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:53Neutral
Price Target:
$43.00
▲(12.62% 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
Strong operating cash generation
Consistently strong operating cash flow (TTM positive and Q1 operating cash +64% YoY) provides durable internal funding for store rollouts, distribution centers and working-capital needs, reducing reliance on external financing and supporting self-funded growth over the medium term.
Negative Factors
Elevated leverage
A debt-to-equity ratio near 3.4x materially raises financial risk; with weak earnings it increases interest sensitivity and constrains strategic flexibility. High leverage limits ability to weather margin shocks or fund opportunistic investments without further external capital or deleveraging measures.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash generation
Consistently strong operating cash flow (TTM positive and Q1 operating cash +64% YoY) provides durable internal funding for store rollouts, distribution centers and working-capital needs, reducing reliance on external financing and supporting self-funded growth over the medium term.
Read all positive factors
BBB Foods, Inc. Class A (TBBB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.08B
Dividend YieldN/A
Average Volume (3M)831.03K
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 Outstanding65,334,070
10 Day Avg. Volume911,727
30 Day Avg. Volume831,034
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 Cap15.12
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit5.68
Enterprise Value/Ebitda88.13
Forecast
1Y Price Target
$44.25Price Target Upside15.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-12.7
Revenue Forecast (FY)$102.86B
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: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 | 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 | 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
Positive
38.18
Price Trends
37.37
Positive
36.38
Positive
32.90
Positive
Market Momentum
1.20
Negative
63.50
Neutral
93.37
Negative
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 38.18 is above the 20-day moving average (MA) of 37.98, above the 50-day MA of 37.37, and above the 200-day MA of 32.90, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 63.50 is Neutral, neither overbought nor oversold. The STOCH value of 93.37 is Negative, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $5.63B | 35.53 | 12.00% | 1.02% | 8.85% | 8.03% | |
72 Outperform | $12.26B | 55.69 | 12.71% | ― | 17.97% | 290.87% | |
68 Neutral | $21.91B | 17.27 | 20.88% | ― | -19.68% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $25.32B | 16.39 | 18.66% | 1.88% | 4.72% | 35.43% | |
61 Neutral | $11.63B | 20.31 | 25.45% | ― | 5.92% | 0.80% | |
53 Neutral | $5.08B | -26.12 | -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’ 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...
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...
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.