TBBB

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 12:00 p.m. ET Chairman and Chief Executive Officer - Anthony Hatoum Chief Financial Officer - Eduardo Pizzuto Operator: Good morning, everyone. My name is Daniela, and I will be your conference operator. Welcome to Tiendas 3B's second quarter 2026 conference call. All lines have been placed on mute to prevent any background noise. There will be a question and answer session after the speaker's remarks, and instructions will be given at that time. Please ensure that your full name is displayed correctly on Zoom. If not, please take a moment to edit your display name. Also note that this call is for investors and analysts only. Questions from the media will not be taken, nor should the call be reported on. Any forward-looking statements made during this conference call are based on information that is currently available to us. Today, we are joined by Tiendas 3B's Chairman and Chief Executive Officer, Anthony Hatoum, and Chief Financial Officer, Eduardo Pizzuto. I will now turn the call over to Anthony. Please go ahead. Anthony Hatoum: Good morning, and thank you for joining us today. I will begin with a review of our operating results for the quarter, and will be followed by our CFO, Eduardo Pizzuto, who will provide an overview of our financial performance. We will conclude with our Q&A session. We delivered another strong quarter, sustaining and even building on the momentum we achieved in the first quarter. Here are the key highlights from our second quarter results. We opened 155 net new stores during the quarter, bringing our total store count to 3,624 as of June 30, 2026. Over the last 12 months, we have opened 593 net new stores. We also opened one new distribution center, expanding our network to 21 regions as of the end of June. Same-store sales grew 20% compared to the second quarter of 2025. Total revenue increased 39% year-over-year to MXN 26 billion. Reported EBITDA reached MXN 960 million. Excluding non-cash share-based compensation, EBITDA increased 44% to MXN 1.6 billion. For the first half of the year, cash flow generated from operating activities reached MXN 4.3 billion, representing 119% growth compared to the first half of 2025. Let's now turn to our operational performance. As I mentioned, we opened 155 net new stores during the second quarter. Over the last 12 months, we have opened 593 net new stores, representing 20% growth in our store base compared to June 2025. Our expansion strategy remains unchanged. We continue to balance densifying our presence in existing regions while selectively expanding our footprint in others. Our revenue growth remained exceptionally strong, and we believe 3B continues to be amongst the fastest-growing retailers globally. Total revenue reached MXN 26 billion in the second quarter, up 39% year-over-year. Same-store sales increased 20%, reflecting another quarter of outstanding performance. This strong growth continues to be driven by ongoing improvements to our value proposition, increasing brand awareness, and growing customer loyalty. Our same-store sales performance continued to significantly outperform the market. During the quarter, we maintained a gap of more than 20 percentage points versus ANTAD, while our internal inflation remained very low. I will now pass the microphone to Eduardo. Eduardo Pizzuto: Thank you, Anthony. Good morning, everyone. 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. Admin expenses, excluding share-based payment, increased by 57 basis points year-over-year. As seen in previous quarters, admin expenses reflect our continuing investment in talent and expansion into new regions to support our accelerated growth. In the second quarter of 2026, admin expenses reflects a one-time cash expense of MXN 37 million related to the equity follow-on offering in May 2026. With respect to the share-based payment expense, these are non-cash and already reflected in our fully diluted share count. Additional details are available in the appendix of this earnings release, where we also provide projections for this non-cash expense. 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. The adjusted EBITDA margin increased by 21 basis points year-over-year. EBITDA in the second quarter of 2026 includes a one-time cash expense of MXN 37 million related to the equity follow-on offering in May 2026. Excluding this impact, the adjusted EBITDA margin in the second quarter of 2026 was 6.2%. As you know, we don't drive to an EBITDA. It will naturally continue to increase over time, driven by our disciplined execution. Our business model generates strong operating cash flow through our structurally negative working capital model. 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. Our operating cash flow fully funds our organic expansion. I will now turn the call back over to Anthony for final remarks. Anthony Hatoum: Thank you all for joining us today and for your continued interest in Tiendas 3B. We delivered a strong first half of 2026 with consistent and solid execution across our key operating and financial metrics. Our high-growth business model has continued to demonstrate its resilience across different economic environments. It delivers attractive unit economics, generates strong cash flow, and becomes even more competitive as we scale. We remain confident in the significant long-term growth opportunity for Tiendas 3B. Thank you, and we will now open the call for your questions. Operator: Thank you. We will now conduct a Q&A session with Anthony Hatoum and Eduardo Pizzuto. If you would like to ask a question, please press the Raise Your Hand button that is located at the bottom of the screen. We remind you that all lines have been placed on mute. So when it is your turn to ask a question, you will be given permission to speak, and you will then be able to unmute yourself and ask your question. Our first question comes from Andrew Ruben at Morgan Stanley. Andrew Ruben: Hi. Thanks very much for the question. I am interested to understand a bit more about the gross margin performance. Just thinking about some of the drivers, you mentioned stronger commercial margins, so trying to understand what might have changed, if anything, quarter-on-quarter there. Then second, the lower transportation costs. I think this is the first time you have mentioned that in a while, despite the DC build-out. So trying to understand these drivers, how much they contributed, and how that pertains to any forward outlook on gross margin would be very helpful. Thank you. Anthony Hatoum: I will take the gross margin question, Andrew. As you know, it is a dynamic process in a sense that this is a sum, what you are seeing here is a sum of the gross margins of all the SKUs we currently carry. In large part, let us say 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 that if it is a private label product you have divided in a very equitable way with your producer. Then you turn around and you say, "Okay, now I have a bigger pie. Let us decide at what price do we put it?" It is mostly a very ongoing adjustment of prices where we try to optimize volumes and dollar margin. And then we sum it all up and you see that, yes, it's improved, but it's the result of all these little improvements that we see across the whole portfolio. 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. There comes a point where in terms of percent margin, you're basically passing more into price than necessarily retaining it. But end result, the most important thing is to look at is the MXN dollar margin generated, and as long as this continues to grow healthily as we see it here, we're all very happy. Eduardo Pizzuto: I'll take the second portion, Andrew. Good morning. In terms of transportation expenses, I guess overall, there's no doubt that as we continue to grow and gain scale, we become more efficient in all our operating line items. Specifically on logistics for Q2, two things played in our favor. One is we have ongoing efforts to optimize our transportation costs, not only for new regions, but all of our regions. The second one is specifically for the distribution center that we opened in Q2, we did a better job in managing the pre-operating expenses of this region. Of course, that is something that we will apply in future regions. I'll take advantage of your question just to give you an update on distribution centers. We have, in addition to the one we opened in Q2, in the past few weeks, we opened an additional two distribution centers, and we expect to open a third one within Q3. So for a total of three DCs in Q3. The reason I mention this, it's because we might see some pressure probably in logistics expense just because we're adding three additional new distribution centers. Andrew Ruben: Right. That's very helpful color. Thank you both, and congrats on the quarter. Eduardo Pizzuto: Thank you. Anthony Hatoum: Thanks. Operator: Thank you. Our next question comes from Bob Ford at Bank of America. Bob Ford: Hey, thank you very much. Good morning, Anthony, Eduardo, Joaquin, and again, congratulations as well. With respect to same-store sales, how much of the growth is ticket versus traffic? How should we think about the year-on-year improvements that you are seeing in terms of item counts per transaction? I was also curious, you have some phenomenal innovation. How much of that growth is coming from new SKUs? Additionally, could you give us a little update on the progress with the ERP rewrite? There has been a revolution in programming over the last 12 months. How is that speeding up development or maybe allowing you to run a little leaner than you expected? How should we think about deployment? Both in terms of functionality in the system, as well as any complementary changes you may need in logistics or the point of sale. Anthony Hatoum: Yeah. Hi, Bob. Good to hear from you and many questions. Let me start with the first one regarding where is same-store sales growth coming from. 