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 brand under the
name Anthony’s Coal Fired Pizza & Wings (“Anthony’s”), today
reported financial results for the fourth quarter and fiscal year
ended January 2, 2023.
Highlights for the Fourth Quarter
20221
- Total revenue increased 29% to
$45.2 million in the fourth quarter 2022 compared to $35.1 million
in the fourth quarter 2021
- Consolidated systemwide sales
decreased by 2% to $71.6 million.
- Corporate restaurant same-store
sales for Anthony’s increased 1%
- Systemwide sales for BurgerFi
decreased 5% to $38.7 million
- Systemwide same-store sales
decreased 9% at BurgerFi
- Opened two new franchised BurgerFi
restaurants in the fourth quarter
- Restaurant-level operating expenses
as a percentage of sales increased by 1.5%
- Net loss improved to $26.2 million
or $(1.18) per diluted share compared to prior fourth quarter net
loss of $117.3 million or $(5.84) per diluted share
- Adjusted EBITDA1 of $2.6 million
for both the fourth quarters of 2022 and 2021, respectively
Highlights for the Fiscal Year
20221
- Total revenue increased 160% to
$178.7 million in the fiscal year 2022 driven by the Anthony's
acquisition compared to fiscal year 2021
- Consolidated systemwide sales of
$289.6 million for both fiscal years 2022 and 2021,
respectively.
- Corporate restaurant same-store
sales for Anthony’s increased 5%
- Systemwide sales for BurgerFi
decreased 3% to $160.8 million
- Systemwide same-store sales for
BurgerFi decreased by 7%
- Opened 11 new BurgerFi restaurants
(three corporate-owned and eight franchises)
- Restaurant-level operating expenses
as a percentage of sales of 86.2% for both fiscal years 2022 and
2021
- Net loss improved to $103.4
million, or $(4.66) per diluted share, compared to prior fiscal
year net loss of $121.5 million, or $(7.20) per diluted share
- Adjusted EBITDA1 of $9.2 million
compared to $3.8 million in the prior fiscal year
Management Commentary
Ophir Sternberg, Executive Chairman of BurgerFi,
stated, “2022 was a pivotal year for BurgerFi as we integrated the
Anthony’s acquisition into our system. We now have two high-quality
brands that are on trend with the consumer, and we believe that we
are in the early innings of growth across both brands. Early this
year, we opened a franchised BurgerFi in Newark Liberty Airport,
followed by a franchised BurgerFi in Orlando’s O-Town West.
Airports continue to deliver high volumes and we expect airports to
continue to be a growing part of our development strategy. We are
also very excited for this year’s planned launch of our first
Anthony's franchise as part of our growth strategy in expanding the
brand. I'm enthusiastic about the opportunities that lie ahead for
both brands for 2023 and beyond.”
Ian Baines, Chief Executive Officer of BurgerFi,
added, “Throughout 2022, we made progress executing on several
strategic initiatives at BurgerFi and Anthony’s. We completed our
back-office integration of the two companies and delivered on our
goal of achieving over $2.5 million in annualized synergies. In the
fourth quarter, we began to see margins stabilize with sequential
improvement as a result of our procurement initiatives. I am
optimistic that we can continue driving improvement in
profitability and operating margins in 2023 in both brands.”
Baines continued, “I remain enthusiastic about
the development pipeline in place as well as the long runway of
whitespace opportunities ahead for both brands. In total, we plan
to open 15-20 new franchised restaurants, including 2-3 Anthony’s
in 2023.”
