Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.24.1.1.u2
Segment Information
 3 Months Ended
Apr. 01, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), in deciding how to allocate resources and in assessing performance. The Company’s Chief Executive Officer is the CODM. The Company has two operating and reportable segments: BurgerFi and Anthony’s.

BurgerFi. BurgerFi is a fast-casual “better burger” concept with franchised and corporate-owned restaurants as offering burgers, hot dogs, crispy chicken, frozen custard, hand-cut fries, shakes, beer, wine and more.

Anthony’s. Anthony’s is a pizza and wing brand concept centered around a coal fired oven, and its menu offers “well-done” pizza, coal fired chicken wings, homemade meatballs, and a variety of handcrafted sandwiches and salads.

The CODM measures segment income based on Adjusted EBITDA and believes that the adjusted measure provides a baseline for analyzing business trends. The Company defines Adjusted EBITDA 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.

External sales are derived principally from food and beverage sales, royalty and franchise revenue.

The Company does not rely on any major customers as a source of sales, and the customers and long-lived assets of our segments are predominantly in the U.S. There were no material transactions among the Company’s segments.

The following table presents segment revenue and a reconciliation of adjusted EBITDA to net loss by segment:

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 disposal of assets (3) —  —  — (3) —
Adjusted EBITDA $ 258  $ 2,550  $ 1,710  $ 3,052  $ (1,452) $ (502)