Couche-Tard (Baa1, BBB+ S), the convenience/petrol store operator reports Q3 results

• Revenue at (USD) $19.6b vs. c$20.9b & ad. EBITDA (pro-forma) at $6.2b. Miss driven by fuel gross margins in the US (43.19c/gallon down -3.66c) and softer traffic conditions (-0.8% fuel volume decrease in US, -1.9% in EU). On traffic it cited a "portion of our customers remains impacted by challenging economic condition".
• $1.1b in buybacks & $330m in dividends YTD while issuing heavily into CAD/USD & Euro markets to fund its purchase of TotalEnergies' gas stations (for $3.8b in cash with expected synergies of $187m over next 5yrs).
• Acquisition activity has bumped leverage up to 2.2* (1.5* last yr). Its kept qtrly dividend at CAA 17.5c/share (~170m).

Ratings already account for run-up in leverage post TE acquisition - Moody's expected rise from 1.6* (in FY23) to 2.3* (FY25). € cash mids streaming unch this morning, curve trades wide on a somewhat noticeable reverse Yankee discount. Some uncertainty for ATDBCN on impact EV penetration.

Earnings call at London Midday/8am ET; https://connectnow1.accutel.com/EventMeet/control?u=1