BBB Foods: Volume-Led Comp Acceleration and Scale-Driven Margin Gains
Q2 2026: 20% same-store sales, 39% revenue growth, and a logistics efficiency story as the Mexican hard discounter expands at record pace.
TBBB · Earnings Call · 2026-08-13
A record quarter with accelerating volume
The quarter epitomizes the company's growth formula. “We opened 155 net new stores... bringing our total store count to 3,624” — Anthony Hatoum, Chief Executive Officer · 2026-08-13 and “Total revenue increased 39% year-over-year to MXN 26 billion.” — Anthony Hatoum, Chief Executive Officer · 2026-08-13 Same-store sales rose 20%, with Anthony explaining: “We have about two-thirds of the growth is explained by volume. One-third is explained by price, and within price, the large impact is coming from better mix.” — Anthony Hatoum, Chief Executive Officer · 2026-08-13 This continues the trend we've seen in prior quarters where same-store sales are primarily driven by increasing basket size and transaction counts.Scale and logistics: the margin engine
Gross margin improved, and Anthony attributes this to scale:Eduardo highlighted that “EBITDA for the second quarter of 2026, excluding non-cash share-based payment expense, increased 44% to MXN 1.6 billion, driven by strong sales growth, improved gross margin, and operational efficiencies.” — Eduardo Pizzuto, Chief Financial Officer · 2026-08-13 The company also opened one new distribution center in Q2 and expects three more in Q3, which may pressure logistics costs in the short term.the main driver is we scale, we are much more efficient in terms of buying or in terms of manufacturing a good. We get better input conditions. We improve the logistics of moving that good over, and that fundamentally basically gives you a bigger pie.
ERP, AI, and talent investments
Anthony is pleased with the ERP progress: “I am very pleased with the progress on our new ERP system. We are testing phase 1, and I think it is going quite well. AI tools have definitely accelerated our ability to program.” — Anthony Hatoum, Chief Executive Officer · 2026-08-13 This ties into the broader talent density investment story, where management expects G&A to remain around 3% of revenue as they continue to hire.Competitive landscape: staying ahead
Despite noise about FEMSA's rollout, Anthony downplays the threat: “we do not see anything more than what we have already seen. It is good to keep in mind that we already operate in a very competitive market, and that has been the case now for many years.” — Anthony Hatoum, Chief Executive Officer · 2026-08-13 The company's customer loyalty and brand awareness continue to grow, supported by word-of-mouth rather than paid marketing. Prior quarter evidence: In the May 2026 call, Anthony noted “we conduct large-scale surveys every year... giving us a good sense of what the BBB Foods Inc. brand means” — Anthony Hatoum, CEO · 2026-05-07 and in November 2025, Eduardo confirmed “we're seeing more transactions in the stores... more products in the basket.” — Eduardo Pizzuto, Chief Financial Officer · 2025-11-20 The company also reiterated its self-funding model via negative working capital:This allows continued new store openings without external financing, and the 593 net new stores in the last twelve months underscores the runway.Our operating cash flow fully funds our organic expansion.