Document

FORT LAUDERDALE, FL – May 15, 2024 – BurgerFi International, Inc. (Nasdaq: BFI, BFIIW) (“BurgerFi” or the “Company”), owner of BurgerFi, one of the nation’s leading fast-casual “better burger” dining brands, and Anthony’s Coal Fired Pizza & Wings (“Anthony’s”), the high-quality, casual dining pizza brand, today reported financial results for the first quarter ended April 1, 2024.

Carl Bachmann, Chief Executive Officer of BurgerFi, stated, “We had a difficult start to the year, but do not view our performance as indicative of these brands’ long-term potential. Like so many of our industry peers, we experienced a softening in revenue and profitability as a result of a challenging consumer environment but also contended with unfavorable weather in key markets. Notably however, we saw a sequential improvement through the quarter, beginning with a slight improvement in February followed by a more substantive recovery in March at both brands, outside of Florida. March same-store sales were flat at Anthony’s, adjusting for the Easter calendar shift, and sales have shown stability during the second quarter to date as we see our initiatives beginning to take hold.

Bachmann continued, “Looking ahead, we remain laser-focused on driving revenue growth while further enhancing operational efficiencies to increase profitability based upon the five key strategic priorities that we have implemented since last July. Achieving sales and margin improvements cannot happen overnight but we are laying a solid foundation upon which to build. We are making highly strategic decisions, following a straightforward formula - to deliver wins for our guests, our team members, and our shareholders and franchisees.”

Christopher Jones, Chief Financial Officer of BurgerFi, added, “We are fully underway with the rollout of new inventory control systems for both brands and a new point-of-sale platform for Anthony's. This new infrastructure is laying the groundwork for expected progress ahead and we believe that our ongoing efforts to streamline operations will pave the way as we navigate through the recovery phase.”


	Consolidated
	Quarter Ended
(in thousands, except for percentage data)	April 1, 2024			April 3, 2023
Systemwide Restaurant Sales	$	66,034		$	73,445
Systemwide Restaurant Sales Growth	(10)		%	—		%
Systemwide Restaurant Same-Store Sales Growth	(7)		%	1		%
Corporate-Owned Restaurant Sales	$	40,885		$	43,310
Corporate-Owned Restaurant Sales Growth	(6)		%	3		%
Corporate-Owned Restaurant Same-Store Sales Growth	(5)		%	1		%
Franchise Restaurant Sales	$	25,149		$	30,135
Franchise Restaurant Sales Growth	(17)		%	(3)		%
Franchise Restaurant Same-Store Sales Growth	(12)		%	2		%
Digital Channel % of Systemwide Sales	32		%	32		%


	Quarter Ended
	April 1, 2024						April 3, 2023
(in thousands, except for percentage data)	Anthony’s			BurgerFi			Anthony’s			BurgerFi
Systemwide Restaurant Sales	$	32,650		$	33,385		$	33,145		$	40,300
Systemwide Restaurant Sales Growth	(1)		%	(17)		%	2		%	(1)		%
Systemwide Restaurant Same-Store Sales Growth	(2)		%	(13)		%	3		%	—		%
Corporate-Owned Restaurant Sales	$	32,379		$	8,506		$	33,145		$	10,165
Corporate-Owned Restaurant Sales Growth	(2)		%	(16)		%	2		%	8		%
Corporate-Owned Restaurant Same-Store Sales Growth	(2)		%	(16)		%	3		%	(6)		%
Franchise Restaurant Sales	$	270		$	24,879		N/A			$	30,135
Franchise Restaurant Sales Growth	N/A			(17)		%	N/A			(3)		%
Franchise Restaurant Same-Store Sales Growth	N/A			(12)		%	N/A			2		%
Digital Channel % of Systemwide Sales	33		%	31		%	34		%	30		%

Total revenue in the first quarter of 2024 decreased 6% to $42.9 million compared to $45.7 million in the year-ago quarter, primarily driven by a decrease in same-store sales at both BurgerFi and Anthony’s and the closure of underperforming BurgerFi corporate-owned locations, partially offset by the additional revenue from two BurgerFi restaurants transferred from a franchisee during 2023. Same-store sales for the first quarter of 2024 decreased 2% for the Anthony’s brand and decreased 16% in corporate-owned and 12% in franchised locations for the BurgerFi brand, respectively.

