Second Cup ended last year with its first profitable quarter since 2012.
The chain of coffee shops had $94,000 of net income in the three months ended Dec. 26, or one cent per share, compared with a loss of $469,000 or four cents per share in the fourth quarter a year earlier.
Same-store sales for locations open at least a year were up two per cent — the first time Second Cup has had positive same-store sales in 14 quarters going back to early 2013.
Second Cup has been working to revitalize its brand and franchise network amid stiff competition from other coffee companies including Starbucks and restaurant chains including Tim Hortons and McDonald's.
The company's full-year loss was reduced to $1.153 million or nine cents per share, an improvement from the $27 million loss or $2.66 per share in 2014.
System-wide sales by the cafes fell to $46.9 million in the fourth quarter, from $49.4 million a year earlier when Second Cup had 37 more locations in its network.
Revenue for the quarter rose to $9.6 million from $8.4 million.
At the end of 2015, Second Cup had 310 cafes, including 32 owned by the parent company.