Yahoo Finance Alimentation Couche-Tard CEO Hannasch to retire, chief operating officer to succeed
Alimentation Couche-Tard (ATD.TO) CEO Brian Hannasch announced his retirement from the global gas and convenience chain on Wednesday. The company says its current chief operating officer, Alex Miller, will replace Hannasch on Sept. 6.
Hannasch has led the Quebec-based company for 10 years, overseeing the acquisition of nearly 8,000 stores on multiple continents. According to the company, Couche-Tard’s share price climbed by 400 per cent during his tenure as CEO.
“It has been the honour of a lifetime to be Couche-Tard’s CEO for the past 10 years, and a leader of this company for the past 25,” Hannasch stated in a news release on Wednesday. "I know Couche-Tard is in great hands with Alex as he has been one of my closest business partners for well over a decade."
The food and fuel retailer operates more than 16,700 stores in 31 countries. The United States is its largest region, with over 7,000 sites. Couche-Tard has about 5,200 sites in Europe, and about 2,100 in Canada. Alongside its namesake brand, its banners include Circle K and Ingo.
Couche-Tard says Hannasch will continue to work with the company as a special advisor to Miller, and company founder and executive chair Alain Bouchard.
“Couche-Tard has only had two CEOs during its almost 45-year history, and we take this appointment extremely seriously,” Bouchard stated in the release. “The board and I have been planning for an orderly and seamless succession for several years, and we have carefully assessed the process and possible candidates.”
Couche-Tard says Miller brings over 25 years of management experience in the retail fuel and convenience store industry, including nearly 13 years at Couche-Tard.
'Weakness in consumer behaviour persists'
Hannasch's retirement comes as the company grapples with soft spending from cash-strapped consumers, a theme he has warned about for multiple quarters now.
Couche-Tard reported its latest financial results after the closing bell on Tuesday, booking a near one-third drop in earnings versus a year ago. The company says lower gross fuel margins, the quarter being a week shorter than last year, and expenses related to investments and acquisitions, also impacted its results.
Toronto-listed shares fell 2.55 per cent as at 9:51 a.m. ET on Wednesday. The stock has climbed about 25 per cent over the past 12 months.
"We feel good about the summer months, but there is no doubt that weakness in consumer behaviour persists," Hannasch told analysts on a conference call Wednesday morning. "We're not knee-jerking based on a couple of soft quarters and a weak consumer. We think that's transitory."
Nearly 75 per cent of Couche-Tard's revenue came from fuel sales for the fiscal year ended April 28. U.S. fuel revenue fell 8.8 per cent from a year earlier. In Canada, fuel revenue slipped 8.6 per cent.
In a note to clients, RBC Capital Markets analyst Irene Nattle says this was "not a quarter for this history books, although a better outcome than fiscal Q3."
Nattle maintains an "outperform" rating on Couche-Tard shares, with a $93 price target.
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
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