Couche-Tard plans building campaign, big acquisitions could also be in the works
Alimentation Couche-Tard intends to add at least 750 stores over the next five years through new store construction and single-site acquisitions, the company said Wednesday in an investor presentation.
The presentation also said Couche-Tard will expand through “opportunistic” regional and large-scale acquisitions and by adding sites to its franchise network.
The Circle K Fuel brand, which has been the second-place U.S. fuel brand for the past two years, has a way to go before catching up with Shell. But if Couche-Tard fulfills its growth strategy Circle K could substantially narrow that gap in several years.
Couche-Tard plans new store construction in “fast-growing” suburban areas, entering new markets and enhancing its current footprint. It also intends to expand its “high performing” network of about 1,400 rural sites.
The company plans to add high-speed diesel locations, quick-serve restaurants and car washes to “future proof” its business.
Commenting on its M&A strategy, Couche-Tard said “growing our footprint in the U.S. market remains our top priority.” But there are “significant synergies to be unlocked in Europe by filling in the regional gaps for our current network.” Latin America and Southeast Asia are also “highly attractive” expansion targets, the presentation said.
Though it continues to expand its electric vehicle charging business, the company made it clear fuel is important to its growth, saying it has “industry-leading fuel margins” and “operates at a lower break-even than the rest of the market.” A chart using NACS data suggests that Couche-Tard’s fuel break-even margin is about 40% lower than the industry average.
In the fiscal year ended April 27, 2025, the company sold 15.4 billion gal across its markets and had about 9,000 Circle K Fuel and Couche-Tard Fuel branded stores. About 13,000 stores, 90% of its global network, offer fuel.
Couche-Tard said it will continue “beating the market” in the fuel business using its rewards program and special promotions, as well as “accelerating” business-to-business growth, price optimization and supply chain efficiencies. B2B transactions have grown to 110 million per year, the company added.
In the U.S., Couche-Tard has offered discounts as high as 40cts/gal on Circle K Fuel Days that create a sense of urgency by providing a small window in which the discount is available. An introductory deal of 25cts/gal has lured customers to join its Inner Circle loyalty club, which offers additional specials.
The company’s Circle K Fuel brand has seen substantial growth. In the U.S., its rank based on gasoline brand market share by visits rose from 15th at 2.12% in 2019 to second place at 4.95% in 2024, according to OPIS MarketSharePro. In 2025, Circle K continued in second place at 4.98%, behind long-time frontrunner Shell at 8.21%.
The company saw growth spurts in 2020, when its market share rank jumped to 14 from 15, 2022 when its rank went to eighth place, 2023 when it went to fourth place and 2024 when it came in second place, OPIS figures show.
Couche-Tard said it has a coast-to-coast presence in Canada and a U.S. footprint spanning 48 states. It also has a “leading” market share in many European markets. The corporation has a global network of 17,270 stores, including 7,308 in the U.S., 2,082 in Canada, 5,247 in Europe and other regions and 2,633 operated by licensees internationally.
Other highlights of the presentation include:
–Couche-Tard is expanding its EV charging presence and reach. “EV customers generate accretive value versus fuel customers,” the company said. In Norway, store visit frequency was 54% more for charging than for fuel and average store gross profit on merchandise and service was 33% more per charging customer in fiscal 2025. The gross profit per charging session was 28% more than it was for fuel in Scandinavia in fiscal 2026 year to date.
–The company has more than 3,500 car washes worldwide, about 1,200 in the U.S., 2,000 in Europe and 300 in Canada. It is expanding tunnel washes alongside its convenience stores and piloting a “mini-tunnel” car wash. A mini tunnel wash is a compact, conveyor-driven car wash system that can still deliver express-style throughput. Couche-Tard is cross-promoting fuel rewards with its car washes.
–Couche-Tard wants to lead the “nicotine transition,” in which sales of other nicotine products like nicotine pouches are replacing declining cigarette sales. In the U.S. Couche-Tard is seeing modern oral (primarily pouches) market share of 22%, while cigarette market share is 17%.
–The company aims to capture more of the beverage market, because “thirst is an all-day opportunity.” The average consumer has roughly eight to nine beverage occasions per day. Seven out of 10 Couche-Tard customers are buying beverages. Energy drinks represent nearly 10% of total merchandise revenue, and coffee purchases are 7% of total merchandise revenue. Couche-Tard is using digital channels to make personalized offers, improving its assortment and expanding in-store space for beverages, offering exclusive deals through vendor partnerships and “doubling down” on the energy and functional beverage categories.
–The company continues to expand and improve food service offerings. It has fresh food available at more than 6,000 stores worldwide. Food penetration is up 72 basis points as a percentage of revenue versus last year and 10.4 million meal deals were sold in the second quarter of fiscal 2026, which ended October 12.
Reporting by Donna Harris, dharris@opisnet.com