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  5. HBFG: What are your thoughts on HBFG's recent results and would be a buyer here (with a long term intention)? [Happy Belly Food Group Inc.]
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Q: What are your thoughts on HBFG's recent results and would be a buyer here (with a long term intention)?

Thanks for the great service.
Asked by Scott on June 05, 2025
5i Research Answer:

Revenue of $4M beat estimates (one analyst). The quarter was a record, with system sales up 101% and net sales up 95%. Eight locations were added. EBITDA was positive and rose nearly 700% (from a very small base). Most locations are doing well. The numbers are fine, but this is still a small company with a low revenue base. It should be profitable on a net basis this year. The stock is expensive and the company a bit promotional, but the growth is there to back it up. It still has size risk and significant economic risk overall. Shares are down 7% YTD but up 76% over one year. We would see it as OK. It is a bit pricey for us considering its business, and there is not really a moat here. We would consider it decent, but also think buyers have some time here as it continues to build out its network of locations.