BBB Foods, Inc. Class A (TBBB)
NYSE:TBBB
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BBB Foods, Inc. Class A
(NYSE:TBBB)
Select Model
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Rating:52Neutral
Price Target:
$36.00
▼(-5.71% Downside)
Action:Reiterated
Date:05/14/26
The score is held back primarily by weak profitability and a leveraged balance sheet, despite strong cash generation. The latest earnings call was notably constructive (rapid growth, expanding store base, and strong operating cash flow), which supports the outlook. Technicals and valuation are less supportive, with mixed momentum and a negative P/E alongside no dividend yield provided.
Positive Factors
Strong operating cash generation
BBB Foods generates substantial operating cash and rising free cash flow despite net losses, a durable strength. Persistent positive cash conversion supports self-funded store growth, funds capex and distribution expansion, and provides buffer for debt servicing and reinvestment over the medium term.
Negative Factors
Elevated leverage and pressured balance sheet
Debt at ~3.4x equity leaves limited financial flexibility if margins or cash flow weaken. High leverage raises refinancing and interest-rate vulnerability, increasing the company's exposure to macro shocks and making sustained investment or distressed scenarios more costly over a multi-month horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash generation
BBB Foods generates substantial operating cash and rising free cash flow despite net losses, a durable strength. Persistent positive cash conversion supports self-funded store growth, funds capex and distribution expansion, and provides buffer for debt servicing and reinvestment over the medium term.
Read all positive factors
BBB Foods, Inc. Class A (TBBB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.33B
Dividend YieldN/A
Average Volume (3M)374.99K
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth41.20%
EPS Growth-733.48%
CountryUS
Employees25,300
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)-28.27
Shares Outstanding62,638,440
10 Day Avg. Volume415,895
30 Day Avg. Volume374,988
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 Cap17.19
Enterprise Value/Revenue0.89
Enterprise Value/Gross Profit5.51
Enterprise Value/Ebitda67.65
Forecast
1Y Price Target
$44.25Price Target Upside15.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-10.84
Revenue Forecast (FY)$102.76B
BBB Foods, Inc. Class A Business Overview & Revenue Model
Company Description
BBB 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. Th...
BBB Foods, Inc. Class A Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operating performance: high revenue growth (+33% YoY), robust same-store sales (+16%), rapid net store expansion (123 net openings this quarter; LTM 580, +20% YoY), strong adjusted EBITDA growth (+39%) and notably higher operating cash flow (+64%). Management emphasized self-funded growth supported by negative working capital and continued investments in distribution centers, IT/AI and talent. Key challenges highlighted were the sizable non-cash share-based compensation that materially reduces reported EBITDA, some expense pressures (utilities, permitting, D&A), gross margin volatility, labor/regulatory exposures, and ongoing ERP implementation risks. Overall, the positives (scale, growth, cash generation, margin expansion excluding non-cash charges, strong unit economics and pilot successes) materially outweigh the lowlights, which are mainly execution and non-cash accounting or regulatory risks.Positive Updates
Strong Revenue Growth
Total revenue for Q1 2026 increased 33% year over year to $23.0 billion pesos.
Negative Updates
Non-Cash Share-Based Compensation Drag
Reported EBITDA of $554 million is materially lower than adjusted EBITDA of $1.3 billion once non-cash share-based payment is excluded—implying a roughly $746 million impact in the quarter—creating a significant non-cash distortion and potential investor focus on dilution and share-based expense projections.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenue for Q1 2026 increased 33% year over year to $23.0 billion pesos.
