Investors with an interest in Consumer Products - Staples stocks have likely encountered both Albertsons Companies, Inc. (ACI) and BBB Foods (TBBB) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style ...

Core Insights - BBB Foods Inc. reported a net loss of 1.42 billion Mexican pesos for Q3 2025, a significant decline from a net profit of 258 million Mexican pesos in the same quarter last year, primarily due to increased share-based compensation costs [1] - Despite the net loss, the company achieved a revenue of 20.28 billion Mexican pesos (approximately $1.09 billion), reflecting a year-over-year growth of 36.7%, although it slightly missed analyst revenue estimates by 0.29% [2] - Same-store sales increased by 17.9% year over year, contributing to a gross profit growth of 39.8% to 3.28 billion Mexican pesos, supported by a 36 basis-point increase in gross margin [3] Company Overview - BBB Foods operates Tiendas 3B, a hard discount grocery retailer in Mexico, focusing on low- and middle-income households by offering food, household items, and basic consumer goods at affordable prices [4] - The company's Chairman and CEO, K. Anthony Hatoum, described Q3 2025 as a "strong quarter," emphasizing the effectiveness of their strategy and disciplined execution [4]

Financial Data and Key Metrics Changes - Total revenues increased by 36.7% year-over-year, reaching MXN 20.3 billion [4][5] - Same-store sales grew by 17.9% [4][5] - Cash flow generated by operating activities reached MXN 3 billion, a 30% increase year-on-year [5] - EBITDA reported a loss of MXN 404 million, but excluding non-cash share-based payments, EBITDA increased by 43.6% to a positive MXN 1.2 billion [4][5][8] Business Line Data and Key Metrics Changes - The company opened 131 net new stores in the quarter, totaling 3,162 stores, and opened two distribution centers, bringing the total to 18 [4] - In the first nine months of 2025, 390 stores were opened compared to 346 in the same period last year [5] Market Data and Key Metrics Changes - The gap in same-store sales growth compared to Antad has increased to almost 17 percentage points [6] Company Strategy and Development Direction - The company aims to expand to no less than 14,000 stores in Mexico, indicating significant growth potential [10] - Continuous improvement in product quality and pricing is driving same-store sales growth [10] - The company is focused on talent investment as a key success factor [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong sales growth, driven by product improvements and market penetration [45] - The company is optimistic about future product innovations and their impact on sales [50] Other Important Information - The company has a robust plan for talent development to support future expansion [72] - Management noted that they do not anticipate any significant changes in the competitive landscape as they expand [37] Q&A Session Summary Question: Comments on gross margin and market share - Management indicated that as the company scales, commercial margins will improve due to lower purchasing costs and increased logistics efficiency [14][15] Question: Maturation of new store vintages - New store vintages are maturing faster than expected, leading to improved returns on invested capital [23][24] Question: Sales expenses and regional performance - Management expects more favorable comparisons on sales expenses in the next quarter and noted consistent performance across regions [28][30][32] Question: Product development and customer journey - The customer journey typically starts with basic goods, leading to increased basket sizes over time as customers gain trust in the brand [57][59] Question: Interest from larger players - Management stated there has been no significant interest from larger national or international players regarding a potential acquisition [86]

Financial Data and Key Metrics Changes - Total revenues increased by 36.7% year-over-year, reaching MXN 20.3 billion [4][5] - Same-store sales grew by 17.9%, driven by improvements in the value proposition [4][5] - EBITDA reported a loss of MXN 404 million, but excluding non-cash share-based payments, EBITDA increased by 43.6% to a positive MXN 1.2 billion [4][5] Business Line Data and Key Metrics Changes - The company opened 131 net new stores in the quarter, totaling 3,162 stores, with 390 stores opened in the first nine months of 2025 compared to 346 in the same period last year [4][5] - Cash flow generated by operating activities reached MXN 3 billion, a 30% increase year-on-year [5] Market Data and Key Metrics Changes - The gap versus ANTAD continues to increase, now almost 17 percentage points [6] - The company is one of the fastest-growing retailers globally, with significant room for expansion in Mexico, targeting a total of 14,000 stores [10] Company Strategy and Development Direction - The company focuses on continuous improvement of its value proposition, which is driving same-store sales growth [10] - There is a strong emphasis on talent investment as a key success factor, with a high talent density within the team [11] - The company plans to continue expanding its store network and product offerings while maintaining operational efficiency [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong sales growth, driven by product improvements and a robust pipeline [45] - The company anticipates that margins will improve over time due to better purchasing terms and logistics efficiency [14][15] - Management noted that the competitive landscape remains strong but healthy, with no significant changes in competition [37] Other Important Information - The company has a net cash position of approximately MXN 1.1 billion and $151 million in short-term deposits [5] - Share-based compensation has been a key driver of attracting talent and aligning interests with shareholders [11] Q&A Session Summary Question: Comments on gross margin and market share - Management indicated that margins will improve as purchasing costs decrease and logistics efficiency increases, with a focus on enhancing the value proposition [14][15] Question: Maturation of new store vintages - New store vintages are maturing faster than expected, leading to improved returns on invested capital [23][24] Question: Sales expenses and regional performance - Management expects more favorable comparisons for sales expenses in the next quarter and noted consistent performance across regions [29][32] Question: Product development and customer journey - The customer journey typically starts with basic goods, leading to increased basket sizes as customers try new products [57][60] Question: Interest from larger players - Management stated there has been no significant interest from larger national or international players regarding a potential acquisition [86]

