Bbb Foods Inc (TBBB)

Price$49.77Cached quoteAs of 2026-09-05 08:29 UTC

AI: Overvalued

Price checkThe shares look overvalued because exceptional growth is offset by thin reported profits and heavy dilution.

BBB Foods has a market value near $6.1 billion and enterprise value around $6.6 billion. First-half adjusted EBITDA excluding share-based compensation, a measure before interest, tax, depreciation and amortization, was Ps. 2.85 billion, up 41.5%. Annualizing that figure puts enterprise value near twenty times this adjusted measure. Reported first-half results still showed a Ps. 945 million net loss. For a low-margin grocery retailer with large lease commitments and meaningful dilution, that valuation requires several more years of unusually strong growth and margin expansion.

Big pictureStore growth and customer demand remain exceptional, but the business still operates on very thin margins.

Second-quarter revenue rose 38.7% to Ps. 26.0 billion, same-store sales increased 20.0%, and the store base reached 3,624 after 155 net openings in the quarter. Gross margin improved to 16.8% from 16.2%, while adjusted EBITDA excluding share-based compensation rose 43.8% to Ps. 1.58 billion. Those figures show powerful scale benefits. However, reported operating margin was only 1.4%, so small changes in labor, rent, logistics, pricing, or consumer demand can still move profits sharply.

Business strengthLiquidity is strong and expansion funds itself, but leases and employee equity create substantial hidden obligations.

At June, cash and short-term bank deposits totaled about Ps. 6.1 billion, comfortably above roughly Ps. 1.8 billion of short- and long-term financial debt. Yet lease liabilities exceeded Ps. 14 billion because nearly all stores and distribution centers are rented. First-half operating cash flow was Ps. 4.29 billion versus about Ps. 1.64 billion of property investment, supporting management's self-funded expansion claim. Share-based compensation was Ps. 1.34 billion, and the company's illustrative fully diluted count was about 162 million shares versus 121 million common shares.

What could change the storyContinued margin expansion could justify the premium, while slower sales growth would expose the valuation quickly.

The bull case requires same-store growth to remain strong while new stores mature, gross margin rises, and adjusted operating profitability moves sustainably above 6%. That could let earnings catch up with today's valuation despite dilution. The bear case is that same-store growth normalizes toward single digits while wages, logistics, leases, and share compensation keep reported margins thin. If annual adjusted EBITDA excluding share compensation stalls below roughly Ps. 6 billion or dilution remains heavy, a value investor would struggle to justify the current enterprise-value multiple.

AI: News

Second-quarter growth surgeSecond-quarter results showed explosive sales and adjusted profit growth, triggering a sharp positive market reaction.

On August 12, BBB Foods reported 38.7% second-quarter revenue growth, 20.0% same-store sales growth, and adjusted EBITDA excluding share-based compensation up 43.8%. The company also opened 155 net new stores. Shares jumped about 16.3% in the next regular session. The reaction is consistent with investors rewarding faster sales, improving gross margin, and strong store economics, although the move may also have reflected expectations and broader market conditions.

Large follow-on offeringA large follow-on share sale increased public float while highlighting both dilution and insider liquidity.

In late May, BBB Foods priced a 13.3 million-share follow-on offering. Only 700,000 shares were sold by the company, while roughly 12.6 million came from existing shareholders, so most proceeds did not fund the business. Trading was volatile around the transaction: shares fell about 9.4% on May 28 and rebounded about 15.6% the next day. That pattern makes a single-cause interpretation unreliable, but the deal materially increased public ownership and underscored the company's evolving capital structure.

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Revenue

2021

2022

2023

2024

2025

Net income

2021

2022

2023

2024

2025

Free cash flow

2021

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2023

2024

2025

Total cash / debt

CashTotal debt

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021
Revenue	$78.15B	$57.44B	$44.08B	$32.58B	$23.09B
Gross profit	$12.64B	$9.38B	$7.04B	$4.92B	$3.44B
Gross margin	16.18%	16.32%	15.97%	15.12%	14.88%
Operating expenses	$13.32B	$8.05B	$6.25B	$4.40B	$3.04B
Operating income	−$675.2M	$1.33B	$793.9M	$520.3M	$394.1M
Operating margin	−0.86%	2.31%	1.80%	1.60%	1.71%
EBITDA	$908.1M	$2.57B	$1.70B	$1.19B	$830.1M
EBITDA margin	1.16%	4.47%	3.85%	3.64%	3.60%
Net income	−$2.84B	$334.4M	−$306.2M	−$565.1M	−$816.7M
Net profit margin	−3.63%	0.58%	−0.69%	−1.73%	−3.54%
Basic EPSper basic share	-MX$24.69	MX$3.06	-MX$25.51	-MX$47.09	-MX$68.06
Diluted EPSper diluted share	-MX$24.69	MX$2.40	-MX$25.51	-MX$47.09	-MX$68.06

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of TBBB
Holder	Shares held
Capital International Investors	7.53M
FMR LLC	7.37M
Orbis Allan Gray Ltd	6.74M
Capital Research Global Investors	5.42M
WASATCH ADVISORS LP	4.24M
MORGAN STANLEY	3.98M
Duquesne Family Office LLC	2.9M
GILDER GAGNON HOWE & CO LLC	2.52M
Route One Investment Company, L.P.	2.22M
PRINCIPAL FINANCIAL GROUP INC	2.07M
KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC	1.85M
TEACHER RETIREMENT SYSTEM OF TEXAS	1.72M
12 West Capital Management LP	1.72M
GOLDMAN SACHS GROUP INC	1.35M
AMERIPRISE FINANCIAL INC	1.14M
Capital International, Inc./CA/	1.11M
Engle Capital Management, L.P.	775.57K
SEI INVESTMENTS CO	742.68K
Nuveen, LLC	715.2K
Point72 Asset Management, L.P.	698.17K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$325.0K disclosed value

Sells (SEC code S)4$26.43M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 1, 2026Form 4	Hatoum Kamal AnthonyChairman & CEO	SellClass C Common Shares · derivative · indirect	150.0K	$32.50	$4.88M	16.00M
Jun 1, 2026Form 4	Hatoum Kamal AnthonyChairman & CEO	BuyClass B Common Shares · derivative · indirect	10.0K	$32.50	$325.0K	5.21M
Jun 1, 2026Form 4	Pizzuto Espinosa EduardoChief Financial Officer	SellClass C Common Shares · derivative	180.0K	$32.50	$5.85M	830.7K
Jun 1, 2026Form 4	Khouri Sami GabrielDirector	SellClass C Common Shares · derivative · indirect	350.0K	$32.50	$11.38M	3.37M
Jun 1, 2026Form 4	Apalategui Diego EzequielDirector of Sales & Operations	SellClass C Common Shares · derivative	133.3K	$32.50	$4.33M	266.7K

Review ownership filings at SEC.gov ↗

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Bbb Foods Inc (TBBB)

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