BurgerFi International, Inc. (Nasdaq: BFI, BFIIW) (“BurgerFi” or
the “Company”), owner of one of the nation’s leading fast-casual
“better burger” dining concepts through the BurgerFi brand, and the
high-quality, casual dining pizza and wings concept under the name
Anthony’s Coal Fired Pizza & Wings (“Anthony’s”) brand, today
reported financial results for the third quarter ended October 2,
2023.
Highlights for the Third Quarter
2023
- Total revenue was $39.5 million in the
third quarter 2023 compared to $43.3 million in the prior period
- Consolidated systemwide sales decreased to $65.3 million
compared to $70.6 million in the prior period
- Same-store sales decreased 5% at
Anthony’s in the third quarter of 2023 compared to the prior
period
- Systemwide sales for BurgerFi
decreased 9% to $35.7 million in the third quarter compared to the
prior period
- Systemwide same-store sales decrease of 11% at BurgerFi in the
third quarter of 2023 compared to the prior period
- Opened five BurgerFi franchised
locations and acquired four from franchisees year to date, and
expects to open an additional nine BurgerFi locations, including
the first dual-brand franchise location and a flagship restaurant
in New York City with the unveiling of its Better Burger Lab
experience.
- Hourly turnover declined significantly
from the prior period at both brands, with Anthony’s performing
better than industry benchmarks, while BurgerFi made considerable
progress and is on track to achieve similar improvements.
Management turnover improved at BurgerFi, approaching industry
benchmarks.
- Consolidated food, beverage and paper
expense margin improved 220 basis points compared to the prior
period
- Consolidated restaurant-level
operating expenses increased 100 basis points compared to the prior
period
- Net loss increased to $5.0 million, or
$(0.19) per diluted share, in the third quarter 2023 compared to
net loss of $3.3 million or $(0.15) per diluted share in the prior
period
- Adjusted EBITDA1 of $0.8 million in
the third quarter 2023 compared to $1.6 million in the prior
period
Management Commentary
Carl Bachmann, Chief Executive Officer of
BurgerFi stated, “Our third quarter performance is not reflective
of what we believe these brands and the people at this organization
can and will accomplish. Having arrived here ten days into the
quarter, these results are in no way indicative of our work to date
or where we intend to take the business. Using my prior experience
at enhancing pizza and burger concepts, BurgerFi is now
implementing strategic priorities that should position the Company
for long term, profitable growth.”
Bachmann continued, “Many of the initial
initiatives we put in place are already taking hold, including the
expanded menus at BurgerFi and Anthony’s. Most recently, we
successfully executed the biggest enhancement of the BurgerFi menu
in company history, adding wings and salad bowls, and the response
has been resounding. At the end of the month, we will also launch
chicken sandwiches. At Anthony’s, we added a Chicken Alfredo and
Artichoke Pizza, and two pasta dishes -- Spaghetti and Meatballs
and Italian Fettuccine Alfredo. We have already decreased turnover
at both brands and significantly reduced training labor which has
resulted in higher consumer satisfaction scores as well as faster
throughput and ticket times. These are leading indicators that we
are on the right path towards higher sales and margins.”
Christopher Jones, Chief Financial Officer of
BurgerFi, added, “Looking forward, with the combination of new unit
growth and improving same store sales trends driven by our expanded
offering and overall more effective marketing messages, we
anticipate BurgerFi returning to positive comps in early 2024 and
positive EBITDA by the second half of 2024. Additionally, we are
equally confident in the return to positive comps and increased
EBITDA at Anthony’s, driven by similar initiatives, including menu
modification, an aggressive focus on food cost and the benefits
from an updated POS platform. Perhaps most importantly, we are also
setting the stage with the franchising of company-owned stores
starting as early as the first quarter of 2024.”
Third Quarter 2023 Key
Metrics1 Summary
| |
Consolidated |
|
| |
Quarter Ended |
|
Nine Months Ended |
|
| (in thousands, except
for percentage data) |
October 2, 2023 |
|
October 3, 2022 |
|
October 2, 2023 |
|
October 3, 2022 |
|
|
Systemwide Restaurant Sales |
$ |
65,278 |
|
|
$ |
70,627 |
|
|
$ |
209,406 |
|
|
$ |
218,014 |
|
|
| Systemwide Restaurant Sales
Growth |
|
(8 |
)% |
|
|
(2 |
)% |
|
|
(4 |
)% |
|
|
1 |
% |
|
| Systemwide Restaurant
Same-Store Sales Growth |
|
(8 |
)% |
|
|
(2 |
)% |
|
|
(4 |
)% |
|
|
— |
% |
|
| Corporate-Owned Restaurant
Sales |
$ |
37,324 |
|
|
$ |
40,284 |
|
|
$ |
121,442 |
|
|
$ |
124,319 |
|
|
| Corporate-Owned Restaurant
Sales Growth |
|
(7 |
)% |
|
|
4 |
% |
|
|
(2 |
)% |
|
|
7 |
% |
|