Fourth Quarter and Fiscal Year 2022 Key
Metrics Summary
|
Consolidated |
(in thousands except
for percentage data) |
Quarter EndedJanuary 2,
20232 |
|
Quarter EndedDecember 31,
20213 |
|
Year EndedJanuary 2,
20232 |
|
Year EndedDecember 31,
20213 |
Systemwide Restaurant Sales |
$ |
71,626 |
|
|
$ |
40,704 |
|
|
$ |
289,640 |
|
|
$ |
166,124 |
|
Systemwide Restaurant Sales
Growth |
|
(2 |
)% |
|
|
23 |
% |
|
|
— |
% |
|
|
31 |
% |
Systemwide Restaurant
Same-Store Sales Growth |
|
(4 |
)% |
|
|
7 |
% |
|
|
(2 |
)% |
|
|
14 |
% |
Corporate-Owned Restaurant
Sales |
$ |
41,878 |
|
|
$ |
8,736 |
|
|
$ |
166,198 |
|
|
$ |
34,079 |
|
Corporate-Owned Restaurant
Sales Growth |
|
2 |
% |
|
|
33 |
% |
|
|
6 |
% |
|
|
39 |
% |
Corporate-Owned Restaurant
Same-Store Sales Growth |
|
(1 |
)% |
|
|
5 |
% |
|
|
2 |
% |
|
|
14 |
% |
Franchise Restaurant
Sales |
$ |
29,748 |
|
|
$ |
31,968 |
|
|
$ |
123,442 |
|
|
$ |
132,045 |
|
Franchise Restaurant Sales
Growth |
|
(7 |
)% |
|
|
22 |
% |
|
|
(7 |
)% |
|
|
30 |
% |
Franchise Restaurant
Same-Store Sales Growth |
|
(8 |
)% |
|
|
7 |
% |
|
|
(6 |
)% |
|
|
15 |
% |
Digital Channel % of
Systemwide Sales |
|
32 |
% |
|
|
36 |
% |
|
|
35 |
% |
|
|
39 |
% |
|
Quarter EndedJanuary 2, 2023 |
|
Three Months EndedDecember 31,
2021 |
(in thousands, except for percentage data) |
BurgerFi |
|
Anthony's2 |
|
BurgerFi3 |
Systemwide Restaurant Sales |
$ |
38,663 |
|
|
$ |
32,963 |
|
|
$ |
40,704 |
|
Systemwide Restaurant Sales
Growth |
|
(5 |
)% |
|
|
2 |
% |
|
|
23 |
% |
Systemwide Restaurant
Same-Store Sales Growth |
|
(9 |
)% |
|
|
1 |
% |
|
|
7 |
% |
Corporate-Owned Restaurant
Sales |
$ |
8,915 |
|
|
$ |
32,963 |
|
|
$ |
8,736 |
|
Corporate-Owned Restaurant
Sales Growth |
|
2 |
% |
|
|
2 |
% |
|
|
33 |
% |
Corporate-Owned Restaurant
Same-Store Sales Growth |
|
(10 |
)% |
|
|
1 |
% |
|
|
5 |
% |
Franchise Restaurant
Sales |
$ |
29,748 |
|
|
N/A |
|
$ |
31,968 |
|
Franchise Restaurant Sales
Growth |
|
(7 |
)% |
|
N/A |
|
|
22 |
% |
Franchise Restaurant
Same-Store Sales Growth |
|
(8 |
)% |
|
N/A |
|
|
7 |
% |
Digital Channel % of
Systemwide Sales |
|
29 |
% |
|
|
35 |
% |
|
|
36 |
% |
|
Year EndedJanuary 2, 2023 |
|
Year EndedDecember 31,
20213 |
(in thousands, except for percentage data) |
BurgerFi |
|
Anthony's2 |
|
BurgerFi3 |
Systemwide Restaurant Sales |
$ |
160,821 |
|
|
$ |
128,819 |
|
|
$ |
166,124 |
|
Systemwide Restaurant Sales
Growth |
|
(3 |
)% |
|
|
5 |
% |
|
|
31 |
% |
Systemwide Restaurant
Same-Store Sales Growth |
|
(7 |
)% |
|
|
5 |
% |
|
|
14 |
% |
Corporate-Owned Restaurant
Sales |
$ |
37,379 |
|
|
$ |
128,819 |
|
|
$ |
34,079 |
|
Corporate-Owned Restaurant
Sales Growth |
|
10 |
% |
|
|
5 |
% |
|
|
39 |
% |
Corporate-Owned Restaurant
Same-Store Sales Growth |
|
(11 |
)% |
|
|
5 |
% |
|
|
14 |
% |
Franchise Restaurant
Sales |
$ |
123,442 |
|
|
N/A |
|
$ |
132,045 |
|
Franchise Restaurant Sales
Growth |
|
(7 |
)% |
|
N/A |
|
|
30 |
% |
Franchise Restaurant
Same-Store Sales Growth |
|
(6 |
)% |
|
N/A |
|
|
15 |
% |
Digital Channel % of
Systemwide Sales |
|
33 |
% |
|
|
37 |
% |
|
|
39 |
% |
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.
3 Includes only BurgerFi
Fourth Quarter 2022 Financial
Results
Total revenue increased 29% to $45.2 million compared to $35.1
million in the year-ago quarter, primarily driven by the addition
of the Anthony’s business acquired on November 3, 2021. For the
Anthony’s brand, same-store sales increased 1%, and for the
BurgerFi brand, same-store sales decreased 10% and 8% in
corporate-owned and franchised locations, respectively.
