EL7.AI
StocksMedium•28 October 2026•
4 min read

Chedraui cuts sales 2% to 70,356 million pesos as margins widen

Key Facts

1Consolidated sales fell 2% to 70,356 million Mexican pesos in the third quarter of 2026.
2Net profit fell 1.2% to 1,626 million pesos, equal to 2.3% of sales.
3Gross profit margin rose 53 basis points to 25.1%.
4Sales from the company’s operations in Mexico rose 4.6%, while same-store sales in the United States fell 2% in dollar terms.
5Capital expenditure was 7,285 million pesos in the first nine months of 2026.

Chedraui Group said consolidated sales fell 2% year over year to 70,356 million Mexican pesos in the third quarter of 2026, while net profit declined 1.2% to 1,626 million pesos, according to Investing.com’s account of the company’s earnings call. Management attributed the decline in consolidated sales mainly to the Mexican peso’s 6.2% appreciation, which reduced the reported value of sales from U.S. operations when converted into Mexican currency. By contrast, gross profit margin rose 53 basis points to 25.1%, and consolidated EBITDA margin increased 14 basis points to 8.7%. The results therefore show revenue and profit declines alongside improving margin metrics. Net profit was 2.3% of consolidated sales during the quarter.

In Mexico, sales from the company’s operations rose 4.6% compared with the third quarter of 2025, while same-store sales in the United States fell 2% in dollar terms. The divergence means the Mexican business grew in local-currency terms while existing U.S. stores recorded a decline in dollars. Management said consumer demand in Mexico continued to weaken during the quarter, particularly in the southeast, the company’s largest market. It attributed the weakness there to lower public and private investment and a marked slowdown in tourism activity. This led to a slight decline in same-store sales for the Mexico segment, the company said.

In the United States, management linked the decline in transactions at El Super and Fiesta stores to stricter immigration enforcement, reduced SNAP program resources and higher fuel prices. These factors weighed on sales, but EBITDA margin for U.S. operations improved 18 basis points year over year to 7.5%. The company attributed the improvement to continued expense control and operating efficiency at its distribution center in Rancho Cucamonga. On a consolidated basis, EBITDA fell 0.3%, despite the increase in its margin to 8.7%. Management said cost and expense efficiencies in Mexico and the United States supported the gross margin.

Gross profit rose 0.2% during the quarter despite the decline in consolidated sales. The company attributed this to distribution efficiency in its U.S. unit, supported by the distribution center, and improved management of promotions and inventory in Mexico. Gross profit margin rose to 25.1%, up 53 basis points from a year earlier. In Mexico, EBITDA margin was 9.8%, compared with 9.9% in the third quarter of 2025. Over the twelve months ended in the third quarter, consolidated selling space expanded 3.4%, while selling space in Mexico grew 4.7%.

Chief Executive Antonio Chedraui said the southeast region outperformed the Mexican self-service sector according to the ANTAD comparison, but affected the company’s same-store sales result because it is the most important region for its operations. The assessment accompanies management’s explanation that weaker investment and tourism activity had slowed consumer demand there. In the United States, pressure on transaction counts presented a challenge even as expense control and distribution efficiency improved margins. Management said consumption trends in October had not changed and that it saw no improvement on that front. “Unfortunately, we see no change in consumption trends during October,” it said.

The company continued to expand during the quarter, opening two stores in the United States and 27 stores in Mexico. Capital expenditure in the first nine months of 2026 was about 7,285 million pesos, equivalent to 3.4% of consolidated sales. Over the same period, net cash to EBITDA was negative 0.13 times, compared with negative 0.03 times in the corresponding period a year earlier, and the company said the ratio reflected positive cash flow generation. The company’s 2026 guidance targets annual same-store sales growth of between 3.0% and 4.0% in Mexico, and total retail sales growth there of between 8.0% and 9.0%. The guidance also includes an improvement of between 15 and 35 basis points in consolidated EBITDA margin, and the opening of 147 stores in Mexico and five in the United States.

The company’s results come ahead of Mexico’s National Institute of Statistics and Geography publishing its preliminary estimate of third-quarter gross domestic product, scheduled for October 30, 2026. The official calendar identifies the release as a preliminary GDP estimate, not as a separate announcement of the annual growth rate. On the earnings call, management described consumption trends in October as unchanged, citing continued weak demand in affected regions. The company’s next indicators will be tied to its ability to continue expanding while managing the pressures it described in its markets. The period ended with declines in consolidated sales and profit, against wider gross profit and EBITDA margins.