Revenue Grows 290% to $43.3 million in Third Quarter
First Anthony�s Multi-Unit Development Agreement Executed
Conference Call Today, November 16, at 8:30 a.m. ET
FORT LAUDERDALE, Fla., Nov. 16, 2022 (GLOBE NEWSWIRE) — BurgerFi International, Inc. (Nasdaq: BFI, BFIIW) (BurgerFi or the Company), owner of one of the nations leading fast-casual better burger dining concepts through the BurgerFi brand, and the high-quality, casual dining pizza brand under the name Anthonys Coal Fired Pizza & Wings (Anthonys), today reported financial results for the third quarter ended October 3, 2022.
Highlights for the Third Quarter 2022
Management Commentary
Ophir Sternberg, Executive Chairman of BurgerFi, stated, Our third quarter represents another quarter of growth as we experienced a nearly 290% increase in revenue and achieved almost eight times growth in adjusted EBITDA when compared to the prior years third quarter as a result of our acquisition of Anthonys in November of 2021. We have two very high quality, differentiated brands that are on trend with the consumer. While we are an early stage growth company, I believe that we have long-term opportunities ahead for asset-light expansion and I am extremely excited to have signed our first multi-unit development agreement for Anthonys as we execute on our growth strategy for that brand.
Ian Baines, Chief Executive Officer of BurgerFi, added, Our team remains laser focused on operational excellence and sales driving initiatives. This focus has begun to pay dividends as evident in the 3% increase in same stores sales at Anthonys when compared to 2021. Notably, sales increased sequentially throughout the quarter at Anthony’s and this positive momentum has since continued into the month of October where sales were above that of 2019 for the first time since the pandemic began. Additionally, we have seen some commodity costs stabilize which helped contribute to Anthonys generating a 210 basis point improvement in restaurant level margins. At BurgerFi, we have embarked on a new brand campaign to further strengthen our position in the better burger category. We are also seeing an improvement in guest satisfaction scores which we believe will translate to stronger financial performance in the quarters to come. These positive developments give us confidence in the recovery of our margin profile.
Baines continued, Looking ahead, our 2023 pipeline is strong as we anticipate the opening of 15-20 new franchised BurgerFi restaurants. Additionally, we are excited to have signed our first co-branded agreement with one of our largest BurgerFi franchisees to add an Anthonys 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
Third Quarter 2022 Financial Results
Total revenue in the third quarter of 2022 increased 290% to $43.3 million compared to $11.1 million in the year-ago quarter, primarily driven by the addition of the Anthonys business acquired on November 3, 2021 and additional revenue from new restaurants opened during the period. For the BurgerFi brand, same-store sales decreased 11% and 6% in corporate-owned and franchised locations, respectively. For the Anthonys brand, same-store sales for the third quarter increased 3% over the prior year period.
Restaurant-level operating expenses for the third quarter of 2022 were $35.2 million compared to $7.8 million in the third quarter of 2021, the increase driven by the inclusion of a full quarter of Anthonys operations. For the BurgerFi brand, restaurant-level operating expenses, as a percentage of sales, increased 370 basis points for the third quarter of 2022, compared to the third quarter of 2021, primarily due to losing leverage driven by lower sales. For the Anthony’s brand, restaurant-level operating expenses, as a percentage of sales, improved 210 basis points for the third quarter of 2022, compared to the third quarter of 2021, primarily due lower food costs as we are beginning to see a stabilization of commodity costs, especially in chicken wing prices.
Our third quarter results also included Employee Retention Credits made available through changed Coronavirus Aid, Relief, and Economic Security Act legislation of $2.6 million.
Net loss in the third quarter was $3.3 million compared to a net loss of $5.0 million in the year-ago quarter. The change is primarily due to Employee Retention Credits partially offset by the net operating results including amortization of fixed assets and purchased intangibles of Anthonys.
