• BurgerFi Reports Preliminary Unaudited Fourth Quarter and Fiscal Year 2023 Results

    ソース: Nasdaq GlobeNewswire / 01 4 2024 15:05:38   America/Chicago

    FORT LAUDERDALE, Fla., April 01, 2024 (GLOBE NEWSWIRE) -- BurgerFi International, Inc. (Nasdaq: BFI, BFIIW) (“BurgerFi” or the “Company”), owner BurgerFi, one of the nation’s leading fast-casual “better burger” dining brands, and Anthony’s Coal Fired Pizza & Wings (“Anthony’s”), the high-quality, casual dining pizza brand, today reported preliminary unaudited financial results for the fourth quarter and fiscal year ended January 1, 2024.

    Highlights for the Fourth Quarter 20231

    • Total revenue was $41.5 million in the fourth quarter 2023 compared to $45.2 million in the fourth quarter 2022
      • Consolidated systemwide sales decreased to $65.0 million compared to $71.6 million in the prior period
      • Corporate-owned restaurant same-store sales decreased 3% at Anthony’s compared to the prior period
      • Systemwide sales for BurgerFi decreased 9% to $33.9 million compared to $38.7 million in the prior period
      • Systemwide same-store sales decreased 10% at BurgerFi compared to the prior period
    • Opened three new franchised BurgerFi locations in Strongsville, Ohio, Arecibo, Puerto Rico and Rochester, New York and the first franchised co-branded restaurant in Kissimmee, Florida.
    • Hourly turnover continued to decline significantly from the sequential quarter, with Anthony’s performing better than industry benchmarks, while BurgerFi continued to make considerable progress. Management turnover at BurgerFi continued approaching industry benchmarks.
    • Consolidated food, beverage and paper expense margin improved 42 basis points compared to the prior period
    • Consolidated restaurant-level operating expenses increased 147 basis points compared to the prior period
    • Net loss improved to $10.6 million, or $(0.40) per diluted share, compared to a net loss of $26.2 million, or $(1.18) per diluted share, in the prior period
    • Adjusted EBITDA1 of $0.7 million compared to $2.6 million in the prior period

    Highlights for the Fiscal Year 20231

    • Total revenue was $170.1 million in the fiscal year 2023 compared to $178.7 million in the fiscal year 2022
      • Consolidated systemwide sales decreased to $274.4 million compared to $289.6 million in the prior year
      • Corporate-owned restaurant same-store sales decreased 1% at Anthony’s compared to the prior year
      • Systemwide sales for BurgerFi decreased 7% to $148.8 million compared to the prior year
      • Systemwide same-store sales decreased 8% at BurgerFi compared to the prior year
    • Opened eight new franchised BurgerFi locations, including the first dual-brand franchise location and acquired four locations from franchisees
    • Consolidated food, beverage and paper expense margin improved 240 basis points compared to the prior year
    • Consolidated restaurant-level operating expenses remained flat compared to the prior year
    • Net loss improved to $30.7 million, or $(1.20) per diluted share, compared to a net loss of $103.4 million, or $(4.66) per diluted share, in the prior year
    • Adjusted EBITDA1 of $6.1 million compared to $9.2 million in the prior year

    Management Commentary

    Carl Bachmann, Chief Executive Officer of BurgerFi, stated, “2023 was a challenging year at both Anthony’s and BurgerFi but, in no way indicative of the work this new management team is doing or where we intend to take the business over time. In fact, I am more convinced than ever that Anthony’s and BurgerFi are high quality brands with great opportunities ahead and strong growth potential. Leveraging my prior experience in turnaround situations at burger and pizza concepts, I implemented five key strategic priorities when I began eight months ago which should ultimately drive long-term, profitable growth.”

    Bachmann continued, “Notably, we have already begun to see early leading indicators that our efforts are taking hold. While Anthony’s had a 3% decrease in same-store sales growth during the fourth quarter, it did experience a sequential improvement in same-store sales and traffic compared to the third quarter and an encouraging performance during the Christmas holidays. Like most of our peers, January was a challenging month, however, trends have improved sequentially, with March flat to slightly positive, adjusting for the Easter shift.”

