Toronto, Ontario--(Newsfile Corp. - February 9, 2026) - 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 the promotion of Christoph Barrow to Brand President of Yolks Breakfast ("Yolks"), effective immediately. Yolks is a boutique restaurant brand serving delicious breakfast, brunch, and lunch.Happy Belly 1To view an enhanced version of this graphic, please visit:https://imag ...

Core Insights - First Watch Restaurant Group reported preliminary operational metrics for the fourth quarter and fiscal year ended December 28, 2025, highlighting growth in same-restaurant sales and new restaurant openings [1][2]. Sales and Traffic Highlights - Same-restaurant sales growth for the fourth quarter was +3.1% and +3.6% for the fiscal year 2025 [3]. - Same-restaurant traffic growth was -1.9% in the fourth quarter but improved to +0.5% for the entire fiscal year [3]. Restaurant Development - In the fourth quarter, First Watch opened 13 new restaurants, comprising 12 company-owned and one franchise-owned [4]. - For the fiscal year 2025, the company achieved a total of 64 new restaurant openings (55 company-owned and nine franchise-owned) and recorded three closures, bringing the total to 633 system-wide restaurants by December 28, 2025 [4]. Company Strategy and Outlook - The CEO emphasized confidence in the execution of the long-term strategy and the strength of the pipeline for 2026, with new restaurant classes outperforming expectations [2].

Core Viewpoint - First Watch Restaurant Group, Inc. will host a fireside chat at the 28th Annual ICR Conference on January 12, 2026, featuring CEO Chris Tomasso and CFO Mel Hope [1][2]. Company Overview - First Watch is a leading Daytime Dining concept specializing in made-to-order breakfast, brunch, and lunch, utilizing the freshest ingredients [3]. - The company's culinary philosophy, "Follow the Sun," involves a menu that rotates five times a year to highlight seasonal flavors and includes popular items like Lemon Ricotta Pancakes and Million Dollar Bacon [3]. - First Watch has raised over $1.7 million through donations linked to kids' meals served, supporting various community organizations [3]. - The company has received numerous awards, including being voted 2025's 1 Best Breakfast by Newsweek and recognized as the 1 Most Loved Workplace in America for 2024 and 2025 [3]. - First Watch operates more than 620 restaurants across 32 states, focusing on quality, hospitality, and community engagement [3].

First Watch Restaurant Group Conference Summary Company Overview - **Company**: First Watch Restaurant Group (NasdaqGS:FWRG) - **Industry**: Restaurant - **Business Model**: Focuses on breakfast, brunch, and lunch with an elevated offering, operating from 7:00 A.M. to 2:00 P.M. [7][8] Key Highlights - **Growth**: - Increased from approximately 428 restaurants at IPO in 2021 to over 620 restaurants by 2025, achieving about 10% annual growth in restaurant count [7][8] - Adjusted EBITDA has doubled since going public [7] - Personal sales volumes up nearly 50% since 2019, significantly outperforming average casual dining concepts [9][12] - **Operational Efficiency**: - Emphasis on data-driven operations led by the COO, focusing on efficiency and accountability [12][13] - Site selection for new restaurants is informed by data on successful locations, leading to predictable performance [13][14] - **Market Positioning**: - Positioned as a national brand, attracting commercial developers due to vibrant morning foot traffic [14][15] - Marketing initiatives have been piloted and expanded, resulting in improved brand awareness and performance in targeted markets [21] Financial Performance - **Same Restaurant Sales**: Continued positive same restaurant sales growth, with Q3 comps up 7%, exceeding expectations [20] - **Menu Pricing Strategy**: - Average check around $17, with pricing strategy focused on defending margins rather than offsetting all inflation [27][28] - Less pricing taken compared to peers, with a focus on value and customer experience [27][28] - **Food Cost Inflation**: - Food cost inflation projected at around 6% for the year, influenced by commodity prices such as bacon and coffee [30][32] - Potential for slight deflation in 2026, with ongoing discussions with suppliers [34] - **Wage Growth**: - Wage inflation around 4% in 2025, with expectations for stabilization in the future [38][39] - Focus on efficient labor management and leveraging data to optimize staffing [40] Unit Growth and Investment - **Unit Growth Target**: Aiming for over 10% annual growth, with new units opening above existing average unit volumes (AUVs) [42] - **Cash-on-Cash Return**: Targeting around 35% cash-on-cash return, with a structured approach to restaurant construction and investment [46][48] - **Free Cash Flow Outlook**: Operating cash flow is designed to cover new restaurant construction and fleet investments, with a goal to maintain restaurant appearance and appeal [49] Additional Insights - **Customer Experience Enhancements**: Investments made in guest experience, including increased portion sizes and reintroduction of complimentary coffee for waiting guests [23][24] - **Long-term Strategy**: Focus on long-term customer relationships rather than short-term financial targets, emphasizing the "You First" culture [26] This summary encapsulates the key points discussed during the First Watch Restaurant Group conference, highlighting the company's growth, operational strategies, financial performance, and future outlook.

