HAPPY BELLY FOOD GRP INC - HBFGF STOCK NEWS

Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) has appointed John Delutis as Vice President of Restaurant Operations. This strategic move comes as the company experiences significant growth across its portfolio of emerging brands and restaurant operations. Delutis, former Brand President of Mucho Burrito, brings extensive experience in the franchised food sector, having worked with brands like Tim Hortons and Second Cup.

In his new role, Delutis will focus on driving operational efficiency, enhancing guest experience, and supporting brand expansion across franchised and corporate-owned locations. His appointment is expected to strengthen Happy Belly's operational strategies, ensure scalability, and maintain high standards as the company continues its growth trajectory through organic expansion and acquisitions.

Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) has closed its 100% acquisition of IQ Foods Co., a Toronto-based QSR brand with four locations. The acquisition, valued at approximately $300,000 CDN, is expected to have an immediate positive impact on Happy Belly's top-line revenue and EBITDA. IQ Foods, known for its healthy bowls, smoothies, and clean-eating dishes, has a projected system sales of $4.0M CDN across its four prime locations in downtown Toronto. The brand has been experiencing double-digit sales growth (10.3%) year-to-date and maintains healthy gross margins. With this acquisition, Happy Belly's portfolio grows to 36 operating restaurants, with plans for further expansion in 2024 and beyond.

Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) has signed a franchise agreement for a Heal Wellness location in Niagara Falls, Ontario. This marks the 44th franchise agreement for the brand, which has expanded from 2 to 11 operating locations across 3 provinces in the past 12 months. The company has contractual commitments for 376 units across its 7 restaurant brands, with 100 of those for Heal Wellness.

CEO Sean Black highlighted Niagara Falls' potential as a market for Heal, citing its tourism, active lifestyle, and thriving retail environment. The company expects to open several new locations across multiple brands throughout 2024-2025, leveraging its management's 30+ years of franchising experience.

Happy Belly Food Group (CSE: HBFG) (OTCQB: HBFGF) has acquired 100% of IQ Foods Co., a Toronto-based QSR brand with four locations. This acquisition marks Happy Belly's largest single acquisition of corporate-owned stores to date. IQ Foods offers healthy bowls, smoothies, sandwiches, soups, and salads, catering to health-conscious consumers.

The acquisition includes four strategically located stores in Toronto's financial district and near fitness centers. The combined projected system sales across the four locations is $4.0 million, with a 10.3% year-to-date sales growth. Forecasted EBITDA is $300,000 after corporate expenses.

This acquisition is part of Happy Belly's strategy to consolidate emerging brands within sectors, focusing on the premium healthy and clean eating vertical. With this acquisition, Happy Belly will have 36 restaurants in its portfolio, increasing to 45 following the closing of the Salus Fresh Foods acquisition.

Happy Belly Food Group (CSE: HBFG) (OTCQB: HBFGF) has announced the opening of its 11th Heal Wellness location in Toronto, Ontario. This marks the company's 5th franchised Heal Wellness store and 7th restaurant opening in 2024. The new location at 577 St. Clair Avenue West is expected to extend Heal's customer base in a densely populated area.

Key highlights:

• Happy Belly has a commitment for 376 units in its pipeline across Canada and the US
• Five of Happy Belly's brands currently have store locations under construction
• The company is experiencing a progressive stream of franchisee applications for all brands in its portfolio
• Happy Belly is leveraging its 30+ years of successful franchising experience to accelerate growth
• The company anticipates accelerating its corporate store development timeline as Heal Wellness brand's free cash flow grows

Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) has appointed Sean Black as its new Chief Executive Officer. Former CEO Shawn Moniz will transition to the role of Chief Operating Officer and President. Mr. Black, with over 30 years of experience in the restaurant and franchising industry, has been leading Happy Belly's mergers and acquisitions strategy, real estate division, and franchise development for the past two years.

In his new role, Mr. Black will drive Happy Belly's strategic vision and growth initiatives in the QSR sector. His extensive background includes C-suite executive roles in both private and public companies, and experience in implementing organic and inorganic growth strategies. The company aims to strengthen its presence and market share in the QSR sector under Mr. Black's leadership.

Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) announced its Q2 2024 financial results, marking its 9th consecutive record quarter. Key highlights include:

- Total revenues increased 70% to $2.30M vs $1.35M in Q2 2023
- QSR EBITDA reached $0.28M, up 33% from Q2 2023
- CPG EBITDA reached $47,826, up 385% from Q2 2023
- Gross profit improved 34% to $0.99M
- System sales across QSR brands totaled $7.55M, up 432% from Q2 2023
- Normalized adjusted EBITDA increased 178% to $29,845
- Net working capital position of $1.80M
- Total cash and cash equivalents of $4.13M

The company's growth is attributed to organic sales growth, new franchise fees, and recent acquisitions including Via Cibo and Yolks Breakfast Inc.

Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) has announced a three-unit franchise agreement for Joey Turks Island Grill in Scarborough, Ontario. This follows the opening of the first Joey Turks franchised location on August 14th, 2024. The agreement demonstrates confidence in the brand and validates the company's strategy in the Caribbean food market.

Sean Black, Chief Investment Officer, highlighted the rapid expansion of Joey Turks, including a 30-unit Area Development agreement in Ontario. With this new agreement, Joey Turks will have five units in total. Happy Belly's franchising program aims to drive both top and bottom-line profitability, supported by a robust support system and proven business model.

The company has an initial pipeline of 376 contractually committed retail locations across its emerging brands portfolio, indicating significant growth potential in its asset-light franchising model.

Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFG) has announced the signing of a franchisee for its eighth Rosie's Burgers location in Vaughan, Ontario. This marks the fifth franchise agreement in eight weeks across two provinces, with two sites already under construction. The company's Chief Investment Officer, Sean Black, highlighted that Rosie's growth is outpacing their previous burger brand, Burgers Priest, due to their asset-light franchise model.

Vaughan was chosen for its vibrant, growing community and strategic location. The city's diverse population, thriving retail and entertainment sectors, and well-developed infrastructure make it an ideal location for a Rosie's Burgers restaurant. Happy Belly Food Group aims to continue its accelerated growth both organically and through strategic M&A, with the Rosie's brand exemplifying their ability to deliver rapid organic growth through their franchise program.