Gross margin
16%low FY2021
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TBBB, BBB Foods Inc. Class A
Our value offer to our customers improves continuously as we introduce new private labels and continue to improve existing ones.
Convinced by the country's business case, he opened the first store in February 2005 in Mexico City.
The development of private label products, core to offering high value to our customers, has been part of our business strategy since our founding.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
MX$78.2B
+36.1% YoY · 36% 4-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue MX$78.2B 5-yr avg MX$47.1B
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- Situation
- Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
- What moves the needle
- Gross margin has run about 16% and operating margin about 1.7% through the cycle, a thin spread that turns the result on volume and the cost of what it sells far more than on the price it sets. On a spread this thin the operating result swings hard on small moves in cost or volume — it has ranged from −0.9% to 2.3% over the years, so the cost line is where the needle moves. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2021–2025
realized figures from each filing · older years to the left| 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMDec 2025 | |
|---|---|---|---|---|---|---|
| Income statement | ||||||
| MX$23.1B | MX$32.6B | MX$44.1B | MX$57.4B | MX$78.2B | MX$78.2B | RevenueRevenue |
| 15% | 15% | 16% | 16% | 16% | 16% | Gross marginGross mgn |
| MX$394M | MX$520M | MX$794M | MX$1.3B | (MX$675M) | (MX$675M) | Operating incomeOp. inc. |
| 1.7% | 1.6% | 1.8% | 2.3% | −0.9% | −0.9% | Operating marginOp. mgn |
| (MX$817M) | (MX$565M) | (MX$306M) | MX$334M | (MX$2.8B) | (MX$2.8B) | Net incomeNet inc. |
| Cash flow & returns | ||||||
| MX$1.4B | MX$2.1B | MX$3.1B | MX$3.7B | MX$4.7B | MX$4.7B | Operating cash flowOp. cash |
| MX$436M | MX$667M | MX$905M | MX$1.2B | MX$1.6B | MX$1.6B | DepreciationDeprec. |
| MX$1.7B | MX$2.0B | MX$2.5B | MX$2.2B | MX$5.9B | MX$5.9B | Working capital & otherWC & other |
| MX$532M | MX$1.1B | MX$1.8B | MX$2.4B | MX$3.5B | MX$3.5B | CapexCapex |
| 2.3% | 3.4% | 4.1% | 4.2% | 4.5% | 4.5% | Capex / revenueCapex/rev |
| MX$834M | MX$1.4B | MX$2.2B | MX$2.5B | MX$3.1B | MX$3.1B | Owner earningsOwner earn. |
| 3.6% | 4.4% | 5.1% | 4.4% | 4.0% | 4.0% | Owner earnings marginOE mgn |
| MX$834M | MX$993M | MX$1.3B | MX$1.3B | MX$1.1B | MX$1.1B | Free cash flowFCF |
| 3.6% | 3.0% | 3.0% | 2.3% | 1.4% | 1.4% | Free cash flow marginFCF mgn |
| — | — | — | 8% | -69% | -69% | Return on equityROE |
| — | — | — | 8% | −69% | −69% | Retained to equityRetained/eq |
| Balance sheet | ||||||
| MX$1.0B | MX$985M | MX$1.2B | MX$1.4B | MX$1.4B | MX$1.4B | Cash & investmentsCash+inv |
| — | MX$1.9B | MX$2.4B | MX$3.0B | MX$4.2B | MX$4.2B | InventoryInvent. |
| — | MX$1.9B | MX$2.4B | MX$3.0B | MX$4.2B | MX$4.2B | Operating working capitalOper. WC |
| — | MX$3.6B | MX$4.4B | MX$8.6B | MX$9.7B | MX$9.7B | Current assetsCur. assets |
| — | MX$6.8B | MX$9.0B | MX$11.2B | MX$15.6B | MX$15.6B | Current liabilitiesCur. liab. |
| — | 0.5× | 0.5× | 0.8× | 0.6× | 0.6× | Current ratioCurr. ratio |
| — | MX$11.8B | MX$15.0B | MX$22.8B | MX$30.5B | MX$30.5B | Total assetsAssets |
| 0.4× | 0.4× | 0.5× | 1.1× | -0.4× | -0.4× | Interest coverageInt. cov. |
| (MX$4.5B) | (MX$4.7B) | (MX$4.6B) | MX$4.0B | MX$4.1B | MX$4.1B | Shareholders’ equityEquity |
| Per share | ||||||
| — | — | — | 109M | 115M | 117M | Shares out (diluted)Shares |
| — | — | — | MX$525.98 | MX$679.46 | MX$669.49 | Revenue / shareRev/sh |
| — | — | — | MX$3.06 | MX$-24.69 | MX$-24.32 | EPS (diluted)EPS |
| — | — | — | MX$22.99 | MX$26.94 | MX$26.54 | Owner earnings / shareOE/sh |
| — | — | — | MX$12.02 | MX$9.85 | MX$9.70 | Free cash flow / shareFCF/sh |
| — | — | — | MX$22.30 | MX$30.85 | MX$30.40 | Cap. spending / shareCapex/sh |
| — | — | — | MX$36.95 | MX$35.87 | MX$35.34 | Book value / shareBVPS |
Per-share growththe realized rate an owner's share compounded
| 4-yr | 5-yr | |
|---|---|---|
| Revenue / share | +29.2%/yr (1-yr) | +29.2%/yr (1-yr) |
| Owner earnings / share | +17.2%/yr (1-yr) | +17.2%/yr (1-yr) |
| Capital spending / share | +38.3%/yr (1-yr) | +38.3%/yr (1-yr) |
| Book value / share | −2.9%/yr (1-yr) | −2.9%/yr (1-yr) |
The record, charted
FY2021–2025Each measure over its full record; the current point and the worst year marked.