Adjusted EBITDA in the third quarter of 2022 increased 755% to $1.6 million compared to $0.2 million in the third quarter of 2021, driven by the acquisition of Anthonys. See the definition of Adjusted EBITDA, a non-accounting principle generally accepted in the United States (GAAP) financial measure, and the reconciliation to the most comparable GAAP measure below.
Restaurant Development
As of October 3, 2022, there were 178 total BurgerFi and Anthonys restaurants of which 117 were BurgerFi (25 corporate-owned and 92 franchised) and 61 were corporate-owned Anthonys. 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 Anthonys with one of our largest BurgerFi franchisees. We expect the first location to open within an existing BurgerFi location as our Companys 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. Managements outlook for the full year 2022 is as follows:.
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 Companys 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 nations better burger concepts with 117 BurgerFi restaurants (92 franchised and 25 corporate-owned). As of October 3, 2022, BurgerFi is the owner and franchisor of the two following brands with a combined 178 locations.
BurgerFi. BurgerFi is chef-founded and committed to serving fresh, all-natural and quality food at all locations, online and via first-party and third-party deliveries. BurgerFi uses 100% American Angus Beef with no steroids, antibiotics, growth hormones, chemicals or additives. BurgerFis menu also includes high quality wagyu beef, antibiotic and cage-free chicken offerings, fresh, hand-cut sides, and custard shakes and concretes. BurgerFi was named Best Fast Casual Restaurant in USA Todays 10Best 2022 Readers Choice Awards for the second consecutive year, QSR Magazine’s Breakout Brand of 2020, Fast Casual’s 2021 #1 Brand of the Year and included in Inc. Magazines Fastest Growing Private Companies List. In 2021, Consumer Reports Chain Reaction Report praised BurgerFi for serving no antibiotic beef across all its restaurants, and Consumer Reports awarded BurgerFi an A-Grade Angus Beef rating for the third consecutive year. To learn more about BurgerFi or to find a full list of locations, please visit www.burgerfi.com. Download the BurgerFi App on iOS or Android devices for rewards and ‘Like’ or follow @BurgerFi on Instagram, Facebook and Twitter.?BurgerFi® is a Registered Trademark of?BurgerFi?IP, LLC, a?wholly-owned?subsidiary of?BurgerFi.
Anthonys. Anthonys 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, Anthonys 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. Anthonys 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 Anthonys, 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 managements 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 Anthonys brand, remaining focused on sales driving initiatives and on operational excellence, a new brand campaign to further strengthen BurgerFis position in the better burger category, improvement in guest satisfaction surveys that will translate to stronger financial performance, confidence in the recovery of BurgerFis 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 Anthonys 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 BurgerFis behalf are expressly qualified in their entirety by the cautionary statements included in this press release. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Investor Relations:
ICR
Michelle Michalski
IR-BFI@icrinc.com
646-277-1224
Company Contact:
BurgerFi International Inc.
