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    TBBB
    Earnings call· Jun 2026(Q2 FY26)

    BBB FOODS Q2 FY26 earnings call TBBB

    Aug 13, 2026 Source

    Executive summary

    BBB Foods Inc. Q2 FY26 — Strong Revenue Growth and Store Expansion

    BBB Foods Inc. delivered another strong quarter, sustaining momentum with robust revenue growth and continued store expansion. The company's high-growth business model, characterized by attractive unit economics and strong cash flow generation, continues to demonstrate resilience. Management remains confident in the significant long-term growth opportunity, driven by ongoing improvements to its value proposition and strategic investments in talent and infrastructure.

    Highlights

    5

    • Opened 155 net new stores during the quarter, bringing total to 3,624 stores as of June 30, 2026.

    • Total revenue increased 39% year-over-year to MXN 26 billion.

    • Same-store sales grew 20% compared to Q2 2025, significantly outperforming the market by over 20 percentage points.

    • Adjusted EBITDA increased 44% to MXN 1.6 billion, with adjusted EBITDA margin improving by 21 basis points.

    • Cash flow generated from operating activities reached MXN 4.3 billion for the first half of 2026, representing 119% growth.

    Concerns

    3

    • Admin expenses, excluding share-based payment, increased by 57 basis points year-over-year due to investment in talent and expansion.

    • A one-time cash expense of MXN 37 million related to an equity follow-on offering impacted Q2 admin expenses and EBITDA.

    • Potential pressure on logistics expense is anticipated in Q3 due to the opening of three additional distribution centers.

    Guidance & targets

    2
    CategoryTargetConfidence
    Distribution Center Openings
    3 additional distribution centers
    medium materiality
    High
    G&A Expenses as % of Revenue
    3-ish percent of revenue
    medium materiality
    Medium

    Operational metrics

    9
    Sales expenses as percentage of revenue
    10decreased by 56 basis points year-over-year
    Q2 FY26

    Sales expenses as a percentage of revenue decreased by 56 basis points to 10% year-over-year in the second quarter of 2026. Most of the expense lines showed operating leverage, including labor.

    One-time cash expense
    37
    Q2 FY26

    In the second quarter of 2026, admin expenses reflects a onetime cash expense of MXN 37 million related to the equity follow-on offering in May 2026.

    Adjusted EBITDA
    1.6increased 44%
    Q2 FY26

    EBITDA for the second quarter of 2026, excluding noncash share-based payment expense, increased 44% to MXN 1.6 billion, driven by strong sales growth, improved gross margin and operational efficiencies.

    Adjusted EBITDA margin (excl. one-time expense)
    6.2
    Q2 FY26

    Excluding this impact, the adjusted EBITDA margin in the second quarter of 2026 was 6.2%.

    Adjusted negative working capital
    10.2compared to MXN 7.1 billion in 2025
    June 2026

    As of June 2026, adjusted negative working capital reached MXN 10.2 billion compared to MXN 7.1 billion in 2025, excluding IPO and follow-on proceeds. This represents approximately 11.2% of total LTM revenue, also excluding IPO and follow-on proceeds.

    Same-store sales growth decomposition
    2/3 volume, 1/3 price
    Q2 FY26

    We have about 2/3 of the growth is explained by volume, 1/3 is explained by price. And within price, the large impact is coming from better mix. We remain with a very low amount of inflation in our price number.

    Inventory days
    below 20improving slightly over past few years
    current

    In fact, if you look at our trends over the past, let's say, a few years, you'll see that we've been improving -- slightly improving our inventory days. So it's below 20 days.

    New store format adoption
    100
    new stores

    Yes, 100% of our new stores open under the new format.

    Cardless store test impact
    non-material impact
    ongoing test

    What you're referring to is the cardless exercise is a test where we've basically taken out credit cards and debit cards to see what happens. And I can just give you a very high-level answer saying that nonmaterial impact.

