Happy Belly Food Group Announces 13th Consecutive Record Quarter, and Increased Positive Net Income from Operations
Happy Belly Food Group (OTCQB: HBFGF) reported its 13th consecutive record quarter in Q2 2025, marking significant growth across key metrics. System-wide sales reached $16.2M, up 114% year-over-year, while total revenues increased 155% to $5.7M.
The company achieved positive net income from operations of $0.11M and Adjusted EBITDA of $0.6M (9.9%). Restaurant count grew to 62 locations, up 138% from the previous year, with 12 new openings in Q2. The company maintains a healthy financial position with $3.0M in cash and $2.7M in working capital.
Post-quarter, Happy Belly acquired Salus Fresh Foods and continued expansion, bringing total restaurant count to 73 locations. The company secured multiple franchise agreements across Canada and entered the US market with a Dallas-Fort Worth development deal.
Happy Belly Food Group (OTCQB: HBFGF) ha registrato il suo 13° trimestre consecutivo da record nel secondo trimestre 2025, con una forte crescita su tutti i principali indicatori. Le vendite a livello di sistema hanno raggiunto $16,2M, +114% su base annua, mentre i ricavi totali sono saliti del 155% a $5,7M.
L'azienda ha ottenuto un utile netto operativo positivo di $0,11M e un EBITDA rettificato di $0,6M (9,9%). Il numero di ristoranti è salito a 62 sedi, +138% rispetto all'anno precedente, con 12 nuove aperture nel trimestre. La posizione finanziaria rimane solida con $3,0M in cassa e $2,7M di capitale circolante.
Dopo la chiusura del trimestre, Happy Belly ha acquisito Salus Fresh Foods e ha proseguito l'espansione, portando il totale a 73 ristoranti. L'azienda ha firmato più accordi di franchising in Canada ed è entrata nel mercato USA con un progetto di sviluppo nell'area di Dallas–Fort Worth.
Happy Belly Food Group (OTCQB: HBFGF) informó su 13º trimestre consecutivo de récord en el 2T 2025, con un crecimiento notable en métricas clave. Las ventas a nivel de sistema alcanzaron $16,2M, +114% interanual, mientras que los ingresos totales aumentaron 155% hasta $5,7M.
La compañía logró un resultado neto operativo positivo de $0,11M y un EBITDA ajustado de $0,6M (9,9%). El número de restaurantes subió a 62 locales, un 138% más que el año anterior, con 12 aperturas en el trimestre. Mantiene una posición financiera saludable con $3,0M en efectivo y $2,7M de capital de trabajo.
Tras el cierre del trimestre, Happy Belly adquirió Salus Fresh Foods y continuó su expansión, elevando el total a 73 restaurantes. La empresa aseguró múltiples acuerdos de franquicia en Canadá y entró en el mercado estadounidense con un acuerdo de desarrollo en el área de Dallas–Fort Worth.
Happy Belly Food Group (OTCQB: HBFGF)는 2025년 2분기에 13분기 연속 기록 경신을 발표하며 주요 지표 전반에서 큰 성장을 보였습니다. 시스템 전체 매출은 $16.2M, 전년 대비 +114%를 기록했으며, 총매출은 155% 증가한 $5.7M에 달했습니다.
회사는 영업 기반 순이익 $0.11M과 조정 EBITDA $0.6M (9.9%)를 달성했습니다. 레스토랑 수는 62개 지점으로 전년 대비 138% 증가했고, 2분기에 12개를 새로 열었습니다. 현금 $3.0M과 운전자본 $2.7M으로 재무 상태도 건전합니다.
분기 종료 후 Happy Belly는 Salus Fresh Foods를 인수하고 계속 확장하여 총 지점 수를 73개로 늘렸습니다. 캐나다 전역에서 다수의 프랜차이즈 계약을 체결했으며, 달라스–포트워스 지역 개발 계약을 통해 미국 시장에 진출했습니다.
Happy Belly Food Group (OTCQB: HBFGF) a annoncé son 13e trimestre consécutif record au deuxième trimestre 2025, affichant une forte progression sur les principaux indicateurs. Les ventes au niveau du système ont atteint 16,2 M$ (+114%) en glissement annuel, tandis que le chiffre d'affaires total a augmenté de 155% pour atteindre 5,7 M$.
La société a réalisé un résultat net opérationnel positif de 0,11 M$ et un EBITDA ajusté de 0,6 M$ (9,9%). Le parc de restaurants est passé à 62 établissements, soit une hausse de 138% par rapport à l'année précédente, avec 12 nouvelles ouvertures au trimestre. La situation financière reste saine avec 3,0 M$ de trésorerie et 2,7 M$ de fonds de roulement.
Après la clôture du trimestre, Happy Belly a acquis Salus Fresh Foods et a poursuivi son expansion, portant le total à 73 restaurants. L'entreprise a signé plusieurs contrats de franchise au Canada et est entrée sur le marché américain avec un accord de développement dans la région de Dallas–Fort Worth.
Happy Belly Food Group (OTCQB: HBFGF) meldete im 2. Quartal 2025 das 13. Rekordquartal in Folge und verzeichnete deutliches Wachstum bei wichtigen Kennzahlen. Die systemweiten Umsätze beliefen sich auf $16,2M, +114% im Jahresvergleich, während die Gesamterlöse um 155% auf $5,7M stiegen.
Das Unternehmen erzielte ein positives operatives Nettoergebnis von $0,11M und ein bereinigtes EBITDA von $0,6M (9,9%). Die Zahl der Restaurants stieg auf 62 Standorte, ein Zuwachs von 138% gegenüber dem Vorjahr, mit 12 Neueröffnungen im Quartal. Die Finanzlage ist solide mit $3,0M in bar und $2,7M an Working Capital.
Nach Quartalsende übernahm Happy Belly Salus Fresh Foods und setzte die Expansion fort, wodurch sich die Gesamtzahl auf 73 Standorte erhöhte. Das Unternehmen schloss mehrere Franchisevereinbarungen in Kanada ab und trat mit einem Entwicklungsvertrag im Raum Dallas–Fort Worth in den US-Markt ein.
- None.
- Working capital decreased from $3.3M to $2.7M since December 2024
- Deployed $1.1M on property and equipment, impacting cash reserves
- Loss of CFO Gary Fung reported in subsequent events
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
"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
"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, up114% 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, up138% versus 26 in the prior year.● Total operating revenues, vendor rebates and interest income totalled$5.7M in Q2 2025, up155% versus the same quarter last year (2024 -$2.2M ), and for the six months ended June 30, 2025,$9.3M up127% from 2024 (2024-$4.1M ). Consecutive quarter growth increased by56% 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, up153% versus the same quarter last year (2024 -$1.9M ). In addition, royalties and franchise fee revenues reached$0.65M during the quarter, up132% 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
$0.6M or9.9% in the second quarter of fiscal 2025, up from a negative$(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
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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Sean Black
Co-founder, Chief Executive Officer
Shawn Moniz
Co-founder, Chief Operating Officer
FOR FURTHER INFORMATION, PLEASE VISIT:
www: www.happybellyfg.com or email hello@happybellyfg.com
If you wish to contact us please call: 1-877-589-8805
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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