Happy Belly Food Group , a leader in acquiring and scaling emerging food brands across Canada, has announced its unaudited financial results and corporate update for the fiscal quarter ended June 30.
“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 114% increase versus the same quarter last year. We successfully opened 12 new restaurant locations in Q2, with another 11 restaurant locations added through our continued focus on organic growth and accretive acquisitions so far in Q3,” said Sean Black, CEO of Happy Belly.
“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 $16.2M (+114%), and total revenues of $5.7M (+155%) both doubled versus the same quarter last year. Adjusted EBITDA reached 9.9% in Q2 while achieving our second consecutive quarter of positive net income from operations. Our core principles have been the 3P’s: People, Product and Process, while staying operationally and financially disciplined throughout our execution plan. As at the end of Q2 2025, we have 62 operating restaurants, up 36 or 138% versus the same quarter last year. We continue to drive both organic and inorganic growth through accretive acquisitions, improving sales and customer traffic, net restaurant openings, as well as overall profitability at restaurant level. Such positive tailwinds are already evident in Q3 2025, while we head towards the fall season.
“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.”
Q2 2025 Financial Highlights
● System-wide sales across Quick Service Restaurants (QSR) totalled $16.2M in the second quarter of fiscal 2025, up 114% 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, up 138% versus 26 in the prior year.
● Total operating revenues, vendor rebates and interest income totalled $5.7M in Q2 2025, up 155% versus the same quarter last year (2024 – $2.2M), and for the six months ended June 30, 2025, $9.3M up 127% from 2024 (2024-$4.1M). Consecutive quarter growth increased by 56% 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, up 153% versus the same quarter last year (2024 – $1.9M). In addition, royalties and franchise fee revenues reached $0.65M during the quarter, up 132% 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 reached $0.6M or 9.9% 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.
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