BBB Foods (TBBB) Q2 FY26 earnings call: guidance and Q&A

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

Asked for the traffic vs. ticket split in same-store sales, the contribution from new SKUs, and an update on the ERP rewrite progress, deployment, and complementary changes to logistics or point-of-sale systems.

Kamal stated that SSS growth is 2/3 volume and 1/3 price (primarily mix, with low inflation). He noted that all categories are growing, with newer ones showing faster growth, and emphasized the company's conservative approach to introducing new SKUs. He expressed satisfaction with ERP progress, highlighting AI acceleration and added features, and mentioned the new point-of-sale system will offer more services.

“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.”

asked by Robert Ford · answered by Kamal Hatoum

Inquired about the percentage of new stores utilizing the upgraded format, the typical sales uplift observed from these locations, and the ramp-up speed of new stores compared to previous vintages.

Kamal confirmed that 100% of new stores are opened under the upgraded format, which consistently outperforms older stores. Eduardo added that the ramp-ups of these new stores are consistent with projections from the Q4 unit economics analysis, indicating strong performance.

“Yes, 100% of our new stores open under the new format. We'd like to try and keep as much format discipline as we can going forward.”

asked by Joseph Giordano · answered by Kamal Hatoum

Asked if the low number of DC openings (one DC for approximately 280 stores in H1) indicated new efficiencies in serving a broader store base, or if it was a temporary effect.

Eduardo clarified that DC openings are on track with initial plans. He reiterated that new DCs enhance footprint and efficiency, and confirmed the plan to open three additional DCs in Q3. He noted that while there might be short-term logistics pressure from these openings, they will ultimately lead to greater long-term efficiency.

“for the back half of the year, yes, we're opening 3 additional ones in Q3. If we see opportunities to open more in the back half of the year, we might do so. And again, it's because at the end, we become more efficient.”

asked by Ulises Argote · answered by Eduardo Pizzuto

Asked about any tailwind from the World Cup on same-store sales and the expected run rate for G&A investments in the second half of the year.

Kamal stated that the World Cup had no relevant impact on sales. Eduardo, while not providing formal guidance, suggested that G&A as a percentage of revenue would likely remain similar to Q2 (around 3%) in the short term, reflecting the company's continued investment in talent.

“No, World Cup did not have a relevant impact on our sales. I mean it was even hard to tease out anything, if at all.”

asked by Héctor Maya · answered by Kamal Hatoum

Sought more detail on the specific areas of talent investment (backend vs. retention) and the learnings derived from the ongoing cardless store test.

Kamal clarified that G&A investment is primarily focused on adding talent in critical areas like purchasing, logistics, systems, and specialty roles, rather than just improving salaries, with a strong emphasis on high-return contributions. He noted that the cardless test, one of many ongoing experiments, had a non-material impact.

“it has much, much less to do with improving salaries and benefits to employees and much, much more to do, and that's where the core value is in adding talent and densifying talent in across the board critical areas.”

asked by Irma Sgarz · answered by Kamal Hatoum

Asked if the accelerated 2-year same-store sales growth (20% on a 17% prior-year comp) is sustainable and about the competitive intensity in the hard discounting space, specifically regarding FEMSA's activities.

Kamal indicated that SSS growth is driven by an increase in items per customer, which is expected to continue as product value improves. He stated that FEMSA's competitive activity is not new, and the Mexican market is already competitive but large enough for multiple discount players to thrive. The company plans to continue its current strategy.

“I continue to believe that the market potential in Mexico is significant and that there is room for several players to thrive in the sector that we call discount.”

asked by Joseph Thomas · answered by Kamal Hatoum

Inquired about the split of growth between new customers and increased share of wallet, initiatives to boost items per transaction, real estate availability and negotiation conditions, and the potential for accelerating the expansion pace.

Kamal explained that growth is a mix of new customers and increased wallet penetration, with newer stores capturing clients faster. He emphasized significant potential for existing customers to increase their spend with the current product portfolio. He confirmed no real estate constraints in Mexico, describing the runway as 'tremendous'.

“There is no constraints on real estate. The runway is tremendous in Mexico for us. So we haven't seen any constraints on that front.”

asked by Isabella Lamas · answered by Kamal Hatoum