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. We remain with a very low amount of inflation in our price number. There was a second part to your question that was talking about categories and category growth. When we look at all our current categories, they are all growing at various rates, but they are all growing. When we look at maybe one or two commodity categories where we are relatively well penetrated, they are still growing, but possibly at a slightly slower pace than, let us say, in newer categories that just entered, which you very rightly saw. We have a couple of new categories which, starting from a low base, are growing quite rapidly and successfully. We have been extremely careful about introduction of new products or categories. As you know, we like to keep our SKU count on the low side. It brings a lot of benefits to us. So every time we put in an SKU, we have to make sure that it does rotate, that it is highly accepted and many times we just drop an SKU that is less attractive. This will continue. I do not see a stop to that. As you know, our stores can handle a significantly higher number of SKUs, but we are extremely conservative in introducing new ones. One last part to your question is, 3B is a platform, and we have said that many times. We touch a client very frequently. This client not only needs groceries. You can basically say that whatever this client needs is something that you can potentially offer as long as you do not violate your core principles. On the second part of your question, which had to do with our ERP, 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. What I have noticed, though, is that we have just brought forward a lot of stuff that we had planned to do a little bit later, and we have even added more features that we thought we would put in a bit later. So net-net, we are on track, and it is going quite well. There was a last part to your question, but maybe I missed it. Bob Ford: It was actually kind of plugging into, maybe you are signaling this when you talk about the broader platform opportunity. But I was asking you a little bit, too, about how you are thinking about complementary changes to the supply chain or the point-of-sale systems and just trying to get a better sense for the calendar of deployment and maybe the functionality that we will expect over time. Anthony Hatoum: Yeah. There's no doubt that in this new generation of ERP that you're seeing, our point of sale is a much more potent point of sale that has the ability to deliver more than just ringing up a product. That's the whole idea of giving us optionality to offer more services to the client down the road. In terms of logistics, again, as you get bigger, suddenly you have many more doors opening for optimizing your logistics. As you know very well, we don't do much on the backside of logistics, and that's quite an interesting opportunity for us to explore. Bob Ford: Very helpful. Thank you. Again, congratulations. Anthony Hatoum: Thanks, Bob. Thanks, Bob. Operator: Thank you. Our next question comes from Joseph Giordano at J.P. Morgan. Joseph Giordano: Hi, good morning, everyone. Good morning, Anthony. Thanks for taking my question. I want to explore a little bit, and Eduardo, sorry, to explore a little bit the upgraded store format you guys have been talking about. It's a little bit larger, more doors for refrigerated goods. I'd like to understand, what's the percentage of new stores that are coming under the new format? If it's 100%. And second, what's the typical sales uplift we are seeing from those locations? And last, if I may, how should we think about the ramp-up? Looks like the ramp-up of the new stores are much faster than in previous vintages. Thank you very much. Anthony Hatoum: Hi, Joe. Good to hear from you. Yeah, 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. There's no doubt that we chose this upgraded format because it has much better performance than our older stores. Having said that, our older stores are still performing extremely well. Eduardo, do you want to touch on the others? Eduardo Pizzuto: Yeah. I would just add, you ask also on the ramp-ups, Joe, and what I can say is that we're very happy to see how these stores are performing. If you remember, we updated our unit economics analysis in Q4, so it's pretty much trending against what we had projected. The same thing with pretty much all our stores are tracking in the direction that we had expected. There's no news there other than the ramp-ups continue to be very consistent and we're very happy with the evolution of our 2026 vintage. Joseph Giordano: Thank you. Operator: All right. Our next question comes from Ulises Argote at Santander. Ulises Argote: Hi, Anthony, Eduardo. Thanks for the space for questions. I had a follow-up to a point you made earlier, Eduardo. You guys opened close to 280 stores in the first 6 months of the year, and this came with only one additional distribution center. I just wanted to get some color if this is more related to some temporality effects there on the opening of distribution centers. You already said, Eduardo, there will be 3 new ones on the quarter, but I wanted to get a sense there if you're finding any efficiencies, being able to serve a broader store base from each distribution center, given what we saw in the first half of the year. I appreciate any thoughts there. Thank you. Eduardo Pizzuto: Hi, Ulises. Thank you. We are on track in terms of our openings as what we had planned in the beginning of the year. As we've discussed in previous calls, every time we open a new distribution center, we, of course, benefit from two things. One is we continue to increase our footprint in the country, and the second one is we do become more efficient because our transportation expenses get benefited from that. We've seen that in pretty much all our DCs that we have opened. 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. Again, it's because, at the end, we become more efficient. There was a second portion of your question. Ulises Argote: No, I think it was just to understand if there was any temporality into what we saw in the expansion on the first half, with just one DC being added now. Eduardo Pizzuto: Well, as I mentioned earlier, we were benefited this quarter by those two factors that I mentioned, and transportation expense and the fact that we were, I guess, smarter in the pre-opening expenses for the region that will be applied for the next regions that we open. But just a heads-up, as I said, might be some pressure on logistics expense in Q3 just because we're opening three additional DCs. But, in the longer run, eventually these will become even more efficient, so nothing very different from what you've seen in the past. Ulises Argote: No, that's very clear. Thanks a lot. Gracias. Eduardo Pizzuto: Gracias. Thank you, Ulises. Operator: Thank you. Our next question comes from Héctor Maya at Scotiabank. Héctor Maya: Hi, Anthony, Eduardo. Congrats on the strong results. Just wondering if you saw any tailwind from the World Cup, and if so, how much do you think it contributed to same store sales? Also, wanted to know how you are thinking about the increase in the pace of G&A investments in the second half, or if the level we saw in Q2 could be a good run rate. Thank you very much. Anthony Hatoum: Hi. No, World Cup did not have a relevant impact on our sales. It was even hard to tease out anything, if at all. In terms of G&A expenses, Eduardo, you have a better handle on that. Eduardo Pizzuto: Sure. Hector, as you know, we don't guide on these metrics, but I think it's fair to assume that we will continue to invest in talent just because we are convinced that it drives value, strong value, actually. So we will continue to do so for the back half of the year. So I think it's fair to assume and expect something very similar to what happened in Q2. So let's say 3%ish of revenue. I think in the short term, that would be a fair assumption. Héctor Maya: Perfect. Very clear. Thank you. Thank you very much. Operator: Our next question comes from Irma Sgarz at Goldman Sachs. Irma Sgarz: Yeah. Thank you for the opportunity to ask my question. Just picking up on that G&A point, as you've made clear on your previous answer, you're looking to continue to invest into talent. Can you just be a little bit more explicit in terms of which areas of the organization you're looking to add talent? Obviously, you've brought some important people onto the team that are sort of market facing over the last 12 months. But, I'd be curious to just hear a little bit more on the back end, the part that we don't maybe directly see, which areas of the organization you're looking to add. Or is this more sort of retention of talent and sort of incentives, and employee value proposition that you're investing in there on the G&A side? Just curious, I know it's a bit in the nitty-gritty, but I know you're testing in some stores to sort of go cardless and I know you have a lot of cash expenses actually, or cash transactions in your stores, but just curious if you could tease out for us what you've learned there, and if there's any meaningful margin gain from that, or even incremental margin gain that you envision. Thank you. Anthony Hatoum: Let me start with the last question. What you're referring to as 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. Irma Sgarz: Yeah Anthony Hatoum: Saying that non-material impact. It's a test, and it doesn't mean we're going to expand it. At BBB Foods, at any point in time, you're going to find several tests running on different topics. They all have the same kind of objective with either trying to generate more revenue or reduce costs or reduce risk, and it's always something where we're trying to create more value for the customer. That's on that. On the matter of G&A investment, 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. You'll see it in purchasing, you'll see it in logistics, you'll see it in systems, you'll