TORONTO, Aug. 1, 2025 /CNW/ – Today, Aegis Brands Inc. (TSX:AEG) reports financial results for the second quarter ending June 29th, 2025.
Highlights for the quarter:
- System sales decreased by 4.2% to $35.2 million and same store sales decreased by 7.5%.
- Adjusted EBITDA for the second quarter was consistent with the prior year at $1.6 million.
- Net income improved 8.3% to $1.1 million or $0.01 per share compared to $1.0 million or $0.01 per share a year ago.
- Two new locations were opened during the quarter – in Oakville, Ontario and in New Minas, Nova Scotia, bringing the new store count this year to three.
Highlights year to date:
- System sales decreased by 4.7% to $65.3 million and same store sales decreased by 7.5%.
- Adjusted EBITDA for the second quarter was consistent with the prior year at $2.7 million.
- Net income improved 93.9% to $1.2 million or $0.01 per share compared to $0.6 million or $0.01 per share a year ago.
St. Louis Bar & Grill
St. Louis contributed $2.6 million in EBITDA before corporate overhead in the second quarter compared to $2.9 million last year. Same store sales at St. Louis locations decreased by 7.5% over the prior year. System sales of restaurants for the quarter were $35.2 million compared to $36.8 million in the prior year, representing a decrease of 4.2%. The decrease in same stores sales as well as the closure of three underperforming stores earlier in the year more than offset the additional sales of the three new stores added this year.
While same store sales declined 7.5% in the quarter, this followed a strong 11.6% increase in the same period last year. To return to positive growth, management has launched targeted initiatives including enhanced training at legacy locations, new menu items currently in trial, and a refreshed marketing focus on core traffic drivers—specifically Half Price Wing Nights and Half Price Bottles of Wine every Friday.
New Locations Over-Indexing on Performance
During the quarter, St. Louis opened two new locations—in New Minas, Nova Scotia and in Oakville, Ontario. These restaurants, along with the Shediac, New Brunswick location opened earlier this year, are outperforming the legacy locations. Collectively, the new stores are over-indexing the network average by approximately 16%. This success is driven by a revitalized store design, the rejuvenated menu, and improved training that emphasizes extraordinary hospitality. These three strategic pillars have been critical to attracting new guests and driving franchisee profitability.
CPG and Retail Channel Expansion
St. Louis continues to diversify its revenue through retail channels. Starting this fall, Longo’s, Foodland, and Sobeys will carry four frozen wing products—two bone-in and two boneless—featuring the same crave-worthy flavours fans love in restaurant. The packaging of the wing and boneless products will include a bounce-back coupon driving traffic back to our restaurants. Additionally, in October 2025, the St. Louis will debut two retail snack products: St. Louis Garlic Dill Chips and St. Louis Wing Chips. Sobeys will feature a special limited-time-only promotion on the beloved St. Louis Garlic Dill sauce in August 2025. These consumer products are expected to grow brand visibility and unlock a new channel of customer engagement.
Looking Forward
“Our new store performance reflects our focus on building a stronger, more resilient and scalable brand,” said Steven Pelton, President and CEO of Aegis Brands. “We are encouraged by the early success of the new locations and the positive reception to our new menu and look. With our retail and grocery initiatives rolling out this fall, we are expanding the St. Louis experience into customers’ homes and broadening our presence in new and exciting ways.”
Reconciliations of net income, the most directly comparable IFRS financial measure, to operating income, to EBITDA and adjusted EBITDA, to adjusted net earnings and adjusted net earnings per share are provided below.
Second Quarter
13 weeks ended June 29, 2025 compared to 13 weeks ended June 30, 2024:
Net income to operating income:
|
(in thousands of Canadian dollars) |
2025 |
2024 |
|
Net income |
$ 1,109 |
$ 1,024 |
|
Add (deduct): |
||
|
Net loss from discontinued operations |
49 |
341 |
|
Interest and financing charges |
504 |
699 |
|
Other loss (income) |
(353) |
(843) |
|
Operating income |
$ 1,309 |
$ 1,221 |
Net income to EBITDA:
|
(in thousands of Canadian dollars) |
2025 |
2024 |