Grupo Comercial Chedraui reported second-quarter 2026 results showing resilient performance in Mexico but meaningful headwinds for its U.S. grocery formats, with same-store sales and traffic declines tied directly to immigration enforcement activity in California and Texas.

Mexico same-store sales grew 1.3% in the quarter, beating the ANTAD self-service index — which contracted 0.1% — by 142 basis points. That marks the twenty-fourth consecutive quarter Chedraui Mexico has outperformed the ANTAD benchmark, a streak that underscores the banner's sustained competitive positioning in a segment where grocery and foodservice operators are navigating cautious consumer spending.

Mexico Margins Hold Steady

Chedraui Mexico's EBITDA margin held at 9.5%, in line with the same period last year, while consolidated EBITDA margin improved 15 basis points to 9.0%. CEO Antonio Chedraui attributed the stability to cost discipline and operational focus, noting the result came "in a challenging economic environment." The company also expanded its Mexico sales floor 4.4% over the trailing twelve months, opening 27 Supercito neighborhood-format stores and one full-size Chedraui location during the quarter alone. That aggressive small-format push reflects a broader industry shift toward convenience-driven retail that has gained traction across Latin American food retail and hospitality markets.

U.S. Stores Under Traffic Pressure

Chedraui USA — which operates the El Super and Fiesta Mart banners serving predominantly Hispanic communities in California and Texas — reported same-store sales under pressure, driven by a decrease in transactions. Chedraui's CEO was direct about the cause: stricter federal immigration enforcement in the company's operating areas has reduced foot traffic. The company noted it faces a high comparable-sales base from 2Q 2025, when the enforcement impact began emerging in California toward the end of that quarter and in Texas during Q3 2025, meaning year-over-year comparisons will remain challenged through at least mid-2026.

Despite the traffic decline, Chedraui USA's EBITDA margin expanded 20 basis points to 8.5%, supported by cost efficiencies flowing from its Rancho Cucamonga Distribution Center (RCDC) and broader operational improvements. The company opened one new El Super store in the United States during Q2.

Financial Position and Outlook

Consolidated net income for the quarter totaled 1,825 million pesos. The company's net cash-to-EBITDA ratio stood at -0.09x at the end of the first half — slightly more leveraged than the -0.05x recorded a year earlier but still reflecting a net cash position. An appreciation of the Mexican peso against the U.S. dollar created a 9.7% impact on consolidated results. Management reiterated its commitment to capital investment in both Mexico and the United States through the remainder of 2026, signaling continued store expansion despite the softening U.S. environment.

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.