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BBB Foods, Inc. Class A
(NYSE:TBBB)
Select Model
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Rating:53Neutral
Price Target:
$43.00
▲(6.91% Upside)
Action:Reiterated
Date:05/30/26
The score is held back mainly by weak profitability and a leveraged balance sheet despite strong cash generation. The latest earnings call was notably positive on growth, same-store sales, and operating cash flow, partially offsetting valuation concerns tied to current losses and a mixed technical backdrop (above moving averages but weak momentum signals).
Positive Factors
Cash Generation
Sustained positive operating cash flow and materially higher free cash flow provide durable internal funding for store rollouts, DC investment and working capital. This reduces near-term refinancing need and backs self-funded expansion despite reported net losses, improving long-term solvency.
Negative Factors
Elevated Leverage
Debt materially above equity increases interest and refinancing risk, constraining capital flexibility for further investment or smoothing cycles. In a thin‑margin retail model this magnifies vulnerability to margin shocks, wage/regulatory cost increases, or temporary cash flow slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained positive operating cash flow and materially higher free cash flow provide durable internal funding for store rollouts, DC investment and working capital. This reduces near-term refinancing need and backs self-funded expansion despite reported net losses, improving long-term solvency.
Read all positive factors
BBB Foods, Inc. Class A (TBBB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.93B
Dividend YieldN/A
Average Volume (3M)570.61K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth41.20%
EPS Growth-733.48%
CountryUS
Employees29,202
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)-28.27
Shares Outstanding65,334,070
10 Day Avg. Volume545,703
30 Day Avg. Volume570,614
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)16.74
Price to Sales (P/S)0.94
P/FCF Ratio61.06
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$47.71Price Target Upside18.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)-12.06
Revenue Forecast (FY)$103.11B
BBB Foods, Inc. Class A Business Overview & Revenue Model
Company Description
Through its various subsidiaries, BBB Foods Inc. manages a network of grocery retail outlets throughout Mexico. The company provides a comprehensive selection of merchandise, ranging from essential food and beverages to personal care and household...
BBB Foods, Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 30, 2026
Earnings Call Sentiment Positive
The call presented a strong positive operational and financial performance: double-digit same-store sales growth (+20%), high revenue growth (+39% to MXN 26.0 billion), significant adjusted EBITDA expansion (+44% to MXN 1.6 billion), robust operating cash flow growth (+119% H1), rapid store network expansion (593 net new stores in 12 months, ~20% store base growth), and improved working capital (adjusted negative working capital MXN 10.2 billion). Lowlights were largely related to planned investments (G&A/talent), a one-time MXN 37 million follow-on expense, non-cash share-based compensation affecting reported EBITDA, and potential short-term logistics pressure from additional DC openings. Overall, the positives substantially outweigh the near-term costs and investments, and management reiterated confidence in long-term growth and unit economics.Positive Updates
Store Expansion and Network Growth
Opened 155 net new stores in Q2 2026 (3,624 total stores as of June 30, 2026). Opened 593 net new stores over the last 12 months, representing ~20% growth in store base versus June 2025. Expanded distribution footprint to 21 regions and opened additional distribution centers (one in Q2, two more recently, with a third expected in Q3).
Negative Updates
Increased G&A and Admin Investment
Administrative expenses excluding share-based payments increased by 57 basis points year-over-year, reflecting continued investments in talent and expansion to support growth. Management indicates G&A investment will likely continue in the back half of 2026 and suggests a short-term run rate of roughly ~3% of revenue.
Read all updates
Q2-2026 Updates
Positive
Negative
Store Expansion and Network Growth
Opened 155 net new stores in Q2 2026 (3,624 total stores as of June 30, 2026). Opened 593 net new stores over the last 12 months, representing ~20% growth in store base versus June 2025. Expanded distribution footprint to 21 regions and opened additional distribution centers (one in Q2, two more recently, with a third expected in Q3).
