From an investment perspective, the best strategy is to look for companies that are exceptionally well positioned to thrive, not just survive, during economic uncertainty.
Food Couche-Tard (TSX:ATD) I think if the economic forecast for next year is gloomy. There are three reasons to buy this consumer staples stock like there is no tomorrow. If you invest today, the share price will be $75.73 with a corresponding dividend yield of 1.1%.
1. Defensive investment
Couche-Tard is the recognized leader in the global supermarket industry. This $70.1 billion Canadian multinational has weathered numerous economic downturns and shown resilience during market weakness. The company is not tied to vulnerable sectors such as housing, industrial production and manufacturing.
Its recession-proof nature during economic cycles comes from sales of essentials such as basic groceries and fuel. People need them, even in difficult times. Furthermore, customers prioritize convenience.
In the third quarter of fiscal 2026 (three months ended October 12, 2025), net profit increased 4.4% to US$743.3 million compared to the third quarter of fiscal 2025. At the end of the quarter, the total number of locations was 14,637, with 73 stores still under construction. One bright spot is the strong growth of food service programs.
“We ended the second quarter with growing optimism, reflecting steady progress supported by consistent execution and effective cost management across our businesses. Looking ahead, we remain committed to delivering earnings growth over the course of the year,” said Filipe Da Silva, Chief Financial Officer of Couche-Tard.
The fuel sector is more volatile than convenience stores, but still maintains high margins. Moreover, a large operator like Couche-Tard can use its scale to keep costs low. Meanwhile, the transition to electric vehicles (EVs) poses a threat to Couche-Tard. A substantial part of the turnover comes from the sale of fuel. As sales of electric vehicles increase, the demand for gasoline and diesel will gradually decrease.
2. Future master consolidator
The supermarket sector is highly fragmented, but market consolidation is on the horizon. It could be the most compelling long-term tailwind for Couche-Tard. Soon there will be fewer small operators, especially single-store owners.
Expect Couche-Tard to be the main driver and master consolidator. Management has already said it is pursuing small to large network-level deals and acquisitions. Consolidation will also contribute to the realization of the long-standing growth strategy.
3. A huge growth engine
Couche-Tard has extensive M&A experience. The company has successfully completed and integrated approximately 75 major acquisitions worldwide. Management typically purchases fragmented assets at attractive valuations to increase profitability. It uses a proven operational playbook to achieve economies of scale.
The game plan is simple: acquire, integrate and synergize. The most recent acquisition is GetGo Café + Market in the United States. GetGo’s foodservice capabilities were the main attraction of the $1.6 billion transaction. In addition, Couche-Tard strengthened its position as the second largest C-store chain in America.
Positive and resilient
Couche-Tard knows how to play the field. There are two words to describe the business outlook in 2026: positive and resilient. Expansion, a core component of the growth strategy, is a strategic certainty. The three reasons mentioned here give confidence to invest in ATD.
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