Restaurant-level operating expenses were $36.4 million compared
to $26.9 million in 2021. The increase is driven by the inclusion
of a full quarter of Anthony’s operations in 2022 whereas the prior
period only had nine weeks. For the Anthony's brand,
restaurant-level operating expenses, as a percentage of sales,
increased by 1.2% for the fourth quarter of 2022, primarily due to
the 13-week quarter having less sales leverage on fixed costs than
the prior period which included only 9 weeks. For the BurgerFi
brand, restaurant-level operating expenses, as a percentage of
sales, increased 3.4% compared to the prior year quarter, primarily
due to lost leverage on fixed costs due to same-store sales
declines.
Net loss in the fourth quarter was $26.2 million
compared to a net loss of $117.3 million in the year-ago quarter.
Net loss included $18.3 million of non-cash impairment charges,
$1.5 million of restructuring costs, $1.2 million of legal
settlements, within general and administrative expenses, and $3.7
million of depreciation and amortization.
Adjusted EBITDA in the fourth quarter of 2022 was $2.6 million
in both the fourth quarter of 2021 and 2022. See the definition of
Adjusted EBITDA, a non-accounting principle generally accepted in
the United States (“GAAP”) financial measure, and the
reconciliation to the most comparable GAAP measure below.
Fiscal Year 2022 Financial
Results
Total revenue in the fiscal year of 2022 increased 160% to
$178.7 million compared to $68.9 million in 2021, primarily driven
by the addition of the Anthony’s business acquired on November 3,
2021. For the Anthony’s brand, same-store sales increased 5%. For
the BurgerFi brand, same-store sales decreased 11% and 6% in
corporate-owned and franchised locations, respectively.
Restaurant-level operating expenses for the
fiscal year of 2022 were $144.2 million compared to $49.8 million
in the fiscal year 2021. The increase was driven by the inclusion
of a full year of Anthony’s operations, while the prior year
included only nine weeks. For the Anthony's brand, restaurant-level
operating expenses, as a percentage of sales, increased 1.4% for
the fiscal year 2022, compared to the fiscal year 2021, primarily
due to higher labor costs partially offset by lower food costs due
to continued stabilization of commodity costs, especially in
chicken wing prices. For the BurgerFi brand, restaurant-level
operating expenses, as a percentage of sales, increased 2.6% for
the fiscal year 2022, compared to the fiscal year 2021, primarily
due to lower leverage on fixed costs driven by lower same-store
sales.
Net loss in the fiscal year 2022 was $103.4 million compared to
a net loss of $121.5 million in 2021. The improvement in net loss
of $18.1 million was primarily due to $41.3 million in lower
non-cash impairment charges and the results of a full year of
Anthony’s operations, while the prior year included only nine
weeks. The improvement of $18.1 million in net loss was also
partially offset by $11.3 million of lower gains on change in value
of warrant liability, $7.3 million increase in interest expense,
$7.1 million increase in depreciation and amortization expense,
$2.7 million increase in share-based compensation expense and $1.8
million increase in store closure costs.
Adjusted EBITDA in the fiscal year 2022
increased 141% to $9.2 million compared to $3.8 million in the
fiscal year 2021, driven by the acquisition of Anthony’s. See the
definition of Adjusted EBITDA, a non-GAAP financial measure, and
the reconciliation to the most comparable GAAP measure below.
Restaurant Development
As of January 2, 2023, there were 174 total
BurgerFi and Anthony’s restaurants of which 114 were BurgerFi (25
corporate-owned and 89 franchised) and 60 were corporate-owned
Anthony’s. During the year, there were 11 BurgerFi locations opened
of which three were corporate stores and eight were franchised
locations. During the year, 15 franchised BurgerFi locations and
one corporate-owned Anthony’s location closed. During the fourth
quarter 2022, there were two franchised BurgerFi openings, five
franchised BurgerFi closures and one corporate-owned Anthony's
closure.
Quarter to date through March 2023 , the Company
has opened two franchised BurgerFi locations.
2023 Outlook
Management is reiterating its outlook for the
fiscal year 2023:
- Annual
revenues of $175-180 million
- Low-single
digit same-store sales growth for corporate-owned locations
- 15-20 new
franchised restaurants, including 2-3 new Anthony's
- Adjusted
EBITDA of $10-12 million
- Capital
expenditures of approximately $1-2 million
Conference Call
The Company will hold a conference call today,
March 22, 2023, at 8:30 a.m. Eastern time to discuss its fourth
quarter and fiscal year 2022 results.
Date: Wednesday, March 22, 2023Time: 8:30 a.m.
