GLP-1 drugs weigh on Circle K snack sales

U.S. same-store merchandise sales grew by 1.7% during the fiscal first quarter, falling short of the company's 2% to 3% target. Chief Executive Alex Miller confirmed that demand for confectionery and salty snacks softened compared to the previous quarter. Whether this shift represents a permanent change in shopping habits remains unclear, as Miller admitted he does not yet know if the trend is transitory.

To counter the slump, the company is reallocating shelf space, moving away from traditional sweets toward protein-focused and functional snacks. This pivot aligns with a broader strategy to expand fresh food offerings, which now account for 13.2% of total merchandise sales. Despite the snacking decline, the company reported total quarterly revenue of $21.7 billion, exceeding Wall Street expectations of $20.86 billion. Following the report, shares slipped 3% to 81.70 Canadian dollars.