Q: Hello, I am tempted to buy ATD to round up my consumer stocks allocation, for a long term hold (10+ years). I am less comfortable with their future with EVs. Did they ever develop and comunicated their vision when vehicles would be mostly EVs? What is your opinion of their future (after 2035)? Thanks.
5i Research Answer:
ATD deployed its first EV charging station in 2022 and plans hundreds more. They have the locations and infrastructure (and capital) to build these as demand increases. We do not believe the company will be caught flat-footed on this initiative. 2035 is a bit too hard to call. From a stock perspective, it is too far out to model. But we think it will continue to be a long term success in convenience stores. It remains to be seen what the difference in profit/margins will be as the world shifts to EVs.