    Industry KPIs

    5
    MetricValueDetails
    Sg a rate10%
    Gross margin drivers—
    Warehouse store club count3,624stores
    Comparable same store sales20%
    Category level comps and inflation deflationvery low

    Risks & headwinds

    4
    Increased admin expensesQ2 FY26

    increased by 57 basis points year-over-year

    Mitigation: continued investment in talent and expansion into new regions to support our accelerated growth

    One-time cash expenseQ2 FY26

    MXN 37 million

    Mitigation: related to the equity follow-on offering in May 2026

    Potential pressure on logistics expenseQ3 FY26

    some pressure

    Mitigation: new distribution centers will eventually become more efficient in the longer run

    Competitive market intensityongoing

    very competitive market

    Mitigation: continue current strategy, market potential in Mexico is significant with room for several players

    What to watch in Q3 FY26

    4

    Logistics expense trajectory

    Q3 FY26
    Currentbenefited this quarter
    Targetsome pressure

    Why it matters

    Management explicitly warned of potential pressure in Q3 due to opening 3 new distribution centers, which could impact profitability.

    But just a heads up on -- as I said, might be some pressure on logistics expense in Q3 just because we're opening 3 additional DCs.

    Q&A highlights

    8

    Seeking clarity on the drivers behind gross margin improvement, including commercial margins and lower transportation costs, and their sustainability or forward outlook.

    Kamal explained that gross margin improvement stems from scaling efficiencies in buying/manufacturing, better input conditions, and optimized logistics, leading to strategic pricing. Eduardo added that Q2 transportation costs benefited from ongoing optimization efforts and better management of new DC pre-operating expenses, but warned of potential Q3 logistics pressure due to three new DC openings.

    “Will the trend continue? Very likely, you'd see this improving as we scale and as we are just getting better at what we do.”

    asked by Andrew Ruben · answered by Kamal Hatoum

    2 min read6 chapters

    Detailed Narrative

    01

    Operational Highlights

    BBB Foods Inc. reported strong store expansion, opening 155 net new stores in Q2, bringing the total store count to 3,624 as of June 30, 2026. Over the last 12 months, the company added 593 net new stores, representing 20% growth in its store base. Additionally, one new distribution center was opened, expanding the network to 21 regions, with plans for three more DCs in Q3 FY26.

    02

    Revenue and Sales Performance

    Total revenue for the second quarter increased 39% year-over-year to MXN 26 billion. Same-store sales (SSS) demonstrated outstanding performance, growing 20% compared to Q2 2025. This SSS growth significantly outperformed the ANTAD market by more than 20 percentage points, driven primarily by volume (2/3) and price/mix (1/3), with internal inflation remaining very low.

    03

    Profitability and Efficiency

    Adjusted EBITDA, excluding noncash share-based payment expense, increased 44% to MXN 1.6 billion in Q2 FY26. The adjusted EBITDA margin improved by 21 basis points year-over-year, reaching 6.2% when excluding a one-time📎 cash expense. Sales expenses as a percentage of revenue decreased by 56 basis points to 10%, reflecting operating leverage across most expense lines, including labor.

    04

    Cash Flow and Working Capital

    The company's business model continues to generate strong operating cash flow through its structurally negative working capital. For the first half of 2026, cash flow from operating activities reached MXN 4.3 billion, representing a 119% increase compared to H1 2025. Adjusted negative working capital stood at MXN 10.2 billion as of June 2026, approximately 11.2% of total LTM revenue, excluding IPO and follow-on proceeds.

    05

    Strategic Investments and ERP Progress

    BBB Foods Inc. continues its strategic investment in talent and expansion into new regions, which led to a 57 basis point increase in admin expenses (excluding share-based payment). The new ERP system is progressing well, with Phase 1 testing underway. AI tools have accelerated programming, enabling the company to bring forward planned features and add new ones, enhancing future operational capabilities.

    06

    Store Format and Expansion Strategy

    All new stores are now opened under an upgraded format, which consistently demonstrates better performance than older store vintages. The ramp-up of these new stores is faster and aligns with the company's projected unit economics. Management confirmed that there are no constraints on real estate availability in Mexico, indicating a substantial runway for continued organic expansion.

    AI-generated summary of the company’s earnings call. Not investment advice.