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.
Previously, we covered a bullish thesis on DLTR by Acid Investments in March 2025, which highlighted the Family Dollar divestiture, margin expansion potential versus Dollar General, and valuation gap closure driven by improved core earnings visibility. DLTR’s stock price has appreciated by approximately 37.23% since our coverage. Superflare shares a similar view but emphasizes structural unit economics, negative working capital, and long-duration store expansion in TBBB’s hard discount grocery model, rather than relative retail valuation recovery and portfolio simplification.
BBB Foods Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held TBBB at the end of the fourth quarter which was 21 in the previous quarter. While we acknowledge the risk and potential of TBBB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TBBB and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
