Canadian convenience store operator Alimentation Couche Tard (ATDb.TO) reported a 4.7 per cent increase in quarterly profit on Tuesday, largely boosted by acquisitions. However, the stock came under pressure as adjusted profit missed estimates.

Shares dropped as much as five per cent in Tuesday trading, hitting a morning low of $58.50 shortly after the markets opened. Shares were trading at $58.70 at 1p.m. ET.

Couche Tard, one of Canada's most acquisitive companies, has been expanding through deals in Europe, Canada and the United States.

Last year, the owner of the Circle K chain of convenience stores struck its biggest deal to date, with the US$4.4 billion acquisition of U.S. retailer CST Brands Inc (CST.N).

Revenue from the company's fuel retail business rose 27 per cent to US$7.97 billion in the quarter ended Jan. 29. The business made up nearly 70 per cent of total revenue.

Same-store merchandise revenue in the U.S. climbed 1.9 per cent and rose 2.5 per cent in Europe, but fell 0.9 per cent in Canada, the company said.

Laval, Quebec-based Couche Tard's net income rose to US$287 million or 50 cents per share in the third quarter ended Jan. 29, from US$274 million or 48 cents per share, a year earlier. Excluding one-time items, the company earned 53 cents per share. The average analyst estimate was 66 cents per share.

Total revenue jumped 22.3 per cent to US$11.42 billion.

- With files from BNN