TORONTO, March 6, 2026 /CNW/ - Today, Aegis Brands Inc. (TSX:AEG) reports financial results for the fourth quarter and year ending December 28, 2025.
Highlights for the quarter:
System sales increased by 12.1% to $34.7 million and same store sales increased by 10.3% compared to last year.
EBITDA for the fourth quarter increased to $1.9 million from $1.2 million in Q4 2024, representing year-over-year growth of 58%.
Net income for the fourth quarter improved to $1.1 million, or $0.01 per share, compared to a net loss of $0.2 million, or $(0.00) per share, in Q4 2024.
Highlights full year:
System sales were flat at $133.0 million and same store sales decreased by 3.3%.
EBITDA increased to $6.4 million, compared to $6.1 million last year.
Net income improved to $3.0 million, or $0.04 per share, compared to a net loss of $1.3 million, or $(0.02) per share, in the prior year.
The fourth quarter of fiscal 2025 reflects the continued strengthening of Aegis following the successful execution of its portfolio simplification strategy. With a focused, asset-light franchising model and a stable national footprint under the St. Louis Bar & Grill banner, the Company is demonstrating improving earnings quality and a clearer long-term value proposition. With the transformation of the business complete, management is focused on building store profitability, enhancing brand relevance, and delivering sustainable earnings for shareholders.
St. Louis Bar & Grill
St. Louis delivered a strong finish to the year, highlighted by same store sales growth of 10.3% in the fourth quarter, marking a significant acceleration. System sales increased 12.1% to $34.7 million, reflecting stronger guest traffic and the growing effectiveness of the brand's promotional and operational initiatives.
The fourth quarter performance represents one of the brand's strongest same store sales results in recent years and demonstrates the impact of the Company's renewed focus on value-driven promotions, improved operational execution and enhanced franchisee engagement. Initiatives introduced earlier in the year gained traction in the second half, culminating in a meaningful increase in traffic and sales across the system during the quarter.
For the full year, system sales were consistent with the prior year and same store sales declined 3.3%. St. Louis generated $6.4 million in EBITDA for the year, demonstrating stable profitability as management reduced overhead and increased traffic at the store level in the second half.
During 2025, the Company opened three new locations and closed three underperforming restaurants, maintaining 81 franchised locations at year end. While net unit growth was flat in 2025, system quality improved.
As the Company enters 2026, management is advancing four primary pillars intended to support continued same store sales and profitability growth.
Expanded Promotional ScheduleThe Company plans to significantly expand its promotional calendar in 2026. Results in 2025 demonstrated that the brand's marketing initiatives and value-driven offerings can generate meaningful increases in guest traffic and system sales. By increasing the number of promotional windows throughout the year, the Company expects to create additional demand occasions and produce stronger top-line performance for franchisees.
Operational Excellence and Franchisee DevelopmentThe Company has introduced the School of Extraordinary Hospitality, a program focused on developing best-in-class franchisees. Continued investment in the training team provides in-store coaching and operational support, while a Multi-Unit Franchisee program prepares operators for responsible expansion. Stores transferred to new franchisees have historically generated a significant lift in sales.
RenovationsRenovated locations are generating meaningful increases in sales post-renovation. A refreshed environment drives higher guest satisfaction, and stronger performance, all of which results in increased profitability for our franchisees. Additional renovations are planned for 2026 as we continue to prioritize renovations where returns justify capital deployment.
New Store GrowthWith improving franchisee economics, the Company is returning to disciplined new store development. Ontario remains a priority market, and Atlantic Canada locations continue to over-index relative to the broader network. "Over the past two years, we have focused on improving the underlying quality of the system," said Steven Pelton, President and CEO of Aegis Brands. "By strengthening franchisee capability, accelerating renovations, expanding our promotional schedule and returning to disciplined new store growth, we believe the foundation is in place for continued same store sales and EBITDA improvement."
CPG and Retail ExpansionSt. Louis products are now available in five national retailers across Ontario and Atlantic Canada, representing over 1,000 retail doors, in addition to more than 300 independent grocers. There are currently seven products in market, including frozen wings, two flavours of chips and the garlic dill sauce. Retail packaging includes bounce-back incentives designed to drive restaurant traffic.
AegisEBITDA for the fourth quarter increased to $1.9 million compared to $1.2 million in Q4 2024. For the full year, EBITDA increased to $6.4 million compared to $6.1 million in 2024. Net income improved to $3.0 million for fiscal 2025 compared to a net loss in 2024, the result of a substantially reduced impact of discontinued operations and a more efficient overhead structure.
"We've aligned our overhead with a focused franchisor model and improved store-level economics across the system," said Pelton. "As unit profitability strengthens, it supports disciplined new store growth, which we expect will drive continued EBITDA and net income improvement year-over-year."
The Company enters 2026 with strengthened unit economics, expanded demand drivers and a structured framework for sustainable growth.
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.
Fourth quarter
13 weeks ended December 28, 2025 compared to 52 weeks ended December 29, 2024:
Net income (loss) to operating income:
(in thousands of Canadian dollars)
2025
2024
Net income (loss)
$
1,068
$
(247)
Add (deduct):
Net loss from discontinued operations
96
583
Interest and financing charges
426
586
Other loss (income)
(5)
(8)
Operating income
$
1,585
$
914
Net income (loss) to EBITDA:
(in thousands of Canadian dollars)
2025
2024
Net income (loss)
$
1,068
$
(247)
Add (deduct):
Net loss from discontinued operations
96
