Happy Belly Food Group Q2 revenue jumps 57% on restaurant expansion
Happy Belly Food Group Q2 revenue jumps 57% on restaurant expansion
Overview
Canada QSR operator's fiscal Q2 revenue grew 57% yr/yr, reaching a record high
System-wide sales rose 75% yr/yr, driven by organic growth and new restaurant openings
Adjusted EBITDA rose to C$0.7 mln from C$0.5 mln a year earlier
Outlook
Company plans to continue expansion with new restaurant openings in the second half of 2026
Result Drivers
RESTAURANT EXPANSION - Co attributed sales and revenue growth to opening new restaurants and expanding its QSR network
FRANCHISE REVENUE - Growth in royalties and franchise fees driven by expansion of franchised restaurant base and higher system-wide sales
ACQUISITIONS - Contributions from businesses acquired during the preceding twelve months helped boost revenue
Company press release: ID:nNFC31kJrQ
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted EBITDA |
| C$700,000 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for Happy Belly Food Group Inc is C$2.48, about 48.2% above its August 25 closing price of C$1.67
The stock recently traded at 168 times the next 12-month earnings vs. a P/E of 73 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)