BurgerFi Reports Third Quarter 2022 Results

BurgerFi International
BurgerFi International

Revenue Grows 290% to $43.3 million in Third Quarter

First Anthony’s Multi-Unit Development Agreement Executed

Conference Call Today, November 16, at 8:30 a.m. ET

FORT LAUDERDALE, Fla., Nov. 16, 2022 (GLOBE NEWSWIRE) -- 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 third quarter ended October 3, 2022.

Highlights for the Third Quarter 2022

  • Total revenue increased to $43.3 million in the third quarter 2022 compared to $11.1 million in the prior year quarter driven by the Anthony’s acquisition

    • Consolidated systemwide sales increased 71% to $70.6 million compared to $41.4 million in the prior year quarter

    • Systemwide sales for Anthony’s increased 4% to $31.5 million in the third quarter compared to prior year

    • Systemwide sales for BurgerFi decreased 5% to $39.1 million in the third quarter compared to prior year

    • Systemwide same-store sales growth of 3% at Anthony’s in the third quarter of 2022 compared to the prior year quarter

    • Systemwide same-store sales decrease of 7% at BurgerFi in the third quarter of 2022 compared to the prior year quarter

    • Opened nine new restaurants year to date and entered into first multi-unit development agreement for franchising Anthony’s

  • Restaurant-level operating expenses improved 250 basis points when compared to the prior year quarter

  • Net loss of $3.3 million or $(0.15) per diluted share in the third quarter 2022 compared to net loss of $5.0 million or $(0.28) per diluted share compared to prior year quarter.

  • Adjusted EBITDA1 of $1.6 million in the third quarter 2022 compared to $0.2 million in the prior year quarter.

Management Commentary

Ophir Sternberg, Executive Chairman of BurgerFi, stated, “Our third quarter represents another quarter of growth as we experienced a nearly 290% increase in revenue and achieved almost eight times growth in adjusted EBITDA when compared to the prior year’s third quarter as a result of our acquisition of Anthony’s in November of 2021. We have two very high quality, differentiated brands that are on trend with the consumer. While we are an early stage growth company, I believe that we have long-term opportunities ahead for asset-light expansion and I am extremely excited to have signed our first multi-unit development agreement for Anthony’s as we execute on our growth strategy for that brand.”

Ian Baines, Chief Executive Officer of BurgerFi, added, “Our team remains laser focused on operational excellence and sales driving initiatives. This focus has begun to pay dividends as evident in the 3% increase in same stores sales at Anthony’s when compared to 2021. Notably, sales increased sequentially throughout the quarter at Anthony's and this positive momentum has since continued into the month of October where sales were above that of 2019 for the first time since the pandemic began. Additionally, we have seen some commodity costs stabilize which helped contribute to Anthony’s generating a 210 basis point improvement in restaurant level margins. At BurgerFi, we have embarked on a new brand campaign to further strengthen our position in the better burger category. We are also seeing an improvement in guest satisfaction scores which we believe will translate to stronger financial performance in the quarters to come. These positive developments give us confidence in the recovery of our margin profile.”

Baines continued, “Looking ahead, our 2023 pipeline is strong as we anticipate the opening of 15-20 new franchised BurgerFi restaurants. Additionally, we are excited to have signed our first co-branded agreement with one of our largest BurgerFi franchisees to add an Anthony’s menu to an existing BurgerFi location in the first half of next year. Co-branding is another opportunity for us to increase revenue and grow margins. ”

3rd Quarter 2022 Key Metrics1 Summary

 

Consolidated

(in thousands except for percentage data)

Three Months
Ended

October 3,
2022*

 

Three Months
Ended

September 30,
2021**

 

Nine Months
Ended

October 3,
2022*

 

Nine Months
Ended

September 30,
2021**

 

Systemwide Restaurant Sales

$

70,627

 

 

$

41,407

 

 

$

218,014

 

 

$

125,420

 

 

Systemwide Restaurant Sales Growth

 

(2)

%

 

 

25

%

 

 

1

%

 

 

34

%

 

Systemwide Restaurant Same Store Sales Growth

 

