Happy Belly Food Group Announces 13th Consecutive Record Quarter, and Increased Positive Net Income from Operations
August 26, 2025 6:00 AM EDT | Source: Happy Belly Food Group Inc.
Toronto, Ontario--(Newsfile Corp. - August 26, 2025) - Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company"), a leader in acquiring and scaling emerging food brands across Canada, is pleased to announce its unaudited financial results and corporate update for the fiscal quarter ended June 30th, 2025.
"In Q2 2025, Happy Belly Food Group achieved its 13th consecutive record quarter and increased positive net income from operations. This milestone reinforces our reputation as a disciplined, high-growth multi-brand restaurant operator with a predictable growth model. It highlights our ongoing mission to become Canada's leading acquirer and scaler of emerging food brands while driving long-term shareholder value. We more than doubled our system sales, driving a 114% increase versus the same quarter last year. We successfully opened 12 new restaurant locations in Q2, with another 11 restaurant locations added through our continued focus on organic growth and accretive acquisitions so far in Q3," said Sean Black, Chief Executive Officer of Happy Belly.
"I would like to personally congratulate all brand leaders, franchisees, team members and cross functional teams for a truly great quarter. The team continues to execute on our aggressive growth and strategic plan, which has led to yet another positive step forward with significant growth during Q2 2025. System sales reached $16.2M (+114%), and total revenues of $5.7M (+155%) both doubled versus the same quarter last year. Adjusted EBITDA reached 9.9% in Q2 while achieving our second consecutive quarter of positive net income from operations. Our core principles have been the 3P's: People, Product and Process, while staying operationally and financially disciplined throughout our execution plan. As at the end of Q2 2025, we have 62 operating restaurants, up 36 or 138% versus the same quarter last year. We continue to drive both organic and inorganic growth through accretive acquisitions, improving sales and customer traffic, net restaurant openings, as well as overall profitability at restaurant level. Such positive tailwinds are already evident in Q3 2025, while we head towards the fall season."
"These strong results are a testament to the team-oriented culture we have built at Happy Belly. Our management team and brand partners are working together to support our franchisees as we accelerate national expansion. With a clear focus on growth throughout 2025-2026, we believe our best chapters are still to come."
"We are just getting started," said Sean Black.
Q2 2025 Financial Highlights
System-wide sales across Quick Service Restaurants (QSR) totalled $16.2M in the second quarter of fiscal 2025, up 114% versus the same quarter last year (2024 - $7.6M). The increase is attributed to organic baseline restaurant growth, alongside increased restaurant count, which reached 62 operating restaurants at the end of Q2 2025, up 138% versus 26 in the prior year.โ Total operating revenues, vendor rebates and interest income totalled $5.7M in Q2 2025, up 155% versus the same quarter last year (2024 - $2.2M), and for the six months ended June 30, 2025, $9.3M up 127% from 2024 (2024-$4.1M). Consecutive quarter growth increased by 56% when comparing $5.7M in Q2 2025 to $3.7M in Q1 2025.
Year-over-year growth was driven by continued sales growth in both the QSR and Consumer Product Goods (CPG) segments, accretive business acquisitions in the past twelve months, and new net restaurants (12 during Q2 2025).
Realized product sales of $4.8M in the second quarter of 2025, up 153% versus the same quarter last year (2024 - $1.9M). In addition, royalties and franchise fee revenues reached $0.65M during the quarter, up 132% from the prior year (2024 - $0.28M), which was driven by an increase in royalties collected from 44 franchised restaurants in the system.
Adjusted EBITDA[1] reached $0.6M or 9.9% in the second quarter of fiscal 2025, up from a negative $(0.1)M in the same quarter last year. During the second quarter of fiscal 2025, net income from operations was positive $0.11M versus a loss of $(0.22)M in the prior year.
Net working capital remains healthy at $2.7M as of June 30, 2025 (December 31, 2024 - $3.3M). Total cash and cash equivalents were $3.0M as of June 30, 2025. Furthermore, cash flow from operations before non-cash working capital was positive $0.5M in Q2 2025 versus negative ($0.3M) in the same quarter last year.
In the second quarter, the Company generated $0.7M in cash flow from operating activities and deployed $1.1 million on property and equipment as part of our growth in our corporate restaurant locations.
- During Q2 2025, Happy Belly added 12 new restaurants to its growing portfolio. Heal Wellness opened six new locations in Alberta Block, Grand Bend, University of Calgary, Kingston, Bolton, and Shops at Don Mills. Via Cibo launched in Barrhaven, iQ Food opened at Shops at Don Mills, and Rosie's Burgers debuted in Burlington, Hamilton, Shops at Don Mills, and Avenue Road. Following the close of Q2, Happy Belly further expanded by opening two additional Heal Wellness locations in Aurora and Kensington, and by acquiring nine existing restaurants through the accretive purchase of Salus Fresh Foods. These additions bring the total number of restaurants in the Happy Belly portfolio to 73.