| Corporate-Owned Restaurant
Same-Store Sales Growth |
|
(7 |
)% |
|
|
1 |
% |
|
|
(3 |
)% |
|
|
3 |
% |
|
| Franchise Restaurant
Sales |
$ |
27,954 |
|
|
$ |
30,343 |
|
|
$ |
87,964 |
|
|
$ |
93,695 |
|
|
| Franchise Restaurant Sales
Growth |
|
(8 |
)% |
|
|
(8 |
)% |
|
|
(6 |
)% |
|
|
(6 |
)% |
|
| Franchise Restaurant
Same-Store Sales Growth |
|
(9 |
)% |
|
|
(5 |
)% |
|
|
(6 |
)% |
|
|
(4 |
)% |
|
| Digital Channel % of
Systemwide Sales |
|
32 |
% |
|
|
34 |
% |
|
|
32 |
% |
|
|
35 |
% |
|
| |
| |
Quarter Ended |
|
| |
October 2, 2023 |
|
October 3, 2022 |
|
|
(in thousands, except for percentage data) |
BurgerFi |
|
Anthony's |
|
BurgerFi |
|
Anthony's2 |
|
|
Systemwide Restaurant Sales |
$ |
35,738 |
|
|
$ |
29,540 |
|
|
$ |
39,147 |
|
|
$ |
31,480 |
|
|
|
Systemwide Restaurant Sales Growth |
|
(9 |
)% |
|
|
(6 |
)% |
|
|
(5 |
)% |
|
|
4 |
% |
|
|
Systemwide Restaurant Same-Store Sales Growth |
|
(11 |
)% |
|
|
(5 |
)% |
|
|
(6 |
)% |
|
|
4 |
% |
|
|
Corporate-Owned Restaurant Sales |
$ |
7,784 |
|
|
$ |
29,540 |
|
|
$ |
8,804 |
|
|
$ |
31,480 |
|
|
|
Corporate-Owned Restaurant Sales Growth |
|
(12 |
)% |
|
|
(6 |
)% |
|
|
4 |
% |
|
|
4 |
% |
|
|
Corporate-Owned Restaurant Same-Store Sales Growth |
|
(15 |
)% |
|
|
(5 |
)% |
|
|
(11 |
)% |
|
|
4 |
% |
|
|
Franchise Restaurant Sales |
$ |
27,954 |
|
|
|
N/ |
A |
|
$ |
30,343 |
|
|
|
N/ |
A |
|
|
Franchise Restaurant Sales Growth |
|
(8 |
)% |
|
|
N/ |
A |
|
|
(8 |
)% |
|
|
N/ |
A |
|
|
Franchise Restaurant Same-Store Sales Growth |
|
(9 |
)% |
|
|
N/ |
A |
|
|
(5 |
)% |
|
|
N/ |
A |
|
|
Digital Channel % of Systemwide Sales |
|
31 |
% |
|
|
33 |
% |
|
|
33 |
% |
|
|
36 |
% |
|
| |
| |
Nine Months Ended |
|
| |
October 2, 2023 |
|
October 3, 2022 |
|
|
(in thousands, except for percentage data) |
BurgerFi |
|
Anthony's |
|
BurgerFi |
|
Anthony's2 |
|
|
Systemwide Restaurant Sales |
$ |
114,861 |
|
|
$ |
94,545 |
|
|
$ |
122,159 |
|
|
$ |
95,855 |
|
|
|
Systemwide Restaurant Sales Growth |
|
(6 |
)% |
|
|
(1 |
)% |
|
|
(3 |
)% |
|
|
6 |
% |
|
|
Systemwide Restaurant Same-Store Sales Growth |
|
(8 |
)% |
|
|
— |
% |
|
|
(5 |
)% |
|
|
6 |
% |
|
|
Corporate-Owned Restaurant Sales |
$ |
26,897 |
|
|
$ |
94,545 |
|
|
$ |
28,464 |
|
|
$ |
95,855 |
|
|
|
Corporate-Owned Restaurant Sales Growth |
|
(6 |
)% |
|
|
(1 |
)% |
|
|
12 |
% |
|
|
6 |
% |
|
|
Corporate-Owned Restaurant Same-Store Sales Growth |
|
(12 |
)% |
|
|
— |
% |
|
|
(10 |
)% |
|
|
6 |
% |
|
|
Franchise Restaurant Sales |
$ |
87,964 |
|
|
|
N/ |
A |
|
$ |
93,695 |
|
|
|
N/ |
A |
|
|
Franchise Restaurant Sales Growth |
|
(6 |
)% |
|
|
N/ |
A |
|
|
(6 |
)% |
|
|
N/ |
A |
|
|
Franchise Restaurant Same-Store Sales Growth |
|
(6 |
)% |
|
|
N/ |
A |
|
|
(4 |
)% |
|
|
N/ |
A |
|
|
Digital Channel % of Systemwide Sales |
|
31 |
% |
|
|
33 |
% |
|
|
34 |
% |
|
|
37 |
% |
|
| |
| 1.
Refer to “Key Metrics Definitions” and “About Non-GAAP
Financial Measures” sections below. |
| 2.
Included within Systemwide Restaurant Sales Growth,
Systemwide Restaurant Same-Store Sales Growth, Corporate-Owned
Restaurant Sales Growth and
Corporate-Owned Restaurant Same-Store Sales Growth data presented
above is information for Anthony's for the
respective periods in 2021 which is presented only for
informational purposes as Anthony's was not under common ownership
until November 2021, the date of
acquisition. |
| |
Third Quarter 2023 Financial
Results
Total revenue in the third quarter of 2023
decreased 9% to $39.5 million compared to $43.3 million in the
year-ago quarter, primarily driven by a decrease in same-store
sales at BurgerFi and Anthony’s partially offset by the additional
revenue from new restaurants opened during the period. For the
BurgerFi brand, same-store sales decreased 15% and 9% in
corporate-owned and franchised locations, respectively. For the
Anthony’s brand, same-store sales for the third quarter decreased
5% over the prior year period.
Restaurant-level operating expenses for the
third quarter of 2023 were $32.9 million compared to $35.2 million
in the third quarter of 2022. For the Anthony's brand,
restaurant-level operating expenses, as a percentage of sales,
increased 20 basis points for the third quarter of 2023, compared
to the third quarter of 2022, due to lower leverage on sales
partially offset by lower food, beverage and paper costs. For the
BurgerFi brand, restaurant-level operating expenses, as a
percentage of sales, increased 440 basis points for the third
quarter of 2023, compared to the third quarter of 2022, primarily
due to lower leverage on sales.
Net loss in the third quarter was $5.0 million
compared to a net loss of $3.3 million in the year-ago quarter,
primarily due to decrease in same store sales and the absence of
gains on employee retention credits compared to the prior period,
partially offset by lower depreciation and amortization expenses,
lower share-based compensation expense and gain on change in value
of warrant liability.