Eastern timeToll-free dial-in number: (877) 300-8521International
dial-in number: (412) 317-6026Conference ID: 10174753
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
(including as a result of the COVID-19 pandemic), 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 and asset impairment charges,
gain on change in value of warrant liability, interest expense
(which includes non-cash interest on preferred stock and interest
accretion on related party notes), income tax expense (benefit),
depreciation and amortization expense, share-based compensation
expense, pre-opening costs, employee retention credits and PPP loan
gain, store closure costs and other, net, legal settlements,
restructuring costs and, merger, acquisition and integration
costs.
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)Established in 2011, BurgerFi 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 is among the nation’s fastest-growing better burger
concepts with 114 BurgerFi restaurants (89 franchised and 25
corporate-owned). As of the Company’s fiscal year ended January 2,
2023, BurgerFi is the owner and franchisor of the two following
brands with a combined 174 locations.
BurgerFi. 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, Fresh, Hand-Cut Sides, and Frozen Custard Shakes and
Concretes. BurgerFi was named "The Very Best Burger" at the 2023
edition of the nationally acclaimed SOBE Wine and Food Festival,
"Best Fast Casual Restaurant" in USA Today's 10Best 2022 Readers'
Choice Awards for the second consecutive year, QSR Magazine's
Breakout Brand of 2020 and Fast Casual's 2021 #1 Brand of the Year.
In 2021, Consumer Report praised BurgerFi for serving "no
antibiotic beef" across all its restaurants, and 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 60
corporate-owned casual restaurant locations, as of January 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 non-GAAP 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 strategies, launch of
the Anthony’s franchise system, confidence in the stabilization of
BurgerFi’s margin profile, store opening plans, opening of
additional nontraditional locations, including airports and
expectations regarding adjusted EBITDA in 2023, as well as
statements set forth under the section entitled “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 December 31, 2021, our Quarterly Reports on Form
10-Q, and when filed, our Annual Report on Form 10-K for the year
ended January 2, 2023, and subsequent Quarterly Reports on Form
10-Q, 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:
rbb CommunicationsAilys
ToledoAilys.Toledo@rbbcommunications.com
BurgerFi International Inc., and
SubsidiariesConsolidated Balance
Sheets(Unaudited)
(in
thousands) |
January 2,2023 |
|
December 31,2021 |
ASSETS |
|
|
|
CURRENT
ASSETS |
|
|
|
Cash |
$ |
11,917 |
|
|
$ |
14,889 |
|
Accounts receivable, net |
|
1,766 |
|
|
|
1,689 |
|
Inventory |
|
1,320 |
|
|
|
1,387 |
|
Assets held for sale |
|
732 |
|
|
|
732 |
|
Other current assets |
|
2,724 |
|
|
|
2,526 |
|
TOTAL CURRENT ASSETS |
|
18,459 |
|
|
|
21,223 |
|
PROPERTY & EQUIPMENT,
net |
|
19,707 |
|
|
|
29,035 |
|
OPERATING RIGHT-OF-USE