Owner earnings vs. net income
Owner earningsNet incomeThe accountant's number, and the cash an owner can take; the gap is the tell.
MX$3.1Bowner earningsvs.(MX$2.8B)net incomelow FY2021
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
FY2021FY2025
Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.
In fiscal 2025 the business earned MX$3.1B of owner earnings, the operating cash left after the MX$1.6B it takes just to hold its position. It put MX$2.0B more into growth; free cash flow, after that spending, was MX$1.1B.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Reported net income | (MX$2.8B) | MX$334M | (MX$306M) | (MX$565M) | (MX$817M) |
| Depreciation & amortizationnon-cash charge added back | +MX$1.6B | +MX$1.2B | +MX$905M | +MX$667M | +MX$436M |
| Working capital & othertiming of cash in and out, other non-cash items | +MX$5.9B | +MX$2.2B | +MX$2.5B | +MX$2.0B | +MX$1.7B |
| Cash from operations | MX$4.7B | MX$3.7B | MX$3.1B | MX$2.1B | MX$1.4B |
| Maintenance capital expenditurethe spending needed just to hold position and volume | −MX$1.6B | −MX$1.2B | −MX$905M | −MX$667M | −MX$532M |
| Owner earnings | MX$3.1B | MX$2.5B | MX$2.2B | MX$1.4B | MX$834M |
| Growth capital expenditurediscretionary; spent to get bigger, not to stand still | −MX$2.0B | −MX$1.2B | −MX$893M | −MX$456M | — |
| Free cash flow | MX$1.1B | MX$1.3B | MX$1.3B | MX$993M | MX$834M |
| Owner-earnings marginowner earnings ÷ revenue | 4% | 4% | 5% | 4% | 4% |
Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about MX$1.6B, roughly its depreciation, the rate its assets wear out). The other MX$2.0B of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows.
Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Material weakness in financial controls
“Based on such evaluation, our Chief Executive Officer and Chief Financial Officer, have concluded that, as a result of the material weaknesses, as described under "Item 15.”
The figures below are only as sound as the controls that produced them. read the note →
Will it survive?
- Can it pay its interest? -0.4×Does not cover its interestOperating income (MX$675M) ÷ interest expense MX$1.5B
What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
- Debt under-captured — leverage unknown, not low
What this means
This company pays far more interest than its tagged debt implies (the rest sits under segment dimensions the data source strips), so its net cash or net debt cannot be read honestly: the gap is unknown, not zero, and 'net cash' here would be exactly the fiction the figure is meant to prevent. Judge it on the record and owner earnings instead.
- Not enough data
What this means
The filing data didn't include the inputs for this check.
Is it a good business?
- Debt under-capturedIndustry peers: median 10%
What this means
This company's interest bill implies far more debt than its filings tag at the consolidated level (the rest sits under segment dimensions the data source strips), so invested capital, and the return on it, cannot be read honestly. Judge this one on Owner Earnings and the record instead.
- Thin through the cycle5-yr median margin, range 4%–5%; latest MX$3.1B = operating cash MX$4.7B − maintenance capex MX$1.6BIndustry peers: median 2%
What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 4% of revenue this year, a 4% median across 5 years. It chose to put MX$2.0B more into growth, so free cash flow this year was MX$1.1B — the gap is investment, not weakness.
- Are earnings backed by cash? MX$4.7BLoss, but cash-generativeNet income (MX$2.8B) · cash from operations MX$4.7B
In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.
What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? 2.24×ExpandingCapex MX$3.5B ÷ depreciation MX$1.6B
What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.
Graham’s defensive tests · 0 of 3 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size —Revenue ≥ $2B (a dollar floor) · MX$78.2B
What this means
Big enough to weather a storm. Graham's floor is a dollar figure — about $2B of revenue as a conservative modern stand-in. This company reports in its home currency and we carry no exchange rate, so we show the figure and leave the size bar for you to apply rather than convert it with a number we don't have.
- Strong liquidity MissCurrent ratio ≥ 2× · 0.62×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Conservative debt —Debt ≤ working capital · —
What this means
The filings tag only a fraction of the debt this company's interest bill implies (much of it sits under segment dimensions the data source strips), so this test can't be run honestly.
