Alimentation Couche-Tard (Symbol ATD, was ATD.B)

Discuss your favourite picks, broker, and trading or investment style.
User avatar
Shakespeare
Veteran Contributor
Veteran Contributor
Posts: 23396
Joined: 15 Feb 2005 23:25
Location: Calgary, AB

Post by Shakespeare »

Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones
User avatar
yielder
Veteran Contributor
Veteran Contributor
Posts: 4911
Joined: 16 Feb 2005 07:47
Location: Hastings, Ontario

Post by yielder »

Alimentation Couche-Tard Inc. announces that it has decided to establish a dividend payment policy and that the Board of Directors has declared a quarterly dividend of Cdn2.5 cents per share. The dividend will be payable on December 1, 2005 to shareholders registered in the Company's records at the end of the business day on November 24, 2005.

"We are pleased to announce our first dividend, which represents to a certain degree Couche-Tard's ongoing financial success over the past 25 years. We believe it is an excellent way of thanking our current and future shareholders. We also believe that our decision will result in a wider distribution of our shares, in particular among investors looking for shares in companies that declare dividends. Our dividend policy will in no way affect our expansion strategy, which we will achieve through internal growth and acquisitions. We will remain on the lookout for business opportunities that will help us further improve our return and our shareholders' investment," stated Alain Bouchard, Chairman of the Board, President and Chief Executive Officer.
Current yield is only .43% but there's room to grow since that's a payout ratio of only 10%.

FWIW, this announcement should cause the stock to sell off. :shock:
User avatar
yielder
Veteran Contributor
Veteran Contributor
Posts: 4911
Joined: 16 Feb 2005 07:47
Location: Hastings, Ontario

Post by yielder »

LAVAL, Nov. 30 /CNW Telbec/ - Alimentation Couche-Tard Inc. announces that its Board of Directors has decided to postpone the date of dividend payment, from December 1st, 2005 to January 3rd 2006. As announced on November 15th 2005, the dividend of 2.5 cents CDN on Class A multiple voting shares and on Class B subordinate voting shares, will be payable to shareholders registered in the Company's records at the end of the business day on November 24th , 2005.

This decision has been taken after the announcement by the Federal Government of its intention regarding a reduction of the effective tax rate on dividend payments paid after January 1st 2006. This announcement of the Federal Government is subject to Parliamentary approval. Furthermore, the positions of the Provincial Governments have not been disclosed in respect with the announced reduction.

The Board of Directors' decision has been taken to allow our eligible shareholders to benefit by this announced tax reduction.
User avatar
Shakespeare
Veteran Contributor
Veteran Contributor
Posts: 23396
Joined: 15 Feb 2005 23:25
Location: Calgary, AB

Post by Shakespeare »

What they don't say is if they've moved the remaining dates similarly.
Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones
User avatar
yielder
Veteran Contributor
Veteran Contributor
Posts: 4911
Joined: 16 Feb 2005 07:47
Location: Hastings, Ontario

Post by yielder »

Couche-Tard Acquires 40 Stores in the Midwest. The 40 convenience stores and 13 fuel supply contracts are currently controlled by Shell Oil Products US.

Shell owns about 3000 stores and has indicated that it wants to cut its retail exposure. 7-Eleven was in discussions with Shell to take over managing some 900 stores. Maybe the 40 stores are a one-off deal and maybe they aren't. Hmmm.

Disclosure: I own ATD.SV.B
User avatar
scomac
Veteran Contributor
Veteran Contributor
Posts: 7788
Joined: 19 Feb 2005 09:47
Location: The Gateway to Wine Country

Post by scomac »

Shell owns about 3000 stores and has indicated that it wants to cut its retail exposure. 7-Eleven was in discussions with Shell to take over managing some 900 stores. Maybe the 40 stores are a one-off deal and maybe they aren't. Hmmm.
Alimentation Couche-Tard Inc., the North American convenience store giant that grew from modest beginnings in Quebec, is turning up the heat on industry leader 7-Eleven Inc. as it pursues an ambitious acquisition strategy that could include another blockbuster deal in the $1-billion (U.S.) range.
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
User avatar
scomac
Veteran Contributor
Veteran Contributor
Posts: 7788
Joined: 19 Feb 2005 09:47
Location: The Gateway to Wine Country

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by scomac »