[1]See section definition of "Non-IFRS Measures and Ratios" within the Compliance with International Financial Reporting Standards ("IFRS") section of the MD&A.
Q1 2025 CORPORATE HIGHLIGHTS
June 26, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of Its First Real Estate Location in Atlantic Canada for the City of Halifax, Nova Scotia
June 25, 2025 - Happy Belly Food Group's Heal Wellness QSR Signs 15 Unit Area Development Agreement in Manitoba, Canada
June 24, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces That Its Toronto Based Multi-Unit Franchisee has secured 4th Location
June 20, 2025 - Happy Belly Food Group Sets Single Day Record with Four Restaurant Openings Including iQ Food Co., Heal Wellness & Rosie's Burgers at Shops at Don Mills as well as Heal Wellness in the City of Bolton
June 19, 2025 - Happy Belly Food Groups Heal Wellness QSR Signs 40-Unit Area Development Agreement for the Province of Quebec
June 18, 2025 - Happy Belly Food Group's iQ Food's QSR Announces the Signing of a Franchisee and Real Estate Location for the City of Toronto
June 17, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Signing of a Multi Unit Franchise Agreement for 5 Stores on Vancouver Island, British Columbia
June 16, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces Securing a Real-Estate Location in the City of Charlottetown, Prince Edward Island
June 11, 2025 - Happy Belly Food Group's CEO Exercises Equity Ahead of Schedule in Confidence of Long-Term Growth Vision
June 10, 2025 - Happy Belly Food Group's Smash Burger Brand Rosie's Burgers Announces the Signing of Their 1st Vancouver Location at the University of British Columbia
June 9, 2025 - Happy Belly Food Group's Smash Burger Brand Rosie's Burgers QSR Signs a 10 Unit Area Development Agreement for Saskatchewan, Canada
June 6, 2025 - Happy Belly Food Group's Smash Burger Brand Rosie's Burgers Announces the Opening of Its Newest Location in Hamilton, Ontario
June 5, 2025 - Happy Belly Food Group's Heal Wellness Signs A 10 Unit Development Agreement for the Greater Dallas-Fort Worth Texas Market, USA
June 3, 2025 - Happy Belly Food Group's Smash Burger Brand Rosie's Burgers Announces the Signing of its First Franchise Agreement in Atlantic Canada for the City of Halifax, Nova Scotia
May 30, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Opening of its Newest Location in Kingston, Ontario
May 29, 2025 - Happy Belly Food Group's Smash Burger Brand Rosie's Burgers Announces the Opening of Its Newest Location in Burlington, Ontario
May 28, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Signing of a Franchise Agreement for the City of Halifax, Nova Scotia
May 27, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Signing of its First Franchise Agreement in Atlantic Canada for the Province of P.E.I
May 23, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces Their Opening in the University of Calgary's University District
May 21, 2025 - Happy Belly Food Group Announces 12th Consecutive Record Quarter, and First Quarter of Positive Net Income from Operations
May 20, 2025 - Happy Belly Food Group Announces Release Date for First Quarter Results
May 16, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Opening of its Newest Location in Grand Bend, Ontario
May 13, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Signing of their 50th Franchise Agreement to be in the City of Grand Prairie, Alberta
May 6 2025 - Happy Belly Food Group Exercises Right to Acquire Remaining 50% of Heal Wellness QSR
April 30, 2025 - Happy Belly Food Group Announces 11th Consecutive Record Quarter, and First Fiscal Year of Positive Adjusted EBITDA
April 25, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces Opening in Downtown Calgary's Historic Alberta Block
April 24, 2025 - Happy Belly Food Group's Yolks Breakfast Signs 10 Unit Area Development Agreement in Atlantic Canada
April 23, 2025 - Happy Belly's Yolks Breakfast Announces Entry to Quebec Market with Signing of First Real-Estate Location
April 17, 2025 - Happy Belly Food Group's Via Cibo Italian Restaurant Opens Its Newest Location Located in Barrhaven, in the City of Ottawa, Ontario
April 16, 2025 - Happy Belly Food Group Promotes Randall Papineau to President of Emerging Brands
April 14th, 2025 - Happy Belly's Yolks Breakfast Signs Franchise Agreement and Real-Estate Location in the City of Tsawwassen, British Columbia
April 11th, 2025 - Happy Belly's Smash Burger Brand Rosie's Burgers Announces the Opening of its Newest Location in Toronto, Ontario
April 8th, 2025 - Happy Belly's Yolks Breakfast Signs Franchise Agreement for the City of Richmond Hill, Ontario
April 7th, 2025 - Happy Belly Promotes John Delutis to Chief Restaurant Officer
April 4th, 2025 - Happy Belly Selects TOAST to Power Growing Restaurant Portfolio
SUBSEQUENT EVENTS
August 25, 2025 - Happy Belly's Heal Wellness Signs Real Estate Location With Muli-Unit Franchisee At University of Victoria
August 21, 2025 - Happy Belly Food Group Closes Acquisition of SALUS Fresh Foods QSR Restaurant Chain
