BBB Foods Inc. (NYSE: TBBB) saw its stock price plunge 6.94% in after-hours trading on Wednesday following the release of its third-quarter 2025 financial results. The Mexican grocery hard discounter reported a wider-than-expected loss, overshadowing its robust revenue growth and store expansion.
The company reported a quarterly loss of $(0.66) per share, significantly missing the analyst consensus estimate of $(0.43) by 53.49%. This represents a stark contrast to the earnings of $0.10 per share in the same period last year. Despite the earnings miss, BBB Foods posted impressive top-line growth, with quarterly sales reaching $1.089 billion, a 38.87% increase from $784.204 million in the previous year. However, this figure slightly missed the analyst estimate of $1.090 billion by 0.09%.
BBB Foods' EBITDA for the quarter was negative at $(404) million, compared to a positive $688 million in Q3 2024. The company noted that excluding non-cash share-based payment expenses, EBITDA would have reached $1,170 million, representing a 43.6% increase year-over-year. The substantial impact of share-based compensation on the company's profitability metrics likely contributed to investor concerns.
Despite the earnings setback, BBB Foods demonstrated strong operational growth. The company opened 131 net new stores during the quarter, bringing its total store count to 3,162 as of September 30, 2025. Same Store Sales grew by an impressive 17.9%, driven by the company's strengthening value proposition and customer loyalty to its low-price, high-quality offering. CEO K. Anthony Hatoum emphasized the company's resilient business model and its clear path to operating at least 14,000 stores in Mexico.
The market's negative reaction to BBB Foods' earnings report highlights the tension between the company's rapid growth and its current profitability challenges. Investors will likely be watching closely to see if the company can translate its strong revenue growth and expanding store network into improved bottom-line results in the coming quarters.