ASSET, net |
|
45,741 |
|
|
|
— |
|
GOODWILL |
|
31,621 |
|
|
|
98,000 |
|
INTANGIBLE ASSETS,
net |
|
160,208 |
|
|
|
168,723 |
|
OTHER
ASSETS |
|
1,044 |
|
|
|
738 |
|
TOTAL ASSETS |
$ |
276,780 |
|
|
$ |
317,719 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
CURRENT
LIABILITIES |
|
|
|
Accounts payable - trade and other |
$ |
8,464 |
|
|
$ |
7,841 |
|
Accrued expenses |
|
10,589 |
|
|
|
5,302 |
|
Short-term operating lease liability |
|
9,924 |
|
|
|
— |
|
Other liabilities |
|
6,241 |
|
|
|
7,856 |
|
Short-term borrowings |
|
4,985 |
|
|
|
3,331 |
|
TOTAL CURRENT LIABILITIES |
|
40,203 |
|
|
|
24,330 |
|
NON-CURRENT
LIABILITIES |
|
|
|
Long-term borrowings |
|
53,794 |
|
|
|
56,797 |
|
Redeemable preferred stock, $0.0001 par value, 10,000,000 shares
authorized, 2,120,000 shares issued and outstanding, $53 million
principal redemption value |
|
51,418 |
|
|
|
47,525 |
|
Long-term operating lease liability |
|
40,748 |
|
|
|
— |
|
Related party note |
|
9,235 |
|
|
|
8,724 |
|
Warrant liability |
|
195 |
|
|
|
2,706 |
|
Other non-current liabilities |
|
1,017 |
|
|
|
3,009 |
|
Deferred income taxes |
|
1,223 |
|
|
|
1,353 |
|
TOTAL LIABILITIES |
|
197,833 |
|
|
|
144,444 |
|
STOCKHOLDERS'
EQUITY |
|
|
|
Common stock, $0.0001 par value,
100,000,000 shares authorized, 22,257,772 and 21,303,500 shares
issued and outstanding as of January 2, 2023 and December 31, 2021,
respectively |
|
2 |
|
|
|
2 |
|
Additional paid-in
capital |
|
306,096 |
|
|
|
296,992 |
|
Accumulated
deficit |
|
(227,151 |
) |
|
|
(123,719 |
) |
TOTAL STOCKHOLDERS’
EQUITY |
|
78,947 |
|
|
|
173,275 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
276,780 |
|
|
$ |
317,719 |
|
|
|
|
|
BurgerFi International Inc., and
SubsidiariesConsolidated Statements of
Operations(Unaudited)
|
Quarter Ended |
|
Year Ended |
(in
thousands) |
January 2,2023 |
|
December 31,2021 |
|
January 2,2023 |
|
December 31,2021 |
REVENUE |
|
|
|
|
|
|
|
Restaurant sales |
$ |
42,246 |
|
|
$ |
31,748 |
|
|
$ |
167,201 |
|
|
$ |
57,790 |
|
Royalty and other fees |
|
2,554 |
|
|
|
2,857 |
|
|
|
9,733 |
|
|
|
9,090 |
|
Royalty - brand development and co-op |
|
435 |
|
|
|
460 |
|
|
|
1,786 |
|
|
|
1,987 |
|
TOTAL REVENUE |
|
45,235 |
|
|
|
35,065 |
|
|
|
178,720 |
|
|
|
68,867 |
|
Restaurant level operating
expenses: |
|
|
|
|
|
|
|
Food, beverage and paper costs |
|
11,470 |
|
|
|
9,792 |
|
|
|
48,487 |
|
|
|
17,578 |
|
Labor and related expenses |
|
12,658 |
|
|
|
8,863 |
|
|
|
49,785 |
|
|
|
15,994 |
|
Other operating expenses |
|
8,200 |
|
|
|
5,559 |
|
|
|
30,277 |
|
|
|
11,277 |
|
Occupancy and related expenses |
|
4,035 |
|
|
|
2,660 |
|
|
|
15,607 |
|
|
|
4,940 |
|
General and administrative
expenses |
|
6,916 |
|
|
|
6,924 |
|
|
|
25,974 |
|
|
|
17,498 |
|
Depreciation and amortization
expense |
|
3,711 |
|
|
|
3,587 |
|
|
|
17,138 |
|
|
|
10,060 |
|
Share-based compensation
expense |
|
944 |
|
|
|
788 |
|
|
|
10,239 |
|
|
|
7,573 |
|
Brand development, co-op and
advertising expense |
|
871 |
|
|
|
973 |
|
|
|
3,870 |
|
|
|
2,758 |
|
Goodwill and intangible asset
impairment |
|
11,400 |
|
|
|
114,797 |
|
|
|
66,569 |
|
|
|
114,797 |
|
Asset impairment |
|
6,946 |