IR@burgerfi.com
Media Relations Contact:
rbb Communications
Ailys Toledo
Ailys.Toledo@rbbcommunications.com
BurgerFi International Inc., and Subsidiaries
Condensed Consolidated Balance Sheets
| Unaudited | |||||||
| (in thousands, except for per share data) | October 3, 2022 | December 31, 2021 | |||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash | $ | 14,141 | $ | 14,889 | |||
| Accounts receivable, net | 1,361 | 1,689 | |||||
| Inventory | 1,317 | 1,387 | |||||
| Other current assets | 5,288 | 3,258 | |||||
| TOTAL CURRENT ASSETS | 22,107 | 21,223 | |||||
| PROPERTY & EQUIPMENT, net | 23,061 | 29,035 | |||||
| OPERATING RIGHT-OF-USE ASSET, net | 49,804 | | |||||
| GOODWILL | 43,021 | 98,000 | |||||
| INTANGIBLE ASSETS, net | 162,356 | 168,723 | |||||
| OTHER ASSETS | 1,358 | 738 | |||||
| TOTAL ASSETS | $ | 301,707 | $ | 317,719 | |||
| LIABILITIES AND STOCKHOLDERS EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable – trade and other | $ | 9,254 | $ | 7,841 | |||
| Accrued expenses | 8,606 | 5,302 | |||||
| Short-term operating lease liability | 9,505 | | |||||
| Short-term borrowings, including finance leases | 3,491 | 3,331 | |||||
| Other current liabilities | 7,055 | 7,856 | |||||
| TOTAL CURRENT LIABILITIES | 37,911 | 24,330 | |||||
| NON-CURRENT LIABILITIES | |||||||
| Long-term borrowings, including finance leases | 56,181 | 56,797 | |||||
| Redeemable preferred stock, $0.0001 par value, 10,000,000 shares authorized, 2,120,000 shares issued and outstanding as of October 3, 2022 and December 31, 2021, $53 million principal redemption value | 50,416 | 47,525 | |||||
| Long-term operating lease liability | 41,372 | | |||||
| Related party note | 9,107 | 8,724 | |||||
| Deferred income taxes | 903 | 1,353 | |||||
| Other non-current liabilities | 1,602 | 5,715 | |||||
| TOTAL LIABILITIES | 197,492 | 144,444 | |||||
| STOCKHOLDERS’ EQUITY | |||||||
| Common stock, $0.0001 par value, 100,000,000 shares authorized, 22,253,232 and 21,303,500 shares issued and outstanding as of October 3, 2022 and December 31, 2021, respectively | 2 | 2 | |||||
| Additional paid-in capital | 305,201 | 296,992 | |||||
| Accumulated deficit | (200,988 | ) | (123,719 | ) | |||
| TOTAL STOCKHOLDERS EQUITY | 104,215 | 173,275 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS EQUITY | $ | 301,707 | $ | 317,719 | |||
BurgerFi International Inc., and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (in thousands) | October 3, 2022 | September 30, 2021 | October 3, 2022 | September 30, 2021 | |||||||||||
| REVENUE | |||||||||||||||
| Restaurant sales | $ | 40,361 | $ | 8,675 | $ | 124,954 | $ | 26,042 | |||||||
| Royalty and other fees | 2,465 | 1,956 | 7,179 | 6,233 | |||||||||||
| Royalty – brand development and co-op | 429 | 471 | 1,351 | 1,527 | |||||||||||
| TOTAL REVENUE | 43,255 | 11,102 | 133,484 | 33,802 | |||||||||||
| Restaurant level operating expenses: | |||||||||||||||
| Food, beverage and paper costs | 11,665 | 2,671 | 37,017 | 7,786 | |||||||||||
| Labor and related expenses | 12,217 | 2,524 | 37,126 | 7,131 | |||||||||||
| Other operating expenses | 7,464 | 1,871 | 22,077 | 5,718 | |||||||||||
| Occupancy and related expenses | 3,848 | 719 | 11,575 | 2,280 | |||||||||||
| General and administrative expenses | 5,511 | 4,049 | 18,943 | 10,574 | |||||||||||
