Alimentation CoucheâTard (TSX:ATD) has been one of Canadaâs most reliable compounders for decades, but the stock faces a different set of questions heading into 2026.
For years, investors could count on doubleâdigit growth driven by acquisitions, scale, and operational efficiency.
More recently, that pace has slowed, and the companyâs attempts to buy 7âEleven raised concerns about how much runway remains for megaâdeals.
Concurrently, volatility related to fuel demand and the rise of electric vehicles (EVs) has raised new concerns among investors. These shifts have led some investors to question whether CoucheâTard still deserves its âforever stockâ reputation.
With that in mind, itâs worth taking a closer look to answer that question.
Meet Couche-Tard
CoucheâTard operates more than 17,000 stores across 29 countries under Circle K and other banners. The company generates its revenue from fuel, convenience retail, and a growing foodservice segment.
A long history of disciplined acquisitions and bestâinâclass integration has been the backbone of its growth strategy.
In short, scale, efficiency, and steady cash flow remain central to the business model.
Why investors are questioning the business
The first concern is that CoucheâTardâs growth has slowed from its historical doubleâdigit pace to a more modest pace. In truth, itâs not a sign of company weakness, but rather a shift from that hyper-growth era.
The second issue is the failed $47 billion bid for 7âEleven, which would have created the worldâs largest convenience store operator.
Had that deal succeeded, it would have come with significant regulatory and governance concerns. It would also raise questions about the appetite among regulators for similar mega-acquisitions. This mirrors other segments of the market where regulators cooled on megaâmergers after a wave of large deals.
Regulators arenât the only ones with that feeling. Investors remain concerned about acquisition fatigue and whether the explosive growth of the last decade can be matched.
Finally, we have fuel margin volatility. Fuel remains a major profit driver for the company, despite longâterm uncertainty around EV adoption. This adds a layer of uncertainty to an otherwise defensive business model.
These concerns explain why that âforever stockâ label is being reâexamined.
Why it still looks like a forever stock
Despite those headwinds, there are still plenty of reasons to see CoucheâTard as that long-term forever stock.
Its scale advantage is enormous, giving the company unmatched purchasing power and operational leverage across its global network. Additionally, convenience retail and fuel remain highly defensive businesses, supported by everyday purchases and essential travel needs.
In other words, Couche-Tard isnât a destination in itself. Rather, it serves as an essential stop enroute to that destination. And that stop provides all the amenities its customers need.
That leads to the companyâs Foodservice segment, which remains an underappreciated growth lever. This is especially true following the GetGo acquisition, which added higherâquality offerings.
Turning to acquisitions, Couche-Tardâs integration track record is among the best in the industry.
The company has developed a particular knack for extracting value from boltâon deals and realizing those synergies. Itâs also shifted toward buybacks, returning more capital to shareholders following the abandoned 7âEleven bid.
Finally, thereâs the dividend. While modest, the 1.14% yield comes with steady dividend growth supported by strong cash flow.
Final take
CoucheâTard may not be the hyperâgrowth machine it once was, but it continues to demonstrate the qualities that define a durable compounder.
Its scale, defensiveness, disciplined capital allocation, and consistent execution give it staying power even in a changing industry.
The next decade will likely look different from the last, with slower growth and more measured expansion. But for investors comfortable with those shifts, CoucheâTard still stands out as a strong candidate for a forever stock in any well-diversified portfolio.
It remains a business built for longâterm compounding, even if the path forward is more gradual.
The post Is Alimentation Couche-Tard Still a “Forever” Stock? appeared first on The Motley Fool Canada.
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* Returns as of January 15th, 2026
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Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool has a disclosure policy.
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