Adjusted EBITDA in the third quarter of 2023
decreased $0.8 million to $0.8 million compared to $1.6 million in
the third quarter of 2022, driven by lost leverage on sales
partially offset by lower food costs. See the definition of
Adjusted EBITDA, a financial measure that is a non-generally
accepted accounting principle in the United States (“GAAP”), and
the reconciliation to the most comparable GAAP measure below.
Restaurant Development
As of October 2, 2023, the Company operated
and franchised 169 total restaurants of which 110 were BurgerFi (26
corporate-owned and 84 franchised) and 59 were corporate-owned
Anthony’s. During the third quarter 2023, there was one
corporate-owned Anthony’s and three franchise BurgerFi
closures.
Year to date, BurgerFi opened five franchised
locations. For the fourth quarter to date, the Company acquired two
locations from franchisees and expects to open an additional nine
BurgerFi locations, including the first dual-brand franchise
location and a flagship restaurant in New York City with the
unveiling of its Better Burger Lab experience.
2023 Outlook
Management is updating its outlook for the
fiscal year 2023:
- Annual revenues of $160 -170
million
- Consolidated low single-digit same-store sales decline for
corporate-owned locations
- 12-15 new franchised restaurants, including one new
Anthony's
- Adjusted EBITDA of $6 -8 million
- Capital expenditures of approximately $2 million
Conference Call
The Company will hold a conference call today, November 15,
2023, at 8:30 a.m. Eastern time to discuss its third quarter 2023
results.
Date: Wednesday, November 15, 2023Time: 8:30 a.m. Eastern
timeToll-free dial-in number: 1-833-816-1403International dial-in
number: (412) 317-0496Conference ID: 10182500
Please call the conference telephone number 5-10
minutes prior to the start time. An operator will register your
name and organization.
The conference call will be broadcast live and
available for two weeks for replay on the Company’s Investor
Relations website at ir.burgerfi.com.
Key Metrics Definitions
The following definitions apply to the terms listed below:
“Systemwide Restaurant Sales” is presented as
informational data in order to understand the aggregation of
franchised stores sales, ghost kitchen and corporate-owned store
sales performance. Systemwide Restaurant Sales growth refers to the
percentage change in sales at all franchised restaurants, ghost
kitchens and corporate-owned restaurants in one period from the
same period in the prior year. Systemwide Restaurant Same-Store
Sales growth refers to the percentage change in sales at all
franchised restaurants, ghost kitchens, and corporate-owned
restaurants after 14 months of operations. See definition below for
“Same-Store Sales”.
“Corporate-Owned Restaurant Sales” represent the
sales generated only by corporate-owned restaurants.
Corporate-Owned Restaurant Sales growth refers to the percentage
change in sales at all corporate-owned restaurants in one period
from the same period in the prior year. Corporate-Owned Restaurant
Same-Store Sales growth refers to the percentage change in sales at
all corporate-owned restaurants after 14 months of operations.
These measures highlight the performance of existing
corporate-owned restaurants.
“Franchise Restaurant Sales” represent the sales
generated only by franchisee-owned restaurants and are not recorded
as revenue, however, the royalties based on a percentage of these
franchise restaurant sales are recorded as revenue. Franchise
Restaurant Sales growth refers to the percentage change in sales at
all franchised restaurants in one period from the same period in
the prior year. Franchise Restaurant Same-Store Sales growth refers
to the percentage change in sales at all franchised restaurants
after 14 months of operations. These measures highlight the
performance of existing franchised restaurants.
“Same-Store Sales” is used to evaluate the
performance of our store base, which excludes the impact of new
stores and closed stores, in both periods under comparison. We
include a restaurant in the calculation of Same-Store Sales after
14 months of operations. A restaurant which is temporarily closed,
is included in the Same-Store Sales computation. A restaurant which
is closed permanently, such as upon termination of the lease, or
other permanent closure, is immediately removed from the Same-Store
Sales computation. Our calculation of Same-Store Sales may not be
comparable to others in the industry.
“Digital Channel” % of systemwide sales is used
to measure performance of our investments made in our digital
platform and partnerships with third party delivery partners. We
believe our digital platform capabilities are a vital element to
continuing to serve our customers and will continue to be a
differentiator for the Company as compared to some of our
competitors. Digital Channel as percentages of Systemwide
Restaurant Sales are indicative of the sales placed through our
digital platforms and the percentage of those digital sales when
compared to total sales at all our franchised and corporate-owned
restaurants.
“Adjusted EBITDA,” a non-GAAP measure, is
defined as net loss before goodwill impairment, lease termination
recovery, employee retention credits, share-based compensation
expense, depreciation and amortization expense, interest expense
(which includes accretion on the value of preferred stock and
interest accretion on the related party note), restructuring costs,
merger, acquisition and integration costs, legal settlements, net
of gains, store closure costs, loss (gain) on change in value of
warrant liability, pre-opening costs, (gain) loss on sale of assets
and income tax expense (benefit).
Unless otherwise stated, Systemwide Restaurant
Sales, Systemwide Sales growth, and Same-Store Sales are presented
on a systemwide basis, which means they include franchise
restaurants and company-owned restaurants. Franchise restaurant
sales represent sales at all franchise restaurants and are revenues
to our franchisees. We do not record franchise sales as revenues;
however, our royalty revenues and brand royalty revenues are
calculated based on a percentage of franchise sales.
About BurgerFi International (Nasdaq: BFI,
BFIIW)
BurgerFi International, Inc. is a leading
multi-brand restaurant company that develops, markets, and acquires
fast-casual and premium-casual dining restaurant concepts around
the world, including corporate-owned stores and franchises.
BurgerFi International is the owner and franchisor of the two
following brands with a combined 169 locations.