Restaurant-level operating expenses for the first quarter of 2024 were $35.9 million compared to $36.1 million in the first quarter of 2023. For the Anthony's brand, restaurant-level operating expenses, as a percentage of sales, increased 360 basis points for the first quarter of 2024, compared to the first quarter of 2023, due to higher per hour labor rates and lower efficiencies due to loss on sales leverage. For the BurgerFi brand, restaurant-level operating expenses, as a percentage of sales, increased 850 basis points for the first quarter of 2024, compared to the first quarter of 2023, primarily due to lower leverage on sales and higher per hour labor rates.

Adjusted EBITDA in the first quarter of 2024 decreased $2.3 million to $0.3 million compared to $2.6 million in the first quarter of 2023, driven by lost leverage on sales and higher wages. 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.

“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 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 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 the related party note), restructuring costs, merger, acquisition and integration costs, legal settlements, net, store closure costs, (gain) loss on change in value of warrant liability, pre-opening costs 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.

Anthony’s. Anthony’s was acquired by BurgerFi on November 3, 2021 and is a premium pizza and wing brand that operated 60 restaurants including 59 corporate-owned and one franchise location co-branded with BurgerFi as of April 1, 2024. 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

BurgerFi. BurgerFi is among the nation’s fast-casual better burger concepts with 102 BurgerFi restaurants (75 franchised and 27 corporate-owned) as of April 1, 2024. 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, All-Natural 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. BurgerFi® is a Registered Trademark of BurgerFi IP, LLC, a wholly-owned subsidiary of BurgerFi.

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.

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.

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, improved operating margins in both brands, expected customer acceptance, improved operating efficiencies, store opening plans, and expectations regarding adjusted EBITDA in 2024, as well as statements set forth under the section titled “2024 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 1, 2024, 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, our ability to meet the continued listing requirements of Nasdaq, 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.


	Unaudited
(in thousands, except for per share data)	April 1, 2024		January 1, 2024
Assets
Current Assets
Cash and cash equivalents	$	4,147	$	7,556
Accounts receivable, net	1,355		1,368
Inventory	1,305		1,190
Assets held for sale	732		732
Prepaid expenses and other current assets	2,420		1,654
Total Current Assets	$	9,959	$	12,500
Property & Equipment, net	16,586		16,121
Operating right-of-use assets, net	44,260		46,052

Goodwill	31,621		31,621
Intangible assets, net	148,791		150,856
Other assets	1,391		1,326
Total Assets	$	252,608	$	258,476
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable - trade and other	$	5,128	$	7,093
Accrued expenses	11,226		8,537
Short-term operating lease liability	10,229		10,111
Other current liabilities	2,951		4,117
Short-term borrowings, including finance leases	53,064		52,834
Total Current Liabilities	$	82,598	$	82,692
Non-Current Liabilities
Long term borrowings, including finance leases	2,223		1,718
Redeemable preferred stock, $0.0001 par value, 10,000,000 shares authorized, 2,120,000 shares issued and outstanding, as of April 1, 2024 and January 1, 2024, $53 million principal redemption value	56,734		55,629
Long-term operating lease liability	42,555		44,631
Related party note payable	14,526		14,488
Warrant liability	38		182
Other non-current liabilities	694		740
Deferred income taxes	1,146		1,146
Total Liabilities	$	200,514	$	201,226
Stockholders' Equity
Common stock, $0.0001 par value, 100,000,000 shares authorized, 27,042,213 and 26,832,691 shares issued and outstanding as of April 1, 2024 and January 1, 2024, respectively	2		2
Additional paid-in capital	315,989		315,107
Accumulated deficit	(264,397)		(257,859)
Total BurgerFi Stockholder's Equity	$	51,594	$	57,250
Non-controlling interests in subsidiaries	500		$	—
Total Stockholders' Equity	52,094		57,250
Total Liabilities and Stockholders' Equity	$	252,608	$	258,476


	Quarter Ended
(in thousands, except for per share data)		April 1, 2024		April 3, 2023
Revenue
Restaurant Sales		$	40,885	$43,316
Royalty and other fees		1,558		1,969
Royalty - brand development and co-op		436		441

Total Revenue		$	42,879	$	45,726
Restaurant level operating expenses:
Food, beverage and paper costs		10,977		11,611
Labor and related expenses		13,912		13,216
Other operating expenses		7,128		7,456
Occupancy and related expenses		3,890		3,834
General and administrative expenses		5,309		6,573
Depreciation and amortization expense		3,044		3,227
Share-based compensation expense		954		4,674
Brand development, co-op and advertising expense		1,252		1,096