(2)

%

 

 

8

%

 

 

(1)

%

 

 

17

%

 

Corporate-Owned Restaurant Sales

$

40,284

 

 

$

8,470

 

 

$

124,319

 

 

$

25,344

 

 

Corporate-Owned Restaurant Sales Growth

 

4

%

 

 

34

%

 

 

7

%

 

 

46

%

 

Corporate-Owned Restaurant Same Store Sales Growth

 

1

%

 

 

7

%

 

 

3

%

 

 

18

%

 

Franchise Restaurant Sales

$

30,343

 

 

$

32,937

 

 

$

93,695

 

 

$

100,043

 

 

Franchise Restaurant Sales Growth

 

(8)

%

 

 

23

%

 

 

(6)

%

 

 

31

%

 

Franchise Restaurant Same Store Sales Growth

 

(6)

%

 

 

9

%

 

 

(6)

%

 

 

16

%

 

Digital Channel % of Systemwide Sales

 

34

%

 

 

37

%

 

 

35

%

 

 

40

%

 

*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.

**Includes only BurgerFi

 

Three Months Ended
October 3, 2022

 

Three Months Ended
September 30, 2021

(in thousands, except for percentage data)

BurgerFi

 

Anthony's*

 

BurgerFi

 

Systemwide Restaurant Sales

$

39,147

 

 

$

31,480

 

 

$

41,407

 

 

Systemwide Restaurant Sales Growth

 

(5)

%

 

 

4

%

 

 

25

%

 

Systemwide Restaurant Same Store Sales Growth

 

(7)

%

 

 

3

%

 

 

8

%

 

Corporate-Owned Restaurant Sales

$

8,804

 

 

$

31,480

 

 

$

8,470

 

 

Corporate-Owned Restaurant Sales Growth

 

4

%

 

 

4

%

 

 

34

%

 

Corporate-Owned Restaurant Same Store Sales Growth

 

(11)

%

 

 

3

%

 

 

7

%

 

Franchise Restaurant Sales

$

30,343

 

 

 

N/A

 

 

$

32,937

 

 

Franchise Restaurant Sales Growth

 

(8)

%

 

 

N/A

 

 

 

23

%

 

Franchise Restaurant Same Store Sales Growth

 

(6)

%

 

 

N/A

 

 

 

9

%

 

Digital Channel % of Systemwide Sales

 

33

%

 

 

36

%

 

 

37

%

 

*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.

**Includes only BurgerFi

  1. Refer to “Key Metrics Definitions” and “About Non-GAAP Financial Measures” sections below.

Third Quarter 2022 Financial Results

Total revenue in the third quarter of 2022 increased 290% to $43.3 million compared to $11.1 million in the year-ago quarter, primarily driven by the addition of the Anthony’s business acquired on November 3, 2021 and additional revenue from new restaurants opened during the period. For the BurgerFi brand, same-store sales decreased 11% and 6% in corporate-owned and franchised locations, respectively. For the Anthony’s brand, same-store sales for the third quarter increased 3% over the prior year period.

Restaurant-level operating expenses for the third quarter of 2022 were $35.2 million compared to $7.8 million in the third quarter of 2021, the increase driven by the inclusion of a full quarter of Anthony’s operations. For the BurgerFi brand, restaurant-level operating expenses, as a percentage of sales, increased 370 basis points for the third quarter of 2022, compared to the third quarter of 2021, primarily due to losing leverage driven by lower sales. For the Anthony's brand, restaurant-level operating expenses, as a percentage of sales, improved 210 basis points for the third quarter of 2022, compared to the third quarter of 2021, primarily due lower food costs as we are beginning to see a stabilization of commodity costs, especially in chicken wing prices.

Our third quarter results also included Employee Retention Credits made available through changed Coronavirus Aid, Relief, and Economic Security Act legislation of $2.6 million.

Net loss in the third quarter was $3.3 million compared to a net loss of $5.0 million in the year-ago quarter. The change is primarily due to Employee Retention Credits partially offset by the net operating results including amortization of fixed assets and purchased intangibles of Anthony’s.