BurgerFi. BurgerFi is among the nation’s
fast-casual better burger concepts with 110 BurgerFi restaurants
(84 franchised and 26 corporate-owned) as of October 2, 2023.
BurgerFi is chef-founded and committed to serving fresh,
all-natural and quality food at all locations, online and via
first-party and third-party deliveries. BurgerFi uses 100% American
Angus Beef with no steroids, antibiotics, growth hormones,
chemicals or additives. BurgerFi's menu also includes high-quality
Wagyu Beef Blend Burgers, Antibiotic and Cage-Free Chicken
offerings, Hand-Cut Sides, and Frozen Custard Shakes. BurgerFi was
named "The Very Best Burger" at the 2023 edition of the nationally
acclaimed SOBE Wine and Food Festival and “Best Fast Food Burger”
in USA Today’s 10Best 2023 Readers’ Choice Awards for its BBQ Rodeo
Burger, "Best Fast Casual Restaurant" in USA Today's 10Best 2023
Readers' Choice Awards for the third consecutive year, QSR
Magazine's Breakout Brand of 2020 and Fast Casual's 2021 #1 Brand
of the Year. In 2021, Consumer Reports awarded BurgerFi an “A Grade
Angus Beef” rating for the third consecutive year. To learn more
about BurgerFi or to find a full list of locations, please visit
www.burgerfi.com. Download the BurgerFi App on iOS or Android
devices for rewards and 'Like' or follow @BurgerFi on Instagram,
Facebook and Twitter. BurgerFi® is a Registered Trademark of
BurgerFi IP, LLC, a wholly-owned subsidiary of BurgerFi.
Anthony’s. Anthony’s was acquired by BurgerFi on
November 3, 2021 and is a premium pizza and wing brand that
operates 59 corporate-owned casual restaurant locations, as of
October 2, 2023. Known for serving fresh, never frozen and
quality ingredients, Anthony’s is centered around a 900-degree
coal-fired oven with menu offerings including “well-done” pizza,
coal-fired chicken wings, homemade meatballs, and a variety of
handcrafted sandwiches and salads. Anthony’s was named “The Best
Pizza Chain in America” by USA Today's Great American Bites and
“Top 3 Best Major Pizza Chain” by Mashed in 2021. To learn more
about Anthony’s, please visit www.acfp.com.
About Non-GAAP Projected Financial Measures
To supplement our consolidated financial
statements, which are prepared and presented in accordance with
GAAP, we use the measure Adjusted EBITDA. The presentation of this
financial information is not intended to be considered in isolation
or as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP.
We use this non-GAAP financial measure for
financial and operational decision-making and as a means to
evaluate period-to-period comparisons. We believe that this
non-GAAP financial measure provides meaningful supplemental
information regarding our performance and liquidity by excluding
certain items that may not be indicative of our recurring core
business operating results. We believe that both management and
investors benefit from referring to this non-GAAP financial measure
in assessing our performance and when planning, forecasting, and
analyzing future periods. This non-GAAP financial measure also
facilitates management’s internal comparisons to our historical
performance and liquidity as well as comparisons to our
competitors’ operating results. We believe this non-GAAP financial
measure is useful to investors both because (1) it allows for
greater transparency with respect to key metrics used by management
in its financial and operational decision-making and (2) it is used
by our institutional investors and the analyst community to help
them analyze the health of our business.
There are a number of limitations related to the
use of this non-GAAP financial measure. We compensate for these
limitations by providing specific information regarding the GAAP
amounts excluded from this non-GAAP financial measure and
evaluating this non-GAAP financial measure together with its
relevant financial measures in accordance with GAAP.
A reconciliation of Adjusted EBITDA guidance is
not being provided due to the nature of this forward-looking
non-GAAP measure containing certain elements that are impractical
to predict given their market-based nature, such as share-based
compensation expense and gain and losses on change in value of
warrant liabilities, without unreasonable efforts. For the same
reasons, we are unable to address the probable significance of the
unavailable information, nor can we accurately predict all of the
components of the applicable non-GAAP financial measure and
reconciling adjustments thereto; accordingly, guidance for the
corresponding GAAP measure may be materially different than
guidance for the non-GAAP measure. Such forward looking information
is also subject to uncertainty and various risks, and there can be
no assurance that any forecasted results or conditions will
actually be achieved.
Forward-Looking Statements
This press release may contain “forward-looking
statements” as defined in the Private Securities Litigation Reform
Act of 1995, including statements relating to BurgerFi's estimates
of its future business outlook, liquidity, prospects or financial
results, long-term opportunities, executing on growth and
improvement strategies, new franchise opportunities, increased
revenue, liquidity, improved operating margins in both brands,
improved labor trends, seasonality trends, product improvements,
including new products and services, expected customer acceptance,
improved operating efficiencies, store opening plans, and
expectations regarding adjusted EBITDA in 2023 and EBITDA in 2024,
as well as statements set forth under the section titled “2023
Outlook” above. Forward-looking statements generally can be
identified by words such as “anticipates,” “believes,” “estimates,”
“expects,” “intends,” “plans,” “predicts,” “projects,” “will be,”
“will continue,” “will likely result,” and similar expressions.
These forward-looking statements are based on current expectations
and assumptions that are subject to risks and uncertainties, which
could cause our actual results to differ materially from those
reflected in the forward-looking statements. Factors that could
cause or contribute to such differences include, but are not
limited to, those discussed in our Annual Report on Form 10-K for
the year ended January 2, 2023, and those discussed in other
documents we file with the Securities and Exchange Commission,
including our ability to continue to access liquidity from our
credit agreement and remain compliant with financial covenants
therein, as well as to successfully realize the expected benefits
of the acquisition of Anthony’s or any other factors. All
subsequent written and oral forward-looking statements attributable
to BurgerFi or persons acting on BurgerFi’s behalf are expressly
qualified in their entirety by the cautionary statements included
in this press release. We undertake no obligation to revise or
publicly release the results of any revision to these
forward-looking statements, except as required by law. Given these
risks and uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements.
