Alimentation Couche-Tard Inc topped analysts’ quarterly profit estimate on Tuesday as the world’s second-biggest convenience store operator earned more from improved fuel sales.
Revenue from the company’s fuel retail business, its biggest, increased 24.5 per cent to about US$10.9-billion. Couche-Tard has more than 8,000 outlets in the United States.
The same-store fuel volumes rose 1.2 per cent in the United States, its biggest market, while same-store merchandise revenue was up 4.4 per cent.
The company has been expanding its gasoline and convenience stores business with new acquisitions including CST Brands and Holiday Stationstores, a 522-store chain of gas stations and convenience outlets in the United States.
Revenue from merchandise and services business rose 11 per cent to US$3.46-billion in the quarter ended Oct.14.
Net income attributable to the company rose to US$473.1-million, or 84 cents per share, in the second quarter, from US$432.5-million, or 76 cents per share, a year earlier.
Total revenue rose to US$14.7-billion from US$12.14-billion.
Excluding items, the company earned 84 cents per share, compared with 80 cents a year earlier.
Analysts, on average, were expecting the company to report a profit of 82 cents and revenue of US$14-billion, according to IBES data from Refinitiv.