| Depreciation and amortization expense | 4,253 | 2,194 | 13,427 | 6,473 | |||||||||||
| Share-based compensation expense | 1,010 | 3,668 | 9,295 | 6,785 | |||||||||||
| Brand development, co-op and advertising expense | 1,159 | 411 | 2,998 | 1,785 | |||||||||||
| Goodwill impairment | | | 55,168 | | |||||||||||
| Store closure costs | 568 | 132 | 1,134 | 132 | |||||||||||
| Pre-opening costs | | 615 | 474 | 1,243 | |||||||||||
| TOTAL OPERATING EXPENSES | 47,695 | 18,854 | 209,234 | 49,907 | |||||||||||
| OPERATING LOSS | (4,440 | ) | (7,752 | ) | (75,750 | ) | (16,105 | ) | |||||||
| Interest expense | (2,245 | ) | (5 | ) | (6,562 | ) | (46 | ) | |||||||
| Gain on change in value of warrant liability | 726 | 2,732 | 2,050 | 10,405 | |||||||||||
| Other income (loss) | 2,627 | (2 | ) | 2,546 | 2,240 | ||||||||||
| Loss before income taxes | (3,332 | ) | (5,027 | ) | (77,716 | ) | (3,506 | ) | |||||||
| Income tax benefit (expense) | | 9 | 447 | (731 | ) | ||||||||||
| Net loss | (3,332 | ) | (5,018 | ) | (77,269 | ) | (4,237 | ) | |||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 22,253,232 | 17,892,769 | 22,146,258 | 17,866,168 | |||||||||||
| Diluted | 22,253,232 | 17,895,932 | 22,146,258 | 18,154,434 | |||||||||||
| Net loss per common share: | |||||||||||||||
| Basic | $ | (0.15 | ) | $ | (0.28 | ) | (3.49 | ) | (0.24 | ) | |||||
| Diluted | $ | (0.15 | ) | $ | (0.28 | ) | (3.49 | ) | (0.93 | ) | |||||
BurgerFi International Inc., and Subsidiaries
Consolidated Reconciliation of Net Loss to Adjusted EBITDA
(Non-GAAP) (Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| (in thousands) | October 3, 2022 | September 30, 2021 | October 3, 2022 | September 30, 2021 | ||||||||||||
| Net loss | $ | (3,332 | ) | $ | (5,018 | ) | $ | (77,269 | ) | $ | (4,237 | ) | ||||
| Employee retention credits/ PPP loan gain | (2,626 | ) | | (2,626 | ) | (2,237 | ) | |||||||||
| Gain on change in value of warrant liability | (726 | ) | (2,732 | ) | (2,050 | ) | (10,405 | ) | ||||||||
| Income tax (benefit) expense | | (9 | ) | (447 | ) | 731 | ||||||||||
| Interest expense | 2,245 | 5 | 6,562 | 46 | ||||||||||||
| Depreciation and amortization expense | 4,253 | 2,194 | 13,427 | 6,473 | ||||||||||||
| Share-based compensation expense | 1,010 | 3,668 | 9,295 | 6,785 | ||||||||||||
| Pre-opening costs | | 615 | 474 | 1,243 | ||||||||||||
| Store closure costs | 568 | 132 | 1,134 | 132 | ||||||||||||
| Legal settlements | 81 | 66 | 393 | 477 | ||||||||||||
| Merger, acquisition and integration costs | 168 | 1,271 | 2,472 | 2,169 | ||||||||||||
| Loss on sale of assets | 1 | | 1 | 9 | ||||||||||||
| Goodwill impairment | | | 55,168 | | ||||||||||||
| Adjusted EBITDA | $ | 1,642 | $ | 192 | $ | 6,534 | $ | 1,186 | ||||||||
Segment Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(Non-GAAP) (Unaudited)
| BurgerFi | Anthony’s | ||||||||||||||
| (in thousands) | Three Months Ended October 3, 2022 | Nine Months Ended October 3, 2022 | Three Months Ended October 3, 2022 | Nine Months Ended October 3, 2022 | |||||||||||
| Net loss | $ | (1,752 | ) | $ | (36,439 | ) | $ | (1,580 | ) | $ | (40,830 | ) | |||
| Employee retention credits | (2,626 | ) | (2,626 | ) | | | |||||||||
| Gain on change in value of warrant liability | (726 | ) | (2,050 | ) | | | |||||||||
