Circle K Owner Names New CEO After Fuel Sales Drag on Earnings

Alimentation Couche-Tard Inc., Canada’s most valuable retailer, tapped Chief Operating Officer Alex Miller to take over as chief executive officer as the company explores more merger and acquisition deals.

Author of the article:

Bloomberg News

Monique Mulima

Published Jun 26, 2024 • 1 minute read

A fuel tank at a Circle K gas station after Hurricane Idalia made landfall in Cristal River, Florida, US, on Wednesday, Aug. 30, 2023. Hurricane Idalia knocked out power to hundreds of thousands of Florida customers, grounding more than 1,800 flights and unleashing floods along far from where it came ashore as a Category 3 storm earlier Wednesday. Photo by Eva Marie Uzcategui /Bloomberg

(Bloomberg) — Alimentation Couche-Tard Inc., Canada’s most valuable retailer, tapped Chief Operating Officer Alex Miller to take over as chief executive officer as the company explores more merger and acquisition deals.

Miller, who has been with the company almost 13 years, will take over Sept. 6 when Brian Hannasch retires. Miller will be only the company’s third CEO in its almost 45-year history.

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Couche-Tard, which operates the Circle K brand of convenience stores, announced the management shakeup Wednesday after reporting lower-than-expected profit amid weaker fuel sales.

The Quebec-based company’s shares fell as much as 5.7%, their biggest intraday drop in three months.

Earnings per share of 48 Canadian cents missed analyst estimates in the fiscal fourth quarter ended April 28. Revenue was C$17.6 billion ($12.9 billion), ahead of estimates.

US fuel revenue fell 8.8% from a year earlier amid lower demand. Fuel volume also decreased across North America and Europe. The retailer gets the majority of its revenue through fuel sales.

“We’re seeing lower quantity per visit, so that clearly is a signal that people are watching their spend,” Hannasch said on a call with analysts.

Couche-Tard also saw same-store merchandise sales decline as consumers limit discretionary spending amid heightened inflation. The cigarette category was pressured as consumers turned to illicit options, he said.

The company has been focused on expanding its income and recently acquired European gas stations from TotalEnergies SE.

Hannasch said that the company has identified several potential European and North American deals and expects to land a few in the coming quarters.

—With assistance from Jonathan Roeder.

(Updates with details from earnings call.)

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