    Christopher Jones, Chief Financial Officer of BurgerFi, added, “This new management team is working hard every day executing a sound strategy that will increase sales and improve margins over time. During the fourth quarter, top line softness pressured margins, but that did not stop us from continuing to drive labor and cost efficiency, as evidenced by the ongoing declines in payroll and corporate expense dollars. With modest investments into inventory control systems at both brands and a new POS platform at Anthony’s, we are convinced that the more work we do, driving efficiencies today, the greater margin expansion opportunity we have, as we come out of the recovery.”

    Fourth Quarter and Fiscal Year 2023 Key Metrics Summary1,2

     Consolidated
     Quarter Ended Year Ended
    (in thousands, except for percentage data)January 1, 2024 January 2, 2023 January 1, 2024 January 2, 20233
    Systemwide Restaurant Sales$65,032  $71,626  $274,437  $289,640 
    Systemwide Restaurant Sales Growth(8)% (2)% (5)%  —%
    Systemwide Restaurant Same-Store Sales Growth(6)% (4)% (4)% (2)%
    Corporate-Owned Restaurant Sales$39,386  $41,878  $160,827  $166,198 
    Corporate-Owned Restaurant Sales Growth(5)%  2% (3)%  6%
    Corporate-Owned Restaurant Same-Store Sales Growth(5)% (1)% (4)%  2%
    Franchise Restaurant Sales$25,646  $29,748  $113,610  $123,442 
    Franchise Restaurant Sales Growth(11)% (7)% (7)% (7)%
    Franchise Restaurant Same-Store Sales Growth(8)% (8)% (6)% (6)%
    Digital Channel % of Systemwide Sales 32%  32%  32%  35%


     Quarter Ended
     January 1, 2024 January 2, 2023
    (in thousands, except for percentage data)Anthony's BurgerFi Anthony's3 BurgerFi
    Systemwide Restaurant Sales$31,142  $33,890  $32,962  $38,663 
    Systemwide Restaurant Sales Growth(6)% (9)%  2% (5)%
    Systemwide Restaurant Same-Store Sales Growth(3)% (10)%  1% (9)%
    Corporate-Owned Restaurant Sales$31,085  $8,301  $32,962  $8,915 
    Corporate-Owned Restaurant Sales Growth(6)% (4)%  2%  2%
    Corporate-Owned Restaurant Same-Store Sales Growth(3)% (14)%  1% (10)%
    Franchise Restaurant Sales$57  $25,589  N/A $29,748 
    Franchise Restaurant Sales Growth 100% (11)% N/A (7)%
    Franchise Restaurant Same-Store Sales GrowthN/A (8)% N/A (8)%
    Digital Channel % of Systemwide Sales 34%  31%  35%  29%


     Year Ended
     January 1, 2024 January 2, 2023
    (in thousands, except for percentage data)Anthony's BurgerFi Anthony's3 BurgerFi
    Systemwide Restaurant Sales$125,686  $148,750  $128,819  $160,821 
    Systemwide Restaurant Sales Growth(2)% (7)%  5% (3)%
    Systemwide Restaurant Same-Store Sales Growth(1)% (8)%  5% (7)%
    Corporate-Owned Restaurant Sales$125,629  $35,198  $128,819  $37,379 
    Corporate-Owned Restaurant Sales Growth(2)% (5)%  5%  10%
    Corporate-Owned Restaurant Same-Store Sales Growth(1)% (12)%  5% (11)%
    Franchise Restaurant Sales$57  $113,553  N/A $123,442 
    Franchise Restaurant Sales Growth 100% (7)% N/A (7)%
    Franchise Restaurant Same-Store Sales GrowthN/A (6)% N/A (6)%
    Digital Channel % of Systemwide Sales 33%  31%  37%  33%


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

    2The fourth quarter and fiscal year 2023 reporting periods for BurgerFi changed to 4-4-5 calendar quarters with a 52-53 week fiscal year ending on the Monday nearest December 31 of each year to improve the alignment of financial and business processes following the acquisition of Anthony’s. We have adjusted for differences arising from the different fiscal-period ends for the quarter and fiscal year 2023 when comparing to 2022.

    3Included 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.

