The Cheesecake Factory (CAKE) Q2 2025 Earnings Call July 29, 2025 05:00 PM ET Speaker0Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to The Cheesecake Factory, Inc. Q2 twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise.After the speakers' remarks, there will be a question and answer session. I would now like to turn the call over to Etienne Marc ...

Toronto, Ontario--(Newsfile Corp. - July 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 across Canada is pleased to announce that its Heal Wellness brand has secured a real-estate location for its franchisee in the city of Grand Prairie, Alberta. Heal Wellness ("Heal") is a fresh smoothie bowls, acai bowls, and smoothies quick serve restaurant ("QSR").Happy Belly 1To view an enhanced version of this ...

CANTON, MI — Cava, a fast-casual Mediterranean restaurant, will open its first Michigan location along Ford Road in Canton on Sunday.Cava is best known for its Mediterranean flavors, including spicy lamb and avocado. The restaurant allows customers to build their own grain bowls, pita sandwiches and salads. "We’re thrilled to join the Southeast Michigan community and introduce more guests to the bold, vibrant flavors of the Mediterranean," CAVA Regional Leader Gino Carlin said. "Entering the state of Michig ...

Restaurants & BarsNew Mediterranean-Style Eatery Launches In Bristol The restaurant opened for customers on Monday. Chef Debra Queen inside a new restaurant on Main Street in Bristol, Fresh & Green Plate. (Michelle Tuccitto Sullo | Patch)Fresh & Green Plate opened July 14 in downtown Bristol. (Michelle Tuccitto Sullo | Patch)BRISTOL, CT — A new restaurant featuring green bowls, gyros and an array of Mediterranean-style food opened this week in downtown Bristol. The eatery, Fresh & Green Plate, began serving ...

Core Insights - Happy Belly Food Group Inc. has expanded its franchise agreement with an existing multi-unit franchisee in Alberta from 10 to 15 units for its Heal Wellness brand, which specializes in fresh smoothie bowls and smoothies [1][3][5] - The expansion reflects strong organic support from the franchisee base, indicating a growing interest in multi-unit ownership among existing operators [3][5] - Heal Wellness is recognized as Canada's first national smoothie bowl brand, with a scalable, asset-light model that supports its growth and enhances value for franchise partners and investors [5][6] Company Overview - Happy Belly Food Group Inc. is a leader in acquiring and scaling emerging food brands across Canada [9] - The company has a total of 616 retail locations under contract, which includes development, construction, and operational stages, indicating a robust franchise pipeline [5][6] Brand Performance - Heal Wellness has seen significant growth since its initial five-unit agreement in October 2023, doubling to 10 units by May 2024, and now expanding to 15 units [3][5] - The brand is experiencing increasing brand awareness and customer loyalty, contributing to its expanding national footprint with additional units under construction in Alberta, Ontario, and Prince Edward Island [5][6] Strategic Growth - The company is focused on a strategic blend of organic growth and targeted acquisitions to accelerate the momentum behind Heal Wellness and its broader portfolio [5][6] - By aligning with experienced operators and securing prime real estate, Happy Belly aims to strengthen its long-term fundamentals and deliver sustained growth through 2026 and beyond [6]

Core Insights - Happy Belly Food Group Inc. has opened its 27th Heal Wellness location in Calgary, Alberta, with the grand opening scheduled for July 12, 2025 [1][2] - The company is experiencing significant growth and brand recognition across Canada, positioning Heal as a national smoothie bowl brand [3][4] - Happy Belly's strategy combines organic growth with strategic acquisitions, leading to a robust franchise pipeline and expansion plans [2][7] Company Expansion - The new Heal Wellness location is part of a broader expansion strategy, with more units under construction in Alberta, Ontario, and Prince Edward Island [4] - A total of 195 units for Heal Wellness are secured under development agreements across Canada, indicating a strong growth trajectory [4][7] - The Happy Belly portfolio includes 616 retail locations under contract, showcasing a disciplined approach to growth through careful partner selection and prime real estate [7] Brand Development - Heal Wellness aims to provide quick, fresh wellness foods, focusing on smoothie bowls and smoothies made with superfood ingredients [8] - The brand is gaining customer loyalty and recognition, with existing franchisees expanding into multi-unit ownership, reflecting confidence in the operational model [3][4] - The company's asset-light approach and strong franchise engagement are unlocking value for stakeholders and signaling long-term growth potential [3][4]

Core Viewpoint - Happy Belly Food Group Inc. is expanding its presence in Canada with the opening of its 26th Heal Wellness location, indicating strong growth and a strategic focus on scaling emerging food brands [1][3]. Company Expansion - The new Heal Wellness location is situated in Aurora, Ontario, and will officially open on July 5, 2025 [1]. - The company has experienced significant growth, with more locations under construction and scheduled to open throughout 2025 [3][4]. - Happy Belly has secured 195 units under development agreements across Canada, positioning itself for continued expansion as Heal aims to become a national smoothie bowl brand [4][6]. Franchise Development - Happy Belly has a robust franchise pipeline with 606 retail locations under contract, which includes projects in various stages of development [6]. - The company emphasizes careful selection of partners and prime real estate to maintain growth momentum through 2026 [6]. Product Offering - Heal Wellness focuses on providing quick, fresh wellness foods, including a diverse range of smoothie bowls and smoothies made with superfood ingredients [7].

