This article first appeared on GuruFocus .
Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Grupo Comercial Chedraui SAB de CV ( GCHEF ) achieved a 15 basis points increase in consolidated EBITDA margin compared to the same quarter of 2025.
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Chedraui Mexico's same-store sales grew by 1.3%, outperforming the self-service segment by 142 basis points for the 24th consecutive quarter.
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Chedraui USA's EBITDA margin improved by 20 basis points to 8.5%, reflecting effective expense management and cost efficiencies.
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The company maintained strong margins in Mexico at 9.5% despite higher labor costs, thanks to expense control programs and gross margin expansion.
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Grupo Comercial Chedraui SAB de CV ( GCHEF ) has a strong cash position and low debt levels, supporting its long-term growth strategy and expansion plans.
Negative Points
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Consumer spending remains weak in Mexico, particularly in the Southeast region, affecting same-store sales growth.
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Chedraui USA's sales were negatively impacted by changes in SNAP benefit availability, immigration enforcement, and higher fuel prices.
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Consolidated sales declined by 3.9% compared to the same quarter of the previous year, primarily due to currency translation effects.
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Consolidated net income declined by 11.5% to 1,825 million pesos, representing 2.6% of consolidated sales.
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The company faces challenges in achieving its same-store sales guidance in both Mexico and the U.S. due to current market conditions.
Q & A Highlights
Q: Antonio, can you comment on the competitive intensity in Mexico and your strategy for the Supercito format? A: (Jose Antonio Chedraui, CEO) We are pleased with the Supercito format's performance, which has been surpassing other formats in same-store sales. Despite the slowdown in consumption, particularly in the Southeast, we have maintained our price gaps and competitiveness. We plan to continue expanding Supercito, aiming to open more than 130 stores this year and increase that number in 2027.
Q: What are the traffic trends in the U.S., especially amid immigration enforcement and a softer consumer environment? A: (Carlos Smith, CEO of Chedraui USA) We saw a slight improvement in same-store sales in Q2 compared to Q1, with Q3 starting off better, particularly at Smart & Final, where we are seeing sales and traffic growth. We are also observing improving traffic trends at El Super.
Q: Can you elaborate on the gross margin expansion in Mexico and the U.S.? How sustainable is this trend? A: (Jose Antonio Chedraui, CEO) In Mexico, the gross margin improvement is due to disciplined promotional activity, inventory management, and shrink control. We believe these improvements are sustainable. (Carlos Smith, CEO of Chedraui USA) In the U.S., gross margin improvements are driven by efficiencies from our Rancho Cucamonga distribution center and a focus on the perishable category, along with supplier negotiations and promotional management.
Q: How do you view the potential to achieve full-year guidance, particularly in financial sales in both the U.S. and Mexico? A: (Jose Antonio Chedraui, CEO) It will be challenging to reach our same-store sales guidance in Mexico, but we are confident in achieving our margin and expansion targets. (Carlos Smith, CEO of Chedraui USA) Similarly, in the U.S., achieving same-store sales guidance is difficult, but we are comfortable with our EBITDA margin guidance.
Q: Are there any significant impacts from the World Cup on sales? A: (Jose Antonio Chedraui, CEO) Unfortunately, we did not see the expected sales expansion from the World Cup in Mexico. (Carlos Smith, CEO of Chedraui USA) In the U.S., there were increases in certain categories like snacks and beverages, but overall, the impact was net neutral.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
