• BurgerFi Reports Second Quarter 2023 Results

    المصدر: Nasdaq GlobeNewswire / 16 أغسطس 2023 07:00:01   America/New_York

    FORT LAUDERDALE, Fla., Aug. 16, 2023 (GLOBE NEWSWIRE) -- BurgerFi International, Inc. (Nasdaq: BFI, BFIIW) (“BurgerFi” or the “Company”), owner of one of the nation’s leading fast-casual “better burger” dining concepts through the BurgerFi brand, and the high-quality, casual dining pizza and wings concept under the name Anthony’s Coal Fired Pizza & Wings (“Anthony’s”) brand, today reported financial results for the second quarter ended July 3, 2023.

    Highlights for the Second Quarter 2023

    • Total revenue was $43.4 million in the second quarter 2023 compared to $45.3 million in the prior year period
      • Consolidated systemwide sales decreased to $70.7 million compared to $74.3 million in the prior period
      • Same-store sales growth of 1% at Anthony’s in the second quarter of 2023 compared to the prior period
      • Systemwide sales for BurgerFi decreased (9)% to $38.8 million in the second quarter compared to the prior period
      • Systemwide same-store sales decrease of (10)% at BurgerFi in the second quarter of 2023 compared to the prior period
    • Opened three BurgerFi brand franchised restaurants in the second quarter, five BurgerFi franchised locations year to date, and expects to open an additional nine BurgerFi, including the first dual-brand franchise location.
    • Hourly turnover declined significantly 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, approaching industry benchmarks.
    • Consolidated food, beverage and paper expense margin improved 330 basis points compared to the prior period
    • Consolidated restaurant-level operating expenses increased 50 basis points compared to the prior period
    • Net loss decreased to $6.0 million, or $(0.24) per diluted share, in the second quarter 2023 compared to net loss of $60.4 million or $(2.72) per diluted share compared to the prior period
    • Adjusted EBITDA1 of $2.0 million in the second quarter 2023 compared to $2.6 million in the prior period

    Management Commentary

    Carl Bachmann, Chief Executive Officer of BurgerFi stated, “I am thrilled to have joined the BurgerFi organization because I believe both Anthony’s and BurgerFi are high quality brands with growth potential. My prior experience in turnaround situations at pizza and burger concepts has given me a deep understanding of how to help drive improvement and growth for these businesses. I plan to use the same proven and successful playbook here.”

    Bachmann continued, “The Company’s quarterly performance is indicative as to why I am here today as the new CEO, providing what I believe is a significant opportunity for investors. So much so that I invested heavily into BFI equity when I started, so I am firmly aligned with our shareholders.

    With only a little over a month on the job, there is no question we can do better, as the challenges both brands face are not new to the industry. To say that I have seen it all before and prevailed is not a stretch. Importantly, we are already experiencing better trends at Anthony’s, especially from our northern restaurant locations. As we progress into fall, we believe these positive trends will follow typical seasonality and spread to our southern restaurant locations as well. At BurgerFi, we have been focused on improving the products and customer experience, with several initiatives expected to reach stores during the second half of the year and directly address the biggest challenges the brand faces today. Some of these include launching a much-needed new crispy chicken and grilled chicken sandwiches and improving the milk shakes. In both instances, we currently run below industry average in terms of contribution, and combined should have a meaningful impact to topline. Perhaps the most important opportunity is in fixing the french fries, which currently accounts for a large number of customer complaints and is as simple as changing processes in the kitchen. The bottom line is that we cannot accept performance like 2Q and are committed to driving better results for all of our stakeholders. While we have limited our comments on what we have in store to drive the turnaround today, we do expect to provide a more detailed and thoughtful update by third quarter earnings or earlier.“

