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BBB Foods, Inc. Class A (TBBB)
NYSE:TBBB
US Market
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BBB Foods, Inc. Class A (TBBB) AI Stock Analysis

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TBBB

BBB Foods, Inc. Class A

(NYSE:TBBB)

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Neutral 62 (OpenAI - 4o)
Rating:62Neutral
Price Target:
$27.00
▲(4.37% Upside)
The overall stock score of 62 reflects strong earnings call performance and robust financial growth, tempered by high leverage and valuation concerns. The company's strategic expansions and market position are positive, but profitability and debt management remain key challenges.
Positive Factors
Revenue Growth
The substantial revenue growth reflects strong market demand and effective expansion strategies, positioning the company for sustained long-term growth.
Cash Flow Generation
Strong cash flow generation enhances financial flexibility, supporting future investments and debt reduction, crucial for long-term stability.
Market Position
A leading market position in a growing region strengthens competitive advantages and provides opportunities for continued expansion and profitability.
Negative Factors
High Leverage
High leverage can increase financial risk, limiting the company's ability to invest in growth opportunities and affecting long-term financial health.
Profitability Margins
Low profitability margins indicate challenges in converting revenue to profit, which may hinder the company's ability to sustain growth and reinvest in the business.
EBITDA Margin Decline
Declining EBITDA margins suggest rising operational costs, which could pressure future profitability and require strategic cost management to maintain financial health.

BBB Foods, Inc. Class A (TBBB) vs. SPDR S&P 500 ETF (SPY)

BBB Foods, Inc. Class A Business Overview & Revenue Model

Company DescriptionBBB Foods Inc., through its subsidiaries, operates grocery retail stores in Mexico. It offers food products, drinks, hygiene and beauty products, home clean products, coffee, tea and substitutes, jellies and desserts, and baby and pet products. The company also provides branded, private label, and spot products. In addition, it offers its products through online. The company serves low-to-middle income households. The company was incorporated in 2004 and is headquartered in Mexico City, Mexico.
How the Company Makes MoneyThe company generates revenue through multiple streams, primarily by selling its diverse product lines to grocery chains, restaurants, and food distributors. Key revenue streams include direct product sales, distribution agreements, and private label partnerships. Additionally, BBB Foods, Inc. benefits from economies of scale in production and distribution, allowing for competitive pricing. Strategic partnerships with major retailers enhance its market reach and drive sales volume, while ongoing investment in marketing and product development helps to attract new customers and retain existing ones.

BBB Foods, Inc. Class A Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Dec 01, 2025
Earnings Call Sentiment Positive
Tiendas 3B demonstrated strong growth and financial performance with significant store expansions and notable revenue increases. However, increased expenses and a decline in EBITDA margin were challenges. Despite these, the overall sentiment remains positive due to the company's strategic growth and market position.
Q2-2025 Updates
Positive Updates
Exceptional Growth and Store Expansion
Tiendas 3B opened 142 net new stores in Q2, totaling 3,031 stores, with plans to invest in 4 new regions in the second half of the year. Same Store sales grew by 17.7%, and total revenues increased by 38.3% to reach MXN 18.8 billion.
Strong Financial Performance
EBITDA increased by 22.5% to MXN 844 million. If excluding non-cash share-based payment expenses, EBITDA would have increased by 32%. Operating cash flow increased by 56% from 2024, reaching MXN 1.9 billion.
Increased Cash Position
The company ended with a net local cash position of approximately MXN 1.1 billion, with an additional $150 million from IPO funds.
Positive Market Position
The company continues to be one of the fastest-growing retailers in Mexico, with a significant lead in Same Store sales growth compared to ANTAD, showing a larger gap of 15 percentage points.
Negative Updates
Increased Expenses
Sales expenses as a percentage of revenue slightly increased from 10.4% to 10.5%, driven by higher store personnel and D&A expenses due to accelerated store openings. Admin expenses also increased by 31 basis points.
EBITDA Margin Decline
EBITDA margin declined by 58 basis points, mainly due to higher logistics costs associated with opening new regions and non-cash share-based payment expenses.
Company Guidance
In the second quarter of 2025, Tiendas 3B reported robust financial performance driven by strategic store expansions and an enhanced value proposition. The company opened 142 net new stores, bringing the total to 3,031, and invested in four new regions set to open in the latter half of the year. Same Store sales surged by 17.7%, compared to 10.7% in the same period last year, while total revenues grew by 38.3% to MXN 18.8 billion. EBITDA climbed by 22.5% to MXN 844 million, and cash flow from operations increased by 56% to MXN 1.9 billion. Despite a slight rise in sales and admin expenses as a percentage of revenue—up by 0.1 and 0.31 percentage points respectively—the company maintained a strong growth trajectory, funding its expansion internally. Tiendas 3B's focus on accelerating store openings and expanding its market presence continues to drive shareholder value and outperform competitors.

