BBB Foods: Rethinking Tiendas 3B After A 30% Rally (NYSE:TBBB)

BBB Foods: Rethinking Tiendas 3B After A 30% Rally Summary BBB Foods delivered another robust quarter, with sales up 36.7% and EBITDA margins reaching 5.8%, near the high end of expectations. TBBB's store expansion remains aggressive, compounding at 21.6% annually, while same-store sales growth of 17.9% outpaces broader Mexican retail benchmarks. Despite strong fundamentals, TBBB trades at 54x EBITDA; my revised price target is $35, maintaining a 'Hold' rating with only ~6% upside from current levels. Key monitoring items are sales expectations, EBITDA margins, and ongoing dilution, as share-based compensation and Capex pressure FCF. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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