Is BBB Foods Inc. (TBBB) Is It A Good Stock To Buy Now?

Is TBBB a good stock to buy? We came across a cheap thesis on BBB Foods Inc. on Valueinvestorsclub.com by Superflare. In this article, we will summarize the bulls thesis on TBBB. One share of BBB Foods Inc. it was $36.74 as of May 25^th. TBBB’s trailing and forward P/E were 131.38 and 163.93 respectively according to Yahoo Finance.

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Tiendas 3B (TBBB) operates the leading deep discount grocery model in Mexico, built on a very low cost environment, strong SKU management, and high private label penetration of 54% by 2024. The company specializes in household essentials including toiletries, beverages, cleaning supplies, cereal, and dairy in 30-4 square feet of retail with 5,000 small employees and simplified bulk packaging.

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This lean structure, combined with centralized procurement and single SKU procurement at scale, enables industry-leading supplier pricing, negative working capital of around 45 days, and manufacturing costs of 2–3% of revenue compared to 5% for peers such as Walmex, Chedraui, and Soriana. With more than 3,162 stores as of Q3’25 and an expansion pace of 500–600 new stores annually, TBBB is still early to enter a market of approximately 12,000 or more, implying a multi-year trajectory for sustainable unit growth and expansion beyond its existing territories in Mexico.

The investment case is based on the structural low penetration of hard discounters in Mexico, which currently accounts for only ~3% of the organized grocery market compared to 15-30% in mature markets. TBBB already demonstrates superior pricing power, offering prices 20–30% lower than incumbents, while maintaining strong supplier relationships and procurement economies.

Its simplified operating model, with only 346 suppliers compared to more than 31,000 at Walmex, reinforces a long-term cost advantage that competitors would find difficult to replicate without restructuring. The maturity of the store, combined with the new high to low CAGR revenue potential of the twenty, supports the consolidation of long-term benefits.

Financially, mature EBIT margins are expected to increase to 5–6% from ~3% currently, supported by scale gains, regional saturation, and operating margin, with some mature regions already exceeding 7% margins. The company’s lean cash flow model and ~3-year store returns enable fully self-sustaining 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 rerating at strong global discount peers.

Previously, we included a bullish thesis on DLTR by Acid Investments in March 2025, which highlighted the diversification of the Family Dollar, the possibility of expansion of the ratio against the Dollar General, and the closing of the valuation gap driven by the visibility of the main benefits. DLTR stock price is down about 37.23% since our coverage. Superflare has a similar vision but emphasizes structural economics, leveraged capital, and long-term store expansion in TBBB’s strong discount grocery model, rather than limited valuation acquisition and portfolio simplification.

BBB Foods Inc. not in our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 28 hedge fund portfolios held TBBB at the end of the fourth quarter up from 21 in the previous quarter. While we acknowledge the risk and potential of TBBB as an investment, our conviction is based on the belief that other AI stocks hold great promise to deliver high returns and do so within a short period of time. If you are looking for an AI stock that is more promising than TBBB and has a huge potential of 10,000%, check out our report on this. The highest number of AIs.

Disclosure: None.