Toronto, Ontario--(Newsfile Corp. - December 16, 2025) - Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company"), a leader in acquiring and scaling emerging food brands, is pleased to announce that its Heal Wellness brand ("Heal") has signed a real estate location for Georgetown, Ontario. This milestone further advances Heal's disciplined, asset-light growth strategy across high-quality suburban markets within the Greater Toronto Area. Heal Wellness is a quick-service restau ...

Core Insights - Happy Belly Food Group Inc. has opened its 30th location of Heal Wellness in the Toronto Eaton Centre, a significant milestone for the brand [1][4] - The new location is strategically positioned in a high-traffic area, attracting over 50 million visitors annually, which is expected to enhance brand visibility and customer engagement [3][4] - Heal Wellness specializes in fresh smoothie bowls and smoothies, catering to health-conscious consumers, particularly students from the nearby Toronto Metropolitan University [3][6] Company Expansion - Heal Wellness is rapidly expanding, with 30 locations currently operational and over 168 more in development across Canada and the United States [4] - Happy Belly Food Group has a total of 646 contractually committed retail franchise locations across various emerging brands, indicating a robust growth strategy [4] Brand Mission - Heal Wellness aims to provide quick, fresh wellness foods that support an active lifestyle, focusing on high-quality superfood ingredients [6]

Group 1: Restaurant Closures - Burger King and Wendy's are closing or planning to close hundreds of restaurants due to various challenges, including the loss of key franchise operators for Burger King [1] - Wendy's is expected to close about 400 underperforming locations to free up capital for improvements in remaining restaurants [5] - Hardee's has also been closing locations, with nearly 40 closures attributed to underperformance and a lack of foot traffic following a major franchisee's bankruptcy [6] Group 2: Strategic Initiatives - Wendy's interim CEO Ken Cook outlined three key initiatives: understanding customers better, simplifying programming and execution, and collaborating closely with franchisees [2] - The company has launched "Project Fresh," a comprehensive turnaround plan aimed at driving profitable growth and long-term value across its U.S. system [2] - Wendy's is evaluating underperforming restaurants to implement operational changes, technology upgrades, and align operating hours with demand [3][4] Group 3: Investment Focus - Wendy's plans to invest in new kitchen equipment and technology upgrades, such as digital menu boards, to enhance productivity and improve food quality [5] - The closure of underperforming restaurants is intended to strengthen the overall system and allow franchisees to invest more resources into their remaining locations [4]

Core Insights - Happy Belly Food Group Inc. announces the grand opening of its first Heal Wellness location in Charlottetown, Prince Edward Island, on December 6, 2025, marking its expansion into Atlantic Canada [1][4] - Heal Wellness specializes in fresh smoothie bowls, açaí bowls, and smoothies, contributing to the brand's national growth across Canada [1][6] - The company currently operates 29 locations and has over 168 in development, with a total of 646 contractually committed retail franchise locations across its portfolio [6] Company Expansion - The new location in PEI is part of Heal's strategy to expand its presence in Canada, targeting communities that value convenient and healthy food options [4][6] - The location will be operated by an experienced franchise partner who already manages other brands within the Happy Belly portfolio, indicating a disciplined support model for growth [3][6] Product Offering - Heal Wellness focuses on providing quick, fresh wellness foods, with a menu that includes a diverse range of smoothie bowls and smoothies made from high-quality superfood ingredients [9][8] - The brand emphasizes the use of real fruit and superfoods like acai, pitaya, goji berries, and chia seeds in its offerings [9]

Core Insights - Happy Belly Food Group Inc. has signed a franchise agreement and secured a prime real estate location for a new Rosie's Burgers restaurant in Whitby, Ontario, indicating ongoing expansion efforts [1][4]. Group 1: Franchise Expansion - The new Rosie's Burgers location in Whitby is part of a broader strategy to accelerate expansion across Canada, with a focus on high-quality markets [4]. - The company has secured 115 Rosie's locations under multi-unit and area development agreements across key Canadian provinces, positioning the brand for rapid growth [6]. - Happy Belly's dual expansion strategy combines franchised growth with targeted corporate store openings, reinforcing its commitment to becoming a leading restaurant consolidator in Canada [6]. Group 2: Market Positioning - The Whitby site is strategically located in a high-visibility retail corridor, benefiting from strong daily traffic and proximity to families and professionals, which aligns with the target demographic for Rosie's offerings [4]. - Happy Belly Food Group currently has 646 contractually committed retail franchise locations in various stages of development, construction, and operation, focusing on long-term shareholder value through franchising [6]. Group 3: Company Overview - Happy Belly Food Group Inc. is recognized as a leader in acquiring and scaling emerging food brands across Canada, emphasizing its role in the food industry [8].

