BBB Foods (TBBB) closed FY 2025 with fourth quarter revenue of MX$21.97 billion and a basic EPS loss of MX$8.98, alongside a net income loss of MX$1,042.51 million. Over recent periods the company has seen revenue move from MX$16.35 billion in Q4 2024 to MX$21.97 billion in Q4 2025, while quarterly EPS shifted from a loss of MX$0.21 to a loss of MX$8.98 as net income moved from a loss of MX$23.57 million to a loss of MX$1,042.51 million. For investors, the key story in this print is how robust top line momentum is coinciding with pressured margins and deeper losses.
See our full analysis for BBB Foods.With the headline numbers on the table, the next step is to see how this mix of strong revenue and weaker margins lines up against the main bullish and bearish narratives around BBB Foods.
See what the community is saying about BBB Foods
Same store sales power revenue story
- In the first three quarters of FY 2025, same store sales growth was 13.5% in Q1, then 17.7% and 17.9% in Q2 and Q3, supporting revenue of MX$17,131.8 million, MX$18,769.7 million and MX$20,279.0 million over those periods.
- For the bullish narrative, this consistent double digit same store sales growth fits the view that urbanization and a shift to formal retail can support strong store level performance. However, it also has to be weighed against the FY 2025 net income loss of MX$2,839.6 million on a trailing 12 month basis, which shows that rapid revenue and ticket growth alone has not translated into positive earnings so far.
- Bulls point to forecasts for revenue to grow around 19.9% a year and for earnings to grow about 75.16% a year over the next three years, but those expectations sit against a five year trend of losses widening at roughly 11.4% a year.
- This mix of strong same store sales and larger losses is exactly where investors need to decide if higher store density and technology investments can realistically shift margins from the current loss making level to the positive margin profile that bullish models rely on.
Strong same store sales growth and higher revenue give bulls plenty to talk about. To see how that ties into their full growth story and long term margin arguments, you might want to look at what they are modeling in detail through the 🐂 BBB Foods Bull Case
From small loss to MX$2.8b trailing loss
- On a trailing 12 month basis to Q4 2025, BBB Foods recorded a net income loss of MX$2,839.6 million, compared with a TTM profit of MX$334.4 million at Q4 2024. Quarterly net income moved from a small loss of MX$23.6 million in Q4 2024 to a loss of MX$1,042.5 million in Q4 2025.
- Bears focus on this swing into a multi billion peso loss and argue that aggressive expansion and technology spend are keeping margins under pressure, and the data here backs that concern because losses have grown at about 11.4% a year over the past five years and FY 2025 put EPS for the trailing 12 months at a loss of MX$24.69 per share.
- Even though analysts expect BBB Foods to become profitable within three years, the current profile is one of deepening losses rather than a steady glide path toward breakeven.
- That gap between the forecasted improvement and the present loss trend is at the heart of the bearish view that store expansion and IT investments may keep weighing on earnings longer than optimistic models assume.
If you are more interested in the risks around those larger losses and what cautious investors are concerned about, it is worth reading how the skeptics frame the downside case in the 🐻 BBB Foods Bear Case
Discount to DCF fair value with mixed signals
- The shares trade at US$31.76 against a DCF fair value of about US$57.27 and an analyst price target of US$39.59, while the P/S ratio of 0.8x sits above the 0.5x US consumer retailing industry average but slightly below the 0.9x peer average.
- Consensus narrative highlights this as a potentially interesting setup because the stock price is below both the DCF fair value and the analyst target, yet the business is still loss making on a trailing 12 month basis and shareholders have experienced dilution over the last year. Investors need to decide whether the forecast revenue growth of roughly 19.9% a year and the expected turn to profitability are enough to justify paying a P/S above the broader industry when the current earnings base is negative.
- The valuation gap looks supportive of upside on paper, but it is anchored in forecasts that require margins to move from a trailing loss of MX$2,839.6 million back into positive territory.
- At the same time, the mixed multiple picture, with the stock richer than the industry but a touch cheaper than peers, shows that the market is already assigning Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for BBB Foods on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
With sentiment in this article pulling in both bullish and cautious directions, it is worth moving quickly to the source data and pressure testing it yourself, starting with 3 key rewards and 1 important warning sign.
See What Else Is Out There
BBB Foods is pairing strong same store sales with a trailing MX$2.8b net income loss and negative EPS, so profitability and margin recovery remain key pressure points.
If you are uneasy about deep losses and volatile earnings, it can help to compare this profile with 69 resilient stocks with low risk scores that prioritise steadier cash flows and lower risk scores right now.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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