August 19, 2025 - Happy Belly Food Groups Heal Wellness QSR Announces the Signing of its Second Franchise Agreement for the Province of Quebec
August 18, 2025 - Happy Belly Food Group Announces Release Date for Second Quarter Results
August 15, 2025 - Happy Belly Food Groups Heal Wellness QSR Announces the Signing of Its First Franchise Agreement for the Province of Quebec
August 14, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Signing of a Franchise Agreement and Real-Estate Location in Calgary's Britannia Neighborhood, Alberta
August 13, 2025 - Happy Belly Food Group's Heal Wellness Secures Real-Estate Location in Downtown Oakville, Ontario
August 12, 2025 - Happy Belly Food Group's Heal Wellness Signs Multi-Unit Agreement for Central Alberta and Secures First Real-Estate Location in Red Deer, Alberta
August 11, 2025 - Happy Belly Food Group Signs 3-YR Exclusive Contract with Coca-Cola Canada Bottling Company
August 8, 2025 - Happy Belly Food Group's Yolks Breakfast Signs Franchise Agreement and Real-Estate Location in the City of Chilliwack, British Columbia
August 7, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of a Franchise Agreement and Secured Location in Abbotsford, British Columbia
August 6, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of a Franchise Agreement and Secured Real Estate Location in Edmonton's Brewery District
August 5, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of a Second Real Estate Location and Franchise Agreement in Atlantic Canada for the City of Halifax, Nova Scotia
July 25, 2025 - Happy Belly Food Group Announces the Passing of Chief Financial Officer Gary Fung
July 22, 2025 - Happy Belly Food Group's Heal Wellness QSR Secures Real-Estate Location for it's Franchisee in the City of Grand Prairie, Alberta
July 21, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of a Franchise Agreement and Real Estate Location for Waterloo, Ontario's Uptown Neighborhood
July 11, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of a Franchise Agreement and Real Estate Location in Calgary's Marda Loop District, Alberta
July 10, 2025 - Happy Belly's Heal Wellness QSR Expands Alberta Footprint as Existing Multi-Unit Franchisee Increases Commitment from 10 to 15 Locations
July 9, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Opening of Its Newest Location in Calgary's Kensington Neighborhood, Alberta
July 8, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of a Multi Unit Franchise Agreement for 10 Stores with Carma Hospitality for the Greater Montreal Area of Quebec
July 7, 2025 - Happy Belly's Yolk's Breakfast Signs 1st Toronto Location and 1st Multi-Unit Franchisee
July 4, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Opening of Its Newest Location in Aurora, Ontario
FOOTNOTES:
1. Adjusted EBITDA Is a non-IFRS financial measure which does not have a standardized meaning prescribed by IFRS. Adjusted EBITDA and Adjusted EBITDA Margin are used by management as supplemental measures to review and assess operating performance and to provide a more complete understanding of factors and trends impacting the Company's business. Management believes Adjusted EBITDA are useful measures of operating performance and the Company's ability to generate cash-based earnings, as they provide a more relevant position of operating results by excluding the effects of financing and investing activities, which removes the effects of interest, depreciation and amortization expenses as well as other expenses, as described, that are not reflective of the Company's underlying business. This non-IFRS measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Adjusted EBITDA is defined as net comprehensive income or (loss), excluding interest, taxes, depreciation and amortization (EBITDA), adjusted for share-based compensation, gain (loss) on equity investments and sublease, expected credit loss and non-recurring expenses.
Franchising
For franchising inquiries please see www.happybellyfg.com/franchise-with-us/ or contact us at hello@happybellyfg.com.
About Happy Belly Food Group
Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company") is a leader in acquiring and scaling emerging food brands across Canada.
Happy Belly Food Group
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Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statements
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to the Company within the meaning of applicable securities laws. Forward-Looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include the future performance of Happy Belly and her subsidiaries. Forward-Looking statements are based on the opinions and estimates at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. There are no assurances that the business plans for Happy Belly described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedarplus.ca.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/263910
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