Investor Relations:ICRMichelle
Michalski IR-BFI@icrinc.com646-277-1224
Company Contact:BurgerFi International
Inc.IR@burgerfi.com
Media Relations Contact:Ink Link MarketingKim
Miller Kmiller@inklinkmarketing.com
|
BurgerFi International Inc., and Subsidiaries |
|
Consolidated Balance Sheets |
| |
| |
Unaudited |
|
|
|
|
(in thousands, except for per share data) |
October 2, 2023 |
|
January 2, 2023 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
Cash |
$ |
9,746 |
|
|
$ |
11,917 |
|
|
|
Accounts receivable, net |
|
1,229 |
|
|
|
1,926 |
|
|
|
Inventory |
|
1,376 |
|
|
|
1,320 |
|
|
|
Assets held for sale |
|
732 |
|
|
|
732 |
|
|
|
Prepaid expenses and other current assets |
|
972 |
|
|
|
2,564 |
|
|
|
Total Current Assets |
$ |
14,055 |
|
|
$ |
18,459 |
|
|
|
Property & equipment, net |
|
17,987 |
|
|
|
19,371 |
|
|
|
Operating right-of-use assets, net |
|
46,070 |
|
|
|
45,741 |
|
|
|
Goodwill |
|
31,621 |
|
|
|
31,621 |
|
|
|
Intangible assets, net |
|
153,091 |
|
|
|
160,208 |
|
|
|
Other assets |
|
1,114 |
|
|
|
1,380 |
|
|
|
Total Assets |
$ |
263,938 |
|
|
$ |
276,780 |
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current Liabilities |
|
|
|
|
Accounts payable - trade and other |
$ |
8,216 |
|
|
$ |
8,464 |
|
|
|
Accrued expenses |
|
8,179 |
|
|
|
10,589 |
|
|
|
Short-term operating lease liability |
|
12,252 |
|
|
|
9,924 |
|
|
|
Short-term borrowings, including finance leases |
|
3,539 |
|
|
|
4,985 |
|
|
|
Other current liabilities |
|
2,700 |
|
|
|
6,241 |
|
|
|
Total Current Liabilities |
$ |
34,886 |
|
|
$ |
40,203 |
|
|
| Non-Current
Liabilities |
|
|
|
|
|
|
|
|
|
Long-term borrowings, including finance leases |
|
49,396 |
|
|
|
53,794 |
|
|
|
Redeemable preferred stock, $0.0001 par value, 10,000,000 shares
authorized, 2,120,000 shares issued and outstanding as of
October 2, 2023 and January 2, 2023, $53 million principal
redemption value, respectively |
|
54,545 |
|
|
|
51,418 |
|
|
|
Long-term operating lease liability |
|
40,672 |
|
|
|
40,748 |
|
|
|
Related party note payable |
|
14,450 |
|
|
|
9,235 |
|
|
|
Deferred income taxes |
|
1,223 |
|
|
|
1,223 |
|
|
|
Other non-current liabilities |
|
1,120 |
|
|
|
1,212 |
|
|
|
Total Liabilities |
$ |
196,292 |
|
|
$ |
197,833 |
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Common stock, $0.0001 par value, 100,000,000 shares
authorized,26,805,474, and 22,257,772 shares issued and outstanding
as of October 2, 2023 and January 2, 2023, respectively |
|
2 |
|
|
|
2 |
|
|
|
Additional paid-in capital |
|
314,905 |
|
|
|
306,096 |
|
|
|
Accumulated deficit |
|
(247,261 |
) |
|
|
(227,151 |
) |
|
|
Total Stockholders' Equity |
$ |
67,646 |
|
|
$ |
78,947 |
|
|
|
Total Liabilities and
Stockholders Equity |
$ |
263,938 |
|
|
$ |
276,780 |
|
|
| |
|
BurgerFi International Inc., and Subsidiaries |
|
Consolidated Statements of Operations |
|
(Unaudited) |
|
|
| |
Quarter Ended |
|
Nine Months Ended |
|
|
(in thousands, except for per share data) |
October 2, 2023 |
|
October 3, 2022 |
|
October 2, 2023 |
|
October 3, 2022 |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant sales |
$ |
37,324 |
|
|
$ |
40,361 |
|
|
$ |
121,448 |
|
|
$ |
124,954 |
|
|
|
Royalty and other fees |
|
1,698 |
|
|
|
2,465 |
|
|
|
5,858 |
|
|
|
7,179 |
|
|
|
Royalty - brand development and co-op |
|
458 |
|
|
|
429 |
|
|
|
1,328 |
|
|
|
1,351 |
|
|
|
Total Revenue |
$ |
39,480 |
|
|
$ |
43,255 |
|
|
$ |
128,634 |
|
|
$ |
133,484 |
|
|
|
Restaurant level operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food, beverage and paper costs |
|
9,947 |
|
|
|
11,665 |
|
|
|
32,329 |
|
|
|
37,017 |
|
|
|
Labor and related expenses |
|
11,853 |
|
|
|
12,217 |
|
|
|
37,769 |
|
|
|
37,126 |
|
|
|
Other operating expenses |
|
7,199 |
|
|
|
7,464 |
|
|
|
22,415 |
|
|
|
