Happy Belly Food Group Inc., a leader in acquiring and scaling emerging food brands, announced Wednesday its unaudited financial results and corporate update for the fiscal quarter ended June 30th, 2026, showing record system-wide sales of $28.4 million across its quick service restaurant portfolio.
“In Q2 we delivered record QSR systemwide sales, announced our largest ever area development deal and ended the quarter with a record cash balance, all done while making critical investments back into our business. We are continuing our momentum into the back half of 2026 with a full slate of openings including our 1st US-based location in Lubbock, Texas, across from Texas Tech University that is only weeks away. We are just getting started,” said Sean Black, Chief Executive Officer of Happy Belly Food Group.
Q2 2026 Financial and Recent Business Highlights from Happy Belly
- Happy Belly generated record system-wide sales across its portfolio of $28.4 million in the second quarter of fiscal 2026, representing an increase of approximately 75% compared to $16.2 million in the same quarter of fiscal 2025, and an increase of approximately 47% compared to $19.3 million in the first quarter of fiscal 2026. The continued increase in system-wide sales reflects a combination of organic sales growth across the company’s existing restaurant base and the continued expansion of its restaurant network;
- At June 30, 2026, the company had 95Â operating restaurants, representing an increase of approximately 53% from 62 operating restaurants in the prior-year period. The growth in both restaurant count and system-wide sales demonstrates the increasing scale of the company’s QSR portfolio as new locations continue to open and contribute to overall system performance;
- Total operating revenues, services, interest income and rebates were a record $8.5 million in the second quarter of fiscal 2026, representing an increase of approximately 57% compared to $5.4 million in the same quarter of fiscal 2025, and approximately 42% compared to $6.0 million in the first quarter of fiscal 2026. The year-over-year increase reflects continued growth in the company’s QSR operations, contributions from businesses acquired during the preceding twelve months, increased revenues generated from a larger restaurant network, and incremental royalties and franchise-related revenues resulting from new restaurant openings. The sequential increase from the first quarter further reflects the continued ramp-up of recently opened restaurants and the growing contribution from the company’s expanding franchise system;
- Total product sales were a record $6.4 million in the second quarter of fiscal 2026, representing an increase of approximately 39% compared to $4.6 million in the same quarter of fiscal 2025, and approximately 36% compared to $4.7 million in the first quarter of fiscal 2026. In addition, royalties and franchise fee revenues increased to a record $1.6 million during the second quarter of fiscal 2026, representing growth of approximately 129% compared to $0.7 million in the prior-year period. The significant increase in royalties and franchise fees reflects the continued expansion of Happy Belly’s franchised restaurant base and the corresponding increase in system-wide sales upon which royalty revenues are generated. The increasing contribution from royalties and franchise fees is consistent with the company’s continued execution of its franchise-led, asset-light growth strategy;
- Adjusted EBITDA was $0.7 million during the second quarter of fiscal 2026, compared to $0.5 million in the same quarter of fiscal 2025.
- The company maintained a strong liquidity position, with cash and cash equivalents of approximately $12.0 million as of June 30, 2026, compared to approximately $3.0 million at June 30, 2025. The large increase in cash position is reflective primarily of options and warrants exercised in the first 6 months of 2026, alongside increased operating revenues, franchise revenues, services, interest income and rebates.
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