    Christopher Jones, Chief Financial Officer of BurgerFi, added, “Like Carl, I am thrilled to be joining the BurgerFi team, as I see great potential for the business and have confidence in Carl and the BurgerFi team to lead the company to increased profitability and investor returns. The path to improved profitability is not a complex one. It will require improved execution at the stores and from management along with improvements on cost controls. Rewarding success when it’s earned while also demanding accountability from all members of the team will be central to this effort. Carl mentioned we are already seeing some encouraging trends, as we are cautiously optimistic that restaurant level margins will improve going forward, as we expect food costs to remain a positive tail wind, at least for the third quarter and into the fourth. Additionally, we expect Store Labor and Corporate G&A to begin to improve throughout the remainder of the year, assuming the economy remains stable and trends in hourly turnover at both brands continue to improve. These trends are why we are maintaining our full year financial guidance, while also guiding towards the low end of the previously provided range. Importantly, with new leadership in place, we have also started to see growing interest from new and existing franchise partners as we look to unlock the value of the Anthony’s brand with a franchise program and reengage with the BurgerFi brand, all of which should lead to increases in topline growth.”

    Second Quarter 2023 Key Metrics1 Summary

     Consolidated
     Quarter Ended Six Months Ended
    (in thousands, except for percentage data)July 3, 2023 June 30 , 20222 July 3, 2023 June 30 , 20222
    Systemwide Restaurant Sales$70,683  $74,292  $144,128  $147,387 
    Systemwide Restaurant Sales Growth(5)% (2)% (2)%  2%
    Systemwide Restaurant Same-Store Sales Growth(5)% (3)% (3)%  —%
    Corporate-Owned Restaurant Sales$40,808  $42,058  $84,117  $84,035 
    Corporate-Owned Restaurant Sales Growth(3)%  5%  —%  9%
    Corporate-Owned Restaurant Same-Store Sales Growth(3)%  —% (1)%  4%
    Franchise Restaurant Sales$29,875  $32,233  $60,010  $63,352 
    Franchise Restaurant Sales Growth(7)% (9)% (5)% (6)%
    Franchise Restaurant Same-Store Sales Growth(8)% (7)% (5)% (5)%
    Digital Channel % of Systemwide Sales 31%  35%  32%  36%


     Quarter Ended
     July 3, 2023 June 30, 2022
    (in thousands, except for percentage data)BurgerFi Anthony's BurgerFi Anthony's2
    Systemwide Restaurant Sales$38,823  $31,860  $42,452  $31,840 
    Systemwide Restaurant Sales Growth(9)%  —% (4)%  2%
    Systemwide Restaurant Same-Store Sales Growth(10)%  1% (9)%  3%
    Corporate-Owned Restaurant Sales$8,948  $31,860  $10,219  $31,840 
    Corporate-Owned Restaurant Sales Growth(12)%  —%  17%  2%
    Corporate-Owned Restaurant Same-Store Sales Growth(15)%  1% (14)%  3%
    Franchise Restaurant Sales$29,875  N/A  $32,233  N/A 
    Franchise Restaurant Sales Growth(7)% N/A  (9)% N/A 
    Franchise Restaurant Same-Store Sales Growth(8)% N/A  (7)% N/A 
    Digital Channel % of Systemwide Sales 31%  32%  34%  36%


     Six Months Ended
     July 3, 2023 June 30, 2022
    (in thousands, except for percentage data)BurgerFi Anthony's BurgerFi Anthony's2
    Systemwide Restaurant Sales$79,123  $65,005  $83,012  $64,375 
    Systemwide Restaurant Sales Growth(5)%  1% (1)%  7%
    Systemwide Restaurant Same-Store Sales Growth(6)%  2% (6)%  8%
    Corporate-Owned Restaurant Sales$19,112  $65,005  $19,660  $64,375 
    Corporate-Owned Restaurant Sales Growth(3)%  1%  17%  7%
    Corporate-Owned Restaurant Same-Store Sales Growth(11)%  2% (11)%  8%
    Franchise Restaurant Sales$60,010  N/A  $63,338  N/A 
    Franchise Restaurant Sales Growth(5)% N/A  (6)% N/A 
    Franchise Restaurant Same-Store Sales Growth(5)% N/A  (8)% N/A 
    Digital Channel % of Systemwide Sales 31%  33%  35%  37%


    1.Refer to “Key Metrics Definitions” and “About Non-GAAP Financial Measures” sections below.
      
    2.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.
      

