TORONTO, Nov. 6, 2026 /CNW/ -- Today, Aegis Brands Inc. ("Aegis" or "the Company") (TSX: AEG) reported financial results for the third quarter ending September 27, 2026 and the initiation of a strategic review process.

Highlights for the quarter:

• System sales increased 8.1% to $35.4 million and same store sales increased 8.4% compared to last year.
• Net income for the third quarter improved 49.4% to $1.0 million, or $0.01 per share, compared to net income of $0.7 million, or $0.01 per share, in Q3 2025.
• Adjusted EBITDA for the third quarter increased to $1.7 million from $1.5 million in Q3 2025, representing year-over-year growth of 14.9%.

• System sales increased 3.5% to $101.6 million and same store sales increased 1.8% compared to last year.
• Net income increased 46.3% to $2.8 million, or $0.03 per share, compared with $1.9 million, or $0.02 per share, in the prior year. 
• Adjusted EBITDA increased 19.1% to $4.9 million from $4.1 million in the prior year.

St. Louis Bar & Grill system sales for the quarter were up 8.1% to $35.4 million and same store sales increased 8.4% compared with the prior year. Royalties and franchise revenue for the quarter increased 2.6% and related operating expenses declined 6.3%, driven primarily by a more efficient overhead structure. These improvements, together with reduced interest and financing costs and no loss from discontinued operations, resulted in the 49.4% improvement in quarterly net income versus the prior year. 

Strategic Review Process

The company has significantly improved performance over the last three years as evidenced in our operating results. Additionally, the Board of Directors has recently received unsolicited expressions of interest from several parties but has not engaged in any discussions to date. In the context of those two developments, the Board has decided to initiate a formal process to explore and evaluate strategic alternatives and has established a special committee of independent Directors to oversee the process.

Aegis also announces that Sean Murphy has resigned from his role as President and Chief Executive Officer and a member of the Board of Directors effective immediately, to pursue another professional opportunity. The Board of Directors thanks Sean for his contribution to the Company and wishes him continued success in his future endeavours.

The Board of Directors has established an executive management committee comprised of Melinda Lee, Chief Financial Officer, Trevor Sainsbury, Senior Vice President of Operations, Tara Ramsay, Vice President, People and Communications, and Royal Nasager, Vice President of Marketing and Strategic Partnerships, who will continue to lead the day-to-day operations and execute Aegis' strategic priorities under the oversight of the Board of Directors. "The Board has complete confidence that our leadership team will ensure operational continuity, support our hardworking franchisees and continue to build on our success to date." said Anthony Longo, Chair of the Board of Directors.

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.

13 weeks ended September 27, 2026 compared to 13 weeks ended September 28, 2025:

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:

39 weeks ended September 27, 2026 compared to 39 weeks ended September 28, 2025:

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 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.