. Merchandise same-store sales were slightly softer than anticipated in some regions, particularly in the US, mostly on weakness from cigarettes and to a lesser degree trading down as consumers become more selective with their spending. But overall it was a solid quarter. Still. adjusted EPS ony increased 1.2% from last year. The Total Energies deal (adding 2,200 European gas stations) will boost results when it closes later this year, but ATD remains somewhat cautious on inflation and slowing consumer trends. Still, we continue to like this company.
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