Aegis Brands Reports First Quarter Results

Continued Sales Growth and Profitability Improvement

TORONTO, April 30, 2026 /CNW/ - Today, Aegis Brands Inc. (TSX: AEG) reports financial results for the first quarter ending March 29, 2026.

Highlights for the quarter:

• Net income for the first quarter improved to $0.5 million, or $0.01 per share, compared to net income of $0.1 million, or $0.00 per share, in Q1 2025.
• System sales increased 5.0% to $31.6 million and same store sales increased 1.3% compared to last year.
• EBITDA for the first quarter increased to $1.2 million from $1.1 million in Q1 2025, representing year-over-year growth of 13.5%.

St. Louis Bar & Grill

St. Louis delivered a system sales increase of 5.0% to $31.6 million and same store sales growth of 1.3% in the first quarter. The continued sales growth in the last two quarters was driven by incremental promotional activity, operational improvements and contributions from locations opened in 2025.

Management was encouraged by the continued strength in the Company's core dine-in business, which was up 3.8% in the quarter, mainly supported by promotional activity including All-You-Can-Eat ("AYCE") campaigns and improvements in operations. These campaigns are structured as targeted, event-based promotions to drive traffic while improving store level economics. Additionally, management is focused on improving performance in the off-premise channel by enhancing visibility across third-party delivery platforms.

New Store Development

With improving franchisee economics, the Company continues to take a measured approach to new store development. Ontario remains a key focus for expansion, while Atlantic Canada locations continue to perform above system averages. The Company expects to increase the pace of development in 2026 relative to the prior years, with a continued emphasis on pairing quality locations with well-trained franchisees.

Franchisee Development

The Company continues to invest in franchisee capability through a comprehensive 11-week training program designed to develop high-performing owner-operators. The School of Extraordinary Hospitality forms a core component of this program and is also used to up-skill existing franchisees. Ongoing investment in the training team supports in-store coaching and operational execution, while the Multi-Unit Franchisee program is focused on preparing operators for disciplined expansion. Locations transferred to new franchisees have historically delivered a meaningful sales increase.

Renovations

Renovated locations have also shown significant sales increases following completion. Updated environments have contributed to improved guest experience, and more consistent performance outside of promotional periods, supporting stronger unit-level economics. The Company plans to continue its renovation program in 2026, prioritizing projects where returns support capital investment.

"We have built a stronger foundation for the system by enhancing franchisee capability, advancing our renovation program, and refining our promotional strategy," said Steven Pelton, President and CEO of Aegis Brands. "With this groundwork in place, we are well positioned to drive sustained same-store sales growth and pursue disciplined, strategic new store expansion, supporting continued momentum in both revenue and EBITDA."

CPG and Retail Expansion

St. Louis branded products are now available in five national retail banners across Ontario and Atlantic Canada, representing more than 1,000 locations, in addition to over 300 independent grocers. The product lineup currently includes seven items, consisting of four frozen wing offerings, two chip products and the St. Louis garlic dill sauce. Retail packaging incorporates promotional elements designed to encourage repeat restaurant visits.

Aegis

EBITDA for the first quarter increased to $1.2 million compared to $1.1 million in Q1 2025. Net income improved to $0.5 million for fiscal 2025 compared to $0.1 million in 2024, the result of a substantially reduced impact of discontinued operations, a more efficient overhead structure and improved sales.

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.

First Quarter

13 weeks ended March 29, 2026 compared to 13 weeks ended March 30, 2025:

Net income to operating income:

(in thousands of Canadian dollars)			2026			2025
Net income		$          476				$          134
Add (deduct):
Net loss from discontinued operations	-					104
Income tax expense (recovery)		-				-
Interest and financing charges		430				529
Operating income			$            906			$          767

Net income to EBITDA and Adjusted EBITDA:

(in thousands of Canadian dollars)		2026		2025
Net income	$          476		$          134
Add (deduct):
Net loss from discontinued operations	-		104
Income tax expense (recovery)	-		-
Interest and financing charges	430		529
Depreciation of property and equipment	16		13
Amortization of intangible assets	255		255
Amortization of right-of-use assets	21		21
EBITDA and Adjusted EBITDA	$       1,198		$       1,056

Net income to adjusted net income:

(in thousands of Canadian dollars)	2026		2025
Net income	$         476	$         134
Add (deduct):
Net loss from discontinued operations	-	104
Revaluations of securities, warrants, and other	-	-
Other income	-	-
Adjusted net income	$         476	$        238

Net earnings per share to adjusted net earnings per share:

(in thousands of Canadian dollars)	2026	2025
Net earnings per share	$          0.01	$       0.00
Add (deduct):
Net loss per share from discontinued operations	0.00	0.00
Revaluations of securities, warrants, and other per share	0.00	0.00
Other income per share	0.00	0.00
Adjusted net earnings per share	$          0.01	$       0.00

About Aegis Brands

Aegis Brands Inc. owns and operates the St. Louis Bar & Grill brand and holds the master franchise for the Sweet Jesus ice cream brand in Canada. Aegis is focused on growing its portfolio through strategic partnerships, disciplined expansion, and operational excellence. For more information, 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. These indicators should not be considered alternatives 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 28, 2025 available on the SEDAR+ website at www.sedarplus.ca. 

FORWARD LOOKING STATEMENTS 

This press release contains forward-looking statements within the meaning of Canadian securities laws. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". The forward-looking statements included in this press release, include without limitation statements regarding future year-over-year sales increases, 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). Although Aegis has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Such forward-looking statements and information are subject to risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement.  

Risks and uncertainties that may cause such differences include but are not limited to: risks related to the company's strategy going forward; capital requirements; 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 at 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.

For further information: Tara Ramsay, Aegis Brands, [email protected]