Financial Data and Key Metrics Changes - The company has doubled its adjusted EBITDA since going public four years ago, with a current annual unit growth rate of over 10% [15][20] - The average cost to build a restaurant is approximately $1.75 million, with first-year sales projected at $2.2 million, growing to about $2.6 million in the third year, achieving an IRR of 18%-20% [57] Business Line Data and Key Metrics Changes - The sales mix is approximately 45% weekday and 55% weekend, with weekends being critical for revenue generation [11] - Third-party delivery accounts for about 10% of total sales, with an additional 9%-10% from to-go orders, indicating a growing channel for the company [34][38] Market Data and Key Metrics Changes - The company operates in 32 states and has a presence in a fragmented market with many local competitors, but few large national players [29] - The company has seen positive traffic growth, recovering from previous compression, and is nearly back to flat in restaurant traffic by quarter end [34] Company Strategy and Development Direction - The company aims to grow to 2,000 system-wide units, with a focus on new restaurant openings as the primary growth driver [1][20] - The strategy includes acquiring franchise restaurants to enhance market presence and operational control, with 72 franchise units remaining [79][80] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about sustaining the 10% unit growth rate, citing a full pipeline of new restaurant openings [51][52] - The company is well-positioned to meet changing consumer preferences, particularly with protein-forward menu options [18][19] Other Important Information - The company has experienced significant inflation in commodity prices, particularly for eggs, avocados, and coffee, but hopes for normalization in 2026 [71][75] - Marketing efforts are evolving, with a focus on targeted campaigns to increase brand awareness and customer engagement [62][65] Q&A Session Summary Question: Will the company look to capital markets for fundraising as it grows? - The company plans to rely on cash generated from operating restaurants to fund new restaurant development, with limited borrowing for strategic acquisitions [77] Question: What is the strategy behind franchise acquisitions? - The company prefers ownership of profitable franchise restaurants to accelerate growth and enhance brand familiarity in new markets [79][80] Question: Could the number of franchise units decrease to zero in the future? - It is unlikely that the number of franchise units will reach zero, as the company values the influence and operational control it has over its owned units [82]