see it in specialty areas where one person can have a dramatic impact on creating value for the company. We're very aware that adds to the G&A number, but we're also much more than convinced that it's a very valuable investment with very high return. Irma Sgarz: And perhaps as we think about 2027, should we think of that as an ongoing process? Anthony Hatoum: You said fresh, right? Irma Sgarz: No, in terms of talent. Anthony Hatoum: Oh, yeah. Talent is an ongoing process, and it- Irma Sgarz: Yeah Anthony Hatoum: at this point in time, there is no limit to adding talent. But again, for us, if we do add, for example, one new person, whatever they cost, what are they going to contribute? And the answer always has to be significantly more than what they're going to cost us, and it's been the case so far. Irma Sgarz: So the dilution that we should think about or the operating leverage should come more still through the selling expense line? Anthony Hatoum: Exactly. Mm-hmm. Operator: Thank you. Our next question comes from Jorge Izquierdo at BTG Pactual. Jorge Izquierdo: Hi, good morning, Anthony, Eduardo. Thanks for the space for questions, and congrats on the results. I have a quick one regarding store size going forward. As basket size increases, how are you thinking about store sizes and the need to have parking availability in the future? Anthony Hatoum: Interesting question. I think at this stage, we're extremely comfortable with the current store size that you're seeing in the new generation of stores. The addition of parking or not boils down very simply to how suburban or urban are you. In urban areas, very difficult to have parking, so that sort of limits your ability to do so. But as soon as there is a need for parking and you've opened a store where there is parking, then absolutely, we're putting parking. Jorge Izquierdo: Okay. Thank you very much, Anthony. Operator: Thank you. Our next question comes from Antonio Hernandez at Actinver. Antonio Hernández: Hi. Good morning. Congrats on your results. Just a quick one regarding working capital. As new categories are being introduced or even piloted, how should we see working capital going forward? There's of course, an improvement, but how much should we weigh in these new categories? Thanks. Eduardo Pizzuto: Hi, Antonio. Thanks for your question. Let me take a step back and our overall philosophy, as you know, is we only carry items that have very high rotation. So by definition, what we look for in a new item, new category, whatever that is that it complies with that principle, not only high rotation but an amazing value. If we consider that into your question, then there should be no impact on working capital because we always look for items with very fast rotation. There should be no material impact on working capital. In fact, if you look at our trends over the past, let's say a few years, you'll see that we've been slightly improving our inventory days. So it's below 20 days. That's what we should expect going forward. So no changes really on that front. Antonio Hernández: Okay, perfect. Thanks a lot. Operator: Thank you. Our next question comes from Joel Thomas at HSBC. Jo Thomas: Good morning, Anthony and Eduardo. Thanks for the space, and congratulations on the strong results. Couple of things, please. Firstly, same-store sales. As you pointed out, it was +20% on a comp of +17% from last year. If you look at this on a two-year basis, there is a real meaningful acceleration. Given that the improvement sounds like it is coming from volume more than anything else, is that sort of two-year momentum the best way to think about how to model this out into the future and the sort of performance that can be maintained? Secondly, I had a question on competition because we are hearing a lot of noise in the market including from FEMSA about their rollouts. I just wondered what you are seeing in terms of the competitive intensity in the hard discounting space, and what it is that you are doing to stay ahead of that competition specifically. Anthony Hatoum: Let me take that last one. Regarding FEMSA, 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. 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. From our side, nothing new, nothing that will change what we are doing at all. We continue to do what we are doing, and I think that is going to continue to work extremely well. With regards to same store sales growth, if you go back to some of the discussions we have had with the market earlier, it does not take much in our case to see an increase in same store sales. All we need to do is sell one more item per customer, and you can see that number significantly increasing. We see that increase in number of products we sell to a given existing customer as something that will happen naturally over time because our products are just getting better, and the value that we are offering to the client is continuing to improve. The day that stops is probably the day you do not see any more expansion in same store sales. I would be conservative, but I would still remain positive that is going to happen. Jo Thomas: Thanks. Anthony Hatoum: Thank you. Operator: Thank you. Our next question comes from Isabel Alamas at UBS. Isabella Lamas: Hi, Anthony, Eduardo. Thank you for the opportunity for taking questions here. I have two questions. First one, I would like to tap also on your growth, but specifically on how could you think in terms of how much growth has been coming from new customers compared to the increased share of wallet from your existing ones? Also, if you could elaborate on the main initiatives that you have in place to expand this number of items per transaction that you have just mentioned. Also, if you see the company gaining increasing relevance within customer share of wallet, is this a trend that we should continue seeing from now on? My second one is regarding your expansion, specifically on the real estate front. If you continue to see solid availability for real estate for your pipeline, if you see better negotiation conditions with landlords or any change in that. And also, given that you have a very solid performance, cash generation remains healthy. If you could be considering accelerating the expansion pace. Anthony Hatoum: Okay. Let me start with the real estate question, and it's a fairly straightforward answer. There is no constraints on real estate. The runway's tremendous in Mexico for us, so we haven't seen any constraints on that front. On the matter of where's the growth going to come from, more penetration of wallet or more customers, it's always been a balance. Historically, if we look back and we look at our numbers, we see that it's been a mix of both. It also depends on how old the store is. So you can imagine that older vintages will capture new clients at a slower rate, whereas, of course, our newer vintages are just capturing clients much more rapidly. I think Eduardo Pizzuto mentioned earlier on, it's also that we're seeing a faster ramp-up. So it's like we get new customers, not only more customers, but we get them faster at the initial part of a store opening, and that has a very beneficial impact. But across the board, what you will see is an increase in penetration of wallet. An increase of penetration of wallet comes from two things. One, you can add new SKUs and automatically you'll get something more there. But even without adding any new SKUs, as I mentioned, we're super conservative on adding new SKUs, the existing portfolio is still not by any metric, fully penetrated. There's still tremendous potential for existing customers with the existing portfolio to still see an increase in same store sales. That we have pretty good data on, and we continuously monitor that. So we're pretty confident that there is a lot more to do with what we have right now without adding anything new. Isabella Lamas: That is clear. Thank you. Operator: Thank you. Our next question comes from Froylan Mendez at J.P. Morgan. Froylan Mendez: Hola, Eduardo, Anthony. Thank you very much for taking my question. I just wanted to dig a little bit more on the gross margin. In the past, you have said not to really extrapolate a single quarter margin into the full year or the next quarters. It sounds like the extra openings in the third quarter could lead to a giveback on the gross margin that we saw this quarter. Is there anything also seasonal on the gross margin during this quarter, maybe more, I do not know, World Cup campaigns or more people using your DC versus the past? Some more granularity on the gross margin into this quarter and what to expect into the next would be appreciated. Secondly, on the stock option plan, we know that the employee stock option plan had this restriction period during the earning season. I understand that it is liberated tomorrow after 48 hours of the earnings release. Any comments on any mechanism that avoids any disorderly sale from management that wants to obviously gain liquidity after many years of having received stock options? That would be highly appreciated. Thank you. Anthony Hatoum: Yeah. Thank you. Let me answer the question of options. You would think that people will rush to the doors to sell their options, and I don't have a feeling that's going to be the case. In any event, we do already have in place mechanisms to ensure that when naturally people want to sell some of their options, it's done in a very orderly and timely way. That's already in place. Your first question was around Froylan Mendez: Gross margins, Anthony, if there was something one-off. Anthony Hatoum: Yeah, no, again, we don't see seasonality in our gross margins, really. We do see volatility quarter to quarter in the gross margins for the fundamental mechanism in which gross margins change SKU per SKU. As I've always said that, if you look at it longer term, the trend is always positive. Now, I did answer Andrew's question on that, saying that there is a natural moment in time where you basically say the percent gross margin maybe stabilizes, but your MXN gross margin basically continues to increase dramatically. It's all due to the fact that how much of this are you passing on to the customer in terms of price. That then detonates more sales, that then generates more MXN margin versus how much you're keeping and showing a better percentage gross margin. At the end of the day, what's most important is your MXN gross margin increasing healthily over time, which is a reflection of all the good things you're doing. Froylan Mendez: Thank you. Appreciate it. Operator: Thank you. That is all the time we have for questions today, so that concludes our Q&A session. I would like to hand the call back over to Anthony Hatoum for his closing remarks. Anthony Hatoum: As always, we appreciate very much, and thank you very much for your interest and participation in our company. Thank you to the analysts covering us, and thank you to all the shareholders who are participating here today. And of course, thank you to all the 3B employees and, again, our customers who make all of this possible. Till next time, thank you very much. Operator: Thank you, all. You may now disconnect. Before you buy stock in BBB Foods, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BBB Foods wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $419,408!