22,077 |
|
|
|
Occupancy and related expenses |
|
3,933 |
|
|
|
3,848 |
|
|
|
11,697 |
|
|
|
11,575 |
|
|
|
General and administrative expenses |
|
4,638 |
|
|
|
5,511 |
|
|
|
17,027 |
|
|
|
18,943 |
|
|
|
Depreciation and amortization expense |
|
3,272 |
|
|
|
4,253 |
|
|
|
9,794 |
|
|
|
13,427 |
|
|
|
Share-based compensation expense |
|
172 |
|
|
|
1,010 |
|
|
|
5,401 |
|
|
|
9,295 |
|
|
|
Brand development, co-op and advertising expenses |
|
999 |
|
|
|
1,159 |
|
|
|
3,028 |
|
|
|
2,998 |
|
|
|
Goodwill and intangible asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
55,168 |
|
|
|
Restructuring costs and other charges, net |
|
515 |
|
|
|
568 |
|
|
|
2,688 |
|
|
|
1,608 |
|
|
|
Total Operating
Expenses |
$ |
42,528 |
|
|
$ |
47,695 |
|
|
$ |
142,148 |
|
|
$ |
209,234 |
|
|
|
Operating Loss |
|
(3,048 |
) |
|
|
(4,440 |
) |
|
|
(13,514 |
) |
|
|
(75,750 |
) |
|
|
Interest expense, net |
|
(2,219 |
) |
|
|
(2,245 |
) |
|
|
(6,508 |
) |
|
|
(6,562 |
) |
|
|
Gain (Loss) on change in value of warrant liability |
|
224 |
|
|
|
726 |
|
|
|
(167 |
) |
|
|
2,050 |
|
|
|
Other income, net |
|
85 |
|
|
|
2,627 |
|
|
|
81 |
|
|
|
2,546 |
|
|
|
Loss before income taxes |
$ |
(4,958 |
) |
|
$ |
(3,332 |
) |
|
$ |
(20,108 |
) |
|
$ |
(77,716 |
) |
|
|
Income tax (expense) benefit |
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
447 |
|
|
|
Net loss |
$ |
(4,958 |
) |
|
$ |
(3,332 |
) |
|
$ |
(20,110 |
) |
|
$ |
(77,269 |
) |
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
|
26,793,358 |
|
|
|
22,253,232 |
|
|
|
25,078,410 |
|
|
|
22,146,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
$ |
(0.19 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.80 |
) |
|
$ |
(3.49 |
) |
|
| |
|
BurgerFi International Inc., and Subsidiaries |
|
Consolidated Reconciliation of Net Loss to Adjusted
EBITDA |
|
(Non-GAAP) (Unaudited) |
|
|
| |
Quarter Ended |
|
| |
Consolidated |
BurgerFi |
|
Anthony's |
|
|
(in thousands) |
October 2, 2023 |
|
October 3, 2022 |
|
October 2, 2023 |
|
October 3, 2022 |
|
October 2, 2023 |
|
October 3, 2022 |
|
|
Revenue by Segment |
$ |
39,480 |
|
|
$ |
43,255 |
|
|
$ |
9,940 |
|
|
$ |
11,775 |
|
|
$ |
29,540 |
|
|
$ |
31,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Reconciliation by Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(4,958 |
) |
|
$ |
(3,332 |
) |
|
$ |
(4,167 |
) |
|
$ |
(1,752 |
) |
|
$ |
(791 |
) |
|
$ |
(1,580 |
) |
|
|
Employee retention credits |
|
— |
|
|
|
(2,626 |
) |
|
|
— |
|
|
|
(2,626 |
) |
|
|
— |
|
|
|
— |
|
|
|
Share-based compensation expense |
|
172 |
|
|
|
1,010 |
|
|
|
177 |
|
|
|
1,010 |
|
|
|
(5 |
) |
|
|
— |
|
|
|
Depreciation and amortization expense |
|
3,272 |
|
|
|
4,253 |
|
|
|
2,123 |
|
|
|
2,212 |
|
|
|
1,149 |
|
|
|
2,041 |
|
|
|
Interest expense |
|
2,219 |
|
|
|
2,245 |
|
|
|
1,033 |
|
|
|
1,003 |
|
|
|
1,186 |
|
|
|
1,242 |
|
|
|
Restructuring costs |
|
353 |
|
|
|
— |
|
|
|
311 |
|
|
|
— |
|
|
|
42 |
|
|
|
— |
|
|
|
Merger, acquisition and integration costs |
|
96 |
|
|
|
168 |
|
|
|
62 |
|
|
|
168 |
|
|
|
34 |
|
|
|
— |
|
|
|
Legal settlements, net of gains |
|
(193 |
) |
|
|
81 |
|
|
|
(289 |
) |
|
|
81 |
|
|
|
96 |
|
|
|
— |
|
|
|
Store closure costs |
|
162 |
|
|
|
568 |
|
|
|
64 |
|
|
|
548 |
|
|
|
98 |
|
|
|
20 |
|
|
|
Gain on change in value of warrant liability |
|
(224 |
) |
|
|
(726 |
) |
|
|
(224 |
) |
|
|
(726 |
) |
|
|
— |
|
|
|
— |
|
|
|
(Gain) loss on sale of assets |
|
(85 |
) |
|
|
1 |
|
|
|
7 |
|
|
|
(5 |
) |
|
|
(92 |
) |
|
|
6 |
|
|
|
Adjusted EBITDA |
$ |
814 |
|
|
$ |
1,642 |
|
|
$ |
(903 |
) |
|
$ |
(87 |
) |
|
$ |
1,717 |
|
|
$ |
1,729 |
|
|
|
|
| |
|
BurgerFi International Inc., and Subsidiaries |
|
Consolidated Reconciliation of Net Loss to Adjusted
EBITDA |
|
(Non-GAAP) (Unaudited) |
|
|
| |