    Fourth Quarter 2023 Financial Results

    Total revenue decreased 8.3% to $41.5 million compared to $45.2 million in the year-ago quarter, primarily driven by a decrease in same-store sales at BurgerFi and Anthony’s partially offset by the additional revenue from new restaurants opened during the period. For the Anthony’s brand, same-store sales for the fourth quarter decreased 3% over the prior year period. For the BurgerFi brand, same-store sales decreased 14% and 8% in corporate-owned and franchised locations, respectively, over the prior year period.

    Restaurant-level operating expenses for the fourth quarter of 2023 were $34.5 million compared to $36.4 million in the fourth quarter of 2022. For the Anthony's brand, restaurant-level operating expenses, as a percentage of sales, increased 20 basis points for the fourth quarter of 2023, compared to the fourth quarter of 2022, due to lower leverage on sales partially offset by lower food, beverage and paper costs. For the BurgerFi brand, restaurant-level operating expenses, as a percentage of sales, increased 660 basis points for the fourth quarter of 2023, compared to the fourth quarter of 2022, primarily due to lower leverage on sales.

    Net loss in the fourth quarter of 2023 was $10.6 million compared to a net loss of $26.2 million in the year-ago quarter, primarily due to lower goodwill and fixed asset impairments, lower depreciation and amortization expenses, lower general and administrative expenses primarily due to lower litigation expenses partially offset by lost leverage on sales partially offset by lower food costs and other operating expenses.

    Adjusted EBITDA in the fourth quarter of 2023 decreased $2.0 million to $0.7 million compared to $2.6 million in the fourth quarter of 2022, driven by lost leverage on sales partially offset by lower food costs and other operating expenses. See the definition of Adjusted EBITDA, a financial measure that is a non-generally accepted accounting principle in the United States (“GAAP”), and the reconciliation to the most comparable GAAP measure below.

    Fiscal Year 2023 Financial Results

    Total revenue in the fiscal year 2023 decreased 4.8% to $170.1 million compared to $178.7 million in fiscal year 2022, primarily driven by a decrease in same-store sales at BurgerFi and Anthony’s partially offset by the additional revenue from new corporate restaurants transferred from franchisees during the period. For the Anthony’s brand, same-store sales decreased 1% over the prior year period. For the BurgerFi brand, same-store sales decreased 12% and 6% in corporate-owned and franchised locations, respectively.

    Restaurant-level operating expenses for the fiscal year of 2023 were $138.7 million compared to $144.2 million in the fiscal year 2022. For the Anthony's brand, restaurant-level operating expenses, as a percentage of sales, decreased 90 basis points for fiscal year 2023, compared to the fiscal year 2022, due to lower leverage on sales partially offset by lower food, beverage and paper costs. For the BurgerFi brand, restaurant-level operating expenses, as a percentage of sales, increased 350 basis points for the fiscal year 2023, compared to the fiscal year 2022, primarily due to lower leverage on sales.

    Net loss in the fiscal year 2023 was $30.7 million compared to a net loss of $103.4 million in the fiscal year 2022, primarily due to lower food beverage and paper costs, lower asset impairments, lower share-based compensation expenses, lower depreciation and amortization expense, lower general and administrative expenses due to decreased litigation expense, partially offset by lower same-store sales, the absence of gains on employee retention credits, higher costs due to restructuring and lower gain on change in value of warrant liability compared to the prior year.

    Adjusted EBITDA in the fiscal year 2023 decreased $3.1 million to $6.1 million compared to $9.2 million in the fiscal year 2022, primarily due to lost leverage on sales and lower systemwide restaurant sales partially offset by lower food costs and other operating expenses. Please see below for reconciliation of non-U.S. GAAP financial measure Adjusted EBITDA to the most directly comparable U.S. GAAP measure, net (loss) income on a consolidated basis and by segment. See the definition of Adjusted EBITDA, a non-GAAP financial measure, that is a non-GAAP, and the reconciliation to the most comparable GAAP measure below.

    Restaurant Development

    As of January 1, 2024, there were 168 total BurgerFi and Anthony’s restaurants, of which 108 were BurgerFi (28 corporate-owned and 80 franchised) and 60 were Anthony’s (59 corporate-owned and one franchised). During the year, there were eight BurgerFi franchised locations opened; no corporate stores were opened During the year, 13 franchised and one corporate-owned BurgerFi location(s) closed; and one corporate-owned Anthony’s location closed. During the fourth quarter 2023, there were three franchised BurgerFi openings, five franchised BurgerFi closures and no corporate-owned Anthony's closures.

