Santiago Alvarez Bringas's questions to Bbb Foods Inc (TBBB) leadership • Q3 2024
Question
Santiago Alvarez Bringas from Summit Management asked for details on the unit economics for new stores, including the cost and the timing of its recognition in financial statements. He also inquired if the company has a 'sweet spot' or target for CapEx as a percentage of cash flow or another metric.
Answer
CFO Eduardo Pizzuto directed the analyst to a detailed slide in the company's IPO prospectus for unit economics, highlighting a target CapEx of MXN 3.9 million per store. He clarified that the company does not manage CapEx as a percentage of sales or cash flow. Instead, CapEx is a consequence of their strategy to reinvest all available capital back into growth by opening as many stores as possible.