|
|
|
— |
|
|
|
6,946 |
|
|
|
— |
|
Store closure costs (income) |
|
815 |
|
|
|
(11 |
) |
|
|
1,949 |
|
|
|
121 |
|
Restructuring costs |
|
1,459 |
|
|
|
— |
|
|
|
1,459 |
|
|
|
— |
|
Pre-opening costs |
|
— |
|
|
|
662 |
|
|
|
474 |
|
|
|
1,905 |
|
OPERATING
LOSS |
|
(24,190 |
) |
|
|
(119,529 |
) |
|
|
(100,054 |
) |
|
|
(135,634 |
) |
Other income, net |
|
16 |
|
|
|
(193 |
) |
|
|
2,675 |
|
|
|
2,047 |
|
Gain on change in value of
warrant liability |
|
461 |
|
|
|
3,406 |
|
|
|
2,511 |
|
|
|
13,811 |
|
Interest expense |
|
(2,096 |
) |
|
|
(1,360 |
) |
|
|
(8,659 |
) |
|
|
(1,406 |
) |
Loss before income
taxes |
|
(25,809 |
) |
|
|
(117,676 |
) |
|
|
(103,527 |
) |
|
|
(121,182 |
) |
Income tax (expense)
benefit |
|
(352 |
) |
|
|
419 |
|
|
|
95 |
|
|
|
(312 |
) |
Net Loss |
$ |
(26,161 |
) |
|
$ |
(117,257 |
) |
|
$ |
(103,432 |
) |
|
$ |
(121,494 |
) |
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
22,256,643 |
|
|
|
20,067,880 |
|
|
|
22,173,694 |
|
|
|
18,408,247 |
|
Diluted |
|
22,256,643 |
|
|
|
20,067,880 |
|
|
|
22,173,694 |
|
|
|
18,624,447 |
|
|
|
|
|
|
|
|
|
Net loss per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
(1.18 |
) |
|
$ |
(5.84 |
) |
|
$ |
(4.66 |
) |
|
$ |
(6.60 |
) |
Diluted |
$ |
(1.18 |
) |
|
$ |
(5.84 |
) |
|
$ |
(4.66 |
) |
|
$ |
(7.20 |
) |
BurgerFi International Inc., and
SubsidiariesConsolidated Reconciliation of Net
Loss to Adjusted EBITDA(Non-GAAP)
(Unaudited)
|
Quarter Ended |
|
Year Ended |
(in
thousands) |
January 2,2023 |
|
December 31,2021 |
|
January 2,2023 |
|
December 31,2021 |
Net Loss |
$ |
(26,161 |
) |
|
$ |
(117,257 |
) |
|
$ |
(103,432 |
) |
|
$ |
(121,494 |
) |
Goodwill and asset impairment
charges |
|
18,346 |
|
|
|
114,797 |
|
|
|
73,515 |
|
|
|
114,797 |
|
Gain on change in value of
warrant liability |
|
(461 |
) |
|
|
(3,406 |
) |
|
|
(2,511 |
) |
|
|
(13,811 |
) |
Interest expense |
|
2,096 |
|
|
|
1,360 |
|
|
|
8,659 |
|
|
|
1,406 |
|
Income tax expense
(benefit) |
|
352 |
|
|
|
(419 |
) |
|
|
(95 |
) |
|
|
312 |
|
Depreciation and amortization
expense |
|
3,711 |
|
|
|
3,587 |
|
|
|
17,138 |
|
|
|
10,060 |
|
Share-based compensation
expense |
|
944 |
|
|
|
788 |
|
|
|
10,239 |
|
|
|
7,573 |
|
Pre-opening costs |
|
— |
|
|
|
662 |
|
|
|
474 |
|
|
|
1,905 |
|
Employee retention credits/
PPP loan gain |
|
— |
|
|
|
— |
|
|
|
(2,626 |
) |
|
|
(2,237 |
) |
Store closure costs and other,
net |
|
799 |
|
|
|
183 |
|
|
|
1,934 |
|
|
|
324 |
|
Legal settlements |
|
1,229 |
|
|
|
212 |
|
|
|
1,623 |
|
|
|
689 |
|
Restructuring costs |
|
1,459 |
|
|
|
— |
|
|
|
1,459 |
|
|
|
— |
|
Merger, acquisition, and
integration costs |
|
316 |
|
|
|
2,106 |
|
|
|
2,787 |
|
|
|
4,275 |
|
Adjusted EBITDA |
$ |
2,630 |
|
|
$ |
2,613 |
|
|
$ |
9,164 |
|
|
$ |
3,799 |
|
BurgerFi International Inc., and
SubsidiariesSegment Reconciliation of Net Loss to
Adjusted EBITDA(Non-GAAP) (Unaudited)
|
BurgerFi |
|
Anthony’s |
|
Quarter Ended |
|
Year Ended |
|
Quarter Ended |
|
Year Ended |
(in
thousands) |
January 2,2023 |
|
January 2,2023 |
|
January 2,2023 |
|
January 2,2023 |
Net Loss |
$ |
(13,935 |
) |
|
$ |
(50,375 |
) |
|
$ |
(12,226 |
) |
|
$ |
(53,057 |
) |
