Toronto, Ontario--(Newsfile Corp. - January 6, 2026) - Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company"), a leading consolidator of emerging restaurant brands, is pleased to announce the appointment of Ian Thomas as Executive Vice President of Finance, effective immediately.Mr. Thomas joins Happy Belly with more than 25 years of senior financial leadership experience, including deep expertise in franchised restaurant systems, public and private company reporting, and m ...

Toronto, Ontario--(Newsfile Corp. - December 22, 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 it has entered into a binding letter of intent to sell Holy Crap Foods, its cereal, and oatmeal brand, for $1,000,000 CDN in cash plus working capital adjustments. "This transaction is a strategic step forward in the Company's plan to focus on its core Quick Service Restaurant ("QS ...

Core Insights - Happy Belly Food Group Inc. is expanding its Yolks Breakfast brand with the grand opening of a new location in Toronto's Bloor West Village on November 7, 2025, marking its second location in Ontario and fifth nationwide [1][3][4] Expansion Strategy - The new Yolks location is part of the company's asset-light franchising strategy, which aims to enhance its presence in key Canadian markets [3][4] - The company plans to open several more locations in 2026, indicating a robust growth trajectory for the Yolks brand [3][4] Market Positioning - Bloor West Village is identified as an ideal location due to its dense daytime traffic and family-oriented community, which aligns with Yolks' chef-driven breakfast offerings [4][6] - The company is leveraging existing restaurant infrastructure to reduce build-out time and costs, focusing on return on invested capital (ROIC) for both corporate and franchised locations [6][8] Brand Development - Yolks Breakfast was acquired by Happy Belly Food Group and is expected to contribute positively to the company's profitability through its franchising program [8][10] - The company emphasizes the importance of developing emerging food brands, with Yolks positioned to become a leading national brand in the breakfast category [4][8]

Core Insights - Happy Belly Food Group achieved its 13th consecutive record quarter with a 114% increase in system sales compared to the same quarter last year, reaching $16.2 million [2][4] - The company reported total revenues of $5.7 million in Q2 2025, a 155% increase year-over-year, driven by organic growth and acquisitions [3][4] - Happy Belly opened 12 new restaurant locations in Q2 2025 and has a total of 62 operating restaurants, up 138% from the previous year [3][4] Financial Performance - System-wide sales reached $16.2 million in Q2 2025, up from $7.6 million in Q2 2024, reflecting a 114% increase [4] - Total operating revenues, including vendor rebates and interest income, amounted to $5.7 million in Q2 2025, compared to $2.2 million in Q2 2024, marking a 155% increase [4] - Adjusted EBITDA for Q2 2025 was $0.6 million, representing a margin of 9.9%, a significant improvement from a negative $(0.1) million in the same quarter last year [4][11] Growth Strategy - The company continues to focus on both organic growth and accretive acquisitions, with plans to expand its restaurant portfolio further [3][4] - Happy Belly's management emphasizes a disciplined approach to growth, focusing on the "3P's": People, Product, and Process [3] - The company has signed multiple franchise agreements and development deals across Canada, indicating strong expansion plans [6][10] Operational Highlights - In Q2 2025, Happy Belly generated $0.7 million in cash flow from operating activities and invested $1.1 million in property and equipment [7] - The company added 12 new restaurants during Q2 2025, with further expansions planned in Q3 [7] - As of June 30, 2025, Happy Belly's net working capital was $2.7 million, and total cash and cash equivalents stood at $3.0 million [4]

Core Insights - Happy Belly Food Group Inc. has expanded its Yolks Breakfast franchise portfolio by signing a fourth franchise agreement and securing a new location in Chilliwack, British Columbia, marking its tenth overall location [1][4]. Company Expansion - The new agreement represents the fifth Yolks location in British Columbia and the eighth in Western Canada, highlighting the company's franchising expertise and growth strategy [4]. - Happy Belly's portfolio now includes 616 retail locations across Canada under Multi-Unit and Area Development Agreements, indicating a strong pipeline for future growth [8]. Market Opportunity - The breakfast sector within the restaurant industry is experiencing significant growth, which the company aims to capitalize on through its acquisition of Yolks [4]. - Chilliwack is identified as an ideal location for the new restaurant due to its population growth, diverse demographics, and strong economy [4]. Strategic Approach - The company employs an asset-light strategy that has garnered increasing interest from franchisees and landlords nationwide, contributing to its expansion efforts [5]. - Happy Belly's disciplined growth model has successfully expanded other brands like Extreme Pita and Mucho Burrito to over 400 locations, reinforcing its operational discipline and brand scalability [5][8].