Company Announcements

New Menu, New Look, New Store Growth

TORONTO , May 2, 2025 /CNW/ - Today, Aegis Brands Inc. (TSX: AEG) reports financial results for the first quarter ending March 30^th, 2025.

Highlights:

• System sales decreased by 5.2% to $30.1 million and same store sales decreased by 7.7%.
• EBITDA from continuing operations for the fourth quarter was consistent with the prior year at $1.1 million.
• Net income for the quarter was $0.1 million or $0.00 earnings per share compared to a loss of $0.4 million or ($0.00) earnings per share a year ago.
• The first new location of the year was opened in Shediac New Brunswick in April, with three more new store openings soon to follow.

St. Louis Bar & Grill

St. Louis contributed $2.3 million in EBITDA before corporate overhead in the first quarter compared to $2.5 million last year. Same store sales at St. Louis locations decreased by 7.7% over the prior year. Same store sales were challenged to increase over 12.9% growth achieved in the previous year. System sales of restaurants for the quarter were $30.1 million compared to $31.7 million in the prior year, representing a decrease of 5.2%. The decrease in same stores sales as well as the closure of three underperforming stores more than offset the additional sales of the four new stores added in the past year. Additionally, a few locations temporarily closed, although causing a negative impact on the system sales in the short-term, but are expected to contribute positively in the long-term as they are renovated and refranchised. Recognizing the sales headwinds, management has added incremental off-premise Bogo events that had performed well in 2024 and launched a new pricing and promotional strategy that began on April 8^th with the new menu. These changes are designed to drive additional traffic, sales and profitability for the franchise network.

On April 8^th, St. Louis launched its new menu. The menu change is the most significant in the brand's history with the addition of many new items including pastas, pizzas, steak frites and lettuce wraps. Still focusing on the brand's famous wings, this menu change is designed to attract a new cohort of guests.

"Over the past 18 months, we have been working to bring our strategy to life. With the new menu, improved hospitality through revamped training and the new look for the brand, the three pillars of our growth are now in market" said Steven Pelton, President and CEO of Aegis Brands. We expect these changes to provide steady increases to traffic, sales and franchisee profitability for many years to come. Although we have some very successful promotional events each year, we know that our franchisees can be more profitable if we can grow their business outside of the promotional windows as well as within them."

On April 23^rd, the team reopened the St. Louis location at 17480 Leslie Street in Newmarket with the new brand look, new menu and a new franchisee. This location is first with the new look for the brand and the response from the community has been very positive. On April 25^th, the first of many new locations planned for 2025 opened in Shediac, New Brunswick. This new location also boasts the new look and is the third location for this franchisee group in the province. Later in the second quarter, St. Louis expects to open two more new locations - in New Minas, Nova Scotia and in Oakville, Ontario.

"As a franchisor, we strive to have the best-in-class return on investment for our franchisees. Our new locations are designed to achieve greater sales and profitability for our franchisees and the 2024 openings are proving to provide the impressive economics" said Pelton. "Because of this new store performance, we are focused on new store growth for the remainder of 2025 and beyond."

Aegis

EBITDA from continuing operations for the first quarter remained steady at $1.1 million from $1.2 million in 2024.

The Company's net income was $0.1 million or $0.00 per share for the first quarter versus a net loss in 2024 of $0.4 million or ($0.00) per share. Adjusted for losses of discontinued operations, the net income was $0.2 million or $0.00 per share for the first quarter versus net income in 2024 of $0.01 million or $0.00 per share.

Financial Highlights (in thousands of Canadian dollars except per share amounts):
13 weeks ended March 30, 2025 compared to 13 weeks ended March 31, 2024:

Net income (loss) to operating income:

Net income (loss) to EBITDA:

Net income (loss) to adjusted net income:

Net earnings (loss) per share to adjusted net earnings per share:

About Aegis Brands

Aegis Brands owns and operates St. Louis Bar & Grill and holds the master franchise for the Sweet Jesus ice cream brand in Canada. Aegis is committed to growing through strategic partnerships, retail expansion, acquisitions and focus on operational excellence. For more information, please visit www.aegisbrands.ca.

NON-IFRS MEASURES

Aegis measures the success of its business in part by employing several key performance indicators referenced herein that are not recognized under IFRS, including same store sales and EBITDA. These indicators should not be considered an alternative to IFRS financial measures, such as net income, and are presented because management of Aegis believes that such measures are relevant in interpreting the performance of its business. As non‐IFRS financial measures do not have standardized definitions prescribed by IFRS, they are less likely to be comparable with other issuers or peer companies. A description of the non‐IFRS measures used by Aegis in measuring its performance and a reconciliation of certain non‐IFRS measures to the nearest IFRS measure is included in Aegis' management's discussion and analysis for the year ended December 29, 2024 available on SEDAR at www.sedarplus.ca. 

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of Canadian securities laws. The forward-looking statements included in this press release, including statements regarding the nature of Aegis' growth strategy going forward and Aegis' execution on any of its potential plans (including with respect to the growth and development of St. Louis Bar and Grill), are not guarantees of future results and involve risks and uncertainties that may cause actual results to differ materially from the potential results discussed in the forward-looking statements.

Risks and uncertainties that may cause such differences include but are not limited to: risks related to the company's strategy going forward; risks related to interest rates and inflationary pressures on the cost of doing business; and other risks inherent in the industry in which Aegis operates. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information on these and other factors that could affect Aegis' operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedarplus.ca).

The forward-looking statements in this press release are made as of the date it was issued and Aegis does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

For more information, please visit aegisbrands.ca. 

SOURCE Aegis Brands Inc.