Nine Months Ended |
|
| |
Consolidated |
BurgerFi |
|
Anthony's |
|
|
(in thousands) |
October 2, 2023 |
|
October 3, 2022 |
|
October 2, 2023 |
|
October 3, 2022 |
|
October 2, 2023 |
|
October 3, 2022 |
|
|
Revenue by Segment |
$ |
128,634 |
|
|
$ |
133,484 |
|
|
$ |
34,089 |
|
|
$ |
37,628 |
|
|
|
94,545 |
|
|
$ |
95,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Reconciliation by Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(20,110 |
) |
|
$ |
(77,269 |
) |
|
$ |
(18,924 |
) |
|
$ |
(36,439 |
) |
|
$ |
(1,186 |
) |
|
$ |
(40,830 |
) |
|
|
Goodwill impairment |
|
— |
|
|
|
55,168 |
|
|
|
— |
|
|
|
17,505 |
|
|
|
— |
|
|
|
37,663 |
|
|
|
Lease termination recovery |
|
(42 |
) |
|
|
— |
|
|
|
(42 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Employee retention credits |
|
— |
|
|
|
(2,626 |
) |
|
|
— |
|
|
|
(2,626 |
) |
|
|
— |
|
|
|
— |
|
|
|
Share-based compensation expense |
|
5,401 |
|
|
|
9,295 |
|
|
|
5,380 |
|
|
|
9,295 |
|
|
|
21 |
|
|
|
— |
|
|
|
Depreciation and amortization expense |
|
9,794 |
|
|
|
13,427 |
|
|
|
6,360 |
|
|
|
7,335 |
|
|
|
3,434 |
|
|
|
6,092 |
|
|
|
Interest expense |
|
6,508 |
|
|
|
6,562 |
|
|
|
2,955 |
|
|
|
2,960 |
|
|
|
3,553 |
|
|
|
3,602 |
|
|
|
Restructuring costs |
|
2,397 |
|
|
|
— |
|
|
|
1,389 |
|
|
|
— |
|
|
|
1,008 |
|
|
|
— |
|
|
|
Merger, acquisition and integration costs |
|
723 |
|
|
|
2,472 |
|
|
|
624 |
|
|
|
2,359 |
|
|
|
99 |
|
|
|
113 |
|
|
|
Legal settlements, net of gains |
|
317 |
|
|
|
393 |
|
|
|
218 |
|
|
|
393 |
|
|
|
99 |
|
|
|
— |
|
|
|
Store closure costs |
|
333 |
|
|
|
1,134 |
|
|
|
138 |
|
|
|
1,134 |
|
|
|
195 |
|
|
|
— |
|
|
|
Loss (gain) on change in value of warrant liability |
|
167 |
|
|
|
(2,050 |
) |
|
|
167 |
|
|
|
(2,050 |
) |
|
|
— |
|
|
|
— |
|
|
|
Pre-opening costs |
|
— |
|
|
|
474 |
|
|
|
— |
|
|
|
474 |
|
|
|
— |
|
|
|
— |
|
|
|
(Gain) loss on sale of assets |
|
(96 |
) |
|
|
1 |
|
|
|
1 |
|
|
|
(5 |
) |
|
|
(97 |
) |
|
|
6 |
|
|
|
Income tax expense (benefit) |
|
2 |
|
|
|
(447 |
) |
|
|
— |
|
|
|
(451 |
) |
|
|
2 |
|
|
|
4 |
|
|
|
Adjusted EBITDA |
$ |
5,394 |
|
|
$ |
6,534 |
|
|
$ |
(1,734 |
) |
|
$ |
(116 |
) |
|
$ |
7,128 |
|
|
$ |
6,650 |
|
|
| |
|
BurgerFi International Inc., and Subsidiaries |
|
Consolidated Restaurant Level Operating
Expenses |
|
(Unaudited) |
|
|
| |
Quarter Ended |
|
Nine Months Ended |
|
| |
October 2, 2023 |
|
October 3, 2022 |
|
October 2, 2023 |
|
October 3, 2022 |
|
|
(in thousands) |
In dollars |
|
% of restaurant sales |
|
In dollars |
|
% of restaurant sales |
|
In dollars |
|
% of restaurant sales |
|
In dollars |
|
% of restaurant sales |
|
|
Restaurant Sales |
$ |
37,324 |
|
|
|
100.0 |
% |
|
$ |
40,361 |
|
|
|
100.0 |
% |
|
$ |
121,448 |
|
|
|
100.0 |
% |
|
$ |
124,954 |
|
|
|
100.0 |
% |
|
|
Restaurant level operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food, beverage and paper costs |
|
9,947 |
|
|
|
26.7 |
% |
|
|
11,665 |
|
|
|
28.9 |
% |
|
|
32,329 |
|
|
|
26.6 |
% |
|
|
37,017 |
|
|
|
29.6 |
% |
|
|
Labor and related expenses |
|
11,853 |
|
|
|
31.8 |
% |
|
|
12,217 |
|
|
|
30.3 |
% |
|
|
37,769 |
|
|
|
31.1 |
% |
|
|
37,126 |
|
|
|
29.7 |
% |
|
|
Other operating expenses |
|
7,199 |
|
|
|
19.3 |
% |
|
|
7,464 |
|
|
|
18.5 |
% |
|
|
22,415 |
|
|
|
18.5 |
% |
|
|
22,077 |
|
|
|
17.7 |
% |
|
|
Occupancy and related expenses |
|
3,933 |
|
|
|
10.5 |
% |
|
|
3,848 |
|
|
|
9.5 |
% |
|
|
11,697 |
|
|
|
9.6 |
% |
|
|
11,575 |
|
|
|
9.3 |
% |
|
|
Total |
$ |
32,932 |
|
|
|
88.2 |
% |
|
$ |
35,194 |
|
|
|
87.2 |
% |
|
$ |
104,210 |
|
|
|
85.8 |
% |
|
$ |
107,795 |
|
|
|
86.3 |
% |
|
|
|
|
Anthony’s Brand Only |
|
Restaurant Level Operating Expenses |
|
(Unaudited) |
|
|
| |
Quarter Ended |
|
Nine Months Ended |
|
| |
October 2, 2023 |
|
October 3, 2022 |
|
October 2, 2023 |
|
