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 brand under the name Anthony’s
Coal Fired Pizza & Wings (“Anthony’s”), today reported
preliminary sales results for the year ended January 2, 2023. The
Company also has introduced its business outlook for fiscal year
2023.
Management Commentary
Ophir Sternberg, Executive Chairman of BurgerFi,
stated, “2022 was a transformative year for the company
representing the first full year of Anthony’s integrated into our
system. We have two very high quality, differentiated brands that
are on trend with the consumer. For 2023, we are well positioned on
our growth trajectory as we have signed our first multi-unit
development agreement for Anthony’s. I believe that we have long
runway of growth ahead for asset-light expansion of both
brands.”
Ian Baines, Chief Executive Officer of BurgerFi,
added, “We are pleased to share these preliminary sales results for
fiscal year 2022. Throughout 2022, our teams have been laser
focused on initiatives to deliver synergies, improved customer
experience with the goal of improve sales and operations to enhance
the margin profile of both brands. Notably, we have seen supply
chain stabilization and a slowdown in employee turnover in the
fourth quarter. While we have begun to see operating improvements,
I believe there is ample room for progress throughout 2023 to grow
restaurant level margins in both brands. Looking ahead, our 2023
pipeline is strong as we anticipate the opening of 15-20 new
franchised restaurants including 2-3 new Anthony’s.”
Preliminary outcomes for the fiscal year ended January
2, 2023 are as follows:
- Total revenue of approximately $178 million;
- 11 new BurgerFi Restaurants opened this year (3 company-owned
and 8 franchised); and
- No update to our previously communicated Adjusted EBITDA
guidance of $9-10 million or capital expenditures of approximately
$2 million.
Restaurant Development
As of January 2, 2023, there were 174 total
BurgerFi and Anthony’s restaurants of which 114 were BurgerFi (25
corporate-owned and 89 franchised) and 60 were corporate-owned
Anthony’s. During the fourth quarter 2022, there were 2 franchised
BurgerFi’s opened and 5 franchise closures.
Preliminary 2023 Outlook
Management is providing the following outlook
for the fiscal year 2023:
- Annual revenues of $175-$180 million;
- Low single-digit same store sales growth;
- 15-20 new franchised restaurant openings including 2-3 new
Anthony’s restaurants;
- Adjusted EBITDA of $10-12 million; and
- Capital expenditures of approximately $1-$2 million.
ICR Conference Fireside Chat DiscussionAs
previously communicated, Ian Baines, Chief Executive Officer, and
Mike Rabinovitch, Chief Financial Officer, will participate in a
fireside chat hosted by Peter Saleh, Managing Director at BTIG, on
Monday, January 9, 2023, at the 25th Annual ICR
Conference.
The fireside chat will be webcast live on the Company’s Investor
Relations website at https://ir.burgerfi.com/, and available
for replay for 90 days. For more information, please contact your
ICR representative.
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.
“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 nation’s fastest-growing better burger
concepts with 114 BurgerFi restaurants (89 franchised and 25
corporate-owned). As of January 2, 2023, BurgerFi is the owner and
franchisor of the two following brands with a combined 174
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.
BurgerFi’s 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 Today’s 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.
Magazine’s Fastest Growing Private Companies List. In 2021,
Consumer Report’s 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.
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 January 2, 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 for asset-light expansion,
executing on growth strategy for both brands, remaining focused on
sales driving initiatives and on operational excellence, store
opening plans, the preliminary fiscal year-end 2022 financial
results, and expectations regarding guidance provided above under
“Preliminary 2023 Outlook”. 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 Anthony’s 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 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:ICRMichelle
Michalski IR-BFI@icrinc.com646-277-1224
Company Contact:BurgerFi International
Inc.IR@burgerfi.com
Media Relations Contact:rbb
CommunicationsAilys
ToledoAilys.Toledo@rbbcommunications.com
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