    Second Quarter 2023 Financial Results

    Total revenue in the second quarter of 2023 decreased 4% to $43.4 million compared to $45.3 million in the year-ago quarter, primarily driven by a decrease in same-store sales at BurgerFi partially offset by the additional revenue from new restaurants opened during the period and an increase in same-store sales at Anthony’s. For the BurgerFi brand, same-store sales decreased (15)% and (8)% in corporate-owned and franchised locations, respectively. For the Anthony’s brand, same-store sales for the second quarter increased 1% over the prior year period.

    Restaurant-level operating expenses for the second quarter of 2023 were $35.2 million compared to $36.2 million in the second quarter of 2022. For the BurgerFi brand, restaurant-level operating expenses, as a percentage of sales, increased 500 basis points for the second quarter of 2023, compared to the second quarter of 2022, primarily due to lower leverage on sales. For the Anthony's brand, restaurant-level operating expenses, as a percentage of sales, improved 60 basis points for the second quarter of 2023, compared to the second quarter of 2022, driven primarily by lower food, beverage and paper costs coupled with a slight increase in same-store sales.

    Net loss in the second quarter was $6.0 million compared to a net loss of $60.4 million in the year-ago quarter, primarily due to reduced impairment charges, lower general and administrative expenses, lower depreciation and amortization expenses, offset by higher restructuring costs and loss on change in value of warrant liability.

    Adjusted EBITDA in the second quarter of 2023 decreased $0.6 million to $2.0 million compared to $2.6 million in the second quarter of 2022, driven by lost leverage on sales at BurgerFi partially offset by higher same-store sales and lower food costs at Anthony’s. 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.

    Restaurant Development

    As of July 3, 2023, the Company operated and franchised 174 total restaurants of which 114 were BurgerFi (27 corporate-owned and 87 franchised) and 60 were corporate-owned Anthony’s. During the second quarter 2023, there were three franchised BurgerFi restaurants opened, and one franchise closure.

    Year to date, BurgerFi opened five franchised locations with an additional four franchised locations expected by third quarter end. For the third quarter to date, the Company closed two underperforming corporate stores, one Anthony’s and one BurgerFi store, as we align our geographic footprint to better serve our customers.

    2023 Outlook

    Management is updating its outlook for the fiscal year 2023:

    Management now believes that it will come in at the low end of the previous stated guidance.

    • Annual revenues of $175-180 million
    • Consolidated low single-digit same-store sales growth for corporate-owned locations
    • 15-20 new franchised restaurants, including one new Anthony's
    • Adjusted EBITDA of $10-12 million
    • Capital expenditures of approximately $2 million

    Conference Call

    The Company will hold a conference call today, August 16, 2023, at 8:30 a.m. Eastern time to discuss its second quarter 2023 results.

    Date: Wednesday, August 16, 2023
    Time: 8:30 a.m. Eastern time
    Toll-free dial-in number: 1-833-816-1403
    International dial-in number: (412) 317-0496
    Conference ID: 10181664

    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 which is temporarily closed, 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 goodwill impairment, lease termination recovery, share-based compensation expense, depreciation and amortization expense, interest expense (which includes accretion on the value of preferred stock and interest accretion on related party note), restructuring costs, merger, acquisition and integration costs, legal settlements, store closure costs, loss (gain) on change in value of warrant liability, income tax expense (benefit) and (gain) loss on sale of assets.

    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)

    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 174 locations.

    BurgerFi. BurgerFi is among the nation’s fast-casual better burger concepts with 114 BurgerFi restaurants (87 franchised and 27 corporate-owned) as of July 3, 2023. 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, Antibiotic and Cage-Free 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. 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.

    Anthony’s. Anthony’s was acquired by BurgerFi on November 3, 2021 and is a premium pizza and wing brand that operates 60 corporate-owned casual restaurant locations, as of July 3, 2023. 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. To learn more about Anthony’s, 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 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 and improvement strategies, new franchise opportunities, increased revenue, liquidity, improved operating margins in both brands, improved labor trends,, seasonality trends, product improvements, including new products and services, store opening plans, and expectations regarding adjusted EBITDA in 2023, as well as statements set forth under the section titled “2023 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, 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 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.

