BurgerFi International, Inc. - BFI STOCK NEWS

BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) has filed for Chapter 11 bankruptcy protection to preserve its brands' value. The filing includes 67 corporate-owned locations of BurgerFi and Anthony's Coal Fired Pizza & Wings, while all 144 locations (corporate and franchised) will continue normal operations. The company cites post-pandemic consumer spending decline, inflation, and rising food and labor costs as reasons for the filing.

Key points:

• 19 underperforming corporate-owned stores closed
• New CEO and CFO implemented turnaround plan in July 2023
• Company seeking court approval for continued employee wages, benefits, and customer programs
• Rewards and gift cards to remain valid at participating locations

BurgerFi, owned by BurgerFi International, Inc. (BFI), is celebrating National Cheeseburger Day on September 18, 2024, with a special offer. Customers can enjoy a premium BurgerFi Cheeseburger for only $4 when they purchase a Coca-Cola Freestyle Beverage. The offer is available for dine-in only and is to one cheeseburger per beverage purchase.

The BurgerFi Cheeseburger features two antibiotic-free Angus Beef patties, American cheese, lettuce, tomato, and signature Fi Sauce. CEO Carl Bachmann emphasized the company's commitment to delivering a better burger experience, while CMO Cindy Syracuse expressed the goal of becoming the 'MVP of burgers'.

BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) has received two deficiency notices from Nasdaq Stock Market The first notice is due to the company's failure to timely file its Q2 2024 Form 10-Q, violating Nasdaq Listing Rule 5250(c)(1). The second notice stems from the resignations of certain board members, resulting in non-compliance with Nasdaq's audit and compensation committee requirements under Rule 5605.

BurgerFi must submit a compliance plan for the Q2 Form 10-Q within 60 days and has until February 18, 2025, to implement it if accepted. For the board committee issue, the company has 45 days to submit a plan and until February 24, 2025, to regain compliance if the plan is accepted. The company is evaluating options but cannot guarantee submission of plans, Nasdaq acceptance, or regaining compliance within the given periods.

BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) has reached a Settlement Agreement with Lion Point Capital, LP to resolve all claims related to previously disclosed litigation. The settlement terms include:

1. BurgerFi to pay Lion Point $1,350,000 in installments
2. BurgerFi to issue 300,000 shares of Series A Preferred Stock to Lion Point

The lawsuit, filed on August 26, 2022, alleged that BurgerFi failed to timely register Lion Point's shares. The settlement aims to avoid further time, expense, and risks associated with ongoing litigation. BurgerFi's Chairman, David Heidecorn, expressed satisfaction in resolving the matter and stated the company's intention to continue exploring strategic alternatives in the best interests of the company and its stakeholders.

BurgerFi International announced its decision to consider strategic alternatives to address liquidity challenges and enhance company prospects. The Board formed a special committee and retained Kroll Securities as its financial advisor. David Heidecorn, a Senior Advisor and former Partner at L Catterton, was appointed as the new Chairman of the Board, replacing Ophir Sternberg. The company entered a Forbearance Agreement and Seventeenth Amendment with TREW Capital, delaying the exercise of credit rights until at least July 31, 2024. Additionally, L Catterton and TREW have committed to lending up to $4 million collectively. Retention agreements were made with CEO Carl Bachmann and CFO Christopher E. Jones to ensure steady leadership during this period.

BurgerFi is celebrating National Hamburger Day on May 28, 2024, with a $3 Angus Beef double burger offer for dine-in guests who purchase a Coca-Cola Freestyle Beverage. The promotion, featuring 100% antibiotic-free Angus Beef patties, fresh lettuce, tomato, and Fi Sauce, is available for one day only at participating locations. Carl Bachmann, CEO, and Cindy Syracuse, CMO, highlighted the brand's commitment to premium ingredients and a fun dining experience. BurgerFi encourages online ordering through its website and app, with an additional offer of free fresh-cut fries on the first order.

BurgerFi has rebranded as ChickenFi starting May 21, 2024, to compete in the Chicken Wars by introducing new fried and grilled chicken sandwiches made with antibiotic-free chicken. The rebrand includes expanded chicken offerings by 50%, adding grilled chicken salad bowls, crispy fries, premium potato buns, and more. The goal is to cater to those who prefer chicken over beef, aiming to set a new standard for chicken sandwiches. ChickenFi also offers fresh Jumbo Chicken Wings, cage-free Chicken Tenders, and a -edition Chicken + Waffles Shake. The rebrand features promotions like early access for V-Fi-P loyalty club members and bonus gift cards.

BurgerFi International (Nasdaq: BFI) reported its Q1 2024 financial results, highlighting a revenue decline to $42.9 million from $45.7 million in the previous year. The company experienced a 17% decrease in systemwide sales for BurgerFi and a 2% decrease for Anthony's. Same-store sales dropped 13% for BurgerFi and 2% for Anthony's. Despite these declines, net loss reduced to $6.5 million from $9.2 million, and management noted sequential improvement through the quarter. Adjusted EBITDA was $0.3 million, down from $2.6 million. Operational improvements and new systems are expected to drive future growth.

BurgerFi International (NASDAQ: BFI, BFIIW) will announce its Q1 2024 financial results on May 15, 2024, before the market opens.

Management will discuss the results in a conference call at 8:30 a.m. ET the same day.

The call will be available live and for replay on their Investor Relations website.

Dial-in details for the call include a toll-free number (1-833-816-1403) and an international number (1-412-317-0496) with Conference ID: 10189129.