Revenue growth remains robust at 33.4% in 2026Q1, yet the company struggles to achieve profitability, reporting a negative operating margin of -0.1% due to high expansion-related expenses.
| Sales/Revenue | 83.29B | 73.3B | 57.44B | 44.08B | 31.75B | 23.35B |
| Revenue Growth % | 34.58% | 27.62% | 30.31% | 38.84% | 35.95% | - |
| Cost of Goods Sold | 69.78B | 61.44B | 48.06B | 37.04B | 27.6B | 20.32B |
| COGS % of Revenue | - | 83.82% | 83.68% | 84.03% | 86.93% | 87.01% |
| Gross Profit | 13.51B | 11.86B | 9.38B | 7.04B | 4.15B | 3.03B |
| Gross Margin % | 16.22% | 16.18% | 16.32% | 15.97% | 13.07% | 12.99% |
| Gross Profit Growth % | - | 26.48% | 33.18% | 69.69% | 36.74% | - |
| Operating Expenses | 14.3B | 12.4B | 8.05B | 6.25B | 3.65B | 2.64B |
| OpEx % of Revenue | - | 16.91% | 14.01% | 14.17% | 11.5% | 11.31% |
| Selling, General & Admin | 14.38B | 12.4B | 6.63B | 6.2B | 3.64B | 2.64B |
| SG&A % of Revenue | - | 16.91% | 11.54% | 14.07% | 11.48% | 11.31% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | -2M | 0 | 1.42B | 43.81M | 5.3M | 0 |
| Operating Income | -793.02M | -538.29M | 1.33B | 793.86M | 498.75M | 393.95M |
| Operating Margin % | -0.95% | -0.73% | 2.31% | 1.8% | 1.57% | 1.69% |
| Operating Income Growth % | - | -140.52% | 67.35% | 59.17% | 26.6% | - |
| EBITDA | 1.26B | 1.24B | 2.85B | 1.88B | 1.26B | 930.11M |
| EBITDA Margin % | 1.51% | 1.7% | 4.96% | 4.27% | 3.98% | 3.98% |
| EBITDA Growth % | -54.61% | -56.34% | 51.2% | 49% | 35.87% | - |
| D&A (Non-Cash Add-back) | 2.05B | 1.78B | 1.52B | 1.09B | 765M | 536.17M |
| EBIT | -1.18B | -832.43M | 1.97B | 1.34B | 784.47M | 282.85M |
| Net Interest Income | -1.47B | -1.25B | -1.12B | -1.42B | -1.13B | -996.55M |
| Interest Income | 169.82M | 161.96M | 135.07M | 26.07M | 11.39M | 7.38M |
| Interest Expense | 1.64B | 1.41B | 1.25B | 1.44B | 1.14B | 1B |
| Other Income/Expense | -2.02B | -1.71B | -610.96M | -894.77M | -853.2M | -1.13B |
| Pretax Income | -2.81B | -2.25B | 717.55M | -100.91M | -354.45M | -733.08M |
| Pretax Margin % | -3.38% | -3.07% | 1.25% | -0.23% | -1.12% | -3.14% |
| Income Tax | 463.32M | 416.21M | 383.12M | 205.25M | 196.22M | 92.85M |
| Effective Tax Rate % | -16.47% | -18.52% | 53.39% | -203.41% | -55.36% | -12.67% |
| Net Income | -3.28B | -2.66B | 334.42M | -306.15M | -550.67M | -825.94M |
| Net Margin % | -3.93% | -3.63% | 0.58% | -0.69% | -1.73% | -3.54% |
| Net Income Growth % | -785.14% | -896.4% | 209.23% | 44.4% | 33.33% | - |
| Net Income (Continuing) | -3.28B | -2.66B | 334.42M | -306.15M | -550.67M | -825.94M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -27.95 | -23.23 | 2.40 | -3.64 | -6.72 | -9.70 |
| EPS Growth % | -823.02% | -1067.92% | 165.93% | 45.83% | 30.72% | - |
| EPS (Basic) | - | -23.23 | 3.06 | -3.64 | -6.72 | -9.70 |
| Diluted Shares Outstanding | 117.24M | 115.02M | 139.44M | 84.15M | 84.15M | 84.15M |
| Basic Shares Outstanding | 117.24M | 115.02M | 112.2M | 84.15M | 84.15M | 84.15M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Margin compression and labor costs
According to recent financial disclosures, TBBB achieved a robust 33.4% revenue growth in 2026Q1, maintaining a consistent upward trajectory that suggests the company is successfully capturing market share through its rapid store rollout strategy despite the competitive landscape in the Mexican retail sector.
The consistent double-digit revenue growth indicates that the hard-discount model is resonating with the target demographic, effectively driving volume through its curated SKU strategy. Investors should monitor whether this growth remains sustainable as the company expands beyond its core Central Mexico stronghold into more fragmented, less dense regions.
As reported in the latest income statement data, TBBB maintains a structurally lean gross margin of approximately 16.2%, reflecting the inherent limitations of a hard-discount pricing model that prioritizes volume over premium margins in a highly price-sensitive consumer environment.
The stability of the gross margin suggests that the company has successfully managed its procurement costs despite inflationary pressures on basic commodities. However, the inability to expand these margins significantly implies that profitability improvements must come from operational efficiencies rather than pricing power.
Based on the provided quarterly figures, TBBB's operating income has struggled to scale alongside revenue, with the company reporting a negative operating margin of -0.1% in 2026Q1, suggesting that aggressive expansion costs are currently outpacing the benefits of operational scale.
The volatility in operating income appears tied to heavy SG&A spending, which may be inflated by pre-opening expenses and administrative burdens associated with the recent IPO. It remains unclear whether these costs are temporary growth investments or a permanent feature of the company's labor-intensive store network.
Financial statements reveal that TBBB's net income is heavily impacted by significant stock-based compensation, which reached $721.5 million in 2026Q1, effectively masking the underlying operational performance and contributing to the reported net loss of $558.3 million for the period.
The discrepancy between operating performance and bottom-line results warrants further investigation into the company's long-term incentive structures. Investors should look past these non-cash charges to determine if the core business is approaching a sustainable break-even point on an adjusted EBITDA basis.
As indicated by the income statement, TBBB's reliance on rapid expansion has resulted in a negative net margin of -2.4% in 2026Q1, raising concerns about whether the current growth-at-all-costs strategy can eventually transition to a self-funding, profitable model without further capital dilution.
Short-term investors should be wary of the potential for margin compression if labor costs continue to rise due to regulatory changes in Mexico. The current strategy appears to prioritize market share, but the lack of consistent profitability suggests that the company remains vulnerable to shifts in capital market sentiment.
Quick answers to the most common questions about buying TBBB stock.
For fiscal year 2025, BBB Foods Inc. (TBBB) reported total revenue of $73.30B. This represents a 213.9% increase compared to $23.35B in 2021.
BBB Foods Inc. (TBBB) reported a net loss of $2.66B for the fiscal year ending 2025.
BBB Foods Inc. (TBBB) reported an operating income of $-538.3M, resulting in an operating profit margin of -0.7%. This margin reflects the operational efficiency of the business before interest and taxes.
BBB Foods Inc. (TBBB) generated $11.86B in gross profit for the year, representing a gross profit margin of 16.2%. This demonstrates the company's core pricing power and production efficiency.