After rebounding for 15 consecutive years, shares of Alimentation Couche-Tard (TSX:ATD) became negative in 2024. Despite the TSX CompoundWith an increase of 17% this year so far, ATD stock has seen an erosion in value of approximately 8% to currently trade at $72 per share with a market capitalization of $68.3 billion. At this market price, it offers an annualized dividend yield of 1%. Although too modest, this return is mainly supported by the solid position of Couche-Tard fundamentals and a reliable economic model. For Foolish investors who value long-term gains over high immediate returns, ATD stock could be a solid choice.

In this article, I’ll discuss the key factors that make Couche-Tard stock worth considering bearish right now, including its financial health, growth prospects and why that 1% yield may attract growth investors.

An overview of Couche-Tard’s financial health

If you don’t already know, Couche-Tard focuses primarily on its convenience and fuel retail businesses, operating under brands like Circle K in North America and Europe. Known for its disciplined approach to growth, the company has managed to expand its presence in several countries over the years and increase its profitability while maintaining strong cash flows.

Couche-Tard’s financial strength constitutes one of its greatest assets. In its 2024 fiscal year (ending April 2024), the company reported revenue of $69.3 billion, with profits of $2.7 billion, even in a tough retail market. Much of these stable profits came from its reliable convenience store and fuel businesses, which continued to generate stable cash flows. With $1.3 billion in cash reserves and the end of the fiscal year, Couche-Tard was in an excellent position to manage its short-term needs and continue its expansion.

Show strength in the face of challenges

Although consumer spending and other key economic indicators remain weak, Couche-Tard’s results for the first quarter of its 2025 fiscal year (ending July 2024) showed its ability to adapt and maintain strong sales. During the quarter, its total revenue jumped 17% year-over-year (year-over-year) to US$18.3 billion, mainly due to strategic acquisitions and growth wholesale fuel sales.

Despite inflationary pressures and tightening consumer spending, Couche-Tard’s acquisition strategy continues to be a major driver of its revenue growth. For example, its recent purchase of more than 2,100 sites in Europe from TotalEnergies spurred the company’s revenue diversification and expanded its geographic footprint, helping to offset challenges with same-store sales. Additionally, continued strength in its fuel sector continues to support Couche-Tard’s long-term growth plans despite near-term economic headwinds.

Is Couche-Tard stock a buy?

Recently, Couche-Tard announced plans to acquire approximately 270 GetGo Café + Market locations in the United States, which will likely expand its reach in states like Ohio and Pennsylvania.

While it is true that Couche-Tard does not offer a high dividend yield, its consistent growth in revenue, cash flow, and recent acquisitions makes it very attractive to investors seeking long-term stability. term. Additionally, the company’s strong balance sheet, diverse revenue streams, and strategic expansion into new markets give it a competitive edge over the competition, making it one of the best retail stocks to keep for years.