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 19, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends BBB Foods. The Motley Fool has a disclosure policy. BBB Foods (TBBB) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Sami Gabriel Khouri, a director at BBB Foods Inc. (NYSE:TBBB), disclosed a non-discretionary disposition of 14,101 Class A Common Shares on August 7, according to an SEC Form 4 filing. Transaction value based on SEC Form 4 weighted average sale price ($40.67); post-transaction value based on the August 7 market close ($40.80). What was the primary driver of this transaction?The disposition was entirely non-discretionary, executed by the company to cover tax withholding obligations triggered by the exercise of 14,101 stock options. These options were fully vested and originally exercisable for Class C shares before their automatic conversion to Class A shares on the transaction date. How much equity does Sami Gabriel Khouri retain in the company?Following this transaction, the director maintains a core position of about 3.6 million shares, representing approximately 3% ownership of the company. The vast majority of this stake is held through indirect ownership structures, while about 196,000 shares are held directly. How has the stock performed leading up to this disclosure?As of the August 7 transaction date, the company has delivered a one-year return of 60%. While the transaction occurred with the stock priced at $40.67 per share, the non-discretionary nature of the tax withholding means the activity does not reflect an active assessment of the current valuation by the director. BBB Foods Inc. operates a network of discount grocery retail outlets throughout Mexico, offering customers a comprehensive selection of essential food and beverages, personal care products, household cleaning supplies, coffee, tea, dessert items, and specialized goods for infants and pets, alongside both established brands and private label merchandise. The company generates revenue through retail sales across its discount store network, leveraging a diversified product portfolio that combines well-known national brands with proprietary private label lines and strategically sourced spot products to optimize margins and customer value. BBB Foods serves Mexican consumers seeking affordable grocery and household essentials, with particular emphasis on price-conscious households that prioritize value and convenience in their retail shopping experience. BBB Foods Inc. operates as a significant discount retail grocer in Mexico with substantial scale, managing a network of approximately 29,202 employees and generating $83.3 billion in TTM revenue. The company's competitive positioning centers on its ability to offer a diverse merchandise mix at discount pricing while maintaining operational efficiency across its Mexican retail footprint. Despite current profitability challenges reflected in a TTM net loss of $3.3 billion, the company's substantial revenue base and market presence underscore its significance within the Mexican consumer defensive sector. Khouri's shares went to cover taxes on an option exercise, so the sale itself carries no message worth dwelling on, and he keeps roughly 3.6 million shares, about 3% of the company.Meanwhile, BBB Foods, which runs Mexico's popular Tiendas 3B hard-discount chain, reported just last week that it grew second-quarter revenue 39% to 26 billion pesos, lifted same-store sales 20%, and opened 155 net new stores in a single quarter, reaching more than 3,600. It is expanding aggressively and funding that growth from its own cash flow rather than leaning on debt. Chairman and CEO Anthony Hatoum pointed to results delivered "despite a soft consumer environment in Mexico." The one figure that looks alarming, a net loss, is mostly an accounting artifact, since it stems from non-cash stock-compensation charges and costs tied to a share offering rather than the stores losing money, and cash from operations actually surged.The real question for this stock is durability, not the loss. BBB is compounding revenue near 40% while the market barely grows, so what shareholders are underwriting is how long it can keep opening stores and taking share before that pace cools. Before you buy stock in BBB Foods, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BBB Foods wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 16, 2026. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BBB Foods. The Motley Fool has a disclosure policy. BBB Foods Shows a Net Loss but Its Cash Flow Surged. Here's How to Read an Insider's Trade Before Last Week's Earnings was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Revenue: MXN 26 billion, up 39% year-over-year. Same-Store Sales: Increased 20% compared to the second quarter of 2025. EBITDA (Reported): MXN 960 million. EBITDA (Excluding Non-Cash Share-Based Compensation): Increased 44% to MXN 1.6 billion. Adjusted EBITDA Margin: Increased by 21 basis points year-over-year; 6.2% excluding the one-time cash expense related to the equity follow-on offering. Sales Expenses: As a percentage of revenue, decreased by 56 basis points to 10% year-over-year. Admin Expenses (Excluding Share-Based Payment): Increased by 57 basis points year-over-year, including a one-time cash expense of MXN 37 million related to the equity follow-on offering in May 2026. Cash Flow from Operating Activities (First Half of 2026): MXN 4.3 billion, representing 119% growth compared to the first half of 2025. Adjusted Negative Working Capital: MXN 10.2 billion as of June 2026, compared to MXN 7.1 billion in 2025 (excluding IPO and follow-on proceeds). Store Count: 3,624 as of June 30, 2026, with 155 net new stores opened during the quarter and 593 net new stores over the last 12 months. Distribution Centers: Opened one new distribution center, expanding the network to 21 regions. Warning! GuruFocus has detected 6 Warning Signs with TBBB. Is TBBB fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Opened 155 net new stores in Q2 2026, bringing total store count to 3,624, with 593 net new stores over the last 12 months, reflecting a 20% growth in store base. Same-store sales grew 20% year-over-year, significantly outperforming the market by more than 20 percentage points versus ANTAD. Total revenue increased 39% year-over-year to MXN 26 billion, driven by strong volume growth (two-thirds of same-store sales growth) and improved mix. Adjusted EBITDA (excluding non-cash share-based compensation) increased 44% to MXN 1.6 billion, with adjusted EBITDA margin expanding by 21 basis points year-over-year. Operating cash flow for the first half of 2026 reached MXN 4.3 billion, a 119% growth year-over-year, fully funding organic expansion. Gross margin improved due to scale efficiencies, better buying conditions, and logistics optimization, with a positive long-term trend expected. New store format (100% of new openings) is performing well, with faster ramp-ups and consistent unit economics. Expansion into new distribution centers (three in Q3) is expected to drive long-term logistics efficiencies despite short-term pressure. Management remains confident in the significant long-term growth opportunity in Mexico, with no real estate constraints and a strong pipeline. New ERP system is on track, with AI tools accelerating development and enabling future optionality for additional services. Admin expenses, excluding share-based payment, increased by 57 basis points year-over-year due to continued investment in talent and expansion into new regions. Q2 2026 included a one-time cash expense of MXN 37 million related to the equity follow-on offering in May 2026, impacting EBITDA and admin expenses. Potential pressure on logistics expenses in Q3 2026 due to the opening of three new distribution centers, which may temporarily impact margins. Same-store sales growth is partly driven by price (one-third), though internal inflation remains low, indicating some reliance on pricing. The company faces intense competition in the hard discount space, though management sees room for multiple players in the Mexican market. G&A expenses are expected to remain elevated (around 3% of revenue) as the company continues to invest in talent, which may limit operating leverage in the short term. The cardless payment test had a non-material impact, indicating limited near-term benefits from such initiatives. Management does not guide on EBITDA, and margin expansion is expected to be gradual, with potential volatility in gross margin quarter-to-quarter. The company's aggressive expansion (593 net new stores in 12 months) may strain operational resources and execution