ODD BURGER CORPORATION FILES YEAR END FINANCIALS, MANAGEMENT DISCUSSION AND ANALYSIS AND ANNUAL INFORMATION FORM
Odd Burger Corporation (ODDAF, ODD) announced its financial results for FY 2021, highlighting a 50% revenue increase from Q3 to Q4 and an 86% year-over-year growth for Q4. CEO James McInnes emphasized the company’s rapid scaling with 16 operational or under-development locations. Despite achieving a 9.4% increase in food sales, the net loss for FY 2021 was $5.17 million, a significant rise from $2.78 million in FY 2020. The company also plans to expand through franchising, aiming for 20 restaurants by 2022.
- Revenue in Q4 2021 increased by approximately 50% compared to Q3 2021.
- Q4 2021 revenue was nearly 86% higher than Q4 2020, driven by new store openings.
- Food sales grew by 9.4% year-over-year, reflecting successful expansion efforts.
- The company has 16 restaurant locations open or under development, indicating strong growth potential.
- Franchising strategy is expected to reduce capital costs and accelerate expansion.
- Net loss for FY 2021 reached $5.17 million, an increase from $2.78 million in FY 2020.
- Gross margin for FY 2021 was negative, indicating production inefficiencies.
- The company is falling short of its initial goal of 30 restaurant locations in 2022, now aiming for 20.
TORONTO, Jan. 31, 2022 /PRNewswire/ - Odd Burger Corporation ("Odd Burger" or the "Company") (TSX: ODD) (OTCQB: ODDAF) (FSE: IA9) is pleased to announce its financial results for its fiscal year, and fourth quarter, ended September 30, 2021 have been posted with Canadian securities regulatory authorities at www.sedar.com .
CEO James McInnes stated, "The financial results from 2021 show that Odd Burger is a leader in the plant-based fast food market as we scale our operations across Canada and beyond. Our goal of disrupting the fast-food industry with superior technology, sustainable food and a simple, cost-effective restaurant model is proving to be extremely successful. In a matter of months, we have over doubled our number of locations, secured franchisees across Canada, and have been able to successfully scale our food manufacturing operations to meet demand. With 16 restaurant sites now under development or operational, we are positioned for tremendous growth in the coming year. We are pleased to report that our fourth quarter revenue was approximately
Summary of Restaurant Locations – Opened and Future
The following table provides a summary of existing open restaurants and restaurants expected to be opened, including whether each restaurant is corporate or franchised or to be franchised.
Location | Status Today | Projected Possession | Actual/Projected Opening | Franchise/ Corporate | Costs to Complete |
Windsor | Open | N/A | Open Aug. 2020 | Franchise | Complete |
Toronto | Open | N/A | Open July 2019 | Corporate | Complete |
Vaughan | Open | N/A | Open July 2021 | Corporate | Complete |
London | Open | N/A | Open Aug 2021 | Corporate | Complete |
Waterloo | Open | N/A | Open Sep 2021 | Corporate | Complete |
Hamilton | Open | N/A | Open Oct 2021 | Corporate | Complete |
Broadview | Leased | 15-Feb-21 | May-22 | Corporate | |
Whitby | Leased | 01-Oct-21 | Apr-22 | Corporate | |
Brampton | Leased | 13-Dec-21 | Apr-22 | Franchise | |
Oshawa | Leased | 01-Sep-22 | Dec-22 | Franchise | |
Oakville | Conditional Lease | 01-Mar-22 | July-22 | Franchise | |
Etobicoke | Conditional Lease | 01-Oct-22 | Dec-22 | Franchise | |
Newmarket | Conditional Lease | 01-Mar-22 | July-22 | Franchise | |
Calgary | Leased | 01-Feb-22 | May-22 | Franchise | |
Ottawa | Searching for Site | Jul-22 | Franchise | ||
Victoria | Searching for Site | Aug-22 | Franchise | ||
Edmonton | Searching for Site | TBD | Franchise | ||
New York | Searching for Site | TBD | Franchise |
The Company expects that internal cash resources and equipment leases will allow it to complete the Broadview and Whitby sites and to run them as corporate stores. For franchised locations, the cost to complete the site search and franchise negotiations is financed through a
Note: Conditional leases are conditional on the Company finding a franchise partner for the location.
Summary of Franchise Agreements
The following table provides a summary of locations and projected locations for franchised restaurants.
Location | Status Today | Franchise Fee Received | Site Secured |
Windsor | Open | Y | Y |
Calgary | Franchise Agreement Signed | Y | Y |
Ottawa | Franchise Agreement Signed | Y | N |
Victoria | Franchise Agreement Signed | Y | N |
Brampton | Searching for Franchisee | N | N |
Oshawa | Searching for Franchisee | N | N |
Oakville | Searching for Franchisee | N | N |
Etobicoke | Searching for Franchisee | N | N |
Newmarket | Searching for Franchisee | N | N |
Edmonton | Active Negotiation | N | N |
BC | Active Negotiation – Area Franchise Rep. | N | N |
New York | Searching For Franchisee | N | N |
The Company is actively searching for franchisees for its future locations. The Company previously announced its launch into the USA but has not yet found a suitable site or franchisee, and is active in the search for both.
