Why Alimentation Couche-Tard (TSX:ATD) Is Up After Announcing Major Share Buyback Plan

• On July 21, 2025, Alimentation Couche-Tard Inc. announced a normal course issuer bid, allowing the company to repurchase up to 77.12 million common shares, 8.13% of its issued share capital, by July 22, 2026, with all shares to be cancelled once bought back.
• This substantial buyback signals management’s confidence in the company’s outlook and the potential to enhance shareholder value through a reduction in outstanding shares.
• We’ll examine how this significant share repurchase plan could alter the investment narrative and affect future earnings per share growth assumptions.

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Alimentation Couche-Tard Investment Narrative Recap

To be a shareholder in Alimentation Couche-Tard, you need to believe in the company’s ability to deliver stable, long-term growth through strong execution in convenience retail, effective integration of acquisitions, and ongoing global expansion. The new share buyback program may provide a short-term support to earnings per share, but it does not materially change the main near-term catalyst, progress on the Seven & i Holdings acquisition, or reduce the immediate risks, such as the impact of challenging US consumer trends on revenue and margins.

Among recent company news, the most relevant to the buyback is the board’s ongoing commitment to return capital to shareholders, highlighted by the June 2025 quarterly dividend. This consistency reinforces the focus on total shareholder return even as Couche-Tard navigates a period where acquisition outcomes and integration results could shift growth expectations.

By contrast, it’s important for investors to also consider the risk posed by...

Read the full narrative on Alimentation Couche-Tard (it's free!)

Alimentation Couche-Tard's outlook forecasts $78.1 billion in revenue and $3.1 billion in earnings by 2028. This reflects an expected annual revenue growth rate of 2.3% and a $0.5 billion increase in earnings from the current $2.6 billion.

Uncover how Alimentation Couche-Tard's forecasts yield a CA$83.01 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Twelve fair value estimates from the Simply Wall St Community range from CA$66.71 to CA$119.99 per share. Amid ongoing acquisition discussions, shifting regulations and consumer trends could make or break future growth, so take the time to compare the range of opinions.

Explore 12 other fair value estimates on Alimentation Couche-Tard - why the stock might be worth as much as 71% more than the current price!

Build Your Own Alimentation Couche-Tard Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Alimentation Couche-Tard research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Alimentation Couche-Tard research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alimentation Couche-Tard's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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