Financial Data and Key Metrics Changes - Total revenues increased by 36.7% year-over-year, reaching MXN 20.3 billion [4][3] - Same-store sales grew by 17.9%, driven by improvements in the value proposition [4][3] - EBITDA reported a loss of MXN 404 million, but excluding non-cash share-based payments, EBITDA increased by 43.6% to MXN 1.2 billion [3][4] - Cash flow generated by operating activities reached MXN 3 billion, a 30% increase year-on-year [4] Business Line Data and Key Metrics Changes - The company opened 131 net new stores in the quarter, totaling 3,162 stores, with 390 stores opened in the first nine months of 2025 compared to 346 in the same period last year [3][4] - The company opened two distribution centers in the quarter, bringing the total to 18 [3] Market Data and Key Metrics Changes - The gap in same-store sales growth compared to Antad has increased to almost 17 percentage points [4][5] Company Strategy and Development Direction - The company aims to expand to no less than 14,000 stores in Mexico, indicating significant growth potential [8] - The focus remains on improving product quality and price, which strengthens brand equity and drives sales [8][9] - The company continues to invest in talent, viewing it as a key success factor [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong sales growth, driven by product improvements and a robust value proposition [45] - The company anticipates continued strong performance in the near future, with no expected weakness in semester sales [45] - Management noted that the competitive landscape remains strong and healthy, with no significant changes in competition [36] Other Important Information - The company has a strong focus on operational leverage and margin growth, with expectations for improvement over time [6][7] - Management highlighted the importance of long-term planning in supply chain management to mitigate risks [14] Q&A Session Summary Question: Comments on current value propositions and market share - Management indicated that margins will improve over time due to better purchasing costs and logistics efficiency, with a focus on enhancing the value proposition [12][13] Question: Maturation of new store vintages and returns - Management confirmed that new store vintages are maturing faster, leading to improved returns on invested capital [21][22] Question: Sales expenses and regional ramp-up - Management noted that sales expenses would show more favorable comparisons in the next quarter, and ramp-ups are consistent across regions [28][30] Question: Competition in new regions and same-store sales drivers - Management stated that competition remains strong and healthy, with same-store sales growth driven by increased transactions and basket sizes [36][37] Question: Confidence in maintaining sales growth and margin decisions - Management expressed confidence in maintaining strong sales growth and explained that savings from efficiencies are allocated based on elasticity testing [42][45] Question: Updates on perishables category and product innovation - Management confirmed ongoing innovation across product categories, including perishables, with positive test results [49][50] Question: Interest from larger players and share valuation - Management stated there has been no significant interest from larger players regarding a potential acquisition, emphasizing the company's strong growth metrics [86]

Tiendas 3B Third Quarter 2025 Financial Results Disclaimer Statements in this presentation, including the possible or assumed future or other performance of BBB Foods Inc. (the "Company", "we", "us", "our") or our industry, our targets or other trends and estimates, constitute "forward- looking statements". Statements contained herein that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe,", "continues," "expect," "estimate," "intend," "plans," "project," "target ...

