BBB Foods: Sensational Q3 Results, But Shares Remain Expensive
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Ian BezekInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryBBB Foods delivered 36.7% revenue growth and 17.9% same-store sales growth in Q3.It continues aggressive expansion, opening 131 net new stores in Q3. BBB Foods now operates 3,162 locations.Despite negative GAAP earnings and high valuation, the company's core business momentum remains strong.I maintain a hold rating on TBBB stock due to extraordinary results offset by premium valuation and considerable competitive risks. Andrzej Rostek/iStock via Getty Images Mexican hard discounter BBB Foods (NYSE:TBBB) is ending the year on a high note. TBBB shares recovered their prior losses and look set to end 2025 with low double-digit gains: The rally kicked offThis article was written byIan Bezek23.32K FollowersFollowIan Bezek is a former hedge fund analyst at Kerrisdale Capital. He has spent the decade living in Latin America, doing the boots-on-the ground research for investors interested in markets such as Mexico, Colombia, and Chile. He also specializes in high-quality compounders and growth stocks at reasonable prices in the US and other developed markets. Ian leads the investing group Ian's Insider Corner. Features of the group include: the Weekend Digest which covers everything from new ideas to updates on current holdings and macro analysis, trade alerts, an active chat room, and direct access to Ian. Learn More.Analyst’s Disclosure:I/we have a beneficial long position in the shares of FMX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.