It took longer than investors wanted, but the last couple of quarters have finally shown the margin improvement investors have been waiting for in Grupo Bimbo’s (BMBOY) U.S./Canadian operations. Unfortunately, top-line momentum has been fading in both Mexico and U.S./Canada, and management has acknowledged limited capacity for price increases.
I thought Bimbo was undervalued back in June of 2018, and I think the share price outperformance since then has been reasonable. I still think the shares are undervalued, particularly if management can get its Latin American and EAA operations on better