Group 1: Pershing Square Capital Management's Portfolio Overview - A significant portion of Pershing Square Capital Management's portfolio, specifically 41.6%, is invested in three companies: Alphabet, Uber Technologies, and Chipotle Mexican Grill [2] - Alphabet constitutes approximately 14% of the portfolio, with over 5.7% in class A shares and nearly 8.3% in class C shares [4][5] - Uber Technologies represents 18.5% of the portfolio, being the largest holding as of the first quarter [8] - Chipotle Mexican Grill accounts for about 9.1% of the portfolio [12] Group 2: Alphabet Insights - Alphabet's stock underperformed in the first half of the year despite strong financial results, likely due to market concerns over regulatory risks, particularly an antitrust lawsuit [4][5] - The company is well-positioned for future growth in cloud computing and artificial intelligence, which are still in early stages [6] - Alphabet's YouTube platform and its competitive advantages, such as network effects and switching costs, contribute to its attractiveness for long-term investors [7] Group 3: Uber Technologies Insights - Uber has transformed into a profitable company, with first-quarter revenue growing 14% year over year to $11.5 billion and net income reaching $1.8 billion [9] - The company's competitive edge is reinforced by its network effect, as more drivers enhance its attractiveness to clients, significantly outpacing competitor Lyft in trips and gross bookings [10] - Long-term prospects for Uber are promising, especially as younger generations are driving less, increasing demand for ride-hailing services [11] Group 4: Chipotle Mexican Grill Insights - Chipotle's stock has faced challenges in 2025 due to potential tariff impacts and weak foot traffic, but it remains a consistently profitable business with strong margins [12][13] - The company is actively expanding, having opened 57 new locations in the first quarter, with a long-term goal of reaching 7,000 locations in the U.S. and Canada [14] - Despite current struggles, the recent dip in stock price presents a buying opportunity for long-term investors [14]

Core Insights - Happy Belly Food Group Inc. has signed an area development agreement for the province of Manitoba, adding 15 new locations for its Heal Wellness brand, which specializes in smoothie bowls and quick-serve restaurant offerings [1][3] - With this agreement, Heal Wellness is now represented in all 10 provinces of Canada, totaling 195 contractually committed locations nationwide [1][3] - The company anticipates significant organic growth due to its emerging brand portfolio, which now includes 606 units under development agreements across Canada [3][4] Company Strategy - The expansion into Manitoba is seen as a strategic move, leveraging the province's urban vibrancy and community spirit to enhance the Heal Wellness brand's presence [4][5] - The company aims to capitalize on the growing demand for fresh, innovative dining options in Manitoba, particularly in Winnipeg, which has a dynamic food scene [4][5] - Happy Belly's overarching strategy focuses on the development and growth of emerging brands within the food sector, with expectations that new locations will contribute positively to overall revenue and profitability [5] Brand Overview - Heal Wellness is dedicated to providing quick, fresh wellness foods that cater to busy lifestyles, offering a diverse range of smoothie bowls and smoothies made from high-quality superfood ingredients [5] - The brand positions itself as Canada's first true national smoothie bowl brand, emphasizing its first-mover advantage in the market [4]

Financial Data and Key Metrics Changes - The company achieved a 3.5% increase in system sales year over year in Q1 2025, with profits from other revenues increasing by 34.5% year over year [9][16] - Adjusted corporate EBITDA margin improved by 6.1 percentage points year over year, while company-owned and operated store contribution margin improved by 5.9 percentage points [8][13] - Monthly average transacting customers reached 2,920,000, a 4.3% increase from the same quarter in 2024 [14] Business Line Data and Key Metrics Changes - Revenue from franchised and retail businesses increased by 28.6% year over year, while company-owned and operated store revenue dropped by 14% year over year [15][16] - The number of franchised stores increased from 302 to 455 year over year [16] Market Data and Key Metrics Changes - The company expanded its store footprint into 84 cities, including Fujian and Nantang, during Q1 [10] - The largest loyalty club members reached 25,200,000, reflecting a 25.7% year over year growth [10] Company Strategy and Development Direction - The company is focusing on a differentiated strategic positioning in coffee and freshly prepared food, launching new products like the light and fit lunch box to reshape consumer perceptions [5][7] - The strategy includes moving from singular coffee consumption to all-day healthy dining, embedding a café experience into a health-focused lifestyle [8] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic volatility and intense market competition but highlighted significant profitability improvements due to operational efficiencies and cost controls [8][9] - The company remains optimistic about achieving positive same store sales growth in 2025, especially in the second half of the year [37] Other Important Information - The company has received over 7,000 applications for its individual franchisee program since its launch in December 2023, successfully converting nearly 200 stores by March 2025 [10] - The company is enhancing its digital capabilities, with digital orders as a percentage of total orders rising from 85.4% to 86.3% year over year [15] Q&A Session Summary Question: Outlook for new store openings and franchise applications - Management indicated that Q1 is typically slow, but they aim to open around 200 made-to-order stores this year, with most openings expected in the second half [23][25] Question: Current state of the Chinese consumer and government stimulus - Management noted that consumer morale has not significantly improved post-Chinese New Year, and they are waiting to see the effects of government policies on consumption [26][27] Question: Competition and market growth - Management emphasized that the market has become more rational, focusing on differentiation rather than price competition, and highlighted the success of their new product offerings [29][31]