Bob [Unknown Analyst]'s questions to Bbb Foods Inc (TBBB) leadership • Q4 2024
Question
Bob asked about 3B's expansion strategy, questioning the balance between new and existing markets and the evolution of store density views. He also inquired about which capabilities the company is enhancing this year and how the associated cost increases break down between new competencies, compliance, and growth support. Finally, he asked about the value proposition, specifically regarding innovation in new categories, price gaps, and service levels.
Answer
Executive Kamal Hatoum explained that the real estate strategy remains decentralized, focusing on increasing density while stretching into new geographies, with no saturation point in sight. Regarding the value proposition, he highlighted continuous testing of new products like fruits and vegetables and ongoing improvements to existing private label items, which drives strong same-store sales. CFO Eduardo Pizzuto addressed the cost structure, stating that investments in talent and compliance will continue in 2025 to support growth, with the expectation that admin expenses will decrease as a percentage of revenue over time.