October 3, 2022 |
|
|
(in thousands) |
In dollars |
|
% of restaurant sales |
|
In dollars |
|
% of restaurant sales |
|
In dollars |
|
% of restaurant sales |
|
In dollars |
|
% of restaurant sales |
|
|
Restaurant Sales |
$ |
29,540 |
|
|
|
100.0 |
% |
|
$ |
31,480 |
|
|
|
100.0 |
% |
|
$ |
94,545 |
|
|
|
100.0 |
% |
|
$ |
95,856 |
|
|
|
100.0 |
% |
|
|
Restaurant level operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food, beverage and paper costs |
|
7,633 |
|
|
|
25.8 |
% |
|
|
8,927 |
|
|
|
28.4 |
% |
|
|
24,371 |
|
|
|
25.8 |
% |
|
|
27,837 |
|
|
|
29.0 |
% |
|
|
Labor and related expenses |
|
9,295 |
|
|
|
31.5 |
% |
|
|
9,551 |
|
|
|
30.3 |
% |
|
|
29,384 |
|
|
|
31.1 |
% |
|
|
28,809 |
|
|
|
30.1 |
% |
|
|
Other operating expenses |
|
5,374 |
|
|
|
18.2 |
% |
|
|
5,482 |
|
|
|
17.4 |
% |
|
|
16,501 |
|
|
|
17.5 |
% |
|
|
16,044 |
|
|
|
16.7 |
% |
|
|
Occupancy and related expenses |
|
3,021 |
|
|
|
10.2 |
% |
|
|
2,942 |
|
|
|
9.3 |
% |
|
|
8,978 |
|
|
|
9.5 |
% |
|
|
8,803 |
|
|
|
9.2 |
% |
|
|
Total |
$ |
25,323 |
|
|
|
85.7 |
% |
|
$ |
26,902 |
|
|
|
85.5 |
% |
|
$ |
79,234 |
|
|
|
83.8 |
% |
|
$ |
81,493 |
|
|
|
85.0 |
% |
|
| |
|
BurgerFi Brand Only |
|
Restaurant Level Operating Expenses |
|
(Unaudited) |
| |
| |
Quarter Ended |
|
Nine Months Ended |
|
| |
October 2, 2023 |
|
October 3, 2022 |
|
October 2, 2023 |
|
October 3, 2022 |
|
|
(in thousands) |
In dollars |
|
% of restaurant sales |
|
In dollars |
|
% of restaurant sales |
|
In dollars |
|
% of restaurant sales |
|
In dollars |
|
% of restaurant sales |
|
|
Restaurant Sales |
$ |
7,784 |
|
|
|
100.0 |
% |
|
$ |
8,881 |
|
|
|
100.0 |
% |
|
$ |
26,903 |
|
|
|
100.0 |
% |
|
$ |
29,098 |
|
|
|
100.0 |
% |
|
|
Restaurant level operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food, beverage and paper costs |
|
2,314 |
|
|
|
29.7 |
% |
|
|
2,738 |
|
|
|
30.8 |
% |
|
|
7,958 |
|
|
|
29.6 |
% |
|
|
9,180 |
|
|
|
31.5 |
% |
|
|
Labor and related expenses |
|
2,558 |
|
|
|
32.9 |
% |
|
|
2,666 |
|
|
|
30.0 |
% |
|
|
8,385 |
|
|
|
31.2 |
% |
|
|
8,317 |
|
|
|
28.6 |
% |
|
|
Other operating expenses |
|
1,825 |
|
|
|
23.4 |
% |
|
|
1,982 |
|
|
|
22.3 |
% |
|
|
5,914 |
|
|
|
22.0 |
% |
|
|
6,033 |
|
|
|
20.7 |
% |
|
|
Occupancy and related expenses |
|
912 |
|
|
|
11.7 |
% |
|
|
906 |
|
|
|
10.2 |
% |
|
|
2,719 |
|
|
|
10.1 |
% |
|
|
2,772 |
|
|
|
9.5 |
% |
|
|
Total |
$ |
7,609 |
|
|
|
97.8 |
% |
|
$ |
8,292 |
|
|
|
93.4 |
% |
|
$ |
24,976 |
|
|
|
92.8 |
% |
|
$ |
26,302 |
|
|
|
90.4 |
% |
|
|
|
|
BurgerFi International Inc., and Subsidiaries |
|
Segment Unit Counts |
|
|
| |
Quarter EndedOctober 2, 2023 |
|
Nine Months EndedOctober 2, 2023 |
|
|
|
Corporate-owned |
|
Franchised |
|
Total |
|
Corporate-owned |
|
Franchised |
|
Total |
|
|
Total BurgerFi and Anthony's brands |
85 |
|
84 |
|
169 |
|
85 |
|
84 |
|
169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BurgerFi stores, beginning of the period |
27 |
|
87 |
|
114 |
|
25 |
|
89 |
|
114 |
|
|
BurgerFi stores opened |
— |
|
— |
|
— |
|
— |
|
5 |
|
5 |
|
|
BurgerFi stores acquired / (transferred) |
— |
|
— |
|
— |
|
2 |
|
(2) |
|
— |
|
|
BurgerFi stores closed |
(1) |
|
(3) |
|
(4) |
|
(1) |
|
(8) |
|
(9) |
|
|
BurgerFi total stores, end of the period |
26 |
|
84 |
|
110 |
|
26 |
|
84 |
|
110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Anthony's stores, beginning of period |
60 |
|
— |
|
60 |
|
60 |
|
— |
|
60 |
|
|
Anthony's stores closed |
(1) |
|
— |
|
(1) |
|
(1) |
|
— |
|
(1) |
|
|
Anthony's total stores, end of the period |
59 |
|
— |
|
59 |
|
59 |
|
— |
|
59 |
|
| |
BurgerFi (NASDAQ:BFI)
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From Dec 2024 to Jan 2025
BurgerFi (NASDAQ:BFI)
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From Jan 2024 to Jan 2025