Read all positive updates
Company Guidance
Management's forward-looking commentary emphasized continued rapid expansion funded by strong cash generation while flagging some near‑term costs from network build‑out: they opened 155 net new stores in Q2 (3,624 total stores as of June 30; 593 net new over the last 12 months, ~20% store‑base growth vs June 2025) and one DC in Q2, with two additional DCs recently opened and a third expected in Q3 (management warned this could put short‑term pressure on logistics expense); same‑store sales were +20% YoY, Q2 revenue was MXN 26.0 billion (+39% YoY), reported EBITDA MXN 960 million and EBITDA excl. non‑cash share‑based comp MXN 1.6 billion (+44% YoY) with adjusted EBITDA margin up 21 bps to 6.2% excluding a MXN 37 million one‑time follow‑on expense; H1 operating cash flow was MXN 4.3 billion (+119% YoY), adjusted negative working capital was MXN 10.2 billion (~11.2% of LTM revenue) and inventory days are below 20, and management said operating cash flow will fully fund organic expansion while G&A investment (roughly ~3% of revenue near term) will continue to add talent in purchasing, logistics and systems.BBB Foods, Inc. Class A Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
28
Negative
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Mar 2025 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 83.29B | 73.30B | 57.44B | 44.08B | 31.75B | 23.35B |
| Gross Profit | 13.51B | 11.86B | 9.38B | 7.04B | 4.15B | 3.03B |
| EBITDA | 871.19M | 948.85M | 3.49B | 2.43B | 1.55B | 819.01M |
| Net Income | -3.28B | -2.66B | 334.42M | -306.15M | -550.67M | -825.94M |
Balance Sheet | ||||||
| Total Assets | 32.27B | 30.58B | 22.78B | 14.96B | 11.79B | 8.05B |
| Cash, Cash Equivalents and Short-Term Investments | 4.07B | 4.15B | 4.47B | 1.22B | 984.63M | 1.00B |
| Total Debt | 14.59B | 14.00B | 9.20B | 11.91B | 10.55B | 8.13B |
| Total Liabilities | 27.98B | 26.44B | 18.74B | 19.60B | 16.51B | 12.50B |
| Stockholders Equity | 4.29B | 4.13B | 4.03B | -4.63B | -4.71B | -4.45B |
Cash Flow | ||||||
| Free Cash Flow | 1.73B | 1.13B | 1.31B | 1.34B | 990.65M | 832.27M |
| Operating Cash Flow | 5.48B | 4.46B | 3.75B | 3.14B | 2.12B | 1.37B |
| Investing Cash Flow | -3.64B | -3.35B | -4.91B | -1.78B | -1.11B | -524.08M |
| Financing Cash Flow | -2.04B | -1.09B | 1.29B | -1.10B | -1.03B | -450.24M |
BBB Foods, Inc. Class A Technical Analysis
Positive
40.22
Price Trends
41.43
Positive
39.02
Positive
36.19
Positive
Market Momentum
1.21
Negative
69.72
Neutral
74.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBBB, the sentiment is Positive. The current price of 40.22 is below the 20-day moving average (MA) of 41.69, below the 50-day MA of 41.43, and above the 200-day MA of 36.19, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 69.72 is Neutral, neither overbought nor oversold. The STOCH value of 74.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TBBB.
BBB Foods, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $24.89B | 20.19 | 35.90% | ― | -19.68% | ― | |
73 Outperform | $5.55B | 34.59 | 12.01% | 0.71% | 10.18% | 9.70% | |
64 Neutral | $11.92B | 43.15 | 15.23% | ― | 19.91% | 350.11% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $26.93B | 17.34 | 18.65% | 2.01% | 4.72% | 35.43% | |
61 Neutral | $11.94B | 21.33 | 26.59% | ― | 5.92% | 0.80% | |
53 Neutral | $5.93B | -28.77 | -70.09% | ― | 41.20% | -733.48% |
* Consumer Defensive Sector Average
TBBB
BBB Foods, Inc. Class A
47.79
22.34
87.78%
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BJ
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93.41
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167.26%
BBB Foods, Inc. Class A Corporate Events
BBB Foods’ Tiendas 3B Closes Follow-On Offering With Full Underwriter Option Exercise
Jun 1, 2026
On June 1, 2026, BBB Foods Inc. (“Tiendas 3B”) closed a follow-on underwritten public offering of 15,299,800 Class A common shares at $32.50 per share, with 2,695,626 shares sold by the company and 12,604,174 by existing shareholders. ...
BBB Foods’ Tiendas 3B Prices $32.50 Follow-On Share Offering to Fund Growth
May 29, 2026
On May 28, 2026, BBB Foods Inc. (Tiendas 3B) priced a follow-on public offering of 13,304,174 Class A shares at $32.50 each, with 700,000 new shares sold by the company and 12,604,174 shares sold by existing shareholders. The transaction is expect...
BBB Foods’ Tiendas 3B Launches Follow-On Share Offering in U.S. Market
May 27, 2026
On May 27, 2026, BBB Foods Inc. announced the launch of an underwritten public follow-on offering of 13,304,174 Class A common shares, comprising 700,000 new shares from Tiendas 3B and 12,604,174 shares from existing shareholders. The company may ...
BBB Foods Inc. Reports Strong Q1 2026 Revenue Growth and Larger Balance Sheet
May 27, 2026
BBB Foods Inc. reported unaudited interim condensed consolidated financial information for March 31, 2026, covering the three months ended March 31, 2026 and 2025, in a Form 6-K filed on May 27, 2026. The filing shows total assets rising to Ps. 32...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.