Alimentation Couche-Tard Inc. (ATD-T), the parent company of Circle K, announced its first-quarter fiscal 2027 results, showing a fifth consecutive quarter of same-store sales growth in the U.S., though at a slower pace than previous quarters. The company reported net earnings attributable to shareholders of $828.5 million ($0.90 per diluted share) on total revenue of $21.7 billion, an improvement from $782.5 million in the same period last year. Adjusted net earnings were $827 million, or $0.90 per share, largely meeting analyst expectations of $0.89 per share. Despite increased fuel gross margins in the U.S. and Canada, overall gasoline sales volume decreased.

CEO Alex Miller noted that rising costs of living and fuel are prompting customers to be more deliberate with purchases, leading to lower-than-usual sales of packaged carbonated soft drinks, salty snacks, and sweets. He also attributed the decline in popularity of center-store items like salty snacks partly to the growing use of GLP-1 weight management drugs. In response to these shifts, Couche-Tard is reallocating shelf space, refining its product assortment, and adjusting promotions, including launching meal deals priced from $3 to $6 in the U.S. and offering gasoline rebates.

While the company achieved a 1.7% year-over-year increase in merchandise sales at comparable U.S. stores, analysts such as Stifel's Martin Landry highlighted the deceleration in merchandise same-store sales growth as a key concern, prompting questions about the health of the U.S. consumer. Energy drinks and nicotine products performed particularly well during the quarter, and Couche-Tard continues to expand its loyalty program, with the Inner Circle program in the U.S. adding over 1 million members, reaching nearly 16 million members. Miller indicated that nearly one in three transactions now comes from a loyalty member.

The convenience store giant is also proceeding with its $8.7 billion acquisition of Żabka Group, Poland's largest convenience retailer, aiming to expand its European footprint. This move comes as the company faces pressures from consumers grappling with higher debt levels and inflation, compounded by global conflicts. Couche-Tard expects to generate year-over-year adjusted earnings-per-share growth of 10% or more from fiscal 2026 through 2030, though the 15% EPS growth for the latest quarter was higher than this target.