🇨🇦 $ATD.TO is one of the largest gas station and convenience store operators in the world. Over the last two decades, the stock has returned 26,000% *excluding dividends*.
15-year CAGRs:
Revenue +13%
FCF +34%
ROIC (avg.) 17%
Thread time! 🧵
15-year CAGRs:
Revenue +13%
FCF +34%
ROIC (avg.) 17%
Thread time! 🧵
To put the company's size in perspective...
Through its 14,000+ locations, Alimentation sells ~35 million gallons of fuel, almost half a million hot dogs, and 750,000 cups of coffee *per day*.
That's ~180 million hot dogs per year 🌭
Through its 14,000+ locations, Alimentation sells ~35 million gallons of fuel, almost half a million hot dogs, and 750,000 cups of coffee *per day*.
That's ~180 million hot dogs per year 🌭
$ATD.TO operates in 24 countries around the world, and is mostly known as the parent company behind chains like Circle K, Couche-Tard, and Ingo.
Alimentation's incredible growth over the last two decades has been fueled (pun intended) by a lot of acquisitions:
Alimentation's incredible growth over the last two decades has been fueled (pun intended) by a lot of acquisitions:
One thing that is interesting about the gas station business is that it has proven to be very resilient during tough times.
$ATD.TO's revenue grew by 5% and 8% respectively during the Dot-Com Bubble and the Great Recession:
$ATD.TO's revenue grew by 5% and 8% respectively during the Dot-Com Bubble and the Great Recession:
Here's President & CEO Brian Hannasch talking about the last two major recessions:
The industry is also, according to Brian, "one of the most fragmented and competitive industries in the world" - meaning the acquisition spree can continue for a long time.
For example, despite $ATD.TO's size, the company only has a single digit market share in the US:
For example, despite $ATD.TO's size, the company only has a single digit market share in the US:
As we transition to electric vehicles, $ATD.TO will obviously play a major role. Through its large presence in Norway, the country with the highest EV penetration in the world, Alimentation has learned a lot.
Here's Brian again, on the expansion of its EV charging network:
Here's Brian again, on the expansion of its EV charging network:
Despite not being talked about often on FinTwit, Alimentation has been an incredible performer both in terms of its fundamentals as well as its stock price.
For example, its dividend has grown almost 10x over the last decade.
What's your thoughts on $ATD.TO? ⛽️
For example, its dividend has grown almost 10x over the last decade.
What's your thoughts on $ATD.TO? ⛽️
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