Why Alimentation Couche-Tard Is An Underrated Growth Stock to Buy Right Now

Alimentation Couche-Tard Inc. (TSX: ATD) is one of the top stocks on the Toronto Stock Exchange, with a market cap of nearly $70 billion. Over the years, it has shown consistent growth and its stock price has risen by over 80% in the last five years. Despite those impressive gains, it still trades at a fairly modest price-to-earnings (P/E) ratio of 19. The company’s commitment to expanding its global convenience and fuel retail presence, alongside strategic acquisitions, positions it as a promising growth stock for the foreseeable future. The company’s global diversification—spanning the United States, Canada, Europe, and parts of Asia—provides a cushion against region-specific economic downturns and supports stable revenue generation across varying markets.

Expansion-Driven Strategy

The company continues to pursue international acquisitions that strengthen its position. The recent agreement to acquire 270 GetGo Café + Market locations across several U.S. states reflects Couche-Tard’s strategy to capture market share in the fragmented U.S. convenience store sector. The acquisition aligns with Couche-Tard’s history of successfully integrating new assets and optimizing operations. Furthermore, the recent proposal to acquire Japan’s 7&i Holdings, owner of the global 7-Eleven franchise, indicates Couche-Tard’s ambition to expand its footprint and leverage synergies in high-demand regions, highlighting its continued appetite for even more growth.

Growth Potential and Market Position

With a robust balance sheet and strong cash flow, Couche-Tard is well-equipped to pursue future acquisitions, especially as economic conditions create buying opportunities in the U.S. and Europe. Its position as one of the largest convenience store operators allows it to optimize fuel margins and increase merchandise sales even amid fluctuating fuel prices. In the U.S., where it competes with over 150,000 other convenience outlets, Couche-Tard stands out by focusing on efficient operations and scalable acquisitions, sustaining a high-margin business model.

Conclusion

For growth-oriented investors, Couche-Tard’s consistent track record of successful acquisitions, geographic diversification, and focus on shareholder returns make it a strong contender. The company’s steady P/E ratio and expansion-focused approach support its potential as a high-quality growth stock.