Company Overview - Restaurant Brands International is a multinational quick service portfolio that includes four well-known brands: Tim Hortons, Burger King, Popeyes, and Firehouse Subs [2] Growth Strategy - The company's long-term growth algorithm targets annual system sales growth of over 8%, supported by approximately 3% comparable sales growth and around 5% net unit growth over time [2] - A recent joint venture partnership with CPE, a new Burger King master franchisee in China, is expected to enhance net unit growth [2]

Financial Data and Key Metrics Changes - The company aims for an annual system sales growth of 8%+, supported by approximately 3% comparable sales growth and around 5% net unit growth over time [2] - The international business has shown strong performance, with 18 consecutive quarters of positive same-store sales [16][44] Business Line Data and Key Metrics Changes - Tim Hortons in Canada has been performing exceptionally well, being the number one brand in value for money and convenience, with about 4,000 restaurants [39] - Burger King in the U.S. has maintained consistent promotions like the $5 Duos and $7 Trios, contributing to its performance despite a challenging environment [12][30] Market Data and Key Metrics Changes - The Canadian consumer environment has been stable, with some improvement in consumer confidence and a slight decrease in unemployment [6] - The U.S. lower-income consumer segment has been softer, while middle and upper tiers have shown more strength [7][8] Company Strategy and Development Direction - The company is focused on simplifying its business model, aiming to be predominantly asset-light and franchised, with significant steps taken in refranchising and partnerships [25][26] - The partnership with CPE in China is seen as a strategic move to enhance growth and operational efficiency in that market [50][53] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the competitive pressure from food at home versus food away from home, emphasizing the importance of value for money [10][11] - The company is optimistic about returning to modestly positive unit growth in 2026, with a focus on untapped potential in various international markets [67] Other Important Information - An Investor Day is scheduled for February 26, 2024, to provide further insights into the company's strategy and performance [14] - The company has seen significant growth in its international markets, particularly in France, Germany, and Australia, with ongoing expansion in India and China [44][46][48] Q&A Session Summary Question: How do you describe the health of the consumer across different groups? - Management noted a mixed environment, with lower-income consumers being softer while middle and upper tiers remain strong [6][7] Question: What is the company's strategy regarding pricing in the current environment? - The company has been prudent about pricing, focusing on value for money across its brands [11][12] Question: What are the key drivers of success for the company in the current environment? - Key drivers include value for money positioning, innovation in product offerings, and operational improvements [29][30] Question: What are the expectations for unit growth in the coming years? - The company expects to return to 5% unit growth by 2028, with modestly positive growth anticipated in 2026 [57][66]

Financial Data and Key Metrics Changes - The company aims for annual system sales growth of over 8%, supported by approximately 3% same-store sales growth and around 5% net unit growth over time [2] - The Canadian business has shown strong performance despite a softer consumer environment, with recent improvements in consumer confidence and a slight decrease in unemployment [6][7] - The U.S. consumer segment, which constitutes about 30% of the business, has seen consistent dynamics, with lower-income consumers being softer while middle and upper tiers remain stable [8][9] Business Line Data and Key Metrics Changes - Tim Hortons in Canada is positioned as the number one brand in value for money, with a strong focus on everyday value rather than heavy discounting [29] - Burger King U.S. has maintained consistent promotions like $5 Duos and $7 Trios, focusing on the Whopper and family activations to drive traffic [12][32] - Firehouse Subs has achieved significant growth, opening 100 net new units in the last four quarters, marking a 3-4x increase in growth pace since acquisition [67] Market Data and Key Metrics Changes - The international business accounts for about 30% of operating income, with 18 consecutive quarters of positive same-store sales [44] - France is the largest international market, with several billion-dollar revenue businesses in countries like Germany, Australia, and Spain [45] - The company is expanding Popeyes into new markets, achieving strong results in places like the U.K. and China [46] Company Strategy and Development Direction - The company is focused on simplifying its business model, aiming to become predominantly asset-light and franchised, with significant refranchising efforts planned for 2026 [25][26] - The partnership with CPE in China is seen as a strategic move to enhance operations and growth potential, with a $350 million capital injection planned [50][53] - The company is optimistic about unit growth, targeting a return to 5% net unit growth by 2028, with a focus on markets like China and India [57][66] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by the current consumer environment but remains confident in the company's value positioning and operational improvements [11][29] - The company is monitoring the potential impact of GLP-1 medications on consumer behavior, particularly in the U.S. market [21][22] - The focus for 2026 will be on executing the existing plan and continuing to simplify operations while driving growth in both domestic and international markets [24][66] Other Important Information - An Investor Day is scheduled for February 26, where management will address investor questions and provide further insights into the business [14] - The company has maintained a strong franchisee base in Canada, which is crucial for operational success and community engagement [39][40] Q&A Session Summary Question: How does the company view the health of the consumer across different groups? - Management noted a mixed environment, with lower-income consumers being softer while middle and upper tiers remain stable [6][8] Question: What is the company's strategy regarding pricing in the current environment? - The company emphasizes prudent pricing strategies across its brands, focusing on value for money to attract consumers [11][12] Question: What are the key drivers of success for the company's brands in a challenging environment? - Key drivers include value positioning, innovation in product offerings, and operational improvements [29][30] Question: How does the company view its international business? - Management highlighted the importance of international markets, noting consistent performance and significant growth potential [15][44] Question: What are the expectations for unit growth moving forward? - The company aims for modestly positive net unit growth in 2026, with a long-term target of 5% by 2028 [57][66]