| Income tax (benefit) expense | | (451 | ) | | 4 | ||||||||||
| Interest expense | 1,003 | 2,960 | 1,242 | 3,602 | |||||||||||
| Depreciation and amortization expense | 2,212 | 7,335 | 2,041 | 6,092 | |||||||||||
| Share-based compensation expense | 1,010 | 9,295 | | | |||||||||||
| Pre-opening costs | | 474 | | | |||||||||||
| Store closure costs | 548 | 1,134 | 20 | | |||||||||||
| Legal settlements | 81 | 393 | | | |||||||||||
| Merger, acquisition and integration costs | 168 | 2,359 | | 113 | |||||||||||
| Loss (gain) on sale of assets | (5 | ) | (5 | ) | 6 | 6 | |||||||||
| Goodwill impairment | | 17,505 | | 37,663 | |||||||||||
| Adjusted EBITDA | $ | (87 | ) | $ | (116 | ) | $ | 1,729 | $ | 6,650 | |||||
BurgerFi International Inc., and Subsidiaries
Consolidated Restaurant Level Operating Expenses
(Unaudited)
| Three Months Ended October 3, 2022 | Three Months Ended September 30, 2021 | Nine Months Ended October 3, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||
| (in thousands) | In dollars | % of restaurant sales | In dollars | % of restaurant sales | In dollars | % of restaurant sales | In dollars | % of restaurant sales | |||||||||||||||||||
| Restaurant Sales | $ | 40,361 | 100.0 | % | $ | 8,675 | 100.0 | % | $ | 124,954 | 100.0 | % | $ | 26,042 | 100.0 | % | |||||||||||
| Restaurant level operating expenses: | |||||||||||||||||||||||||||
| Food, beverage and paper costs | 11,665 | 28.9 | % | 2,671 | 30.8 | % | 37,017 | 29.6 | % | 7,786 | 29.9 | % | |||||||||||||||
| Labor and related expenses | 12,217 | 30.3 | % | 2,524 | 29.1 | % | 37,126 | 29.7 | % | 7,131 | 27.4 | % | |||||||||||||||
| Other operating expenses | 7,464 | 18.5 | % | 1,871 | 21.6 | % | 22,077 | 17.7 | % | 5,718 | 22.0 | % | |||||||||||||||
| Occupancy and related expenses | 3,848 | 9.5 | % | 719 | 8.3 | % | 11,575 | 9.3 | % | 2,280 | 8.8 | % | |||||||||||||||
| Total | 35,194 | 87.2 | % | 7,785 | 89.7 | % | 107,795 | 86.3 | % | 22,915 | 88.0 | % | |||||||||||||||
BurgerFi Brand Only
Restaurant Level Operating Expenses
(Unaudited)
| Three Months Ended October 3, 2022 | Three Months Ended September 30, 2021 | Nine Months Ended October 3, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||
| (in thousands) | In dollars | % of restaurant sales | In dollars | % of restaurant sales | In dollars | % of restaurant sales | In dollars | % of restaurant sales | |||||||||||||||||||
| Restaurant Sales | $ | 8,881 | 100.0 | % | $ | 8,675 | 100.0 | % | $ | 29,098 | 100.0 | % | $ | 26,042 | 100.0 | % | |||||||||||
| Restaurant level operating expenses: | |||||||||||||||||||||||||||
| Food, beverage and paper costs | 2,738 | 30.8 | % | 2,671 | 30.8 | % | 9,180 | 31.5 | % | 7,786 | 29.9 | % | |||||||||||||||
| Labor and related expenses | 2,666 | 30.0 | % | 2,524 | 29.1 | % | 8,317 | 28.6 | % | 7,131 | 27.4 | % | |||||||||||||||
| Other operating expenses | 1,982 | 22.3 | % | 1,871 | 21.6 | % | 6,033 | 20.7 | % | 5,718 | 22.0 | % | |||||||||||||||
| Occupancy and related expenses | 906 | 10.2 | % | 719 | 8.3 | % | 2,772 | 9.5 | % | 2,280 | 8.8 | % | |||||||||||||||
| Total | 8,292 | 93.4 | % | 7,785 | 89.7 | % | 26,302 | 90.4 | % | 22,915 | 88.0 | % | |||||||||||||||
Anthonys 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 | ||||||||||
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