(Bloomberg) — Alimentation Couche-Tard Inc., Canada’s most valuable retailer and the operator of the Circle K and Couche-Tard chains, reported lower-than-expected earnings amid weaker fuel sales.

Most Read from Bloomberg

The convenience store and gas station operator, based in Laval, Quebec, reported revenue of C$17.6 billion ($12.9 billion) for its fiscal fourth quarter ended April 28, surpassing the average analyst estimate. But earning per share of 48 Canadian cents missed investor expectations.

The retailer, which operates or has licensing agreements for more than 16,700 stores in 29 countries and 47 US states, gets the majority of its revenue through fuel sales. The company has been focused on expanding its income in that segment, recently acquiring European gas stations from TotalEnergies SE. While US fuel margins for the fourth quarter slightly exceeded the average analyst estimate last quarter, overall US fuel revenue fell 8.8% from a year earlier amid lower demand.

Couche-Tard also saw same-store merchandise sales decline as consumers deal with heightened inflation and limit discretionary spending.

“No doubt, this has been a challenging quarter with persistent inflation and continued pressure on consumers who are carefully watching their spending,” Chief Executive Officer Brian Hannasch said in the company’s earnings statement.

Alimentation Couche-Tard shares have gained 1.9% so far this year through Tuesday’s close, short of the 4% advance of the S&P/TSX Composite over the same period.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.