Canadian convenience and fuel giant Alimentation Couche-Tard is reporting robust momentum in its in-store food business, even as consumers remain cautious. CEO Alex Miller highlighted that fresh and prepared food sales are on track to reach the company’s internal target of 20% of North American revenue.

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The Laval-based company operates around 17,000 stores across 29 countries under banners such as Couche-Tard and Circle K. In the second quarter, same-store sales rose across the board, with Canada’s growth driven primarily by food and alcohol sales. Merchandise revenue increased 5.4% year-over-year, outpacing fuel sales growth.

Couche-Tard has been pushing fresh food offerings aggressively, including promotional meal deals in the U.S. in collaboration with celebrity chef Guy Fieri. The company expects these initiatives to resonate with consumers looking for affordable, convenient meal options.

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Analysts note that while cautious spending continues to affect overall retail, Couche-Tard’s food segment stands out as a key growth driver. Same-store sales in regions like Ontario are further supported by expanded alcohol availability in convenience stores. Shares were up nearly 5% following the announcement, reflecting optimism in the company’s evolving food strategy.