Adjusted EBITDA in the third quarter of 2022 increased 755% to $1.6 million compared to $0.2 million in the third quarter of 2021, driven by the acquisition of Anthony’s. 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.

Restaurant Development

As of October 3, 2022, there were 178 total BurgerFi and Anthony’s restaurants of which 117 were BurgerFi (25 corporate-owned and 92 franchised) and 61 were corporate-owned Anthony’s. During the third quarter 2022, there was one franchised BurgerFi opened and six franchise closures.

Additionally, as of October 3, 2022, 22 GoPuff Fresh Food Halls, from which delivery of BurgerFi products is available, opened across the country in existing and new markets. This development opportunity requires no capital on behalf of the Company and is incremental to our previously announced unit growth plans. We expect to have 30 GoPuff Fresh Food Halls by year end.

Subsequent to the quarter end, we signed our first multi-unit development agreement for franchising Anthony’s with one of our largest BurgerFi franchisees. We expect the first location to open within an existing BurgerFi location as our Company’s first co-branded restaurant.

2022 Outlook

The Company acknowledges the challenges many in the industry are facing related to sales trends, labor and food cost pressures, along with elevated economic uncertainty from a consumer perspective. Management’s outlook for the full year 2022 is as follows:.

  • Annual revenues of $175-$180 million

  • Low single-digit same store sales growth for corporate-owned locations

  • 12-13 new BurgerFi brand restaurant openings (3 corporate-owned 9-10 franchises) as well as up to 30 BurgerFi GoPuff ghost kitchen locations

  • Adjusted EBITDA of $9-10 million

  • Capital expenditures of approximately $2 million

Conference Call

The Company will hold a conference call today, November 16, 2022, at 8:30 a.m. Eastern time to discuss its third quarter 2022 results.

Date: Wednesday, November 16, 2022
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: (877) 300-8521
International dial-in number: (412) 317-6026
Conference ID: 10170971

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 employee retention credits and PPP loan gain, the gain on change in value of warrant liability, income tax (benefit) expense, interest expense (which includes non-cash interest on preferred stock and interest accretion on related party notes), depreciation and amortization, share-based compensation expense, pre-opening costs, store closure costs, legal settlements, merger, acquisition and integration costs, loss (gain) on sale of assets and goodwill impairment.

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 better burger concepts with 117 BurgerFi restaurants (92 franchised and 25 corporate-owned). As of October 3, 2022, BurgerFi is the owner and franchisor of the two following brands with a combined 178 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, antibiotic and cage-free chicken offerings, fresh, hand-cut sides, and custard shakes and concretes. BurgerFi was named “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, Fast Casual's 2021 #1 Brand of the Year and included in Inc. Magazine’s Fastest Growing Private Companies List. In 2021, Consumer Report’s Chain Reaction 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 61 corporate-owned casual restaurant locations, as of October 3, 2022. 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 for asset-light expansion, executing on growth strategy for the Anthony’s brand, remaining focused on sales driving initiatives and on operational excellence, a new brand campaign to further strengthen BurgerFi’s position in the better burger category, improvement in guest satisfaction surveys that will translate to stronger financial performance, confidence in the recovery of BurgerFi’s margin profile, store opening plans, opening of additional GoPuff Fresh Food Halls, cobranding, expectations regarding adjusted EBITDA in 2022 and the continued presence of labor and supply chain pressures and elevated uncertainty from a consumer perspective, as well as statements set forth under the section entitled “2022 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, 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 as a result of the impact of COVID-19 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:
ICR
Michelle Michalski
IR-BFI@icrinc.com
646-277-1224

Company Contact:
BurgerFi International Inc.
IR@burgerfi.com

Media Relations Contact:
rbb Communications
Ailys Toledo
Ailys.Toledo@rbbcommunications.com

BurgerFi International Inc., and Subsidiaries
Condensed Consolidated Balance Sheets

 

Unaudited

 

 

(in thousands, except for per share data)

October 3, 2022

 

December 31, 2021

ASSETS

 

 

 

CURRENT ASSETS

 

 

 