    For the first quarter of 2024, the Company opened one franchised BurgerFi location and one corporate-owned flagship location in New York City with the unveiling of the Better Burger Lab experience.

    2024 Outlook

    Management is updating its outlook for the fiscal year 2024:

    • Annual revenues of $170-$180 million
    • Low-single digit same-store sales growth for corporate-owned locations
    • 10 - 15 new restaurants, (9-14 franchised), including one new franchised Anthony's and our corporate-owned New York City BurgerFi flagship opened in March;
    • Continued improvement in cost of goods driven by increased adoption of inventory management at both brands
    • Adjusted EBITDA of $7 to $9 million; and
    • Capital expenditures of approximately $2-3 million

    Credit Agreement

    The Company’s credit agreement (“Credit Agreement”) with a syndicate of banks has approximately $51.3 million in financing outstanding as of January 1, 2024, and expires on September 30, 2025. The Credit Agreement contains various covenants, including requirements for the Company to meet certain trailing twelve-month quarterly financial ratios and a minimum liquidity threshold. As of January 1, 2024, the Company was not in compliance with the minimum liquidity requirement of the Credit Agreement, which constitutes a breach of the Credit Agreement and an event of default. This outstanding financing is included in short-term borrowings, including finance leases on our consolidated balance sheets.

    The Company has been actively engaged in discussions with its lenders to explore potential solutions regarding the default event and its resolution. We cannot, however, predict the results of any such negotiations.

    Conference Call

    The Company will hold a conference call today to discuss its fourth quarter and fiscal year 2023 results.

    Date: Monday, April 1, 2024
    Time: 4:30 p.m. Eastern time
    Toll-free dial-in number: (833) 816-1403
    International dial-in number: (412) 317-0496
    Conference ID: 10186616

    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 that is temporarily closed, is included in the Same-Store Sales computation. A restaurant that 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 % of Systemwide 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 impairment, asset impairment charges, employee retention credits, share-based compensation expense, depreciation and amortization expense, interest expense (which includes accretion on the value of preferred stock and interest accretion on the related party note), restructuring costs, merger, acquisition and integration costs, legal settlements, store closure costs, loss (gain) on change in value of warrant liability, pre-opening costs, (gain) loss on sale of assets and income tax expense (benefit).

    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 corporate-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)
    BurgerFi International, Inc. 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 International is the owner and franchisor of the two following brands with a combined 168 locations.

    Anthony’s. Anthony’s is a premium pizza and wing brand with 60 restaurants (59 corporate-owned casual restaurant locations and one dual brand franchise location), as of January 1, 2024. 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 and “The Absolute Best Wings in the U.S.” by Mashed in 2022. And named in “America's Favorite Restaurant Chains of 2022” by Newsweek.

    BurgerFi. BurgerFi is among the nation’s fast-casual better burger concepts with 108 BurgerFi restaurants (80 franchised and 28 corporate-owned) as of January 1, 2024. 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, All-Natural Chicken offerings, Hand-Cut Sides, and Frozen Custard Shakes. BurgerFi was named "The Very Best Burger" at the 2023 edition of the nationally acclaimed SOBE Wine and Food Festival and “Best Fast Food Burger” in USA Today’s 10Best 2023 Readers’ Choice Awards for its BBQ Rodeo Burger, "Best Fast Casual Restaurant" in USA Today's 10Best 2023 Readers' Choice Awards for the third consecutive year, QSR Magazine's Breakout Brand of 2020 and Fast Casual's 2021 #1 Brand of the Year. In 2021, 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. BurgerFi® is a Registered Trademark of BurgerFi IP, LLC, a wholly-owned subsidiary of BurgerFi.

    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, social channel, customer engagement, improvement in online reviews, Credit Agreement negotiations, store opening plans and expectations regarding adjusted EBITDA in 2024, as well as statements set forth under the section entitled “2024 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 January 2, 2023, our Quarterly Reports on Form 10-Q, and when filed, our Annual Report on Form 10-K for the year ended January 1, 2024, 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, 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.