Boom Baby! :shock:

Alimentation Couche-Tard Inc. to make recommended offer to acquire Statoil Fuel & Retail ASA for US$2.8 billion.
LAVAL, QC, April 18, 2012 /CNW Telbec/ - Alimentation Couche-Tard Inc. ("Couche-Tard") announced today it has signed a definitive agreement for a voluntary offer to acquire all of the issued and outstanding shares of Statoil Fuel & Retail ASA (SFR/Oslo Børs) ("Statoil Fuel & Retail") for cash consideration of NOK 53 per share before reduction for any dividends and other distributions after December 31, 2011 (the "Offer"), valuing the total share capital of Statoil Fuel & Retail at NOK 15.9 billion (US$ 2.8 billion) and transforming Couche-Tard into a leading global convenience store operator.

Statoil Fuel & Retail is the #1 Scandinavian convenience and fuel retailer with over 100 years of operations in the region. It has a broad network and leading market share across Scandinavia and the Baltic States, as well as a growing presence in Poland with approximately 2,300 full-service or automated stations of which approximately 68% are company-operated.
Patience pays off! :thumbsup:
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13269
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by Peculiar_Investor »

Loving it too! Have owned it since August 2005.

When I first saw the press release I was concerned how the market would react to them venturing overseas into very uncharted waters. The track record of Canadian companies expanding into the US market is littered with failures and costly retreats. In this regard, Couche-Tard has bucked the trend and has been very successful in their US ventures.

BTW, there is another angle to play this one, via Metro (MRU), which owns a significant stake in Couche-Tard. Hence MRU is also hitting 52 week high. From http://www.couche-tard.com/corporatif/m ... 0FINAL.pdf Metro owns 27.97% of the voting shares and 4.40% of the non-voting shares.
Last edited by Peculiar_Investor on 18 Apr 2012 10:38, edited 1 time in total.
Reason: Added Metro ownership stake information from 2011 Management Information Circular
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13269
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by Peculiar_Investor »

Today's Q3 earnings announcement, Alimentation Couche-Tard announces its results for its third quarter of fiscal year 2014, contains a few nuggets worthy of sharing.

First up, they've announced a 3:1 stock split
The Board of directors of Couche-Tard has approved a three-for-one split of its class A multiple voting shares (Symbol: ATD.A) (the "Class A Shares") and the class B subordinate voting shares (Symbol: ATD.B) (the "Class B Shares") (the "Share Split"). Couche-Tard also confirms that it has received the regulatory approval from the Toronto Stock Exchange ("TSX") with respect to the Share Split.

The record date of the stock split will be Monday, April 14, 2014, and the payment date will be Tuesday, April 22, 2014
From a separate announcement, Couche-Tard Announces Changes at the Management Level,
Alimentation Couche-Tard Inc. (« Couche-Tard ») (TSX: ATD.A ATD.B) announces today that corporation founder Mr. Alain Bouchard, has decided to take a new role as Founder and Executive Chairman of the Board of Directors starting September 24, 2014, the date of the next Couche-Tard shareholders' annual meeting. At the same time, Couche-Tard's Chief Operating Officer, Mr. Brian Hannasch, will be promoted to the position of President and Chief Executive Officer.
Mr. Bouchard started Couche-Tard as a single convenience store, today they have more than 12,600 stores.

As a long time shareholder I've been well served too! My ACB is in the $22.50 range. :D
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
westcoastfella
Contributor
Contributor
Posts: 565
Joined: 10 Jun 2009 15:47

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by westcoastfella »

from the announcement:
The TSX has determined to implement the "due bill" trading procedure in connection with the Share Split. A due bill is an entitlement attached to listed securities undergoing a material corporate action, such as a share split. In this case, anyone purchasing a Class A Share or a Class B Share of Couche-Tard during the period commencing two trading days before the record date (i.e. Thursday, April 10, 2014) and ending on the payment date (i.e. Tuesday, April 22, 2014) inclusively (the "due bill period") shall receive a payable right. Any trades that are executed on the TSX during the due bill period will be identified to ensure purchasers of Couche-Tard Class A Shares or a Class B Shares receive the entitlement.
I have not been through very many share splits, and this is my first since Telus split a couple of years ago. As I recall with Telus, they simply split overnight - one day it was trading for x, the next day it was trading for 1/2 x. This process seems different.