Cash

$

14,141

 

 

$

14,889

 

Accounts receivable, net

 

1,361

 

 

 

1,689

 

Inventory

 

1,317

 

 

 

1,387

 

Other current assets

 

5,288

 

 

 

3,258

 

TOTAL CURRENT ASSETS

 

22,107

 

 

 

21,223

 

PROPERTY & EQUIPMENT, net

 

23,061

 

 

 

29,035

 

OPERATING RIGHT-OF-USE ASSET, net

 

49,804

 

 

 

 

GOODWILL

 

43,021

 

 

 

98,000

 

INTANGIBLE ASSETS, net

 

162,356

 

 

 

168,723

 

OTHER ASSETS

 

1,358

 

 

 

738

 

TOTAL ASSETS

$

301,707

 

 

$

317,719

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

CURRENT LIABILITIES

 

 

 

Accounts payable - trade and other

$

9,254

 

 

$

7,841

 

Accrued expenses

 

8,606

 

 

 

5,302

 

Short-term operating lease liability

 

9,505

 

 

 

 

Short-term borrowings, including finance leases

 

3,491

 

 

 

3,331

 

Other current liabilities

 

7,055

 

 

 

7,856

 

TOTAL CURRENT LIABILITIES

 

37,911

 

 

 

24,330

 

NON-CURRENT LIABILITIES

 

 

 

Long-term borrowings, including finance leases

 

56,181

 

 

 

56,797

 

Redeemable preferred stock, $0.0001 par value, 10,000,000 shares authorized, 2,120,000 shares issued and outstanding as of October 3, 2022 and December 31, 2021, $53 million principal redemption value

 

50,416

 

 

 

47,525

 

Long-term operating lease liability

 

41,372

 

 

 

 

Related party note

 

9,107

 

 

 

8,724

 

Deferred income taxes

 

903

 

 

 

1,353

 

Other non-current liabilities

 

1,602

 

 

 

5,715

 

TOTAL LIABILITIES

 

197,492

 

 

 

144,444

 

STOCKHOLDERS' EQUITY

 

 

 

Common stock, $0.0001 par value, 100,000,000 shares authorized, 22,253,232 and 21,303,500 shares issued and outstanding as of October 3, 2022 and December 31, 2021, respectively

 

2

 

 

 

2

 

Additional paid-in capital

 

305,201

 

 

 

296,992

 

Accumulated deficit

 

(200,988

)

 

 

(123,719

)

TOTAL STOCKHOLDERS’ EQUITY

 

104,215

 

 

 

173,275

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

301,707

 

 

$

317,719

 

 

 

 

 

 

 

 

 

BurgerFi International Inc., and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)

 

Three Months Ended

 

Nine Months Ended

(in thousands)

October 3, 2022

 

September 30, 2021

 

October 3, 2022

 

September 30, 2021

REVENUE

 

 

 

 

 

 

 

Restaurant sales

$

40,361

 

 

$

8,675

 

 

$

124,954

 

 

$

26,042

 

Royalty and other fees

 

2,465

 

 

 

1,956

 

 

 

7,179

 

 

 

6,233

 

Royalty - brand development and co-op

 

429

 

 

 

471

 

 

 

1,351

 

 

 

1,527

 

TOTAL REVENUE

 

43,255

 

 

 

11,102

 

 

 

133,484

 

 

 

33,802

 

Restaurant level operating expenses:

 

 

 

 

 

 

 

Food, beverage and paper costs

 

11,665

 

 

 

2,671

 

 

 

37,017

 

 

 

7,786

 

Labor and related expenses

 

12,217

 

 

 

2,524

 

 

 

37,126

 

 

 

7,131

 

Other operating expenses

 

7,464

 

 

 

1,871

 

 

 

22,077

 

 

 

5,718

 

Occupancy and related expenses

 

3,848

 

 

 

719

 

 

 

11,575

 

 

 

2,280

 

General and administrative expenses

 

5,511

 

 

 

4,049

 

 

 

18,943

 

 

 

10,574

 

Depreciation and amortization expense

 

4,253

 

 

 

2,194

 

