BurgerFi: Reports Preliminary FY-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 preliminary unaudited financial results for the fourth quarter and fiscal year ended January 01, 2024.

Highlights for the Fourth Quarter 2023

• Total revenue was USD 41.5 million in the fourth quarter 2023 compared to USD 45.2 million in the fourth quarter 2022
  • Consolidated systemwide sales decreased to USD 65.0 million compared to USD 71.6 million in the prior period
  • Corporate-owned restaurant same-store sales decreased 3 percent at Anthony’s compared to the prior period
  • Systemwide sales for BurgerFi decreased 9 percent to USD 33.9 million compared to USD 38.7 million in the prior period
  • Systemwide same-store sales decreased 10 percent 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 USD 10.6 million, or USD (0.40) per diluted share, compared to a net loss of USD 26.2 million, or USD (1.18) per diluted share, in the prior period
• Adjusted Ebitda of USD 0.7 million compared to USD 2.6 million in the prior period

Highlights for the Fiscal Year 2023

• Total revenue was USD 170.1 million in the fiscal year 2023 compared to USD 178.7 million in the fiscal year 2022
  • Consolidated systemwide sales decreased to USD 274.4 million compared to USD 289.6 million in the prior year
  • Corporate-owned restaurant same-store sales decreased 1 percent at Anthony’s compared to the prior year
  • Systemwide sales for BurgerFi decreased 7 percent to USD 148.8 million compared to the prior year
  • Systemwide same-store sales decreased 8 percent 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 USD 30.7 million, or USD (1.20) per diluted share, compared to a net loss of USD 103.4 million, or USD (4.66) per diluted share, in the prior year
• Adjusted Ebitda of USD 6.1 million compared to USD 9.2 million in the prior year

Management Commentary

Chief Executive Officer Carl Bachmann: «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.

«Notably, we have already begun to see early leading indicators that our efforts are taking hold. While Anthony’s had a 3 percent 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.»

Chief Financial Officer Christopher Jones: «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.»