BurgerFi: Reports Third Quarter 2022 Results

Palm Beach / FL. (bfi) BurgerFi International Inc., owner of one of the United States’ 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, reported financial results for the third quarter ended October 03, 2022. Highlights:

  • Total revenue increased to USD 43.3 million in the third quarter 2022 compared to USD 11.1 million in the prior year quarter driven by the Anthony’s acquisition
    • Consolidated systemwide sales increased 71 percent to USD 70.6 million compared to USD 41.4 million in the prior year quarter
    • Systemwide sales for Anthony’s increased 4 percent to USD 31.5 million in the third quarter compared to prior year
    • Systemwide sales for BurgerFi decreased 5 percent to USD 39.1 million in the third quarter compared to prior year
    • Systemwide same-store sales growth of 3 percent at Anthony’s in the third quarter of 2022 compared to the prior year quarter
    • Systemwide same-store sales decrease of 7 percent at BurgerFi in the third quarter of 2022 compared to the prior year quarter
    • Opened nine new restaurants year to date and entered into first multi-unit development agreement for franchising Anthony’s
  • Restaurant-level operating expenses improved 250 basis points when compared to the prior year quarter
  • Net loss of USD 3.3 million or USD (0.15) per diluted share in the third quarter 2022 compared to net loss of USD 5.0 million or USD (0.28) per diluted share compared to prior year quarter.
  • Adjusted Ebitda1 of USD 1.6 million in the third quarter 2022 compared to USD 0.2 million in the prior year quarter.

Management Commentary

Executive Chairman Ophir Sternberg stated, «Our third quarter represents another quarter of growth as we experienced a nearly 290 percent increase in revenue and achieved almost eight times growth in adjusted Ebitda when compared to the prior year’s third quarter as a result of our acquisition of Anthony’s 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 Anthony’s as we execute on our growth strategy for that brand.»

Chief Executive Officer Ian Baines 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 percent increase in same stores sales at Anthony’s 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 Anthony’s 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. 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 Anthony’s 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.»

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