Goodwill and asset impairment
charges |
|
6,690 |
|
|
|
24,195 |
|
|
|
11,656 |
|
|
|
49,320 |
|
Gain on change in value of
warrant liability |
|
(461 |
) |
|
|
(2,511 |
) |
|
|
— |
|
|
|
— |
|
Interest expense |
|
882 |
|
|
|
3,843 |
|
|
|
1,214 |
|
|
|
4,816 |
|
Income tax expense
(benefit) |
|
691 |
|
|
|
240 |
|
|
|
(339 |
) |
|
|
(335 |
) |
Depreciation and amortization
expense |
|
2,236 |
|
|
|
9,571 |
|
|
|
1,475 |
|
|
|
7,567 |
|
Share-based compensation
expense |
|
944 |
|
|
|
10,239 |
|
|
|
— |
|
|
|
— |
|
Pre-opening costs |
|
— |
|
|
|
474 |
|
|
|
— |
|
|
|
— |
|
Employee retention credits/
PPP loan gain |
|
— |
|
|
|
(2,626 |
) |
|
|
— |
|
|
|
— |
|
Store closure costs and other,
net |
|
772 |
|
|
|
1,899 |
|
|
|
27 |
|
|
|
35 |
|
Legal settlements |
|
1,195 |
|
|
|
1,588 |
|
|
|
34 |
|
|
|
35 |
|
Restructuring costs |
|
696 |
|
|
|
696 |
|
|
|
763 |
|
|
|
763 |
|
Merger, acquisition, and
integration costs |
|
275 |
|
|
|
2,633 |
|
|
|
41 |
|
|
|
154 |
|
Adjusted EBITDA |
$ |
(15 |
) |
|
$ |
(134 |
) |
|
$ |
2,645 |
|
|
$ |
9,298 |
|
BurgerFi International Inc., and
SubsidiariesConsolidated Restaurant Level
Operating Expenses(Unaudited)
|
Quarter EndedJanuary 2, 2023 |
|
Quarter EndedDecember 31,
2021 |
|
Year EndedJanuary 2, 2023 |
|
Year EndedDecember 31, 2021 |
(in
thousands) |
In dollars |
|
% ofrestaurantsales |
|
In dollars |
|
% ofrestaurantsales |
|
In dollars |
|
% ofrestaurantsales |
|
In dollars |
|
% ofrestaurantsales |
Restaurant Sales |
$ |
42,246 |
|
|
|
100.0 |
% |
|
$ |
31,748 |
|
|
|
100.0 |
% |
|
$ |
167,201 |
|
|
|
100.0 |
% |
|
$ |
57,790 |
|
|
|
100.0 |
% |
Restaurant level operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food, beverage and paper costs |
|
11,470 |
|
|
|
27.2 |
% |
|
|
9,792 |
|
|
|
30.8 |
% |
|
$ |
48,487 |
|
|
|
29.0 |
% |
|
$ |
17,578 |
|
|
|
30.4 |
% |
Labor and related expenses |
|
12,658 |
|
|
|
30.0 |
% |
|
|
8,863 |
|
|
|
27.9 |
% |
|
|
49,785 |
|
|
|
29.8 |
% |
|
|
15,994 |
|
|
|
27.7 |
% |
Other operating expenses |
|
8,200 |
|
|
|
19.4 |
% |
|
|
5,559 |
|
|
|
17.5 |
% |
|
|
30,277 |
|
|
|
18.1 |
% |
|
|
11,277 |
|
|
|
19.5 |
% |
Occupancy and related expenses |
|
4,035 |
|
|
|
9.6 |
% |
|
|
2,660 |
|
|
|
8.4 |
% |
|
|
15,607 |
|
|
|
9.3 |
% |
|
|
4,940 |
|
|
|
8.5 |
% |
Total |
$ |
36,363 |
|
|
|
86.1 |
% |
|
$ |
26,874 |
|
|
|
84.6 |
% |
|
$ |
144,156 |
|
|
|
86.2 |
% |
|
$ |
49,789 |
|
|
|
86.2 |
% |
Anthony’s Brand
OnlyRestaurant Level Operating
Expenses(Unaudited)
|
Quarter EndedJanuary 2, 2023 |
|
Nine-Week EndedDecember 31,
2021 |
|
Year EndedJanuary 2, 2023 |
|
Nine-Week EndedDecember 31,
2021 |
(in
thousands) |
In dollars |
|
% ofrestaurantsales |
|
In dollars |
|
% ofrestaurantsales |
|
In dollars |
|
% ofrestaurantsales |
|
In dollars |
|
% ofrestaurantsales |
Restaurant Sales |
$ |
32,962 |
|
|
|
100.0 |
% |
|
$ |
22,419 |
|
|
|
100.0 |
% |
|
$ |
128,819 |
|
|
|
100.0 |
% |
|
$ |
22,419 |
|
|
|
100.0 |
% |
Restaurant level operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food, beverage and paper costs |
|
8,781 |
|
|
|
26.6 |
% |
|
|
6,844 |
|
|
|
30.5 |
% |
|
|
36,618 |
|
|
|
28.4 |
% |
|
|
6,844 |
|
|
|
30.5 |
% |
Labor and related expenses |