Financial Data and Key Metrics Changes - The company has doubled its adjusted EBITDA since going public four years ago, growing from approximately 428 restaurants to nearly 620 [15] - The annual unit growth rate is currently over 10%, with a long-term goal of reaching 2,000 system-wide units in the U.S. [2][15] Business Line Data and Key Metrics Changes - The sales mix is approximately 45% weekday and 55% weekend, with weekends being critical for revenue generation [11] - The company has seen a recovery in traffic, nearly returning to flat levels by the end of the quarter, driven by improvements in both dining room and third-party delivery sales [33][34] Market Data and Key Metrics Changes - The company typically over-indexes to higher-income customers, with no significant performance differences across various demographic cohorts [7] - The competitive landscape is fragmented, with many local and regional players, but the company believes its scale and value proposition provide a competitive advantage [29][30] Company Strategy and Development Direction - The company is focused on new restaurant growth as a key driver of its business, celebrating each new opening as vital for brand expansion and employee development [20][21] - The strategy includes acquiring franchise restaurants to enhance market presence and operational control, with 72 franchise units remaining [80][81] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about sustaining the current unit growth rate, citing a robust pipeline and data-driven site selection process [52][53] - The company is well-positioned to meet evolving consumer preferences, particularly with health-conscious menu options [18][19] Other Important Information - The average cost to build a new restaurant is approximately $1.75 million, with expected first-year sales of about $2.2 million [58] - Marketing efforts are becoming more efficient as the company leverages data to enhance brand recognition and customer engagement [66] Q&A Session Summary Question: Will the company look to capital markets for fundraising as it grows? - The company plans to rely on cash generated from operating restaurants to fund new openings, with borrowing primarily for strategic acquisitions [77][78] Question: What is the strategy behind franchise acquisitions? - The company prefers ownership of profitable franchise restaurants to accelerate growth in attractive markets, while still recognizing the potential for future franchising opportunities [80][81] Question: How does the company view its competitive landscape? - The company sees a fragmented competitive environment with many local players, but believes its scale and consistent value proposition provide a significant advantage [29][30]

Financial Data and Key Metrics Changes - Total revenue increased by 25.6% year-over-year, reaching $316 million in Q3 2025, driven by strong same-restaurant sales growth of 7.1% and positive traffic growth of 2.6% [20][21] - Restaurant-level operating profit margin improved to 19.7%, an increase of 80 basis points compared to the same quarter last year [23] - Adjusted EBITDA rose to $34.1 million, up $8.5 million from the previous year, with an adjusted EBITDA margin of 10.8% [23][24] Business Line Data and Key Metrics Changes - The company opened 21 new system-wide restaurants in Q3 2025, with 18 being company-owned and 3 franchise-owned, bringing the total to 620 system-wide restaurants [24] - Newly opened restaurants performed exceptionally well, with some locations achieving opening week sales exceeding 185% of the average [10][24] Market Data and Key Metrics Changes - Traffic growth in the third-party delivery channel increased significantly, contributing over 3% to same-restaurant sales in the quarter [55] - The month of September marked the highest rate of same-restaurant sales growth for the year, coinciding with the launch of the fall seasonal menu [22] Company Strategy and Development Direction - The company aims to open 63-64 new restaurants in 2025, representing nearly 11% system-wide growth, with a focus on maintaining a strong market position in daytime dining [5][12] - A strategic emphasis on second-generation sites has been noted, with about 50% of new openings in 2025 being second-generation locations [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging environment while maintaining strong growth, emphasizing a long-term focus on market position and traffic growth over short-term margin protection [6][19] - The company updated its guidance for same-restaurant sales growth to approximately 4% and total revenue growth to 20-21% for the remainder of the year [25] Other Important Information - The company has been recognized as America's number one most loved workplace for two consecutive years, highlighting its commitment to employee satisfaction and culture [15] - Enhanced marketing investments have shown positive results, with plans to expand marketing efforts in 2026 based on insights gained from current campaigns [16][34] Q&A Session Summary Question: Can you help us deconstruct the traffic results? - Management noted that both in-restaurant and off-premise channels contributed to traffic growth, with improvements in restaurant dining observed [30] Question: What is helping bolster results at new openings? - The success of new openings is attributed to prime locations, effective marketing strategies, and operational excellence [31][32] Question: What are your plans to expand marketing efforts in 2026? - While specific plans for 2026 were not disclosed, management expressed optimism about expanding marketing initiatives based on successful campaigns in 2025 [34] Question: Can you elaborate on the impact of marketing on sales trends? - Management indicated that awareness has increased steadily, contributing to consistent results across geographies [46] Question: What is the outlook for commodity and labor inflation? - Management expects commodity inflation to be approximately 6% and labor inflation to be around 4% for the upcoming year [25][57]