 

 

13,427

 

 

 

6,473

 

Share-based compensation expense

 

1,010

 

 

 

3,668

 

 

 

9,295

 

 

 

6,785

 

Brand development, co-op and advertising expense

 

1,159

 

 

 

411

 

 

 

2,998

 

 

 

1,785

 

Goodwill impairment

 

 

 

 

 

 

 

55,168

 

 

 

 

Store closure costs

 

568

 

 

 

132

 

 

 

1,134

 

 

 

132

 

Pre-opening costs

 

 

 

 

615

 

 

 

474

 

 

 

1,243

 

TOTAL OPERATING EXPENSES

 

47,695

 

 

 

18,854

 

 

 

209,234

 

 

 

49,907

 

OPERATING LOSS

 

(4,440

)

 

 

(7,752

)

 

 

(75,750

)

 

 

(16,105

)

Interest expense

 

(2,245

)

 

 

(5

)

 

 

(6,562

)

 

 

(46

)

Gain on change in value of warrant liability

 

726

 

 

 

2,732

 

 

 

2,050

 

 

 

10,405

 

Other income (loss)

 

2,627

 

 

 

(2

)

 

 

2,546

 

 

 

2,240

 

Loss before income taxes

 

(3,332

)

 

 

(5,027

)

 

 

(77,716

)

 

 

(3,506

)

Income tax benefit (expense)

 

 

 

 

9

 

 

 

447

 

 

 

(731

)

Net loss

 

(3,332

)

 

 

(5,018

)

 

 

(77,269

)

 

 

(4,237

)

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

22,253,232

 

 

 

17,892,769

 

 

 

22,146,258

 

 

 

17,866,168

 

Diluted

 

22,253,232

 

 

 

17,895,932

 

 

 

22,146,258

 

 

 

18,154,434

 

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

Basic

$

(0.15

)

 

$

(0.28

)

 

 

(3.49

)

 

 

(0.24

)

Diluted

$

(0.15

)

 

$

(0.28

)

 

 

(3.49

)

 

 

(0.93

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BurgerFi International Inc., and Subsidiaries
Consolidated Reconciliation of Net Loss to Adjusted EBITDA
(Non-GAAP) (Unaudited)

 

Three Months Ended

 

Nine Months Ended

 

(in thousands)

October 3,
2022

 

September 30,
2021

 

October 3,
2022

 

September 30,
2021

 

Net loss

$

(3,332

)

 

$

(5,018

)

 

$

(77,269

)

 

$

(4,237

)

 

Employee retention credits/ PPP loan gain

 

(2,626

)

 

 

 

 

 

(2,626

)

 

 

(2,237

)

 

Gain on change in value of warrant liability

 

(726

)

 

 

(2,732

)

 

 

(2,050

)

 

 

(10,405

)

 

Income tax (benefit) expense

 

 

 

 

(9

)

 

 

(447

)

 

 

731

 

 

Interest expense

 

2,245

 

 

 

5

 

 

 

6,562

 

 

 

46

 

 

Depreciation and amortization expense

 

4,253

 

 

 

2,194

 

 

 

13,427

 

 

 

6,473

 

 

Share-based compensation expense

 

1,010

 

 

 

3,668

 

 

 

9,295

 

 

 

6,785

 

 

Pre-opening costs

 

 

 

 

615

 

 

 

474

 

 

 

1,243

 

 

Store closure costs

 

568

 

 

 

132

 

 

 

1,134

 

 

 

132

 

 

Legal settlements

 

81

 

 

 

66

 

 

 

393

 

 

 

477

 

 

Merger, acquisition and integration costs

 

168

 

 

 

1,271

 

 

 

2,472

 

 

 

2,169

 

 

Loss on sale of assets

 

1

 

 

 

 

 

 

1

 

 

 

9

 

 

Goodwill impairment

 

 

 

 

 

 

 

55,168

 

 

 

 

 

Adjusted EBITDA

$

1,642

 

 

$

192

 

 

$

6,534

 

 

$

1,186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Non-GAAP) (Unaudited)

 

BurgerFi

 

