BBB Foods NYSE: TBBB, operator of Tiendas 3B, reported continued growth in the third quarter of 2026, driven by rapid store expansion, same-store sales gains and operating leverage. The company said it opened 141 net new stores during the quarter, bringing its network to 3,765 locations.
Over the past 12 months, Tiendas 3B opened 603 net new stores, while year-to-date openings reached 419. Management said its real estate strategy remains focused on entering new markets while adding density in existing ones. The company also opened four distribution centers during the quarter, expanding its logistics network to 25 regions.
Total revenue increased 40% from a year earlier to MXN 28 billion, while same-store sales rose 20.5%. Management said same-store sales growth was supported by an improving customer value proposition, rising brand recognition and customer trust. The company said its same-store sales performance exceeded that of ANTAD by more than 21 percentage points during the quarter while internal inflation remained very low.
Margins and Cash Flow Improve
Chief Financial Officer Eduardo Pizzuto said sales expenses declined by 36 basis points year over year to 9.8% of revenue in the third quarter. Most expense categories, including labor, generated operating leverage, while administrative expenses excluding share-based payment fell by six basis points.
Reported EBITDA was MXN 1.3 billion. EBITDA excluding non-cash share-based compensation rose 60% to MXN 1.9 billion, supported by sales growth, improved gross margin and operating efficiencies. The adjusted EBITDA margin expanded by 83 basis points from the prior-year period.
Pizzuto said the company does not manage the business toward a specific EBITDA target, adding that EBITDA should grow over time through disciplined execution. Operating cash flow for the first nine months of 2026 reached MXN 7.1 billion, up 128% from the same period a year earlier.
The company’s adjusted negative working capital totaled MXN 10.8 billion as of September, compared with MXN 7.8 billion in 2025, excluding IPO and follow-on proceeds. That amount represented approximately 10.9% of last-12-month revenue on the same basis. Pizzuto said operating cash flow fully funds Tiendas 3B’s organic expansion.
Store-Opening Outlook Unchanged
In response to an analyst question about store openings, management reaffirmed its annual guidance for 590 to 630 net new stores. Anthony Hatoum said the fourth quarter has historically been a heavier period for openings and that the company’s pipeline remains healthy.
Hatoum said newer store vintages are performing better than earlier vintages, with higher initial sales and faster sales growth. He attributed the trend to stronger brand recognition and an increasingly competitive value proposition.
Management said it had not observed notable changes in competition during recent months. Hatoum said the company continues to gain customers and sees healthy ticket-size trends, while characterizing movements among competitors as generally healthy for the market and consumers.
Distribution Centers, Commercial Margins and Transportation
Management said commercial margin expanded during the quarter, though Pizzuto noted that the opening of four new distribution centers created sequential pressure on margins. Two of those facilities opened early in the quarter, with most pre-opening expenses recorded in the second quarter, he said.
Pizzuto added that the company has improved its distribution-center opening processes and that older facilities are becoming more efficient. Transportation costs also continued to improve, helping overall expenses and margins.
Hatoum said the primary driver of commercial-margin improvement has been scale, including improved supplier rebates. He said transportation remains an area with “a lot of potential” for further optimization and that investors should expect more developments on that front in 2027.
Each distribution center continues to serve roughly 150 to 160 stores, according to management. Hatoum said new facilities create efficiencies by reducing the distances between warehouses and stores as the company reshuffles its delivery network.
Category Development and Operating Priorities
Management said frozen products remain a growth category, alongside categories such as cosmetics and dairy. Pizzuto said nearly all categories are contributing to growth because the company maintains a high-rotation assortment. Same-store sales growth has been driven roughly two-thirds by volume, including ticket count and ticket value, with the remaining growth coming from price. Within price, management said the majority reflects product mix rather than inflation.
The company said items per transaction have increased to a range of four to five, compared with roughly two to three at the time of its IPO. Hatoum said customers are increasingly buying more products as Tiendas 3B improves the value it offers.
Hatoum characterized Tiendas 3B primarily as a grocery retailer where customers shop to fill their pantries, though he acknowledged that some urban locations can have a greater convenience-oriented component. He said the company is continually evaluating its refrigeration and frozen-food strategy, with investments assessed through return-on-invested-capital considerations.
Management also said it continues to test products and formats aggressively, with approximately 60 to 80 pilots underway at any given time. Despite those tests, the company has maintained a relatively limited assortment of about 900 products, emphasizing high value, high rotation and SKU discipline.
On its Yema concept, Hatoum said the business has four stores and has received an exceptional customer response. He said it will continue growing at its own pace but that the company does not plan to provide guidance on its long-term scale.
Regarding proposed changes to Mexico’s tax rules, Pizzuto said that based on the information currently available, the measure would mainly have a temporary effect on cash flow. He said the company does not currently expect to alter its plans for next year, though management will review the final rules and provide further guidance with fourth-quarter results.
About BBB Foods (NYSE:TBBB)
BBB Foods Inc operates Tiendas 3B, a hard-discount grocery retail chain in Mexico. Its stores focus on everyday consumer essentials, including food, beverages, household products and personal-care items, offered primarily through a combination of private-label and selected national-brand products.
The company's business model emphasizes a limited assortment, compact store formats and value-oriented pricing. Tiendas 3B stores primarily serve communities in Mexico, with a presence concentrated in the country's central and southern regions.
BBB Foods was founded in 2004 and is led by Anthony Hatoum, who serves as the company's chief executive officer.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider BBB Foods, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and BBB Foods wasn't on the list.
While BBB Foods currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