BBB Foods, Inc. Class A Financial Statement Overview

Summary
BBB Foods, Inc. Class A shows strong revenue growth and cash flow generation, indicating potential for future expansion. However, challenges with profitability margins and high leverage could impact financial stability. Improving net profit margins and managing debt levels are crucial for sustaining growth.
Income Statement
70
Positive
BBB Foods, Inc. Class A shows a strong revenue growth rate of 8.4% TTM, indicating robust sales expansion. However, the net profit margin is low at 0.77% TTM, reflecting challenges in translating revenue into profit. The gross profit margin is stable at 16.25% TTM, suggesting consistent cost management. EBIT and EBITDA margins are moderate, indicating operational efficiency but room for improvement in profitability.
Balance Sheet
60
Neutral
The company has a high debt-to-equity ratio of 2.34 TTM, indicating significant leverage, which could pose financial risk. Return on equity is moderate at 12.21% TTM, showing decent returns for shareholders. The equity ratio is low, suggesting a reliance on debt financing over equity.
Cash Flow
75
Positive
Operating cash flow is strong, with a coverage ratio of 0.35 TTM, indicating good cash generation relative to net income. Free cash flow growth is impressive at 165.4% TTM, showing improved cash availability for investments or debt reduction. The free cash flow to net income ratio is healthy, reflecting efficient cash conversion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue67.08B57.44B44.08B32.58B23.09B
Gross Profit10.83B9.38B7.04B4.92B3.44B
EBITDA3.35B3.49B2.43B820.41M608.85M
Net Income-139.03M334.42M-306.15M-565.11M-816.67M
Balance Sheet
Total Assets25.12B22.78B14.96B11.79B8.05B
Cash, Cash Equivalents and Short-Term Investments3.97B4.47B1.22B984.63M1.00B
Total Debt10.61B9.20B11.91B10.55B8.13B
Total Liabilities20.99B18.74B19.60B16.51B12.50B
Stockholders Equity4.13B4.03B-4.63B-4.71B-4.45B
Cash Flow
Free Cash Flow1.55B1.31B1.34B990.65M832.27M
Operating Cash Flow4.42B3.75B3.14B2.12B1.37B
Investing Cash Flow-2.53B-4.91B-1.78B-1.11B-524.08M
Financing Cash Flow-1.87B1.29B-1.10B-1.03B-450.24M

BBB Foods, Inc. Class A Technical Analysis

Technical Analysis Sentiment
Negative
Last Price25.87
Price Trends
50DMA
25.87
Negative
100DMA
27.12
Negative
200DMA
27.55
Negative
Market Momentum
MACD
0.03
Positive
RSI
48.35
Neutral
STOCH
62.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBBB, the sentiment is Negative. The current price of 25.87 is below the 20-day moving average (MA) of 26.08, below the 50-day MA of 25.87, and below the 200-day MA of 27.55, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBBB.

BBB Foods, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
3.59B24.6111.98%1.07%7.47%15.20%
76
Outperform
4.85B92.193.76%20.60%0.00%
70
Outperform
23.36B19.6314.87%2.21%4.98%-15.98%
66
Neutral
13.08B22.4627.58%2.48%9.41%
62
Neutral
$3.02B105.94-3.15%
53
Neutral
19.94B-7.23-82.21%-29.67%-178.03%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TBBB
BBB Foods, Inc. Class A
25.87
-5.50
-17.53%
DG
Dollar General
106.90
23.13
27.61%
DLTR
Dollar Tree
98.26
26.53
36.99%
PSMT
Pricesmart
117.42
28.26
31.70%
BJ
Bj's Wholesale Club Holdings
97.81
16.82
20.77%
BTSG
BrightSpring Health Services, Inc.
27.25
12.52
85.00%

BBB Foods, Inc. Class A Corporate Events

BBB Foods Inc. Reports Strong Q2 2025 Results with Significant Revenue Growth
Aug 11, 2025

On August 11th, 2025, BBB Foods Inc. announced its financial results for the second quarter of 2025, ending June 30th. The company reported a significant revenue increase of 38.3% year-over-year, reaching Ps. 18,770 million, driven by strong same-store sales growth and the opening of 142 new stores, bringing the total to 3,031. EBITDA rose by 32.1% excluding non-cash share-based payment expenses, reflecting disciplined execution and operational control. The company also focused on expanding its logistics infrastructure and strengthening its leadership team, which is expected to support its long-term growth strategy.

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.Date of analysis: Sep 19, 2025