Can someone elaborate on what a due bill trading procedure is? What is the "payable right" that would be received? Also, this mentions share certificates being mailed, but I'm assuming that shares will be automatically adjusted/added to electronic trading accounts?
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13269
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by Peculiar_Investor »

I've taken a shot at explaining it and thought it deserved a dedicated topic Due Bill process.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13269
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by Peculiar_Investor »

A reminder for those holding or considering buying/selling ATD.B, per their Q3 Earnings press release, the 3:1 stock split takes effect in the market tomorrow, Apr 23rd.
The Class A Shares and the Class B Shares will commence trading on an "post-split" basis on Wednesday, April 23, 2014, as of which date purchases of Couche-Tard's Class A Shares and a Class B Shares will no longer have an attaching entitlement.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
FinEcon
Veteran Contributor
Veteran Contributor
Posts: 1306
Joined: 03 Aug 2005 13:41

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by FinEcon »

Couche-Tard buys U.S. corner store chain The Pantry for $1.7B

Code: Select all

Alimentation Couche-Tard Inc. has a friendly deal to buy The Pantry Inc., which will add more than 1,500 locations in 13 southern states to the Quebec-based company's U.S. network of convenience stores and fuel stops.
http://www.cbc.ca/news/business/couche- ... -1.2877466
Show me the incentive and I will show you the outcome

--Charlie Munger
westcoastfella
Contributor
Contributor
Posts: 565
Joined: 10 Jun 2009 15:47

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by westcoastfella »

with today's bump, my full position in ATD is up over 100% since I initiated it about 15 months ago. I often try to learn lessons from my losses, but its nice to learn a few lessons from your wins as well:

* don't avoid companies just because they have a low dividend payout or yield: I almost passed ATD by when I was screening, because their div yield wasn't in the range I normally look for. I ended up overlooking that when I saw their payout ratio was in the single digits, and figured they were low today but had plenty of room to grow (they have grown it, but because of stock appreciation they're still under 1% dividend). However, the capital gains from the stock appreciation have far outweighed anything I could have gotten from an increased dividend. Ultimately I'm doing this to make money, and profit can come from different places.

* don't tinker for the sake of tinkering: I am bad about tinkering with my portfolio, and probably churn more than I should; will sell parts for profit, will move from stock to stock in a sector to capitalize on something I think is there, sometimes chase yield, etc. ATD gave me no reason to sell my stake...and I didn't touch it.

Could not be happier with this steady but boring grower.
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by AltaRed »

I am curious as to whether you still hold and why? I had been looking recently but decided its valuation is still out of line (despite recent softness) given 70% of its earnings come from fuel margin (assuming that is true per Research reports) and that is not changing as a result of their purchase of Shell stations in certain parts of Europe and the latest agreement to take on Esso's stations in Ontario and Quebec. There is also the headwind of a possibly higher loonie.

Do you think as highly of this stock now, and would you put this holding in the same bucket as you would a Valero (or any other downstreamer)?
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
westcoastfella
Contributor
Contributor
Posts: 565
Joined: 10 Jun 2009 15:47

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by westcoastfella »

I no longer hold ATD.B - I started to divest my holdings last fall when it was near all-time highs of $60 for diversification reasons, and completely divested in early 2016 at around $58 per share.

My reasons were along the same lines as you have suggested - its valuation got out of whack, and I didn't see a lot of additional upside in holding it. I decided to take my profits (nearly 200% in just a few years) and re-deploy the money into other companies that, at the time, were beaten down.
User avatar
scomac
Veteran Contributor
Veteran Contributor
Posts: 7788
Joined: 19 Feb 2005 09:47
Location: The Gateway to Wine Country

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by scomac »

I still have it. I believe I still have about 25% of my original investment having trimmed it on numerous occasions over the years. there is a lot going on right now over and above the economics of the business as there is a bit of a struggle for succession control from the four founders as a sunset clause is near expiring. IMO that is largely what is driving the price action at the present. Fidelity is the institutional owner behind the battle with the founders who have suggested that they may put the company up for sale.

I won't be adding at this time as it my number 1 or number 2 position (depending upon the day's price). I do intend to ride this out though to whatever conclusion comes about. (Embedded capital gains has a lot to do with that.)
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13269
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by Peculiar_Investor »

Count me in among those still holding. Like scomac I've trimmed it a couple of times strictly on portfolio weight guidance from my IPS. It remains in my top two or three holdings.