capabilities. The equity follow-on offering in May 2026 resulted in one-time costs and potential dilution, though management has mechanisms for orderly option sales. Q: How much of the same-store sales growth is driven by ticket versus traffic, and what is the contribution from new SKUs? Additionally, can you provide an update on the ERP rewrite and its deployment?A: Anthony Hatoum (Chairman and CEO) explained that approximately two-thirds of same-store sales growth is driven by volume and one-third by price, with the price component largely coming from better product mix rather than inflation. He noted that all categories are growing, with newer categories growing faster from a low base. The company remains extremely conservative with SKU additions, often dropping less attractive items. Regarding the ERP, he stated that phase one testing is going well, and AI tools have accelerated programming capabilities, bringing forward planned features and adding new ones. The new point-of-sale system will offer more services to clients, and logistics optimization opportunities will expand as the company scales. Q: What drove the gross margin performance this quarter, and how should we think about the forward outlook? Also, what contributed to lower transportation costs?A: Anthony Hatoum (Chairman and CEO) explained that gross margin improvement is a dynamic process resulting from scaling efficiencies in buying, manufacturing, and logistics. As the company grows, it gets better input conditions and can optimize prices to balance volumes and dollar margins. He noted that while percentage margins may stabilize over time, dollar margin growth is the key metric. Eduardo Pizzuto (CFO) added that transportation cost optimization efforts and better management of pre-operating expenses for the new distribution center contributed to the quarter's performance. However, he cautioned that Q3 might see some pressure on logistics expenses due to the opening of three additional distribution centers. Q: What percentage of new stores are opening under the upgraded format, and what sales uplift and ramp-up are you seeing from these locations?A: Anthony Hatoum (Chairman and CEO) confirmed that 100% of new stores open under the upgraded format, which was chosen for its superior performance compared to older stores, though existing stores continue to perform well. Eduardo Pizzuto (CFO) added that the ramp-up of new stores is tracking in line with the unit economics analysis updated in Q4, with the 2026 vintage performing consistently and as expected. Q: Did the World Cup provide any tailwind to same-store sales, and what is the expected run rate for G&A investments in the second half?A: Anthony Hatoum (Chairman and CEO) stated that the World Cup did not have a relevant impact on sales, and it was difficult to tease out any effect. Eduardo Pizzuto (CFO) indicated that the company will continue investing in talent, and it's fair to assume G&A expenses will remain around 3% of revenue in the short term, similar to Q2 levels. Q: Can you elaborate on which areas of the organization you're adding talent to, and what have you learned from the cardless payment test?A: Anthony Hatoum (Chairman and CEO) clarified that G&A investment is focused on adding and densifying talent in critical areas like purchasing, logistics, systems, and specialty roles where one person can have a dramatic impact. He emphasized that this is a high-return investment. Regarding the cardless test, he described it as a non-material experiment exploring the removal of credit and debit cards, noting that it's just one of several ongoing tests aimed at generating more revenue, reducing costs, or reducing risk, with no immediate plans for expansion. Q: How should we think about the two-year same-store sales momentum, and what are you seeing in terms of competitive intensity in the hard discount space?A: Anthony Hatoum (Chairman and CEO) noted that same-store sales growth can increase significantly with just one more item sold per customer, driven by improving product value. He remains conservative but positive about continued expansion. Regarding competition, he stated that the company doesn't see anything new from FEMSA and believes Mexico's market potential is significant enough for several players to thrive. He emphasized that the company will continue its current strategy, which has been working extremely well. Q: How much of the growth is coming from new customers versus increased share of wallet, and what initiatives are in place to expand items per transaction? Also, is there solid real estate availability for expansion?A: Anthony Hatoum (Chairman and CEO) explained that growth comes from a balance of new customers and increased wallet penetration, with newer store vintages capturing customers more rapidly. He noted that the existing portfolio still has tremendous potential for increased penetration without adding new SKUs. On real estate, he stated there are no constraints, and the runway in Mexico is tremendous. Eduardo Pizzuto (CFO) added that the company only carries high-rotation items, so new categories should not materially impact working capital, with inventory days remaining around 20 days. Q: Was there anything one-off in the gross margin this quarter, and what mechanisms are in place to avoid disorderly selling of stock options after the restriction period?A: Anthony Hatoum (Chairman and CEO) stated that there is no seasonality in gross margins, though there is quarter-to-quarter volatility. He reiterated that the long-term trend is positive, with dollar gross margin growth being the most important metric. Regarding stock options, he noted that mechanisms are already in place to ensure orderly and timely selling, and he doesn't expect a rush to sell. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in BBB Foods Inc.? Here are five stocks we like better. Strong growth continued: Second-quarter revenue rose 39% year over year to MXN 26 billion, driven by 20% same-store sales growth—about two-thirds from higher volume—and the addition of 155 net new stores. Profitability and cash flow improved: Adjusted EBITDA increased 44% to MXN 1.6 billion, while first-half operating cash flow more than doubled to MXN 4.3 billion, fully funding organic expansion. Expansion remains aggressive: BBB Foods ended June with 3,624 stores and 21 distribution regions, but management warned that opening three additional distribution centers could pressure logistics expenses in the third quarter before improving efficiency over time. BBB Foods (NYSE:TBBB), which operates the Tiendas 3B discount retail chain, reported second-quarter 2026 revenue growth of 39% from a year earlier to MXN 26 billion, supported by a 20% increase in same-store sales and continued store expansion. Chairman and Chief Executive Officer Anthony Hatoum said the company opened 155 net new stores during the quarter, bringing its store base to 3,624 locations as of June 30. Over the past 12 months, the company added 593 net new stores, representing 20% growth in its store base compared with June 2025. → Lumentum Just Delivered the AI Growth Investors Wanted The company also opened one distribution center in the quarter, expanding its network to 21 regions at the end of June. Hatoum said approximately two-thirds of the company’s same-store sales growth came from volume, while roughly one-third came from price. Within the price component, he said improved product mix was the larger contributor, while internal inflation remained low. → Ryman Checks Into a $1.38B Hospitality Upgrade Management said sales growth reflected continued improvements in the company’s value proposition, greater brand awareness and customer loyalty. Hatoum said Tiendas 3B maintained a gap of more than 20 percentage points in same-store sales performance versus ANTAD during the quarter. All current product categories grew during the period, Hatoum said, though categories with greater existing penetration grew at a somewhat slower pace than newer categories. The company continues to maintain a conservative approach to adding products, seeking high-rotation items and potentially removing less attractive SKUs when new ones are introduced. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal Hatoum said the company sees further opportunity to increase customer spending both by attracting new shoppers and by expanding the number of items purchased by existing customers. He said even selling one additional item per customer can have a meaningful effect on comparable-store sales. Reported EBITDA was MXN 960 million in the second quarter. Excluding non-cash share-based compensation, EBITDA rose 44% year over year to MXN 1.6 billion. The adjusted EBITDA margin increased 21 basis points from the prior-year quarter. Chief Financial Officer Eduardo Pizzuto said adjusted EBITDA also included a one-time cash expense of MXN 37 million related to the company’s May 2026 equity follow-on offering. Excluding that expense, adjusted EBITDA margin was 6.2% in the quarter. Selling expenses as a percentage of revenue declined 56 basis points year over year to 10%, with management citing operating leverage across most expense categories, including labor. Administrative expenses, excluding share-based payments, rose 57 basis points as the company continued to invest in talent and expansion into new regions. Pizzuto said the company expects to continue investing in talent during the second half, particularly in purchasing, logistics, systems and specialty functions. He said investors could reasonably expect general and administrative expenses in the near term to remain around 3% of revenue. For the first half, cash flow from operating activities reached MXN 4.3 billion, an increase of 119% from the first half of 2025. Adjusted negative working capital was MXN 10.2 billion as of June, compared with MXN 7.1 billion a year earlier, excluding IPO and follow-on proceeds. Pizzuto said the company’s operating cash flow fully funds its organic