    The preliminary selected unaudited financial information as of January 1, 2024 and for the periods in the year then ended included in this press release are preliminary, are not a comprehensive statement of financial results for the fiscal year, and are provided prior to completion of all internal and external review and audit procedures and, therefore, are subject to adjustment. Actual results may vary from these estimates, and the variations may be material. Among the factors that could cause or contribute to material differences between the Company’s actual results and expectations indicated by the forward-looking statements are risks and uncertainties that include, but are not limited to, changes to the Company’s financial results for the year ended January 1, 2024 due to the completion of financial closing procedures, final adjustments and other developments that may arise between now and the time that the Company’s financial statements for the fiscal year are finalized and publicly released and other risks and uncertainties described above and in the Company’s filings with the Securities and Exchange Commission.

    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
    Consolidated Balance Sheets
    (Unaudited)
     
    (in thousands)January 1,
    2024    		 January 2,
    2023
    Assets   
    Current Assets   
    Cash and cash equivalents$7,556  $11,917 
    Accounts receivable, net 1,368   1,926 
    Inventory 1,190   1,320 
    Asset held for sale 732   732 
    Prepaid expenses and other current assets 1,654   2,564 
    Total Current Assets 12,500   18,459 
    Property & equipment, net 16,121   19,371 
    Operating right-of-use assets, net 46,052   45,741 
    Goodwill 31,621   31,621 
    Intangible assets, net 150,856   160,208 
    Other assets 1,326   1,380 
    Total Assets$258,476  $276,780 
    Liabilities and Stockholders’ Equity   
    Current Liabilities   
    Accounts payable - trade and other$7,093  $8,464 
    Accrued expenses 8,537   10,589 
    Short-term operating lease liability 10,111   9,924 
    Other liabilities 4,117   6,241 
    Short-term borrowings, including finance leases 52,834   4,985 
    Total Current Liabilities 82,692   40,203 
    Non-Current Liabilities   
    Long-term borrowings, including finance leases 1,718   53,794 
    Redeemable preferred stock, $0.0001 par value, 10,000,000 shares authorized, 2,120,000 shares issued and outstanding as of January 1, 2024 and January 2, 2023, $53 million principal redemption value 55,629   51,418 
    Long-term operating lease liability 44,631   40,748 
    Related party note payable 14,488   9,235 
    Warrant liability 182   195 
    Other non-current liabilities 740   1,017 
    Deferred income taxes 1,146   1,223 
    Total Liabilities 201,226   197,833 
    Stockholders’ Equity   
    Common stock, $0.0001 par value, 100,000,000, shares authorized, 26,832,691 and 22,257,772 shares issued and outstanding as of January 1, 2024 and January 2, 2023, respectively 2   2 
    Additional paid-in capital 315,107   306,096 
    Accumulated deficit (257,859)  (227,151)
    Total Stockholders’ Equity 57,250   78,947 
    Total Liabilities and Stockholders’ Equity$258,476  $276,780 
        


     
    BurgerFi International Inc., and Subsidiaries
    Consolidated Statements of Operations
    (Unaudited)
     
     Quarter Ended Year Ended
    (in thousands), except for per share dataJanuary 1, 2024 January 2, 2023 January 1, 2024 January 2, 2023
    Revenue       
    Restaurant sales$39,386  $42,246  $160,833  $167,201 
    Royalty and other fees 1,635   2,554   7,492   9,733 
    Royalty - brand development and co-op 447   435   1,775   1,786 
    Total Revenue 41,468   45,235   170,100   178,720 
    Restaurant level operating expenses:       
    Food, beverage and paper costs 10,529   11,470   42,858   48,487 
    Labor and related expenses 12,520   12,658   50,289   49,785 
    Other operating expenses 7,473   8,200   29,888   30,277 
    Occupancy and related expenses 3,959   4,035   15,656   15,607 
    General and administrative expenses 5,451   6,916   22,477   25,907 
    Depreciation and amortization expense 3,360   3,711   13,154   17,138 
    Share-based compensation expense 211   944   5,612   10,239 
    Brand development, co-op and advertising expense 1,205   871   4,233   3,870 
    Goodwill impairment —   11,400   —   66,569 
    Asset impairment 4,566   6,946   4,524   6,946 
    Store closure costs 253   815   587   1,949 
    Restructuring costs 261   1,459   2,657   1,459 
    Pre-opening costs 203   —   203   474 
    Total Operating Expenses 49,991   69,425   192,138   278,707 
    Operating Loss (8,523)  (24,190)  (22,038)  (99,987)
    Other income, net (2)  16   80   2,608 
    Gain on change in value of warrant liability 180   461   13   2,511 
    Interest expense, net (2,320)  (2,096)  (8,828)  (8,659)
    Loss before income taxes (10,665)  (25,809)  (30,773)  (103,527)
    Income tax benefit (expense) 67   (352)  65   95 
    Net Loss$(10,598) $(26,161) $(30,708) $(103,432)
            