I share the same thoughts and concerns with scomac, but valuation hasn't been stretched to the point to where I'd consider selling. Until something happens with the management team or business operations, I'm planning to hold forever. That said, based on valuations last time I looked I wouldn't be adding to my position or initiating a position.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by AltaRed »

I generally like the story though I think it can be distracting to call it a consumer staple due to its sensitivity to compressed fuel margins. That said, I've set up an alert for circa $47 (if it gets there).
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
User avatar
brad911
Veteran Contributor
Veteran Contributor
Posts: 1150
Joined: 29 Jan 2007 16:45
Location: London ON
Contact:

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by brad911 »

My target valuation is just over $48 also so I'll be watching with some interest under $50.
Triage Investing Blog - A Source for Value & Dividend Investing and Business Fundamentals
cn_habs
Contributor
Contributor
Posts: 13
Joined: 05 Oct 2015 20:38

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by cn_habs »

AltaRed wrote:I generally like the story though I think it can be distracting to call it a consumer staple due to its sensitivity to compressed fuel margins. That said, I've set up an alert for circa $47 (if it gets there).
brad911 wrote:My target valuation is just over $48 also so I'll be watching with some interest under $50.
How did you come up with that 47 or 48/share? Thanks in advance.
User avatar
AltaRed
Veteran Contributor
Veteran Contributor
Posts: 33398
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by AltaRed »

Historical valuations. If you look at http://quote.morningstar.ca/Quicktakes/ ... &ops=clear

You will see 5 year averages being considerably below current values. Price would have to fall back to circa $47 or so to get a P/E circa 19 and P/CF back to 12.5. That would still make it rich at $47. Theoretically, it would need to drop back to circa $40 to get into S&P/TSX index levels BUT because it has good prospects for continued growth, some credit needs to be given for that.

FWIW, analyst forward projections are useless. They project the future from the recent past and it cannot be assumed the successes of the recent past will be repeated, and indeed, likely won't be.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom
FinEcon
Veteran Contributor
Veteran Contributor
Posts: 1306
Joined: 03 Aug 2005 13:41

Re: Alimentation Couche-Tard (Symbol-ATD.B)

Post by FinEcon »

AltaRed wrote:I am curious as to whether you still hold and why? I had been looking recently but decided its valuation is still out of line (despite recent softness) given 70% of its earnings come from fuel margin (assuming that is true per Research reports) and that is not changing as a result of their purchase of Shell stations in certain parts of Europe and the latest agreement to take on Esso's stations in Ontario and Quebec. There is also the headwind of a possibly higher loonie.

Do you think as highly of this stock now, and would you put this holding in the same bucket as you would a Valero (or any other downstreamer)?
I've owned this for years and have yet to sell a share. Variations in the fuel margins, particularly the US, are short term volatile but not worth worrying about. There are many moving parts, fuel margins, fuel volumes, product mix (across the fuel grades) and all of these things are constantly changing in each area they operate often down to the neighbourhood level in some cases. The convenience store has the exact same conundrum, product margins, product volumes, product mixes, etc. All of these things are happening in a several currencies. They combine in a myriad of ways and tend to offset one another in so many ways in my view, it's not worth consideration.

Once you decide whether or not you like the businesses, which are:
1) real estate financing/operation/(re)development business
2) fuel service station business
3) convenience store business
then what you do want to think about is the acquisition track record and then ask yourself how you think that will play out in the future. I'll ruin it for you, it will continue on as it has for sometime, i.e. there is a very long runway for growth. The number of retail fuel service locations has been in decline for decades since the super majors went bonkers with over expansion in the 70's/80's. Now we're in a situation where each of them will eventually dispose all of their retail gas bar holdings and the pool of buyers is very limited, especially since they don't want to separate the real estate and the fuel business (and won't sell to one another). The industry trend is in their favor and in many markets they are likely more limited by anti competition/combine law than other buyers, see the recent Comissioner vs Parkland as an example.

Since I'm rambling now I'll split up my thoughts into multiple posts but to answer your last question absolutely do not use Valero as a comparable, ATB is it's own beast.
Show me the incentive and I will show you the outcome

--Charlie Munger
Post Reply