Anthony's

(in thousands)

Three Months
Ended

October 3,
2022

 

Nine Months
Ended

October 3,
2022

 

Three Months
Ended

October 3,
2022

 

Nine Months
Ended

October 3,
2022

Net loss

$

(1,752

)

 

$

(36,439

)

 

$

(1,580

)

 

$

(40,830

)

Employee retention credits

 

(2,626

)

 

 

(2,626

)

 

 

 

 

 

 

Gain on change in value of warrant liability

 

(726

)

 

 

(2,050

)

 

 

 

 

 

 

Income tax (benefit) expense

 

 

 

 

(451

)

 

 

 

 

 

4

 

Interest expense

 

1,003

 

 

 

2,960

 

 

 

1,242

 

 

 

3,602

 

Depreciation and amortization expense

 

2,212

 

 

 

7,335

 

 

 

2,041

 

 

 

6,092

 

Share-based compensation expense

 

1,010

 

 

 

9,295

 

 

 

 

 

 

 

Pre-opening costs

 

 

 

 

474

 

 

 

 

 

 

 

Store closure costs

 

548

 

 

 

1,134

 

 

 

20

 

 

 

 

Legal settlements

 

81

 

 

 

393

 

 

 

 

 

 

 

Merger, acquisition and integration costs

 

168

 

 

 

2,359

 

 

 

 

 

 

113

 

Loss (gain) on sale of assets

 

(5

)

 

 

(5

)

 

 

6

 

 

 

6

 

Goodwill impairment

 

 

 

 

17,505

 

 

 

 

 

 

37,663

 

Adjusted EBITDA

$

(87

)

 

$

(116

)

 

$

1,729

 

 

$

6,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BurgerFi International Inc., and Subsidiaries
Consolidated Restaurant Level Operating Expenses
(Unaudited)

 

Three Months Ended
October 3, 2022

 

 

Three Months Ended
September 30, 2021

 

 

Nine Months Ended
October 3, 2022

 

 

Nine Months Ended
September 30, 2021

 

(in thousands)

In dollars

 

 

% of restaurant sales

 

In dollars

 

 

% of restaurant sales

 

In dollars

 

 

% of restaurant sales

 

In dollars

 

 

% of restaurant sales

Restaurant Sales

$

40,361

 

 

100.0

%

 

$

8,675

 

 

100.0

%

 

$

124,954

 

 

100.0

%

 

$

26,042

 

 

100.0

%

Restaurant level operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food, beverage and paper costs

 

11,665

 

 

28.9

%

 

 

2,671

 

 

30.8

%

 

 

37,017

 

 

29.6

%

 

 

7,786

 

 

29.9

%

Labor and related expenses

 

12,217

 

 

30.3

%

 

 

2,524

 

 

29.1

%

 

 

37,126

 

 

29.7

%

 

 

7,131

 

 

27.4

%

Other operating expenses

 

7,464

 

 

18.5

%

 

 

1,871

 

 

21.6

%

 

 

22,077

 

 

17.7

%

 

 

5,718

 

 

22.0

%

Occupancy and related expenses

 

3,848

 

 

9.5

%

 

 

719

 

 

8.3

%

 

 

11,575

 

 

9.3

%

 

 

2,280

 

 

8.8

%

Total

 

35,194

 

 

87.2

%

 

 

7,785

 

 

89.7

%

 

 

107,795

 

 

86.3

%

 

 

22,915

 

 

88.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BurgerFi Brand Only
Restaurant Level Operating Expenses
(Unaudited)

 

Three Months Ended
October 3, 2022

 

 

Three Months Ended
September 30, 2021

 

 

Nine Months Ended
October 3, 2022

 

 

Nine Months Ended
September 30, 2021

 

(in thousands)

In dollars

 

 

% of restaurant sales

 

In dollars

 

 

% of restaurant sales

 

In dollars

 

 

% of restaurant sales

 

In dollars

 

 

% of restaurant sales

Restaurant Sales

$

8,881

 

 

100.0

%

 

$

8,675

 

 

100.0

%

 

$

29,098

 