- Earnings stability MissA profit every year (5-yr record) · 4 loss years
What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
- Dividend record MissUninterrupted dividends · none paid
What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are MX$-8.03/share (latest year MX$-24.32), the averaged base the calculator's gate runs on, and book value is MX$35.34/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Durability & moat, 2021–2025
Whether the record’s returns held, and what the capital reinvested earned.
- Profitable years 1 of 5
What this means
Lost money in 4 year(s), look at what happened there before trusting the average.
- Operating margin 2% → 1% (2-yr avg ends)
In the filing’s words The filing ties gains to its own pricing, but names price competition too — pricing power that is real yet contested, not unopposed. The margin shows who is winning.
What this means
Through the cycle the operating margin held roughly steady — about 2% early, 1% lately, median 2%.
- Owner earnings growth +25%/yr
What this means
Owner earnings grew about 25% a year over the record.
- Worst year 2025 · −0.9% op. margin
What this means
Operations went underwater in 2025, understand why before trusting the good years.
- Share count +1.3%/yr
What this means
The share count is rising, dilution works against you on a per-share basis.
- How management talks about it Promotional
What this means
The record is compounding, but the filing leans on a promoter’s vocabulary rather than the per-share, return-on-capital terms an owner uses. The results back the talk here; the register is still worth noting.
Does AI threaten the moat?
Moderate contestabilityAI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.
In its own filing Raised, but not as a competitor
The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.
The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Dec 31, 2025Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assetsMX$9.7B
- Cash & short-term investmentsMX$1.4B
- InventoryMX$4.2B
- Other current assetsMX$4.1B
Current liabilitiesMX$15.6B
- Debt due within a yearMX$2.1B
- Other current liabilitiesMX$13.5B
Current ratio0.62×all current assets ÷ what's due · Graham looked for 2×
Quick ratio0.35×stricter: inventory excluded
Cash ratio0.09×strictest: cash alone against what's due
Working capital(MX$5.9B)the cushion left after near-term bills
Debt due this year vs. cashMX$2.1B due · MX$1.4B cash
cash alone won't cover the maturities; it leans on refinancing or operating cash · both figures from the Dec 31, 2025 balance sheet
Deeper floors
Tangible book valueMX$4.1Bequity stripped of goodwill & intangibles
Net current asset value(MX$16.7B)Graham's net-net: current assets less all liabilities
Debt incl. operating leasesMX$14.0BMX$11.7B of it operating leases
From the company's latest filing.
How the cash was used, 2021–2025
Over the record, the business generated MX$15.1B of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.
- ReinvestedMX$9.4B · 63%
- Retained (debt / cash)MX$5.6B · 37%
- Net change in share count6.9%
The diluted count rose from 109M to 117M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
- Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.
Peers, Food & Drug Retailing
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| KRKroger Company (The) | $147.6B | 35% | 2.1% | 12% | 1% |
| ACIAlbertsons | $83.2B | 28% | 2.1% | 12% | 1% |
| TBBBBBB Foods Inc. Class A | MX$78.2B | 16% | 1.7% | — | 4% |
| SFMSprouts Farmers | $8.8B | 36% | 5.3% | 30% | 5% |
| ARKOARKO Corp. | $7.6B | — | 1.3% | 10% | 1% |
| IMKTAIngles Markets Incorporated | $5.3B | 24% | 3.6% | 9% | 2% |
| WMKWeis Markets Inc. | $5.0B | — | 2.7% | 8% | 2% |
| GOGrocery Outlet | $4.7B | 30% | 2.9% | 5% | 3% |
| Group median | — | 29% | 2.4% | — | 2% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the home-market price, not the US ADR quote. BBB Foods Inc. Class A reports in MXN, and every figure here (owner earnings, book value, the share count) is on that MXN, ordinary-share basis. Enter the price on the same basis: the local-exchange quote per ordinary share in MXN. A US ADR price in dollars bundles the ADR-to-ordinary ratio and the exchange rate, so it will not reconcile with these figures and would throw the multiple off.
Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what BBB Foods Inc. Class A has delivered.
MX$
Through the cycle, BBB Foods Inc. Class A earns about MX$3.4B on its 4.4% median owner-earnings margin. This year’s 4.0% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.
Base
—
The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth · ’21→’25+8%/yr
Owner-earnings growth · ’21→’25+25%/yr
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Free cash flow MX$1.1B on 117M shares outstanding, the balance-sheet count at 2025-12-31; net debt MX$822M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex (MX$3.5B) runs well above depreciation (MX$1.6B), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about MX$3.1B, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "BBB Foods Inc. Class A (TBBB), the owner's record," https://ownerscorecard.com/c/TBBB, data as of 2026-07-09.
Manual order: ← TATT its page in the Manual TC →
Industry order: ← SYY the Food & Drug Retailing chapter USFD →