Broad-Based Merch Strength, Fuel Margin Upside. REIT Buy

Research evidence excerpt

Broad-Based Merch Strength, Fuel Margin Upside. REIT Buy

USA | Convenience Retail

Alimentation Couche-Tard Inc EquityJuneResearch23, 2026

TARGET | ESTIMATE CHANGEBroad-Based Merch Strength, Fuel Margin

RATING BUYUpside. REIT Buy

PRICE C$82.26^

Merch comps accelerated (U.S. +3.4% vs cons. +2.5%) on broad-based

C$107.00 (C$94.00) |

strength in food, nicotine, and beverages, while U.S./Europe margins expanded PRICE TARGET | % TO PT +30%

on mix and execution. Fuel margins materially beat across regions, offset 52W HIGH-LOW C$85.59 - C$66.93

by weaker volumes. Merch in Canada lagged. Mgmt highlighted continued FLOAT (%) | ADV MM (USD) 80.7% | 75.25

Q1 momentum, with fuel capability, digital engagement, and supply chain MARKET CAP C$75.6B | $53.4B

investment supporting growth. New PT $107. TICKER ATD CN

^Prior trading day's closing price unless otherwise

What We LIKED In the Quarter noted.

1) Merch Comps Accelerate And Beat Expectations… Consolidated comps rose 2.2%, with U.S.

+3.4% (vs cons: +2.5%) and Europe +1.1% (vs cons: +0.5%). Strength was broad-based across food, FY (Apr) CHANGE TO JEFe JEF vs CONS

nicotine, and beverages, with U.S. foodservice >5% and energy >15%, reinforcing traction from Core 2027 2028 2027 2028

+ More initiatives and improved execution. REV +8% NA +6% NA

EPS +2% NA +3% NA

2) … With Merch Margin Expansion in the US and Europe. Merch margin improved in key regions,

with U.S. +50bps Y-Y to 34.4% and Europe +100bps to 39.6%, driven by favorable mix, stronger 2027 ($) Q1 Q2 Q3 Q4 FY

procurement, and improved execution. This highlights continued pricing discipline and mix tailwinds EPS -- -- -- -- 3.30

from higher-margin categories. PREV 3.24

3) Fuel Margin Strength Remains A Core Earnings Driver. Fuel margins significantly exceeded