 

100.0

%

 

$

26,042

 

 

100.0

%

Restaurant level operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food, beverage and paper costs

 

2,738

 

 

30.8

%

 

 

2,671

 

 

30.8

%

 

 

9,180

 

 

31.5

%

 

 

7,786

 

 

29.9

%

Labor and related expenses

 

2,666

 

 

30.0

%

 

 

2,524

 

 

29.1

%

 

 

8,317

 

 

28.6

%

 

 

7,131

 

 

27.4

%

Other operating expenses

 

1,982

 

 

22.3

%

 

 

1,871

 

 

21.6

%

 

 

6,033

 

 

20.7

%

 

 

5,718

 

 

22.0

%

Occupancy and related expenses

 

906

 

 

10.2

%

 

 

719

 

 

8.3

%

 

 

2,772

 

 

9.5

%

 

 

2,280

 

 

8.8

%

Total

 

8,292

 

 

93.4

%

 

 

7,785

 

 

89.7

%

 

 

26,302

 

 

90.4

%

 

 

22,915

 

 

88.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anthony’s Brand Only
Restaurant Level Operating Expenses
(Unaudited)

 

Three Months Ended
October 3, 2022

 

 

Three Months Ended
September 30, 2021

 

 

Nine Months Ended
October 3, 2022

 

 

Nine Months Ended
September 30, 2021

 

(in thousands)

In dollars

 

 

% of restaurant sales

 

In dollars

 

 

% of restaurant sales

 

In dollars

 

 

% of restaurant sales

 

In dollars

 

 

% of restaurant sales

Restaurant Sales

$

31,480

 

 

100.0

%

 

$

30,385

 

 

100.0

%

 

$

95,856

 

 

100.0

%

 

$

90,347

 

 

100.0

%

Restaurant level operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food, beverage and paper costs

 

8,927

 

 

28.4

%

 

 

9,331

 

 

30.7

%

 

 

27,837

 

 

29.0

%

 

 

27,129

 

 

30.0

%

Labor and related expenses

 

9,551

 

 

30.3

%

 

 

8,856

 

 

29.1

%

 

 

28,809

 

 

30.1

%

 

 

26,118

 

 

28.9

%

Other operating expenses

 

5,482

 

 

17.4

%

 

 

5,544

 

 

18.2

%

 

 

16,044

 

 

16.7

%

 

 

16,414

 

 

18.2

%

Occupancy and related expenses

 

2,942

 

 

9.3

%

 

 

2,888

 

 

9.5

%

 

 

8,803

 

 

9.2

%

 

 

8,114

 

 

9.0

%

Total

 

26,902

 

 

85.5

%

 

 

26,619

 

 

87.6

%

 

 

81,493

 

 

85.0

%

 

 

77,775

 

 

86.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BurgerFi International Inc., and Subsidiaries
Segment Unit Counts

 

Three Months Ended
October 3, 2022

 

Nine Months Ended
October 3, 2022

 

 

 

Corporate-owned

 

Franchised

 

Total

 

Corporate-owned

 

Franchised

 

Total

Total BurgerFi and Anthony's brands

86

 

92

 

 

178

 

 

86

 

 

92

 

 

178

 

 

 

 

 

 

 

 

 

 

 

 

 

BurgerFi stores, beginning of the period

25

 

97

 

 

122

 

 

25

 

 

93

 

 

118

 

BurgerFi stores opened

 

1

 

 

1

 

 

3

 

 

6

 

 

9

 

BurgerFi stores transferred/sold

0

 

0

 

 

 

 

(3

)

 

3

 

 

 

BurgerFi stores closed

 

(6

)

 

(6

)

 

0

 

 

(10

)

 

(10

)

BurgerFi total stores, end of the period

25

 

92

 

 

117

 

 

25

 

 

92

 

 

117

 

 

 

 

 

 

 

 

 

 

 

 

 

Anthony's stores, beginning of period

61

 

 

 

61

 

 

61

 

 

 

 

61

 

Anthony's total stores, end of the period

61

 

 

 

61

 

 

61

 

 

 

 

61