Grupo Comercial Chedraui (BMV: CHDRAUI B) reported consolidated net income of 1,825 million pesos for the second quarter of 2026, as disciplined cost controls and footprint expansion helped offset a 9.7% currency drag from peso appreciation against the U.S. dollar.

The Numbers

Consolidated EBITDA margin widened 15 basis points year-over-year to 9.0%. The Mexico division held its EBITDA margin steady at 9.5%, matching the prior-year quarter, while the U.S. banner improved 20 basis points to 8.5%, aided by efficiencies from the Rancho Cucamonga Distribution Center. The company's net cash-to-EBITDA ratio stood at -0.09x at the end of the first half, compared with -0.05x a year earlier — a position management characterised as a net cash stance reflecting a strong balance sheet.

Mexico same-store sales grew 1.3% in the quarter, beating the ANTAD self-service industry index, which contracted 0.1%. That margin of outperformance — 142 basis points — extended Chedraui Mexico's streak of above-index same-store growth to twenty-four consecutive quarters, a run that underscores the retailer's pricing and assortment positioning in the hypermarket and supermarket segment.

U.S. Traffic Under Pressure

Chedraui USA, which operates the El Super and Fiesta Mart banners serving Hispanic communities in California and Texas, reported same-store sales under continued pressure. Chief Executive Officer Antonio Chedraui attributed the decline primarily to a reduction in customer transactions, linking the trend to stricter immigration enforcement in the company's operating markets. He noted that the comparable-period base is challenging: the impact began in California toward the end of Q2 2025 and in Texas around mid-Q3 2025, meaning the year-over-year comparison is expected to ease in the back half of 2026.

Despite the traffic headwind, the U.S. segment's EBITDA margin improvement to 8.5% signals that operational leverage — particularly from the Rancho Cucamonga facility — is helping protect profitability even as top-line momentum stalls. The dynamic is consistent with broader foodservice and grocery cost-efficiency trends seen across North American food retailers grappling with volume softness.

Expansion and Outlook

Chedraui opened 27 Supercito convenience-format stores and one full-line Chedraui hypermarket in Mexico during the quarter, plus one El Super unit in the United States. Over the trailing twelve months, consolidated sales floor expanded 3.0%; the Mexico estate grew faster at 4.4%, reflecting the company's accelerated small-format rollout strategy.

Management reiterated its commitment to capital investment in both countries through the remainder of 2026. With a net cash balance sheet and a Mexico operation that continues to take share from the broader self-service sector, Chedraui enters the second half in a comparatively resilient position — though the trajectory of U.S. consumer traffic and the peso-dollar exchange rate remain the principal variables to watch.

Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.