expansion. Management attributed gross-margin improvement to greater scale in purchasing and manufacturing, improved logistics and ongoing pricing decisions across its product portfolio. Hatoum said the company focuses on growing dollar gross margin over time, while determining how much of efficiency gains to pass through to customers in lower prices. Pizzuto said transportation costs benefited in the second quarter from efforts to optimize logistics across regions and better management of pre-operating expenses at the distribution center opened during the period. However, the company has since opened two additional distribution centers and expects to open a third during the third quarter. Pizzuto cautioned that logistics expenses could face pressure in the third quarter because of the three planned distribution-center openings, though he said the facilities should become more efficient over the longer term. All new stores are opening under the company’s upgraded format, according to Hatoum. The format is larger and includes additional refrigerated capacity. Management said these stores are performing better than older formats, while existing stores also continue to perform well. Pizzuto said the 2026 store cohort’s ramp-up has remained consistent with the unit-economics expectations the company outlined in the fourth quarter. Hatoum said the company is testing the first phase of a new enterprise resource planning system. He said artificial-intelligence tools have accelerated programming work, allowing the company to bring forward planned features and add capabilities that had initially been expected later in the development timeline. The updated point-of-sale system is intended to provide capabilities beyond processing product transactions and could give the company optionality to offer additional customer services in the future, Hatoum said. Regarding competition, Hatoum said the company has not seen anything new from FEMSA beyond what was already visible in the market. He said Mexico remains a highly competitive retail market but has sufficient potential for several discount-sector participants to grow. Management also said real estate availability has not constrained expansion. Hatoum said the company sees a “tremendous” runway in Mexico and remains comfortable with the size of its current new-generation store format. Parking is added where appropriate and available, particularly in more suburban locations, he said. BBB Foods Inc, through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. 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 [email protected]. The article "BBB Foods Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of 39% was underpinned by a 20% increase in same-store sales, significantly outperforming the ANTAD market benchmark by over 20 percentage points. Performance attribution for same-store sales is primarily volume-driven, with approximately two-thirds of growth coming from volume and one-third from price mix, while internal inflation remains low. Gross margin improvements are the result of a 'sum of small parts' strategy, where increased scale allows for better input conditions and manufacturing efficiencies that are shared equitably with producers. The company is successfully transitioning to an upgraded store format with larger footprints and more refrigeration, which is delivering better performance and faster ramp-up periods than previous vintages. Operational leverage was achieved as sales expenses as a percentage of revenue decreased by 56 basis points, driven by efficiencies in labor and logistics despite rapid expansion. Management views the business as a platform where high-frequency customer touchpoints provide optionality to expand into non-grocery services as the brand scales. The expansion strategy remains aggressive with a focus on both densifying existing regions and selectively entering new markets, supported by a pipeline with no perceived real estate constraints. Logistics expenses may face short-term pressure in Q3 2026 due to the simultaneous opening of three new distribution centers, though long-term efficiency is expected to improve. The new ERP system is currently in phase 1 testing, with AI tools accelerating development and allowing for the inclusion of advanced features originally planned for later stages. G&A expenses are expected to remain around 3% of revenue as the company continues to invest heavily in high-level talent across purchasing, logistics, and systems to drive long-term value. Management anticipates that gross margin percentages will eventually stabilize as more efficiencies are passed to customers through lower prices to drive total dollar margin growth. Q2 results included a one-time cash expense of MXN 37 million related to the equity follow-on offering completed in May 2026. The business model continues to generate structurally negative working capital, reaching MXN 10.2 billion, which fully funds organic expansion without external financing. Management addressed potential stock volatility by confirming that orderly liquidation mechanisms are in place for employee stock options following the post-earnings lock-up expiry. A 'cardless' payment test was conducted to evaluate cost and risk impacts, though management reported the initial results showed a non-material impact on performance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Gross margin gains stem from better buying power and logistics optimization as the company scales. Management noted that they have become 'smarter' at managing pre-operating expenses for new distribution centers, a practice they will apply to the three DCs opening in Q3. Growth is primarily volume-led; management believes they can continue to grow by simply selling 'one more item' per existing customer visit. The company remains extremely conservative regarding SKU expansion to maintain high rotation, though the new store format provides the physical capacity for more products. Management dismissed concerns regarding increased competition from players like FEMSA, stating they have not seen any shifts beyond historical competitive levels. The Mexican market is viewed as having significant untapped potential for multiple discount retailers to thrive simultaneously.

MEXICO CITY, August 12, 2026--(BUSINESS WIRE)--BBB Foods Inc. ("Tiendas 3B" or the "Company") (NYSE: TBBB), a leading grocery hard discounter in Mexico, announced today its consolidated results for the second quarter of 2026 ("2Q26") ended June 30, 2026. The figures presented in this release are expressed in nominal Mexican Pesos (Ps.) and are prepared in accordance with International Financial Reporting Standards ("IFRS"), unless otherwise stated. HIGHLIGHTS Second qUARTER 2026 Opened 155 net new stores during the quarter, reaching 3,624 stores as of June 30, 2026. Opened one distribution center in 2Q26, reaching 21 as of June 30, 2026. Ps. 26,037 million total revenue for 2Q26. EBITDA was Ps. 960 million in 2Q26, compared to Ps. 844 million in 2Q25. MESSAGE FROM THE CHAIRMAN AND CEO Dear Investors, We delivered strong results in the second quarter of 2026. Despite a soft consumer environment in Mexico, same-store sales (SSS) grew 20.0%, driven by our compelling value proposition, strong brand recognition, and growing customer loyalty. We opened 155 net new stores in the quarter, bringing our total store base to 3,624 units, and added a new distribution center, expanding our logistics footprint to 21 regions. Our growth remains among the fastest in retail. Total revenue increased 38.7% year over year to Ps. 26,037 million, supported by strong SSS performance and the continued expansion of our store base. EBITDA, excluding non-cash share-based compensation, increased 43.8% year over year to Ps. 1,575 million. Reported EBITDA was Ps. 960 million, reflecting the impact of non-cash share-based compensation as well as expenses related to our May equity follow-on offering. We are pleased with our EBITDA growth excluding non-cash share-based compensation. While we do not manage the business to specific EBITDA margin targets, we believe disciplined execution - opening successful stores, strengthening our customer value proposition, and continuously improving operating efficiency – will drive margin expansion over time. This approach is the foundation of durable competitive advantages and long-term shareholder value creation. Cash flow generation was strong in the quarter, supported by robust revenue growth, healthy operating profitability, and our structurally negative working capital model. As a result, our organic expansion continues to be fully self-funded. We enter the second half of 2026 with strong momentum. Our results continue to demonstrate the resilience, scalability, and strength of our business model, and we remain confident in our ability to deliver sustained long-term value for our customers, employees, and shareholders. Thank you for your continued trust and support. K. Anthony Hatoum, Chairman and Chief Executive Officer Please see the explanation at the end of this release on how EBITDA, a non-IFRS financial measure, is calculated, and for other relevant definitions. TOTAL REVENUE Total revenue for 2Q26 was Ps. 26,037 million, up 38.7% year-over-year. Most of this growth was driven by sales from stores that have been operating for more than one year, and, to a lesser extent, the incremental sales from 593 net new stores opened in the past twelve months. GROSS PROFIT AND GROSS PROFIT MARGIN Gross profit increased 43.4% year-over-year to Ps. 4,362 million in 2Q26, driven by strong sales growth and a 54-bps expansion in gross margin. The margin improvement reflected a stronger commercial margin and lower transportation costs as a percentage of revenue. EXPENSES Sales expenses primarily reflect the cost of operating our stores, including wages and energy. In 2Q26, sales expenses reached Ps. 2,598 million, a 31.4% increase compared to 2Q25. This growth was mainly driven by an increase in the number of