Added to YB: 2026-05-18
Pitch date: 2026-05-14
HBFG.CN [neutral]
Happy Belly Food Group Inc.
+11.33%
current return
Author Info
Wolf of Oakville takes a magnifying glass to Canadian small cap stocks. Sign up for the newsletter.
Company Info
Happy Belly Food Group Inc. operates as a multi-branded restaurant company that engages in acquiring and scaling emerging food brands across Canada.
Market Cap
CAD 251.0M
Pitch Price
CAD 1.50
Price Target
N/A
Dividend
N/A
EV/EBITDA
-27.03
P/E
-17.99
EV/Sales
10.14
Sector
Health Care Technology
Category
growth
Happy Belly Food Group ($HBFG.C) FINS Review
HBFG.CN (earnings): Q1 rev +82% YoY to $4.3M, 87 locations (+74% YoY). Gross margin fell to 45% (down from ~60% prior). Cash burn $940k vs $156k last year on A/R aging issues (33% >90 days past due). Balance sheet solid: $6.2M cash, 2.2x current ratio. 14M warrants + 3.2M options expiring next month bring $5.4M to treasury but dilute to 165.5M shares (~$260M mkt cap). Q1 missed Q3 levels despite +19% more stores; seasonality concerns. Understaffed accounting post-CFO passing. Needs Q2/Q3 to justify valuation. 3-star rating.
Read full article (8 min)