BBB Foods Inc.'s Q2 2025: Unpacking Contradictions in Growth Strategy, Store Expansion, and Brand Resonance

Private label penetration and impact, store expansion strategy and ramp-up costs, impact of new store openings on Same Store sales growth, store opening guidance and strategy, and brand resonance across income segments are the key contradictions discussed in BBB Foods Inc.'s latest 2025Q2 earnings call.



Store Expansion and Sales Growth:
- Tiendas 3B opened 142 net new stores in Q2, reaching a total of 3,031 stores, with same store sales growth by 17.7%.
- This growth was driven by the company's unrivaled value proposition and increased store opening rate.

Financial Performance and Cash Flow:
- Total revenue increased by 38.3% to reach MXN 18.8 billion, while EBITDA grew by 22.5% to reach MXN 844 million.
- The company's cash flow generated by operating activities reached MXN 1.9 billion, a 56% increase compared to 2024.
- Growth was supported by strong sales performance and efficient cash flow management.

Operating Margin and Cost Management:
- Operating margin, measured by EBITDA margin, was 4.5%, down 58 basis points. This decrease was attributed to higher logistics costs associated with opening new regions.
- The company's cost structure challenges included share-based payment expenses and acceleration of store opening rates.

Private Label and Product Strategy:
- Tiendas 3B has been focusing on enhancing its private label offerings, which has contributed to increased Same Store sales.
- The company aims to continuously improve its product portfolio to maintain a strong value proposition, attracting more customers and increasing ticket sizes.