Core Insights - Happy Belly Food Group Inc. has signed a new franchise agreement for Yolks Breakfast in Edmonton, marking a significant step in its Western Canada growth strategy [1][4] - The breakfast segment in the restaurant industry is experiencing rapid growth, and Happy Belly aims to capitalize on this trend through its asset-light franchising model [4][6] - The company has secured 626 retail locations across Canada, indicating a strong pipeline for expansion and a commitment to becoming a leading restaurant consolidator in the country [6] Company Strategy - The franchise agreement in Edmonton is part of Yolks' strategy to expand its breakfast, brunch, and lunch offerings in dynamic urban markets [1][4] - Happy Belly prioritizes smart real estate selection to enhance return on invested capital (ROIC) and streamline buildouts, which is crucial for efficient scaling [4][6] - The company emphasizes operational discipline and brand scalability to deliver long-term shareholder value [6] Market Position - The breakfast segment is highlighted as one of the most vibrant and fast-growing areas in the restaurant industry, presenting a significant opportunity for growth [4] - Happy Belly's focus on high-traffic real estate and experienced partners is driving its consistent pipeline growth [6] - The company aims to enhance its market presence through strategic site selection and franchise agreements, with a goal of becoming Canada's leading restaurant consolidator [6]

Core Insights - First Watch Restaurant Group reported Q2 2025 revenue of $307.9 million, slightly exceeding analyst expectations of $306.6 million, but diluted EPS of $0.03 fell short of the $0.05 estimate and declined from $0.14 in the prior year [1][2][5] Financial Performance - Revenue increased by 19.1% year-over-year from $258.6 million in Q2 2024 [2][5] - Same-restaurant sales growth was 3.5%, with a 2.0% rise in same-restaurant guest count [2][5] - Adjusted EBITDA was $30.4 million, down 13.9% from $35.3 million in Q2 2024 [2] - Restaurant-level operating profit margin decreased from 21.9% to 18.6% [2][7] Company Overview - First Watch operates a chain of sit-down restaurants focusing on breakfast, brunch, and lunch, with 600 locations across 31 states [3] - The company emphasizes fresh, made-to-order dishes and avoids microwaves and deep fryers [3] Strategic Initiatives - The company is pursuing aggressive growth through new restaurant openings and franchise acquisitions, aiming for over 2,200 locations in the U.S. [4][6] - Key strategies include a "Follow the Sun" menu philosophy, investment in digital ordering, and a culture focused on employee retention and guest satisfaction [4] Market Dynamics - Despite strong sales growth, the company faced significant cost inflation, leading to a drop in income from operations margin to 2.4% from 6.4% in the prior year [7] - High prices for commodity ingredients and increased labor costs contributed to margin pressures [7][10] Future Outlook - Management raised full-year adjusted EBITDA guidance to $119–123 million, anticipating revenue growth of about 20% for fiscal 2025 [11] - Same-restaurant sales growth is expected to be in the low single digits, with cost inflation anticipated to peak in Q2 and moderate thereafter [12]

Core Insights - First Watch Restaurant Group, Inc. reported a total revenue increase of 19.1% to $307.9 million for Q2 2025 compared to $258.6 million in the same period of 2024 [6] - The company opened 17 new system-wide restaurants across 8 states, bringing the total to 600 restaurants [6][3] - Adjusted EBITDA for Q2 2025 was $30.4 million, a decrease from $35.3 million in Q2 2024 [6][3] Financial Performance - Net income for Q2 2025 was $2.1 million, or $0.03 per diluted share, down from $8.9 million, or $0.14 per diluted share in Q2 2024 [6][3] - System-wide sales increased by 15.8% to $346.2 million compared to $299.0 million in the same period of 2024 [6] - Same-restaurant sales growth was reported at 3.5%, with same-restaurant traffic growth at 2.0% [6] Operational Highlights - The company anticipates stronger profitability in the second half of 2025 and has raised its annual outlook for adjusted EBITDA [3] - The income from operations margin decreased to 2.4% from 6.4% in the same period of 2024 [6] - Restaurant level operating profit margin decreased to 18.6% from 21.9% in the same period of 2024 [6] Future Outlook - The company has updated its guidance for the fiscal year 2025, projecting adjusted EBITDA in the range of $119.0 million to $123.0 million [7] - Total revenue growth is expected to be approximately 20.0%, with plans to open 59 to 64 new system-wide restaurants [7]