Financial Data and Key Metrics Changes - The company aims for annual system sales growth of over 8%, supported by approximately 3% same-store sales growth and around 5% net unit growth over time [2] - The Canadian business has shown strong performance, with 18 consecutive quarters of positive same-store sales [16][41] - The U.S. consumer environment has been mixed, with lower-income consumers showing softness, while middle and upper tiers have remained stable [7] Business Line Data and Key Metrics Changes - Tim Hortons in Canada is positioned as the number one brand in value for money, with a focus on everyday value rather than heavy discounting [28] - Burger King U.S. has maintained consistent promotions like $5 Duos and $7 Trios, focusing on value and family-oriented marketing [11][30] - Popeyes has expanded significantly, with successful launches in markets like China and the U.K., achieving strong unit economics [43] Market Data and Key Metrics Changes - The international business accounts for about 30% of operating income, with significant growth in markets like France, Germany, and Australia [41] - The company has seen positive same-store sales across its international business for 18 consecutive quarters, indicating strong performance [41] - Emerging markets like India and China are viewed as having substantial growth potential, with ongoing expansion plans [45] Company Strategy and Development Direction - The company is focused on simplifying its business model, aiming for a predominantly asset-light and franchised structure [24][25] - The partnership with CPE in China is expected to enhance growth, with a significant capital injection of $350 million to support expansion [50] - The company plans to continue refranchising restaurants, with expectations to refranchise 50-100 restaurants in 2025 and increase that number in 2026 [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a mixed consumer environment but remains optimistic about the company's ability to navigate challenges through value positioning and operational improvements [10][28] - The company expects modestly positive net restaurant growth in China in 2026, following a year of store base cleanup [60] - There is confidence in achieving long-term unit growth targets of 5% by 2028, driven by strong performance in international markets and ongoing operational improvements [62] Other Important Information - An Investor Day is scheduled for February 26, 2026, to provide further insights into the company's strategy and performance [13] - The company emphasizes the importance of its non-U.S. businesses, which contribute significantly to overall operating income [14] Q&A Session Summary Question: How does the company view the health of the consumer across different groups? - The company notes a mixed environment, with lower-income consumers being softer, while middle and upper tiers remain stable [7] Question: What is the company's strategy to compete with food at home? - The company focuses on providing value for money and has been prudent with pricing across its brands [10][11] Question: What are the key drivers of success in the current environment? - Key drivers include value positioning, innovation in product offerings, and operational improvements [28][30] Question: What are the expectations for unit growth in the coming years? - The company expects to achieve modestly positive unit growth in 2026, with a long-term target of 5% by 2028 [62]

Core Insights - The quick-service chicken category has expanded its share of total food spending across income groups, prompting legacy burger chains to enhance their chicken offerings [1] - Burger King is focusing on its burger offerings, particularly through the "Whopper by You" platform, which allows customers to suggest new burger ideas [2] - The "Whopper by You" initiative has successfully engaged customers and broadened the chain's appeal to women and Gen Z [3] Company Strategy - Burger King aims to lead with its burgers, capitalizing on the current trend of competitors focusing on chicken, creating a unique opportunity for the brand [4] - The company plans to innovate not only with the Whopper but also with its Double Cheeseburger, emphasizing its strength in the burger category [5] - While Burger King acknowledges future chicken opportunities, the primary focus will remain on enhancing its core burger offerings [5][6]