EPS of 78c beat estimates of 75c; revenue of $17.86B was in line with estimates. The dividend was raised 10%. Canadian stores saw 5% growth. The US was 1.2%, which was much better than the 0.4% the prior quarter and the previous seven quarters (all of which showed declines). Couche-Tard's pricing discipline and scale should keep producing above-peer fuel margins in 2H, though competition in US border regions and softer demand could limit upside. US fuel margins held steady near recent levels in 2Q, underscoring supply-chain resilience, sourcing flexibility and disciplined procurement. Canada and Europe remained more favorable, supported by trading strength, contract renewals in Germany and improved wholesale execution.
With cost growth still below inflation and SG&A normalizing, full-year gross margin should top fiscal 2025, even if 2H gains are muted. Stores momentum improved as US comparable sales rose 1.2% on strong food-service and nicotine promotions, Canada increased 5.4% on alcohol and Europe benefited from meal-deal rollouts and higher EV-charging traffic.