Aegis Brands Reports Second Quarter Results New Stores Outperforming

TORONTO, Aug. 1, 2025 /CNW/ – Today, Aegis Brands Inc. (TSX: AEG) reports financial results for the second quarter ending June 29^th, 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:

Net income to EBITDA:

EBITDA to adjusted EBITDA:

Net income to adjusted net income:

Net earnings per share to adjusted net earnings per share:

Year to Date

26 weeks ended June 29, 2025 compared to 26 weeks ended June 30, 2024:

Net income to operating income:

Net income to EBITDA:

EBITDA to adjusted EBITDA:

Net income to adjusted net income:

Net earnings 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.