BurgerFi Reports Third Quarter 2022 Results
BurgerFi International reported a significant revenue increase of 290%, totaling $43.3 million in Q3 2022, compared to $11.1 million the previous year, largely due to the acquisition of Anthony's. Systemwide restaurant sales also grew 71% to $70.6 million. However, BurgerFi experienced a 5% decrease in systemwide sales, while Anthony's grew by 4%. Despite operational improvements, the company reported a net loss of $3.3 million, although this was an improvement from the previous year's loss of $5.0 million. Management remains optimistic about future growth opportunities.
- Revenue increased 290% to $43.3 million in Q3 2022.
- Adjusted EBITDA rose 755% to $1.6 million compared to the prior year.
- Signed first multi-unit development agreement for Anthony's.
- Restaurant-level operating expenses improved by 250 basis points for Anthony's.
- BurgerFi's same-store sales decreased 7% in Q3 2022.
- Net loss of $3.3 million compared to $5.0 million the previous year.
- Systemwide sales for BurgerFi decreased by 5%.
Revenue Grows
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
- Consolidated systemwide sales increased
- 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
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
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
- 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
Restaurant-level operating expenses for the third quarter of 2022 were
Our third quarter results also included Employee Retention Credits made available through changed Coronavirus Aid, Relief, and Economic Security Act legislation of
Net loss in the third quarter was
Adjusted EBITDA in the third quarter of 2022 increased
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
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, | 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, | 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 | ||||||||||
FAQ
What were BurgerFi's revenues in Q3 2022?
What is the financial impact of the Anthony's acquisition?
How did same-store sales perform for BurgerFi and Anthony's?
What is the outlook for BurgerFi in 2023?
What were BurgerFi's operating expenses in Q3 2022?
