Breakfast News: BBB Foods Puts Growth Over Margins

Breakfast News: BBB Foods Puts Growth Over Margins

March 12, 2026

Source: Image created by Jester AI.

1. TBBB Dips as Loss Outweighs New Stores

**BBB Foods **(TBBB +4.44%) fell over 2% ahead of the opening bell as results showed a higher-than-expected net loss, marking the fourth consecutive quarter where the company hasn’t surpassed consensus earnings per share estimates. Revenue rose by 34.4% versus the same period last year.

• “While EBITDA margin is an important metric, we do not manage the business to achieve a specific margin target in any given quarter”: CEO K. Anthony Hatoum guided investors away from focusing on profitability and instead pointed to “opening successful stores, continuously improving value for our customers, and operating with increasing efficiency.”
• “BBB Foods’ business model encourages expansion, and Hatoum has definitely favored aggressive growth strategies”: Reviewing the company earlier this week, Fool contributing analyst Dan Caplinger said “shoppers have consistently visited BBB Foods stores more frequently over time, and when they go, they have also tended to spend more.” The stock is beating the S&P 500 by 17% since the July 2025 Rule Breakers recommendation.

2. U.S. Launches Trade Probe Into 16 Nations

The U.S. has launched Section 301 unfair trade practice probes into countries including China, the European Union, and India, potentially paving the way for new levies this summer to replace existing tariff policies.

• “We expect that this investigation will uncover a variety of unfair trading practices related to excess capacity and production in manufacturing”: U.S. trade representative Jamieson Greer expects to conclude the investigation before the current temporary tariff measures expire in July. Of the 16 countries included, Canada is a notable exception of a large trading partner not mentioned.
• India pushes export incentives to lure U.S. Big Tech: India is planning more smartphone manufacturing boosts where companies use locally made components, a move that will benefit Apple (AAPL 2.15%), which accounts for almost 75% of the country’s smartphone exports.

3. Notable Foolish Post-Market Earnings

• Adobe (ADBE 7.53%) reported an acceleration of AI-driven product adoption last quarter, but investors will be wanting to see this convert this quarter into monetization and generative credit usage for the Stock Advisor rec by Team Rule Breakers.
• Karat Packaging (KRT +20.66%) delivered record sales last quarter, with analysts expecting a further 12.1% revenue increase year over year, although tariff pressure is likely to continue to weigh on margins.
• Ulta Beauty (ULTA 14.33%) enjoyed higher gross profit margins last quarter due to lower inventory shrink. The Stock Advisor rec by Team Hidden Gems will have aimed to have kept margins high over the key holiday season encompassing the upcoming results.

4. Your Take

Which, if any, positions have you sold all or some of from your portfolio in the last month, and why?

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