Is TBBB a good stock to buy? We came across a bullish thesis on BBB Foods Inc. on Valueinvestorsclub.com by Superflare. In this article, we will summarize the bulls’ thesis on TBBB. BBB Foods Inc.’s share was trading at $36.74 as of May 25th. TBBB’s trailing and forward P/E were 131.38 and 163.93 respectively according to Yahoo Finance.
Nejron Photo/Shutterstock.com
Tiendas 3B (TBBB) operates a leading hard discount grocery model in Mexico, built around ultra-low-cost execution, tight SKU management, and high private-label penetration of 54% in 2024. The company focuses on essential household staples including toiletries, beverages, cleaning supplies, grains, and dairy, sold through small-format stores of 300–450 square meters with minimal staffing and simplified bulk packaging.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
This lean structure, combined with centralized procurement and single-SKU purchasing at scale, enables industry-leading supplier pricing, negative working capital of approximately 45 days, and logistics costs of just 2–3% of revenue versus ~5% for peers such as Walmex, Chedraui, and Soriana. With over 3,162 stores as of Q3’25 and an expansion pace of 500–600 new stores annually, TBBB is still early in penetrating a market estimated to support up to 12,000 stores or more, implying a multi-year runway for sustained unit growth and geographic expansion beyond its current regional concentration in Mexico.
The investment case is anchored in structural under-penetration of hard discount retail in Mexico, which currently accounts for only ~3% of the formal grocery market versus 15–30% in more mature markets. TBBB already demonstrates superior pricing power, offering 20–30% lower prices than incumbents, while maintaining strong supplier relationships and efficient procurement economics.
Its simplified operating model, with just 346 suppliers versus over 31,000 at Walmex, reinforces a durable cost advantage that competitors would struggle to replicate without structural reinvention. Store maturation, combined with high teens to low twenties revenue CAGR potential, supports long-term earnings compounding.
Financially, mature EBIT margins are expected to expand toward 5–6% from ~3% currently, supported by scale benefits, regional infill, and operating leverage, with some mature regions already exceeding 7% margins. The company’s negative working capital model and ~3-year store payback enable fully self-funded expansion at ~20% annual store growth. At ~$33/share, the stock is valued at ~24x mature 2026 EPS, with an implied IRR of ~23% and potential upside driven by continued expansion, margin normalization, and re-rating toward global hard discount peers.