    Investor Relations:
    ICR
    Michelle Michalski
    IR-BFI@icrinc.com
    646-277-1224

    Company Contact:
    BurgerFi International Inc.
    IR@burgerfi.com

    Media Relations Contact:
    Ink Link Marketing
    Kim Miller
    Kmiller@inklinkmarketing.com


     
    BurgerFi International Inc., and Subsidiaries
    Consolidated Balance Sheets
     
     Unaudited  
    (in thousands, except for per share data)July 3, 2023 January 2, 2023
    Assets   
    Current Assets   
    Cash$10,711  $11,917 
    Accounts receivable, net 1,457   1,926 
    Inventory 1,438   1,320 
    Assets held for sale 1,527   732 
    Prepaid expenses and other current assets 1,525   2,564 
    Total Current Assets$16,658  $18,459 
    Property & equipment, net 18,247   19,371 
    Operating right-of-use assets, net 45,565   45,741 
    Goodwill 31,621   31,621 
    Intangible assets, net 155,213   160,208 
    Other assets 971   1,380 
    Total Assets$268,275  $276,780 
    Liabilities and Stockholders' Equity   
    Current Liabilities   
    Accounts payable - trade and other$7,723  $8,464 
    Accrued expenses 8,381   10,589 
    Short-term operating lease liability 12,274   9,924 
    Short-term borrowings, including finance leases 3,485   4,985 
    Other current liabilities 2,842   6,241 
    Total Current Liabilities$34,705  $40,203 
    Non-Current Liabilities   
    Long-term borrowings, including finance leases 49,786   53,794 
    Redeemable preferred stock, $0.0001 par value, 10,000,000 shares authorized, 2,120,000 shares issued and outstanding as of July 3, 2023 and January 2, 2023, $53 million principal redemption value, respectively 53,482   51,418 
    Long-term operating lease liability 40,889   40,748 
    Related party note payable 14,412   9,235 
    Deferred income taxes 1,223   1,223 
    Other non-current liabilities 1,330   1,212 
    Total Liabilities$195,827  $197,833 
    Stockholders' Equity   
    Common stock, $0.0001 par value, 100,000,000 shares authorized, 26,724,218, and 21,303,500 shares issued and outstanding as of July 3, 2023 and January 2, 2023, respectively 2   2 
    Additional paid-in capital 314,749   306,096 
    Accumulated deficit (242,303)  (227,151)
    Total Stockholders' Equity$72,448  $78,947 
    Total Liabilities and Stockholders' Equity$268,275  $276,780 


     
    BurgerFi International Inc., and Subsidiaries
    Consolidated Statements of Operations
    (Unaudited)
     
     Quarter Ended Six Months Ended
    (in thousands, except for per share data)July 3,
    2023    		 June 30,
    2022    		 July 3,
    2023    		 June 30,
    2022
    Revenue       
    Restaurant sales$40,808  $42,236  $84,124   84,592 
    Royalty and other fees 2,190   2,611   4,160   4,714 
    Royalty - brand development and co-op 429   451   870   922 
    Franchise Fees —   —   —   — 
    Total Revenue$43,427  $45,298  $89,154  $90,228 
    Restaurant level operating expenses:       
    Food, beverage and paper costs 10,772   12,545   22,382   25,352 
    Labor and related expenses 12,699   12,328   25,916   24,910 
    Other operating expenses 7,760   7,421   15,216   14,613 
    Occupancy and related expenses 3,930   3,890   7,763   7,725 
    General and administrative expenses 5,812   7,406   12,388   13,432 
    Depreciation and amortization expense 3,295   4,730   6,522   9,174 
    Share-based compensation expense 556   909   5,230   8,285 
    Brand development, co-op and advertising expenses 933   1,126   2,029   1,839 
    Goodwill and intangible asset impairment —   55,168   —   55,168 
    Restructuring costs and other charges, net 1,135   52   2,174   1,040 
    Total Operating Expenses$46,892  $105,575  $99,620  $161,538 
    Operating Loss (3,465)  (60,277)  (10,466)  (71,310)
    Interest expense, net (2,211)  (2,246)  (4,289)  (4,317)
    (Loss) gain on change in value of warrant liability (318)  1,858   (391)  1,324 
    Other loss (5)  (47)  (5)  (80)
    Loss before income taxes$(5,999) $(60,712) $(15,151) $(74,383)
    Income tax (expense) benefit (2)  335   (2)  447 
    Net loss$(6,001) $(60,377) $(15,153) $(73,936)
    Weighted average common shares outstanding:       
    Basic 24,891,449   22,214,628   24,216,199   22,089,799 
    Diluted 24,891,449   22,214,628   24,216,199   22,089,799 
            