stores. As a percentage of total revenue, sales expenses stood at 10.0% in 2Q26, a decline of 56 bps year-over-year, as a result of improved operational leverage across most components of our sales expenses, including labor. Administrative expenses refer to expenses not directly related to operating our stores, such as headquarters, regional office expenses, and share-based compensation. For 2Q26, administrative expenses totaled Ps. 1,428 million, a 95.3% increase compared to 2Q25. This increase reflected (i) higher non-cash share-based payment expense, including the recognition of the Liquidity Event Plan (LEP) disclosed in February 2024 and granted by the Board of Directors in June 2025, subject to a quarterly vesting schedule (see Appendix 2 of this Earnings Release for additional details); (ii) increased staffing expenses for the new regional operations; (iii) continued investments in human capital and (iv) non-recurring expenses of Ps 37 million related to the equity follow-on offering in May 2026. As a percentage of revenue, administrative expenses increased from 3.9% in 2Q25 to 5.5% in 2Q26. The non-cash share-based compensation is already reflected in our fully diluted share count. Excluding non-cash share-based payment expense, administrative expenses for 2Q26 amounted to Ps. 813 million, an increase of 69.8% compared to 2Q25. As a percentage of revenue, administrative expenses excluding non-cash share-based payment expense stood at 3.1% in 2Q26, an increase of 57 bps year-over-year. Please refer to Appendix 2 of this Earnings Release for an updated table summarizing the share-based payment expense plans and related expenses. Other income – net, which includes, among other items, revenues from non-operative activities such as asset disposals, cost reimbursements, and insurance proceeds, amounted to other income – net of Ps. 16 million in 2Q26, compared to other income – net of Ps. 59 million in 2Q25. Note that in 2Q25 this line reflected a Ps. 40 million non-recurring insurance recovery related to Hurricane Otis. As a percentage of revenue, other income – net decreased by 25 bps year-over-year. EBITDA AND EBITDA MARGIN For 2Q26, EBITDA was Ps. 960 million, compared to Ps. 844 million in 2Q25. As previously described, our EBITDA was impacted by the increase in non-cash share-based payment expense. Excluding non-cash share-based payment expense, EBITDA was Ps. 1,575 million, an increase of 43.8% compared to 2Q25. The EBITDA margin for 2Q26, adjusted to exclude the non-cash share-based compensation, increased by 21 bps to 6.1%. Please see the last section of this release on how we calculate EBITDA and EBITDA Margin, which are non-IFRS financial measures. ADDITIONAL DISCLOSURES To allow investors to better assess our performance, the Company is providing the following supplementary information: Non-recurring follow-on offering expenses: The Company incurred Ps. 37 million in follow-on related expenses during 2Q26, reflected as administrative expenses. Share-based payment expense (non-cash): Non-cash share-based payment expense totaled Ps. 615 million in 2Q26, compared to Ps. 252 million recorded in 2Q25.For additional details, please refer to Appendix 2 of this Earnings Release. Building lease payments: The Company leases all except one of its stores and all of its distribution centers. In accordance with IFRS 16, the Company’s lease expenses are capitalized, and are not considered operating expenses. Tiendas 3B’s capitalized lease payments for buildings were Ps. 593 million in 2Q26, versus Ps. 439 million in 2Q25. FINANCIAL COSTS AND NET LOSS/INCOME Financial income totaled Ps. 37 million in 2Q26, down from Ps. 52 million in 2Q25. The decrease was primarily driven by lower interest rates and the negative impact from a stronger Mexican peso compared to the U.S. dollar given our net U.S. dollar denominated cash position. Financial costs were Ps. 483 million for 2Q26, a 27.1% increase compared to 2Q25. This increase was primarily driven by higher interest expense on lease liabilities, reflecting the continued expansion of our stores, distribution center network, and equipment. The Company recorded a foreign exchange loss of Ps. 85 million in 2Q26, driven by the depreciation of the U.S. dollar against the Mexican peso, which negatively impacted, in Mexican peso terms, the Company’s U.S. dollar-denominated cash position. Income tax expense reached Ps. 208 million in 2Q26 compared to Ps. 117 million in 2Q25. As a result, our net loss for 2Q26 was Ps. 386 million, compared to a net loss of Ps. 286 million for 2Q25. BALANCE SHEET AND LIQUIDITY As of June 30, 2026, the Company reported local currency cash and cash equivalents of Ps. 1,981 million. In addition, as of June 30, 2026, the Company held $236 million in U.S. dollar-denominated short-term bank deposits. The Company applied an exchange rate of Ps. 17.47 to one U.S. dollar as of June 30, 2026. Our business model continues to generate strong operating cash flow through its structurally negative working capital cycle, supported by growing sales and high inventory turnover relative to supplier payment terms. This cash flow fully funds our expansion, including new stores and distribution centers. The information provided below summarizes cash flow changes in the first half of 2026: Net cash flows provided by operating activities increased to Ps. 4,285 million in the first six months of 2026 ("1H26") from Ps. 1,955 million for the first half of 2025 ("1H25"). Our net working capital continues to be driven by a favorable ratio of Inventory Days to Payable Days. Net cash flows used in investing activities totaled Ps. 3,080 million for 1H26, compared to Ps. 1,338 million in 1H25. This increase was primarily attributed to the Ps. 1,483 million allocation of the primary proceeds from the equity follow-on into short-term deposits during 2Q26, along with continued investments to expand our store and logistics network. Net cash flows used in financing activities were Ps. 655 million for 1H26, compared to the cash flows used in 1H25 of Ps. 923 million. The amount for 1H26 reflects the inflows from the primary proceeds from the equity follow-on. In 2Q26, we opened 155 net new stores compared to the 142 net new stores opened in 2Q25. In the last twelve months, the Company opened 593 net new stores, compared to 528 stores in the twelve months ending 2Q25. Same Store Sales grew by 20.0% for 2Q26, compared to 17.7% for 2Q25. OTHER RECENT DEVELOPMENTS Lock-up Expiration. As previously reported, the liquidity lock-up applicable to our Class C common shares expired on August 6, 2026, and, accordingly, all Class C common shares converted automatically into Class A common shares on a one-to-one basis on such date. Non-IFRS Measures and Other Calculations For the convenience of investors, this release presents certain non-IFRS financial measures, which are not calculated in accordance with IFRS ("non-IFRS financial measures"). A non-IFRS financial measure is generally defined as one that purports to measure financial performance but excludes or includes amounts that would not be so excluded or included in the most comparable IFRS financial measure. Non-IFRS financial measures do not have standardized meanings and may not be directly comparable to similarly titled measures reported by other companies. These non-IFRS financial measures are used by our management for decision-making purposes and to assess our financial and operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. The non-IFRS financial measures presented herein have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations presented in accordance with IFRS. Additionally, our calculations of non-IFRS financial measures may be different from the calculations used by other companies, including our competitors, and therefore, our non-IFRS financial measures may not be comparable to those of other companies. We calculate "EBITDA", a non-IFRS measure, as net profit (loss) for the period, plus income tax expense, financial costs, net, and total depreciation and amortization. We calculate "EBITDA Margin", a non-IFRS measure, for a period by dividing EBITDA for the corresponding period by total revenue for such period. Same Store Sales: We measure "Same Store Sales" using revenue from sales of merchandise at stores that were operational for at least the full preceding 12 months for the periods under consideration. Stores that were temporarily closed (for one month or more) or permanently closed during the relevant measurement periods are excluded from this metric. Same Store Sales growth is calculated by comparing the Same Store Sales of stores that were opened and remained open throughout the relevant measurement period. Lease Payments: Consistent with lease accounting required under IFRS 16, total depreciation and amortization includes the depreciation expense of right-of-use-asset corresponding to long-term leases, which is a non-cash expense. Such amounts, together with the interest expense on lease liabilities, is a proxy for but not equal to the Company’s actual cash expenditure incurred in connection with its leased properties. Inventory Days: We calculate "Inventory Days" to be the average of beginning and end of period inventory balance, divided by cost of sales for the period and multiplied by the number of days during the period. Inventory Days measures the average number of days we keep inventory on hand before selling the product. This operating metric allows us to track our inventory management policies and observe how quickly we are able to rotate inventory, which is key to our cash conversion cycle. Payable Days: We calculate "Payable Days" to be the sum of the average of beginning and end of period balance of suppliers and of accounts payable and accrued expenses, divided by cost of sales for the period and multiplied by the number of days during the period. Payable Days measures the average number of days that it takes us to pay suppliers after receiving goods or services. This metric allows us to track the terms of payment policies with suppliers and our ability to finance our operations through agreements with our suppliers. CONFERENCE CALL DETAILS Tiendas 3B will host a call to discuss the second quarter 2026 results on August 13th, 2026, at 12:00 p.m. Eastern Time (10:00 a.m. Mexico City time). A webinar of the call will be accessible at: https://zoom.us/webinar/register/WN_H7J00JR0SDSW2VhQ3n2KTA To join via telephone, please dial one of the domestic or international numbers listed below: Other international numbers available: https://us02web.zoom.us/u/knEOJCJkC The webinar ID is 951 8752 5034 An audio replay from the conference call will be available on the Tiendas 3B website https://www.investorstiendas3b.com after the call. FORWARD-LOOKING STATEMENTS This release includes forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. We base these forward-looking statements on our current beliefs, expectations and projections about future events and trends affecting our business and our market. