Aegis Brands Inc., which owns and operates the St. Louis Bar & Grill brand and holds the master franchise for the Sweet Jesus ice cream brand in Canada, recently reported financial results for the fourth quarter and year ending December 28, 2025.
“Over the past two years, we have focused on improving the underlying quality of the system,” said Steven Pelton, President and CEO of Aegis Brands. “By strengthening franchisee capability, accelerating renovations, expanding our promotional schedule and returning to disciplined new store growth, we believe the foundation is in place for continued same store sales and EBITDA improvement.”
Highlights for the quarter:
- System sales increased by 12.1% to $34.7 million and same store sales increased by 10.3% compared to last year.
- EBITDA for the fourth quarter increased to $1.9 million from $1.2 million in Q4 2024, representing year-over-year growth of 58%.
- Net income for the fourth quarter improved to $1.1 million, or $0.01 per share, compared to a net loss of $0.2 million, or $(0.00) per share, in Q4 2024.
Highlights full year:
- System sales were flat at $133.0 million and same store sales decreased by 3.3%.
- EBITDA increased to $6.4 million, compared to $6.1 million last year.
- Net income improved to $3.0 million, or $0.04 per share, compared to a net loss of $1.3 million, or $(0.02) per share, in the prior year.
“The fourth quarter of fiscal 2025 reflects the continued strengthening of Aegis following the successful execution of its portfolio simplification strategy. With a focused, asset-light franchising model and a stable national footprint under the St. Louis Bar & Grill banner, the Company is demonstrating improving earnings quality and a clearer long-term value proposition. With the transformation of the business complete, management is focused on building store profitability, enhancing brand relevance, and delivering sustainable earnings for shareholders,” said the company in a news release.
It said St. Louis delivered a strong finish to the year, highlighted by same store sales growth of 10.3% in the fourth quarter, marking a significant acceleration. System sales increased 12.1% to $34.7 million, reflecting stronger guest traffic and the growing effectiveness of the brand’s promotional and operational initiatives.
“The fourth quarter performance represents one of the brand’s strongest same store sales results in recent years and demonstrates the impact of the Company’s renewed focus on value-driven promotions, improved operational execution and enhanced franchisee engagement. Initiatives introduced earlier in the year gained traction in the second half, culminating in a meaningful increase in traffic and sales across the system during the quarter,” it said.
“For the full year, system sales were consistent with the prior year and same store sales declined 3.3%. St. Louis generated $6.4 million in EBITDA for the year, demonstrating stable profitability as management reduced overhead and increased traffic at the store level in the second half.”
During 2025, it opened three new locations and closed three underperforming restaurants, maintaining 81 franchised locations at year end.
The company said renovated locations are generating meaningful increases in sales post-renovation. A refreshed environment drives higher guest satisfaction, and stronger performance, all of which results in increased profitability for our franchisees. Additional renovations are planned for 2026 as we continue to prioritize renovations where returns justify capital deployment, it added.
With improving franchisee economics, the company said it is returning to disciplined new store development. Ontario remains a priority market, and Atlantic Canada locations continue to over-index relative to the broader network.
“We’ve aligned our overhead with a focused franchisor model and improved store-level economics across the system,” said Pelton. “As unit profitability strengthens, it supports disciplined new store growth, which we expect will drive continued EBITDA and net income improvement year-over-year.”
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