    Net loss per common share:       
    Basic$(0.24) $(2.72) $(0.63) $(3.35)
    Diluted$(0.24) $(2.72) $(0.63) $(3.35)


     
    BurgerFi International Inc., and Subsidiaries
    Consolidated Reconciliation of Net Loss to Adjusted EBITDA
    (Non-GAAP) (Unaudited)
     
     Quarter Ended
     ConsolidatedBurgerFi Anthony's
    (in thousands)July 3,
    2023    		 June 30,
    2022    		 July 3,
    2023    		 June 30,
    2022    		 July 3,
    2023    		 June 30,
    2022
    Revenue by Segment$43,427  $45,298  $11,567  $13,458  $31,860  $31,840 
                
    Adjusted EBITDA Reconciliation by Segment:           
    Net loss$(6,001) $(60,377) $(5,159) $(21,726) $(842) $(38,651)
    Goodwill impairment —   55,168   —   17,505   —   37,663 
    Lease termination recovery (42)  —   (42)    —   — 
    Share-based compensation expense 556   909   529   909   27   — 
    Depreciation and amortization expense 3,295   4,730   2,147   2,616   1,148   2,114 
    Interest expense 2,211   2,246   1,004   992   1,207   1,254 
    Restructuring costs 1,127   —   413   —   714   — 
    Merger, acquisition and integration costs 299   1,893   234   1,846   65   47 
    Legal settlements 228   187   225   187   3   — 
    Store closure costs 50   52   9   52   41   — 
    Loss (gain) on change in value of warrant liability 318   (1,858)  318   (1,858)  —   — 
    (Gain) loss on sale of assets (10)  —   (6)  —   (4)  — 
    Income tax expense (benefit) 2   (335)  —   (341)  2   6 
    Adjusted EBITDA$2,033  $2,615  $(328) $182  $2,361  $2,433 


     
    BurgerFi International Inc., and Subsidiaries
    Consolidated Reconciliation of Net Loss to Adjusted EBITDA
    (Non-GAAP) (Unaudited)
     
     Six Months Ended
     ConsolidatedBurgerFi Anthony's
    (in thousands)July 3,
    2023    		 June 30,
    2022    		 July 3,
    2023    		 June 30,
    2022    		 July 3,
    2023    		 June 30,
    2022
    Revenue by Segment$89,154  $90,231  $24,148  $25,854   65,005  $64,377 
                
    Adjusted EBITDA Reconciliation by Segment:           
    Net loss$(15,153) $(73,938)  (14,757) $(34,687) $(396) $(39,251)
    Goodwill impairment —   55,168   —   17,505   —   37,663 
    Lease termination recovery (42)  —   (42)    —   — 
    Employee retention credits —   —   —   —     — 
    Share-based compensation expense 5,230   8,285   5,203   8,285   27   — 
    Depreciation and amortization expense 6,522   9,174   4,237   5,123   2,285   4,051 
    Interest expense 4,289   4,318   1,922   1,957   2,367   2,361 
    Restructuring costs 2,044   —   1,078   —   966   — 
    Merger, acquisition and integration costs 627   2,304   562   2,191   65   113 
    Legal settlements 510   312   507   312   3   — 
    Store closure costs 171   566   74   586   97   (20)
    Loss (gain) on change in value of warrant liability 391   (1,324)  391   (1,324)  —   — 
    Pre-opening costs —   474   —   474   —   — 
    Income tax expense (benefit) 2   (447)  —   (451)  2   4 
    (Gain) loss on sale of assets (10)  —   (6)  —   (4)  — 
    Adjusted EBITDA$4,581  $4,892  $(831) $(29) $5,412  $4,921 


     
    BurgerFi International Inc., and Subsidiaries
    Consolidated Restaurant Level Operating Expenses
    (Unaudited)
     