Preposterous Foods
Preposterous Foods Inc. (a subsidiary of Odd Burger, formerly Globally Local Food Services) manufacturing facility received the Hazard Analysis Critical Control Point (HACCP) certification in August 2021, validating the measures in place to ensure food safety and quality control. The HACCP certification is the first step in enabling the Company to establish a frozen food retail brand and distribution system for their product. The next steps will be to create a brand and determine the product line. The Company is negotiating to make product available to other restaurants through its distribution partner Sysco.
In order to keep up with the pace of restaurant growth, Preposterous Foods Inc. has to grow. Rather than add distribution centers, the Company has focused on a strategic partnership with Sysco Corporation. This partnership gives the Company access to distribution across Canada and the USA. By fiscal year end, the Company will have added
Discussion of Results for the Years Ended September 30, 2021
Selected Annual Information
Three Year Financial Summary
Consolidated Statements of Loss and Comprehensive Loss | 2021 | 2020 | 2019 |
Total Revenue | |||
Loss and Comprehensive Loss from Operations | |||
Loss and Comprehensive Loss | |||
Per Share – Basic and Diluted Loss | |||
Consolidated Statements of Financial Position | 2021 | 2020 | 2019 |
Total Assets | |||
Working Capital | |||
Total Long Term Liabilities | |||
Net Cash Used In Operating Activities | |||
Dividends Declared and Paid | - | - | - |
Shareholder's Equity (Deficit) |
Food Sales were
Franchise revenue of
Gross margin for the year ended September 30, 2021 was
Salaries and wages were
Professional fees were
Selling, general and administrative expenses for the year ended September 30, 2021 were
Interest expense for the year ended September 30, 2021 was
The year ended September 30, 2021 included the reverse take-over by Globally Local of Black Lion Capital Corporation, in order to attain a TSXV listing and the subsequent completion of the Company's Qualifying Transaction and concurrent private placement of 10,500,000 subscription receipts for proceeds of
SUMMARY OF QUARTERLY RESULTS
The following table sets forth unaudited selected financial information for each of the last eight quarters.
Quarter Ended | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 |
Revenue | ||||
Net and Comprehensive Loss | ||||
Net Loss Per Share | - | |||
Quarter Ended | September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 |
Revenue | ||||
Net and Comprehensive Loss | ||||
Net Loss Per Share | - | - | - |
Discussion of Results for the Quarter Ended September 30, 2021
Revenue of
Revenue was
Gross margin for the fourth quarter was
Salaries and wages were
Professional fees were
Selling, general and administrative expenses for the fourth quarter 2021 were
The third quarter of 2021 included the reverse take-over by Globally Local of Black Lion Capital Corporation, in order to attain a TSXV listing and the subsequent completion of the Company's Initial Public Offering of 10,500,000 common shares for proceeds of
Interest expense for the three months ended September 30, 2021 was
Other Income and Expense was a net expense of
About Odd Burger Corporation
Odd Burger Corporation is a chain of company-owned and franchised vegan fast-food restaurants as well as a food technology company that manufactures and distributes a proprietary line of plant-based protein and dairy alternatives to its locations. Odd Burger restaurants operate as smart kitchens, which use state-of-the art cooking technology and automation solutions to deliver a delicious food experience to customers craving healthier and more sustainable fast food. With small store footprints optimized for delivery and takeout, advanced cooking technology, competitive pricing, a vertically integrated supply chain along with healthier ingredients, Odd Burger is revolutionizing the fast-food industry by creating guilt-free fast food. Odd Burger Corporation is traded on the TSX Venture Exchange under the symbol ODD and on the OTCQB under the symbol ODDAF. For more information visit https://www.oddburger.com.
Forward-Looking Information
This news release contains forward-looking information for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as "proposed", "expects", "intends", "may", "will", and similar expressions. Forward looking information contained or referred to in this news release includes statements relating: to future restaurant openings; potential franchisees, demand for our products and other similar statements. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information, but which may prove to be incorrect including, but not limited to material assumptions with respect to the continued strong demand for the Company's products, the availability of sufficient financing on reasonable terms to fund the Company's capital requirements and the ability to obtain necessary equipment, production inputs and labour. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct. Risks and uncertainties that could cause actual results, performance or achievements of the Company to differ materially from those expressed or implied in such forward-looking information include, among others, negative cash flow and future financing requirements to sustain and grow operations, limited history of operations and revenues and no history of earnings or dividends, expansion of facilities, competition, availability of raw materials, dependence on senior management and key personnel, general business risk and liability, regulation of the food industry, change in laws, regulations and guidelines, compliance with laws, unfavourable publicity or consumer perception, product liability and product recalls, risks related to intellectual property, difficulties with forecasts, management of growth and litigation, as well as the impact of, uncertainties and risks associated with the ongoing COVID-19 pandemic, many of which are beyond the control of the Company.
For a more comprehensive discussion of the risks faced by the Company, please refer to the Company's Annual Information Form filed with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
Non-GAAP Measures
This news release may make reference to certain non-GAAP measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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SOURCE Odd Burger Corporation
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