A Convenient Fortune: Soaring Stock Of Circle K’s Parent Company Creates New Billionaire

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With Canadian convenience store chain Couche-Tard’s stock trading at all-time highs, cofounder and former CFO Richard Fortin joins the ranks of the world’s billionaires by CarterCoudriet

Analysts say the stock has been undervalued: Couche-Tard runs nearly 8,700 gas stations, and fears surrounding the rise of electric vehicles led to a conservative valuation. But EV’s are not yet dominating the roads, and its strong same-store merchandise sales performance is helping alleviate investors’ concerns.

Analysts say a standout product among those store-goers is tobacco products, particularly e-cigarettes like Juul. CIBC analyst Mark Petrie, who rates the stock as an “outperformer,” points out that tobacco sales are up 6% year-over-year.

“Their acquisition platform is unrivaled,” he says. “They’re able to increase the EBITDA of the companies they acquire by 30% to 50% using sourcing synergies and cost reductions. I have no other companies in my coverage universe that come near that.” In 2001, Couche-Tard acquired U.S. Midwest chain Bigfoot, entering the American market for the first time. Today, Couche-Tard owns nearly 7,800 stores in the U.S. under the Circle K, Corner Store, Kangaroo Express and Holiday brands. Fortin rotated through several executive positions, including CFO and chairman of the board.

 

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CarterCoudriet That guy has done some naughty things with that mouth

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