     Quarter Ended Six Months Ended
     July 3, 2023 June 30, 2022 July 3, 2023 June 30, 2022
    (in thousands)In dollars % of
    restaurant
    sales    		 In dollars % of
    restaurant
    sales    		 In dollars % of
    restaurant
    sales    		 In dollars % of
    restaurant
    sales
    Restaurant Sales$40,808 100.0% $42,236 100.0% $84,124 100.0% $84,592 100.0%
    Restaurant level operating expenses:               
    Food, beverage and paper costs 10,772 26.4%  12,545 29.7%  22,382 26.6%  25,352 30.0%
    Labor and related expenses 12,699 31.1%  12,328 29.2%  25,916 30.8%  24,910 29.4%
    Other operating expenses 7,760 19.0%  7,421 17.6%  15,216 18.1%  14,613 17.3%
    Occupancy and related expenses 3,930 9.6%  3,890 9.2%  7,763 9.2%  7,725 9.1%
    Total$35,161 86.2% $36,184 85.7% $71,277 84.7% $72,600 85.8%


     
    Anthony’s Brand Only
    Restaurant Level Operating Expenses
    (Unaudited)
     
     Quarter Ended Six Months Ended
     July 3, 2023 June 30, 2022 July 3, 2023 June 30, 2022
    (in thousands)In dollars % of
    restaurant
    sales    		 In dollars % of
    restaurant
    sales    		 In dollars % of
    restaurant
    sales    		 In dollars % of
    restaurant
    sales
    Restaurant Sales$31,860 100.0% $31,840 100.0% $65,005 100.0% $64,375 100.0%
    Restaurant level operating expenses:               
    Food, beverage and paper costs 8,076 25.3%  9,133 28.7%  16,738 25.7%  18,910 29.4%
    Labor and related expenses 9,849 30.9%  9,426 29.6%  20,089 30.9%  19,259 29.9%
    Other operating expenses 5,759 18.1%  5,313 16.7%  11,128 17.1%  10,562 16.4%
    Occupancy and related expenses 3,003 9.4%  2,988 9.4%  5,957 9.2%  5,860 9.1%
    Total$26,687 83.8% $26,860 84.4% $53,912 82.9% $54,591 84.8%
                    


     
    BurgerFi Brand Only
    Restaurant Level Operating Expenses
    (Unaudited)
     
     Quarter Ended Six Months Ended
     July 3, 2023 June 30, 2022 July 3, 2023 June 30, 2022
    (in thousands)In dollars % of
    restaurant
    sales    		 In dollars % of
    restaurant
    sales    		 In dollars % of
    restaurant
    sales    		 In dollars % of
    restaurant
    sales
    Restaurant Sales$8,948 100.0% $10,396 100.0% $19,119 100.0% $20,217 100.0%
    Restaurant level operating expenses:               
    Food, beverage and paper costs 2,696 30.1%  3,412 32.8%  5,644 29.5%  6,442 31.9%
    Labor and related expenses 2,851 31.9%  2,902 27.9%  5,827 30.5%  5,651 28.0%
    Other operating expenses 2,001 22.4%  2,108 20.3%  4,088 21.4%  4,051 20.0%
    Occupancy and related expenses 927 10.4%  902 8.7%  1,807 9.5%  1,865 9.2%
    Total$8,475 94.7% $9,324 89.7% $17,366 90.8% $18,009 89.1%


     
    BurgerFi International Inc., and Subsidiaries
    Segment Unit Counts
     
     Quarter Ended Six Months Ended
     July 3, 2023 July 3, 2023
     Corporate-
    owned    		 Franchised Total Corporate-
    owned    		 Franchised Total
    Total BurgerFi and Anthony's brands87 87 174 87 87 174
                
    BurgerFi stores, beginning of the period27 85 112 25 89 114
    BurgerFi stores opened— 3 3 — 5 5
    BurgerFi stores acquired / (transferred)— — — 2 (2) —
    BurgerFi stores closed— (1) (1) — (5) (5)
    BurgerFi total stores, end of the period27 87 114 27 87 114
                
    Anthony's stores, beginning of period60 — 60 60 — 60
    Anthony's stores closed— — — — — —
    Anthony's total stores, end of the period60 — 60 60 — 60

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