Lease termination recovery		(56)		—
Store closure costs		435		121
Restructuring costs		79		918
Pre-opening costs		163		—

Total Operating Expenses		$	47,087	$	52,726
Operating Loss		(4,208)		(7,000)
Other income, net		3		—
Gain (loss) on change in fair value of warrant liability		144		(73)
Interest expense, net		(2,477)		(2,078)

Loss before income taxes		$	(6,538)	$	(9,151)
Income tax benefit		—		—


Net loss attributable to BurgerFi		$	(6,538)	$	(9,151)

Weighted average common shares outstanding:
Basic and Diluted		27,021,716		23,568,032


Net loss per common share:
Basic and Diluted		$	(0.24)	$	(0.39)


	Quarter Ended
	Consolidated				Anthony’s				BurgerFi
(in thousands)	April 1, 2024		April 3, 2023		April 1, 2024		April 3, 2023			April 1, 2024		April 3, 2023
Revenue by Segment	$	42,879	$	45,726	$	32,393	$	33,145		$	10,486	$	12,581

Adjusted EBITDA Reconciliation by Segment:
Net (loss) income	(6,538)		$	(9,151)	(691)		$	446		(5,847)		$	(9,597)

Lease termination recovery	(56)		—		—		—			(56)		—

Share-based compensation expense	954		4,674		137		—			817		4,674
Depreciation and amortization expense	3,044		3,227		1,067		1,137			1,977		2,090
Interest expense	2,477		2,078		1,338		1,160			1,139		918
Restructuring costs	79		918		6		253			73		665
Merger, acquisition and integration costs	131		328		96		—			35		328
Legal settlements, net	(284)		282		(325)		—			41		282
Store closure costs	435		121		82		56			353		65
(Gain) loss on change in value of warrant liability	(144)		73		—		—			(144)		73
Pre-opening costs	163		—		—		—			163		—
(Gain) loss on sale of assets	(3)		—		—		—			(3)		—

Adjusted EBITDA	$	258	$	2,550	$	1,710	$	3,052		$	(1,452)	$	(502)


	Quarter Ended
		April 1, 2024	April 3, 2023
(in thousands)			In dollars		% of restaurant sales	In dollars		% of restaurant sales
Restaurant Sales			$	40,885	100.0%	$	43,316	100.0%
Restaurant level operating expenses:
Food, beverage and paper costs			10,977		26.8%	11,611		26.8%
Labor and related expenses			13,912		34.0%	13,216		30.5%
Other operating expenses			7,128		17.4%	7,456		17.2%
Occupancy and related expenses			3,890		9.5%	3,834		8.9%
Total			$	35,907	87.8%	$	36,117	83.4%


	Quarter Ended
		April 1, 2024	April 3, 2023
(in thousands)			In dollars		% of restaurant sales	In dollars		% of restaurant sales
Restaurant Sales			$	32,379	100.0%	$	33,145	100.0%
Restaurant level operating expenses:
Food, beverage and paper costs			8,610		26.6%	8,663		26.1%
Labor and related expenses			10,872		33.6%	10,240		30.9%
Other operating expenses			5,315		16.4%	5,369		16.2%
Occupancy and related expenses			2,955		9.1%	2,953		8.9%
Total			$	27,752	85.7%	$	27,225	82.1%


	Quarter Ended
		April 1, 2024	April 3, 2023
(in thousands)			In dollars		% of restaurant sales	In dollars		% of restaurant sales
Restaurant Sales			$	8,506	100.0%	$	10,171	100.0%
Restaurant level operating expenses:
Food, beverage and paper costs			2,367		27.8%	2,948		29.0%
Labor and related expenses			3,040		35.7%	2,976		29.3%
Other operating expenses			1,813		21.3%	2,087		20.5%
Occupancy and related expenses			935		11.0%	881		8.7%
Total			$	8,155	95.9%	$	8,892	87.4%


	Quarter Ended
	April 1, 2024
	Corporate-owned	Franchised	Total
Total BurgerFi and Anthony's brands	86	76	162
			—
BurgerFi stores, beginning of the period	28	80	108
BurgerFi stores opened	1	1	2
BurgerFi stores acquired / (transferred)	—	—	—
BurgerFi stores closed	(2)	(6)	(8)
BurgerFi total stores, end of the period	27	75	102



Anthony's total stores, beginning and end of the period	59	1	60