|
9,979 |
|
|
|
30.3 |
% |
|
|
6,401 |
|
|
|
28.6 |
% |
|
|
38,789 |
|
|
|
30.1 |
% |
|
|
6,401 |
|
|
|
28.6 |
% |
Other operating expenses |
|
6,193 |
|
|
|
18.8 |
% |
|
|
3,559 |
|
|
|
15.9 |
% |
|
|
22,237 |
|
|
|
17.3 |
% |
|
|
3,559 |
|
|
|
15.9 |
% |
Occupancy and related expenses |
|
2,998 |
|
|
|
9.1 |
% |
|
|
1,931 |
|
|
|
8.6 |
% |
|
|
11,798 |
|
|
|
9.2 |
% |
|
|
1,931 |
|
|
|
8.6 |
% |
Total |
$ |
27,951 |
|
|
|
84.8 |
% |
|
|
18,735 |
|
|
|
83.6 |
% |
|
$ |
109,442 |
|
|
|
85.0 |
% |
|
$ |
18,735 |
|
|
|
83.6 |
% |
BurgerFi Brand
OnlyRestaurant Level Operating
Expenses(Unaudited)
|
Quarter EndedJanuary 2, 2023 |
|
Quarter EndedDecember 31,
2021 |
|
Year EndedJanuary 2, 2023 |
|
Year EndedDecember 31, 2021 |
(in
thousands) |
In dollars |
|
% ofrestaurantsales |
|
In dollars |
|
% ofrestaurantsales |
|
In dollars |
|
% ofrestaurantsales |
|
In dollars |
|
% ofrestaurantsales |
Restaurant Sales |
$ |
9,284 |
|
|
|
100.0 |
% |
|
$ |
9,329 |
|
|
|
100.0 |
% |
|
$ |
38,382 |
|
|
|
100.0 |
% |
|
$ |
35,371 |
|
|
|
100.0 |
% |
Restaurant level operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food, beverage and paper costs |
|
2,689 |
|
|
|
29.0 |
% |
|
|
2,948 |
|
|
|
31.6 |
% |
|
|
11,869 |
|
|
|
30.9 |
% |
|
|
10,734 |
|
|
|
30.3 |
% |
Labor and related expenses |
|
2,679 |
|
|
|
28.9 |
% |
|
|
2,462 |
|
|
|
26.4 |
% |
|
|
10,996 |
|
|
|
28.6 |
% |
|
|
9,593 |
|
|
|
27.1 |
% |
Other operating expenses |
|
2,007 |
|
|
|
21.6 |
% |
|
|
2,000 |
|
|
|
21.4 |
% |
|
|
8,040 |
|
|
|
20.9 |
% |
|
|
7,718 |
|
|
|
21.8 |
% |
Occupancy and related expenses |
|
1,037 |
|
|
|
11.2 |
% |
|
|
729 |
|
|
|
7.8 |
% |
|
|
3,809 |
|
|
|
9.9 |
% |
|
|
3,009 |
|
|
|
8.5 |
% |
Total |
$ |
8,412 |
|
|
|
90.6 |
% |
|
|
8,139 |
|
|
|
87.2 |
% |
|
$ |
34,714 |
|
|
|
90.4 |
% |
|
$ |
31,054 |
|
|
|
87.8 |
% |
BurgerFi International Inc., and
SubsidiariesSegmented Unit Counts
|
Quarter EndedJanuary 2, 2023 |
|
Year EndedJanuary 2, 2023 |
|
|
|
Corporate-owned |
|
Franchised |
|
Total |
|
Corporate-owned |
|
Franchised |
|
Total |
Total BurgerFi and Anthony's brands |
|
85 |
|
|
|
89 |
|
|
174 |
|
|
|
85 |
|
|
|
89 |
|
|
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
BurgerFi stores, beginning of
the period |
|
25 |
|
|
|
92 |
|
|
117 |
|
|
|
25 |
|
|
|
93 |
|
|
|
118 |
|
BurgerFi stores opened |
|
— |
|
|
|
2 |
|
|
2 |
|
|
|
3 |
|
|
|
8 |
|
|
|
11 |
|
BurgerFi stores
transferred/sold |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(3) |
|
|
|
3 |
|
|
|
— |
|
BurgerFi stores closed |
|
— |
|
|
|
(5) |
|
|
(5) |
|
|
|
— |
|
|
|
(15) |
|
|
|
(15) |
|
BurgerFi total stores,
end of the period |
|
25 |
|
|
|
89 |
|
|
114 |
|
|
|
25 |
|
|
|
89 |
|
|
|
114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Anthony's stores, beginning of
period |
|
61 |
|
|
|
— |
|
|
61 |
|
|
|
61 |
|
|
|
— |
|
|
|
61 |
|
Anthony's stores opened |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Anthony's stores closed |
|
(1) |
|
|
|
— |
|
|
(1) |
|
|
|
(1) |
|
|
|
— |
|
|
|
(1) |
|
Anthony's total
stores, end of the period |
|
60 |
|
|
|
— |
|
|
60 |
|
|
|
60 |
|
|
|
— |
|
|
|
60 |
|
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