Circle K sales growth continues as foodservice gains momentum

Circle K parent Alimentation Couche-Tard recorded its fifth straight quarter of positive same-store merchandise sales growth in the U.S. during fiscal Q1 2027. U.S. same-store merchandise revenues grew 1.7% during the quarter and 1.6% across the company’s global network, building on a strong fiscal 2026.

President and CEO Alex Miller said consumers are becoming more deliberate about where they spend, and the company is adapting its category mix accordingly. Sales of carbonated soft drinks and traditional center-store categories like salty snacks and packaged sweets remained soft, while functional, protein-rich and better-for-you products continued to gain ground. In response, Circle K continues to expand its higher-value foodservice and beverage offerings.

Energy drinks were a standout, with U.S. sales up more than 10% year-over-year, outpacing the broader category’s high-single-digit growth. Miller credited newer entrants like Alani Nu and Celsius, along with an expanding base of female customers, and said the company is evaluating additional shelf space and digital promotion for functional beverages.

Foodservice remains what Miller called the company’s “single biggest growth opportunity,” now accounting for 13.2% of merchandise sales and benefiting from nearly 20% year-over-year growth in value-meal volume. Management also pointed to gains in Europe tied to larger, higher-value meal purchases. Additional opportunities could come from the parent company’s proposed $8.6 billion acquisition of Żabka, Poland’s largest convenience chain with roughly 13,000 locations, which would strengthen its foodservice, digital ordering and loyalty capabilities.

Nicotine also contributed to the quarter’s strength. Noncombustible nicotine products, including pouches, delivered one of their best quarters in recent years, while cigarette same-store sales rose for a third consecutive quarter, outperforming industry volume trends by roughly 400 basis points even as U.S. adult smoking rates continue a long-term decline.

The results reflect a broader shift across convenience retail as operators increasingly lean on foodservice to drive traffic and sales. Casey’s General Stores, for instance, posted a 14.2% increase in inside sales on the strength of its prepared-food program. 7-Eleven is also expanding its restaurant footprint, adding concepts like Raise the Roost Chicken & Biscuits and Laredo Taco Company after finding that locations with an on-site QSR see more than 50% higher traffic on average than those without.

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