Read all positive updates
Company Guidance
The management reiterated growth and capital guidance centered on continued store expansion and self‑funding, citing 123 net new stores in Q1 (3,469 total stores; 580 LTM net openings, +20% vs Mar‑2025) and 20 active distribution centers, with same‑store sales up 16% and revenue rising 33% YoY to 23.0 billion pesos; reported EBITDA was 554 million pesos (adjusted EBITDA excluding non‑cash share‑based payments rose 39% to 1.3 billion pesos, with adjusted EBITDA margin +22 bps), operating cash flow reached 2.0 billion pesos (+64% YoY), adjusted negative working capital totaled 9.4 billion pesos (≈11.3% of LTM revenue, vs 6.5 billion in 2025, excluding IPO proceeds), selling expenses were 10.3% of revenue (+5 bps), and annual CapEx was guided at ~5.2 billion pesos; management noted share‑based payments are non‑cash (details in the appendix), the lockup expires August 6, the ERP is a three‑year program about halfway deployed, and while no formal SG&A guidance was given, G&A should be roughly stable this year and decline as a percentage of revenue over the long term.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 | 1.10B | 1.24B | 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 | 1.79B | 30.58B | 22.78B | 14.96B | 11.79B | 8.05B |
| Cash, Cash Equivalents and Short-Term Investments | 225.70M | 4.15B | 4.47B | 1.22B | 984.63M | 1.00B |
| Total Debt | 808.94M | 14.00B | 9.20B | 11.91B | 10.55B | 8.13B |
| Total Liabilities | 1.55B | 26.44B | 18.74B | 19.60B | 16.51B | 12.50B |
| Stockholders Equity | 237.71M | 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
Negative
38.18
Price Trends
36.12
Negative
35.67
Negative
32.07
Positive
Market Momentum
-0.12
Positive
39.28
Neutral
43.83
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 38.18 is above the 20-day moving average (MA) of 36.61, above the 50-day MA of 36.12, and above the 200-day MA of 32.07, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 43.83 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $5.09B | 23.80 | 12.00% | 1.02% | 8.85% | 8.03% | |
72 Outperform | $11.34B | 29.29 | 12.71% | ― | 17.97% | 290.87% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $11.06B | 21.07 | 25.45% | ― | 5.92% | 0.80% | |
56 Neutral | $23.27B | 18.52 | 18.66% | 1.88% | 5.20% | 34.26% | |
56 Neutral | $18.50B | 11.56 | 34.83% | ― | -29.62% | ― | |
52 Neutral | $4.33B | -33.30 | -102.61% | ― | 41.20% | -733.48% |
* Consumer Defensive Sector Average
TBBB
BBB Foods, Inc. Class A
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BBB Foods, Inc. Class A Corporate Events
BBB Foods accelerates 1Q26 growth with 33% revenue jump and 123 new Tiendas 3B stores
May 6, 2026
On May 6, 2026, BBB Foods Inc. reported first-quarter 2026 results showing continued rapid expansion despite a soft consumer backdrop, opening 123 net new stores in the quarter to reach 3,469 locations as of March 31, 2026. Revenue for 1Q26 rose 3...
BBB Foods Shareholders Back Board Slate and Auditor at April 29 AGM
Apr 29, 2026
On April 29, 2026, BBB Foods Inc. held its annual general meeting of shareholders, where investors representing 72.52% of the voting power formed a quorum and approved all resolutions proposed in the April 8, 2026 meeting notice. Shareholders re-e...
BBB Foods Sets April 29, 2026 Virtual Annual Meeting to Vote on Board Slate and Auditor
Apr 8, 2026
BBB Foods Inc., a British Virgin Islands-incorporated foreign private issuer listed in the U.S., has called its 2026 Annual Meeting of Shareholders for April 29, 2026, to be held virtually via live audio webcast. Shareholders of record as of March...
BBB Foods Files 2025 Form 20‑F, Strengthening Disclosure After NYSE Listing
Apr 2, 2026
BBB Foods Inc., the Mexican hard discount grocery chain operating as Tiendas 3B and listed on the NYSE under ticker TBBB, has built a fast‑growing retail footprint by offering low‑priced, quality products to budget‑conscious shop...
BBB Foods’ 2025 Results Show Strong Growth as Tiendas 3B Accelerates Store Expansion
Mar 11, 2026
BBB Foods Inc., which operates Tiendas 3B, is a major Mexican grocery hard discounter emphasizing low prices, efficient operations, and private-label penetration. With 3,346 stores and 20 distribution centers as of December 31, 2025, the company l...
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.