    Weighted average common shares outstanding:       
    Basic and Diluted 26,827,581   22,256,643   25,521,098   22,173,694 
            
    Net loss per common share:       
    Basic$(0.40) $(1.18) $(1.20) $(4.66)


     
    BurgerFi International Inc., and Subsidiaries
    Consolidated Reconciliation of Net Loss to Adjusted EBITDA
    (Non-GAAP) (Unaudited)
     
     Quarter Ended
     Consolidated Anthony’s BurgerFi 
    (in thousands)January 1, 2024 January 2, 2023 January 1, 2024 January 2, 2023 January 1, 2024 January 2, 2023 
    Revenue by Segment$41,468  $45,235  $31,092  $32,962  $10,376  $12,273  
                 
    Adjusted EBITDA Reconciliation by Segment:           
    Net Loss$(10,598) $(26,161) $(1,946) $(12,226) $(8,652) $(13,935) 
    Goodwill impairment —   11,400   —   11,400   —   —  
    Asset impairment charges 4,566   6,946   1,240   256   3,326   6,690  
    Share-based compensation expense 211   944   167   —   44   944  
    Depreciation and amortization expense 3,360   3,711   1,110   1,475   2,250   2,236  
    Interest expense 2,320   2,096   1,213   1,214   1,107   882  
    Restructuring costs 261   1,459   60   763   201   696  
    Merger, acquisition and integration costs 94   316   28   41   66   275  
    Legal settlements 246   1,229   —   34   246   1,195  
    Store closure costs 253   815   108   8   145   807  
    (Gain) on change in value of warrant liability (180)  (461)  —   —   (180)  (461) 
    Pre-opening costs 203   —   —   —   203   —  
    (Gain) loss on sale of assets 2   (16)  2   19   —   (35) 
    Income tax (benefit) expense (67)  352   (63)  (339)  (4)  691  
    Adjusted EBITDA$671  $2,630  $1,919  $2,645  $(1,248) $(15) 


     
    BurgerFi International Inc., and Subsidiaries
    Segment Reconciliation of Net Loss to Adjusted EBITDA
    (Non-GAAP) (Unaudited)
     
     Year Ended
     ConsolidatedAnthony’sBurgerFi 
    (in thousands)January 1, 2024 January 2, 2023 January 1, 2024 January 2, 2023January 1, 2024 January 2, 2023 
    Revenue by Segment$170,100  $178,720  $125,637  $128,819 $44,463  $49,901  
                
    Adjusted EBITDA Reconciliation by Segment:          
    Net Loss$(30,708) $(103,432) $(3,132) $(53,057)$(27,576) $(50,375) 
    Goodwill impairment —   66,569   —   49,064  —   17,505  
    Asset impairment charges 4,524   6,946   1,240   256  3,284   6,690  
    Employee retention credits —   (2,626)  —   —  —   (2,626) 
    Share-based compensation expense 5,612   10,239   188   —  5,424   10,239  
    Depreciation and amortization expense 13,154   17,138   4,544   7,567  8,610   9,571  
    Interest expense 8,828   8,659   4,766   4,816  4,062   3,843  
    Restructuring costs 2,657   1,459   1,068   763  1,589   696  
    Merger, acquisition and integration costs 818   2,787   127   154  691   2,633  
    Legal settlements 564   1,623   99   35  465   1,588  
    Store closure costs 587   1,949   303   16  284   1,933  
    (Gain) on change in value of warrant liability (13)  (2,511)  —   —  (13)  (2,511) 
    Pre-opening costs 203   474   —   —  203   474  
    (Gain) loss on sale of assets (93)  (15)  (94)  19  1   (34) 
    Income tax (benefit) expense (65)  (95)  (61)  (335) (4)  240  
    Adjusted EBITDA$6,068  $9,164  $9,048  $9,298 $(2,980) $(134) 