Core Insights - BBB Foods reported $1.09 billion in revenue for the quarter ended September 2025, marking a year-over-year increase of 38.8% [1] - The company experienced an EPS of -$0.66, a decline from $0.10 a year ago, with an EPS surprise of -53.49% compared to the consensus estimate of -$0.43 [1] - The revenue matched the Zacks Consensus Estimate, resulting in a surprise of -0.29% [1] Financial Performance Metrics - Total Stores: 3,162, slightly below the two-analyst average estimate of 3,176 [4] - Same Store Sales Growth: 17.9%, exceeding the two-analyst average estimate of 16.3% [4] - Number of Stores Opened: 131, compared to the average estimate of 145 by two analysts [4] Stock Performance - Shares of BBB Foods have returned +0.8% over the past month, while the Zacks S&P 500 composite has seen a -0.6% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1: Earnings Performance - BBB Foods reported a quarterly loss of $0.66 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.43, and a significant decline from earnings of $0.1 per share a year ago, representing an earnings surprise of -53.49% [1] - The company posted revenues of $1.09 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.29%, and showing an increase from year-ago revenues of $784.58 million [2] - Over the last four quarters, BBB Foods has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - BBB Foods shares have increased by approximately 3.2% since the beginning of the year, while the S&P 500 has gained 12.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.29 on revenues of $1.18 billion, and for the current fiscal year, it is -$0.49 on revenues of $4.22 billion [7] Group 3: Industry Context - The Consumer Products - Staples industry, to which BBB Foods belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact BBB Foods' stock performance [5] - The unfavorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 5 (Strong Sell) for BBB Foods, indicating expectations of underperformance in the near future [6]

Core Insights - Tiendas 3B reported strong financial performance in Q3 2025, with total revenue reaching Ps. 20,279 million, a 36.7% increase year-over-year, driven by same-store sales growth of 17.9% and the opening of 131 new stores [4][7][9]. Financial Results - Total revenue for Q3 2025 was Ps. 20,279 million, up 36.7% from Ps. 14,834 million in Q3 2024 [8][9]. - Gross profit increased to Ps. 3,277 million, reflecting a 39.8% growth compared to Q3 2024, with a gross profit margin of 16.2% [10][38]. - EBITDA, excluding non-cash share-based payments, rose 43.6% year-over-year to Ps. 1,170 million, with an adjusted EBITDA margin of 5.8% [4][15][38]. Store Expansion and Operations - The company opened 131 net new stores in Q3 2025, bringing the total store count to 3,162, with 528 net new stores opened over the past twelve months [3][26]. - Two new distribution centers were opened, increasing the total to 18 regions served [3][26]. Expense Management - Sales expenses reached Ps. 2,065 million, a 37.8% increase from Q3 2024, primarily due to higher labor costs associated with the expanded store base [11][12]. - Administrative expenses surged to Ps. 2,109 million, a 326.5% increase year-over-year, largely due to higher non-cash share-based payment expenses and increased staffing costs [12][13]. Cash Flow and Liquidity - Net cash flows from operating activities for the first nine months of 2025 were Ps. 3,095 million, a 30.1% increase from Ps. 2,378 million in the same period of 2024 [22][23]. - As of September 30, 2025, the company had cash and cash equivalents of Ps. 1,113 million and US$151 million in short-term bank deposits [20][38]. Market Position and Strategy - Tiendas 3B aims to operate at least 14,000 stores in Mexico, with older store cohorts showing same-store sales growth above inflation [5][37]. - The company emphasizes the importance of human capital in sustaining long-term growth and continues to invest in talent and store openings [5][6].

Core Points - BBB Foods Inc. (Tiendas 3B) will report its third quarter 2025 earnings on November 19, 2025, after market close, with a conference call scheduled for November 20, 2025, at 11:00 a.m. ET [1][2] - The conference call will be hosted by Anthony Hatoum, Chairman and CEO, and Eduardo Pizzuto, CFO, who will address questions regarding the results [1] - Tiendas 3B is recognized as a leader in the grocery hard discount model in Mexico, emphasizing value for budget-conscious consumers [4] Company Information - Tiendas 3B operates under the motto "Bueno, Bonito y Barato," which translates to "Good, Nice and Affordable," reflecting its mission to provide quality products at competitive prices [4] - The company was listed on the New York Stock Exchange in February 2024 under the ticker symbol "TBBB" [4] Conference Call Details - The conference call will be accessible via various international dial-in numbers, including specific numbers for Mexico and the United States [3] - An audio replay of the conference call will be available on the Tiendas 3B website following the event [3]