Dollarama has been one of the strongest performers on the TSX over the past decade, thanks to its low-price retail model, steady expansion, and growing international footprint. Over the last three years alone, its shares climbed sharply, reflecting solid same-store sales growth and contributions from Latin America and new markets like Australia.

Looking ahead to the next three years, the company’s growth runway is real but not explosive. Independent analyst forecasts suggest Dollarama can continue to grow earnings and revenue near mid-to-high single digits annually, which is respectable for a large, established retailer but not a blow-out growth rate. Earnings per share is expected to trend upward, supporting long-term shareholder value if execution stays consistent.

A key part of the growth story lies in store network expansion and new markets. Dollarama already operates thousands of stores across Canada, Latin America, and Australia, and management has set long-range targets for store counts in each region. In Canada, the goal is a much larger retail footprint over the decade, while international expansion — particularly converting and rebranding acquired Australian outlets — could open fresh revenue lanes.

Also Read: Top Canadian tech AI stocks

There are mixed signals on valuation and risk. Some market observers see the stock as still reasonably priced for long-term investors because of its durability and predictable cash flows, while others view valuation multiples as rich relative to its growth rate. Since the company pays only a small dividend, most return potential is expected from capital gains rather than income.

Risks that could slow performance include slower consumer spending in a high-inflation environment, challenges in turning around new international operations, or rising competition from dollar-store rivals. Execution in foreign markets — especially Australia, where the business is still ramping up — will be crucial to whether forecasts hold up.

Also Read: Dividend paying stocks Canada

In summary, if Dollarama continues opening stores, growing same-store sales, and successfully integrates its overseas acquisitions, the next three years could see steady revenue and EPS growth. That’s positive for long-term holders, but don’t expect the kind of rapid returns seen in earlier stages — future performance will likely be solid but measured rather than explosive.