Aegis Brands Reports Second Quarter Results New Stores Outperforming

Executive Summary

• Aegis Brands Inc. reported financial results for the second quarter ended June 29, 2025, showing a decline in system sales but an improvement in net income compared to the prior year.
• The company opened two new St. Louis Bar & Grill locations (Oakville, ON and New Minas, NS), which are outperforming legacy stores by approximately 16%.
• Management is launching retail channel expansions in the fall, including frozen wing products with Longo's, Foodland, and Sobeys, alongside new snack items.

Key Details

• Q2 Financial Performance (13 weeks ended June 29, 2025):
  • System sales decreased 4.2% to $35.2 million (vs. $36.8 million in prior year).
  • Same-store sales decreased 7.5%.
  • Adjusted EBITDA was $1.6 million, consistent with the prior year ($1.6 million).
  • Net income improved 8.3% to $1.1 million ($0.01 per share) vs. $1.0 million ($0.01 per share) in the prior year.
  • Operating income was $1.3 million (vs. $1.2 million prior year).
  • EBITDA was $1.95 million (vs. $2.4 million prior year).
• Year-to-Date Financial Performance (26 weeks ended June 29, 2025):
  • System sales decreased 4.7% to $65.3 million.
  • Same-store sales decreased 7.5%.
  • Adjusted EBITDA was $2.7 million, consistent with the prior year ($2.7 million).
  • Net income improved 93.9% to $1.2 million ($0.01 per share) vs. $0.6 million ($0.01 per share) in the prior year.
  • Operating income was $2.1 million (vs. $2.0 million prior year).
  • EBITDA was $3.0 million (vs. $3.6 million prior year).
• Operational Updates:
  • New Stores: Two new locations opened in Q2 (Oakville, ON; New Minas, NS). Three new stores opened year-to-date (including Shediac, NB). New stores are over-indexing network average by ~16% due to revitalized design, menu, and training.
  • Store Closures: Three underperforming stores were closed earlier in the year.
  • St. Louis Brand Performance: Contributed $2.6 million in EBITDA before corporate overhead in Q2 (vs. $2.9 million prior year). Same-store sales declined 7.5%, following an 11.6% increase in the same period last year.
  • Strategic Initiatives: Management launched enhanced training, new menu trials, and marketing focus on "Half Price Wing Nights" and "Half Price Bottles of Wine."
• Retail & CPG Expansion:
  • Fall 2025: Longo's, Foodland, and Sobeys will carry four frozen wing products (two bone-in, two boneless) with bounce-back coupons.
  • October 2025: Debut of St. Louis Garlic Dill Chips and St. Louis Wing Chips.
  • August 2025: Sobeys featuring a limited-time promotion on St. Louis Garlic Dill sauce.

Notable Quotes

• "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."