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or to revise any forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this release. The words "believe," "may," "should," "aim," "estimate," "continue," "anticipate," "intend," "will," "expect" and similar words are intended to identify forward-looking statements. Forward looking statements include information concerning our possible or assumed future results of operations, business strategies, capital expenditures, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Please refer to our annual report on Form 20-F for the year ended December 31, 2024 filed with the U.S. Securities Exchange Commission (the "SEC"), as well as any subsequent filings made by us with the SEC, each of which is available on the SEC’s website (www.sec.gov), for a more extensive discussion of the risks and other factors that may impact any forward-looking statements in this release. Considering these limitations, you should not make any investment decision in reliance on forward-looking statements contained in this release. ABOUT TIENDAS 3B BBB Foods Inc. ("Tiendas 3B"), a proudly Mexican company, is a pioneer and leader of the grocery hard discount model in Mexico and one of the fastest growing retailers in the country as measured by its sales and store growth rates. The 3B name, which references "Bueno, Bonito y Barato" - a Mexican saying which translates to "Good, Nice and Affordable" - summarizes Tiendas 3B’s mission of offering irresistible value to budget savvy consumers through great quality products at bargain prices. By delivering value to the Mexican consumer, we believe we contribute to the economic well-being of Mexican families. In a landmark achievement, Tiendas 3B was listed on the New York Stock Exchange in February 2024 under the ticker symbol "TBBB". For more information, please visit: https://www.investorstiendas3b.com/ APPENDIX 1: FULLY DILUTED SHARES ILLUSTRATIVE CALCULATION To further improve investor’s understanding of our capital structure, we are providing below an illustrative calculation of our fully diluted share count as of June 30, 2026, inclusive of Class A common shares and Class C common shares subject to vested and unvested stock options, restricted stock units, and Class C common shares under the Liquidity Event Plan and the Bolton Partners Share Allocation. We calculate our fully diluted common shares outstanding by assuming the "net settlement" of all our outstanding options at their weighted average strike price. The illustrative example below assumes: Price per Class A common share: US$35.00 Weighted average exercise price of US$5.73 per Class C common share subject to options granted under our Legacy Plan Weighted average exercise price of $32.91 per Class A common share subject to options granted under our Post-IPO Equity Incentive Plan All outstanding options are vested as of the date hereof, for illustrative purposes only The example above is provided for illustrative purposes only. The number of common shares outstanding would change if the strike price of the specific option being exercised were higher or lower than the weighted average strike price assumed for this exercise and/or if the market price for our Class A common shares was higher or lower at the time of exercise than the assumed price. APPENDIX 2: SHARE-BASED PAYMENT EXPENSE The tables and explanatory text below provide a breakdown of the expenses associated with stock options and restricted shares granted under the Legacy Plan, the Post-IPO Equity Incentive Plan, and the Liquidity Event Plan. All our share-based compensation plans were previously fully disclosed in our offering documents and public filings, including in our annual report on Form 20-F for the year ended December 31, 2025, for the year ended December 31, 2024 and for the year ended December 31, 2023 filed with the U.S. Securities Exchange Commission (the "SEC"), each of which is available on the SEC’s website (www.sec.gov) and on our investor relations website. The previously disclosed Liquidity Event Plan in the aggregate amount of 7.5 million Class C common shares was subject to formal assignment and delivery. On June 24, 2025, Tiendas 3B formally granted the 7.5 million Class C common shares to the Liquidity Event Plan participants. Our board of directors also determined it was in the best interest of the Company primarily in relation to talent retention to subject the award to quarterly vesting over a three-year period. The corresponding expense will be recognized during such three-year period beginning in the third quarter of 2025 using a graded vesting model (accelerated expense recognition) with a corresponding increase to equity. Under IFRS, the cost of this award is recognized as a non-cash expense in the profit and loss statement, even though the award is equity-settled. The fair value of the grant is determined at the grant date, and for awards with vesting conditions, the expense is recognized over the applicable vesting period. To improve investors’ understanding of how we recognize the non-cash expenses associated with each of our share-based payment arrangements, we are including below our current expectations for non-cash share-based payment expenses per program from 2025 until 2028. We note however, that these figures may vary slightly from initial estimates due to the actual vesting of the awards. It is important to note that the formal grant of these awards and vesting schedule does not result in any additional dilution beyond what was previously disclosed and is already reflected in our fully diluted share count, discussed in Appendix 1. Additionally, the estimated share-based payment expense reflected in the table below only considers awards granted as of today. The Company may grant additional awards under the 2024 Equity Incentive Plan as administered by the Company’s compensation committee (or such other committee of our board of directors to which it has properly delegated power, or if no such committee or subcommittee exists, our board of directors). View source version on businesswire.com: https://www.businesswire.com/news/home/20260811418372/en/ Contacts INVESTOR RELATIONS CONTACT [email protected]

ARKO Corp. (ARKO) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -73.33%. A quarter ago, it was expected that this company would post a loss of $0.16 per share when it actually produced a loss of $0.07, delivering a surprise of +56.25%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. ARKO, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $2.35 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 18.15%. This compares to year-ago revenues of $2 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ARKO shares have added about 60.6% since the beginning of the year versus the S&P 500's gain of 12.6%. While ARKO has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ARKO was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.14 on $1.97 billion in revenues for the coming quarter and $0.29 on $7.51 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. BBB Foods (TBBB), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This discount retailer is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of -38.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. BBB Foods' revenues are expected to be $1.42 billion, up 47.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ARKO Corp. (ARKO) : Free Stock Analysis Report BBB Foods Inc. (TBBB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street analysts forecast that BBB Foods (TBBB) will report quarterly loss of -$0.18 per share in its upcoming release, pointing to a year-over-year decline of 38.5%. It is anticipated that revenues will amount to $1.42 billion, exhibiting an increase of 47.4% compared to the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock. While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights. In light of this perspective, let's dive into the average estimates of certain BBB Foods metrics that are commonly tracked and forecasted by Wall Street analysts. Analysts' assessment points toward 'Number Distribution Centers Opened' reaching 22 . Compared to the current estimate, the company reported 16 in the same quarter of the previous year. The combined assessment of analysts suggests that 'Same Store Sales Growth' will likely reach 15.8%. The estimate compares to the year-ago value of 17.7%. Analysts expect 'Number of Stores Opened' to come in at 149 . The estimate is in contrast to the year-ago figure of 142 . Analysts predict that the 'Total Stores' will reach 3,618 . The estimate is in contrast to the year-ago figure of 3,031 . View all Key Company Metrics for BBB Foods here>>> Over the past month, shares of BBB Foods have returned -2.4% versus the Zacks S&P 500 composite's +2.3% change. Currently, TBBB carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BBB Foods Inc. (TBBB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research