BurgerFi: Reports Third Quarter 2023 Results

Palm Beach / FL. (bfi) BurgerFi International Inc., owner of the BurgerFi brand (BF), and the Anthony’s Coal Fired Pizza + Wings brand (ACF), reported financial results for the second quarter ended July 03, 2023. reported financial results for the third quarter ended October 02, 2023. Highlights:

• Total revenue was USD 39.5 million in Q3-2023 compared to USD 43.3 million in the prior period
  • Consolidated systemwide sales down to USD 65.3 million versus USD 70.6 million in Q3-2022
  • Same-store sales down 5 percent at Anthony’s in Q3-2023 compared to the prior period
  • Systemwide sales for BurgerFi down 9 percent to USD 35.7 million compared to the prior period
  • Systemwide same-store sales down 11 percent at BurgerFi in Q3 compared to the prior period
• Opened five BurgerFi franchised locations and acquired four from franchisees year to date, and expects to open an additional nine BurgerFi locations, including the first dual-brand franchise location and a flagship restaurant in New York City with the unveiling of its Better Burger Lab experience.
• Hourly turnover declined significantly from the prior period at both brands, with Anthony’s performing better than industry benchmarks, while BurgerFi made considerable progress and is on track to achieve similar improvements. Management turnover improved at BurgerFi.
• Consolidated food, beverage and paper expense margin improved 220 basis points versus Q3-2022
• Consolidated restaurant-level operating expenses increased 100 basis points versus Q3-2022
• Net loss increased to USD 5.0 million, or USD (0.19) per diluted share, in the third quarter 2023 compared to net loss of USD 3.3 million or USD (0.15) per diluted share in the prior period
• Adjusted Ebitda of USD 0.8 million in Q3-2023 compared to USD 1.6 million in the prior period

Management Commentary

Chief Executive Officer Carl Bachmann: «Our third quarter performance is not reflective of what we believe these brands and the people at this organization can and will accomplish. Having arrived here ten days into the quarter, these results are in no way indicative of our work to date or where we intend to take the business. Using my prior experience at enhancing pizza and burger concepts, BurgerFi is now implementing strategic priorities that should position the Company for long term, profitable growth.

«Many of the initial initiatives we put in place are already taking hold, including the expanded menus at BurgerFi and Anthony’s. Most recently, we successfully executed the biggest enhancement of the BurgerFi menu in company history, adding wings and salad bowls, and the response has been resounding. At the end of the month, we will also launch chicken sandwiches. At Anthony’s, we added a Chicken Alfredo and Artichoke Pizza, and two pasta dishes – Spaghetti and Meatballs and Italian Fettuccine Alfredo. We have already decreased turnover at both brands and significantly reduced training labor which has resulted in higher consumer satisfaction scores as well as faster throughput and ticket times. These are leading indicators that we are on the right path towards higher sales and margins.»

Chief Financial Officer Christopher Jones: «Looking forward, with the combination of new unit growth and improving same store sales trends driven by our expanded offering and overall more effective marketing messages, we anticipate BurgerFi returning to positive comps in early 2024 and positive Ebitda by the second half of 2024. Additionally, we are equally confident in the return to positive comps and increased Ebitda at Anthony’s, driven by similar initiatives, including menu modification, an aggressive focus on food cost and the benefits from an updated POS platform. Perhaps most importantly, we are also setting the stage with the franchising of company-owned stores starting as early as the first quarter of 2024.»