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Hi Matt - I know this post is a couple years old at this point, but was curious to know what your thoughts are on the terminal value of couche-tard are these days in 2024? It's a simple business to understand which I like, with a great management team, but curious to know how you model out the profitability of the convenience stores if there will be less traffic at the pumps over time? I think I can get over this mental hurdle if I had more info around the costs to replace a gas pump with a EV charger
You can look into ATD's Norwegian operations to get a feel for how gas stations perform when EVs are dominant. So far they've held up well. But it is expensive to put in EV chargers. And C Stores will need to offer good food and clean, spacious areas to entice people to spend 20-30' charging there. The Norwegian situation is still a long way off in the US.
Hi Matt - I know this post is a couple years old at this point, but was curious to know what your thoughts are on the terminal value of couche-tard are these days in 2024? It's a simple business to understand which I like, with a great management team, but curious to know how you model out the profitability of the convenience stores if there will be less traffic at the pumps over time? I think I can get over this mental hurdle if I had more info around the costs to replace a gas pump with a EV charger
You can look into ATD's Norwegian operations to get a feel for how gas stations perform when EVs are dominant. So far they've held up well. But it is expensive to put in EV chargers. And C Stores will need to offer good food and clean, spacious areas to entice people to spend 20-30' charging there. The Norwegian situation is still a long way off in the US.
Thanks Matt appreciate the reply! I will do a little bit more homework in that area. Thanks for write-up!