     
    BurgerFi International Inc., and Subsidiaries
    Consolidated Restaurant Level Operating Expenses
    (Unaudited)
     
     Quarter Ended Year Ended
     January 1, 2024 January 2, 2023 January 1, 2024 January 2, 2023
    (in thousands)In dollars % of restaurant sales In dollars % of restaurant sales In dollars % of restaurant sales In dollars % of restaurant sales
    Restaurant Sales$39,386 100.0% $42,246 100.0% $160,833 100.0% $167,201 100.0%
    Restaurant level operating expenses:               
    Food, beverage and paper costs 10,529 26.7%  11,470 27.2%  42,858 26.6%  48,487 29.0%
    Labor and related expenses 12,520 31.8%  12,658 30.0%  50,289 31.3%  49,785 29.8%
    Other operating expenses 7,473 19.0%  8,200 19.4%  29,888 18.6%  30,277 18.1%
    Occupancy and related expenses 3,959 10.1%  4,035 9.6%  15,656 9.7%  15,607 9.3%
    Total$34,481 87.5% $36,363 86.1% $138,691 86.2% $144,156 86.2%


     
    Anthony’s Brand Only
    Restaurant Level Operating Expenses
    (Unaudited)
     
     Quarter Ended Year Ended
     January 1, 2024 January 2, 2023 January 1, 2024 January 2, 2023
    (in thousands)In dollars % of restaurant sales In dollars % of restaurant sales In dollars % of restaurant sales In dollars % of restaurant sales
    Restaurant Sales$31,085 100.0% $32,962 100.0% $125,629 100.0% $128,819 100.0%
    Restaurant level operating expenses:               
    Food, beverage and paper costs 8,221 26.4%  8,781 26.6%  32,592 25.9%  36,618 28.4%
    Labor and related expenses 9,730 31.3%  9,979 30.3%  39,114 31.1%  38,789 30.1%
    Other operating expenses 5,534 17.8%  6,193 18.8%  22,035 17.5%  22,237 17.3%
    Occupancy and related expenses 2,926 9.4%  2,998 9.1%  11,904 9.5%  11,798 9.2%
    Total$26,411 85.0% $27,951 84.8% $105,645 84.1% $109,442 85.0%


     
    BurgerFi Brand Only
    Restaurant Level Operating Expenses
    (Unaudited)
     
     Quarter Ended Year Ended
     January 1, 2024 January 2, 2023 January 1, 2024 January 2, 2023
    (in thousands)In dollars % of restaurant sales In dollars % of restaurant sales In dollars % of restaurant sales In dollars % of restaurant sales
    Restaurant Sales$8,301 100.0% $9,284 100.0% $35,204 100.0% $38,382 100.0%
    Restaurant level operating expenses:               
    Food, beverage and paper costs 2,308 27.8%  2,689 29.0%  10,266 29.2%  11,869 30.9%
    Labor and related expenses 2,790 33.6%  2,679 28.9%  11,176 31.7%  10,996 28.6%
    Other operating expenses 1,939 23.4%  2,007 21.6%  7,852 22.3%  8,040 20.9%
    Occupancy and related expenses 1,033 12.4%  1,037 11.2%  3,752 10.7%  3,809 9.9%
    Total$8,070 97.2% $8,412 90.6% $33,046 93.9% $34,714 90.4%


     
    BurgerFi International Inc., and Subsidiaries
    Segmented Unit Counts
     
     Quarter Ended January 1, 2024
    		 Year Ended January 1, 2024
     Corporate-owned Franchised Total Corporate-owned Franchised Total
    Total BurgerFi and Anthony's brands87 81  168  87  81  168 
                
    BurgerFi stores, beginning of the period26 84  110  25  89  114 
    BurgerFi stores opened— 3  3  —  8  8 
    BurgerFi stores transferred/sold2 (2) —  4  (4) — 
    BurgerFi stores closed— (5) (5) (1) (13) (14)
    BurgerFi total stores, end of the period28 80  108  28  80  108 
                
    Anthony's stores, beginning of period59 —  59  60  —  60 
    Anthony's stores opened— 1  1  —  1  1 
    Anthony's stores closed— —  —  (1) —  (1)
    Anthony's total stores, end of the period59 1  60  59  1  60 

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