Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.24.1.u1
Segment Information
 12 Months Ended
Jan. 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 goodwill impairment, asset impairment, employee retention credits, 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, store closure costs, gain on change in value of warrant liability, pre-opening costs, (gain) loss on sale of assets and income tax expense (benefit).
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:


Consolidated Anthony’s BurgerFi
(in thousands) January 1,
2024		 January 2,
2023		 January 1,
2024		 January 2,
2023		 January 1,
2024		 January 2,
2023
Revenue by Segment $ 170,100 $ 178,720 $ 125,637 $ 128,819  $ 44,463  $ 49,901 
Net Loss $ (30,708) $ (103,432) $ (3,132) (53,057) $ (27,576) (50,375)
Goodwill impairment — 66,569 — 49,064 — 17,505 
Asset impairment charges 4,524 6,946 1,240 256 3,284 6,690 
Employee retention credits — (2,626) — — — (2,626)
Share-based compensation expense 5,612 10,239 188 — 5,424 10,239 
Depreciation and amortization expense 13,154 17,138 4,544 7,567 8,610 9,571 
Interest expense 8,828 8,659 4,766 4,816 4,062 3,843 
Restructuring costs 2,657 1,459 1,068 763 1,589 696 
Merger, acquisition and integration costs 818 2,787 127 154 691 2,633 
Legal settlements 564 1,623 99 35 465 1,588 
Store closure costs 587 1,949 303 16 284 1,933 
(Gain) on change in value of warrant liability (13) (2,511) — — (13) (2,511)
Pre-opening costs 203 474 — — 203 474 
(Gain) loss on sale of assets (93) (15) (94) 19  1 (34)
Income tax (benefit) expense
 (65) (95) (61) (335) (4) 240 
Adjusted EBITDA $ 6,068  $ 9,164  $ 9,048  $ 9,298  $ (2,980) $ (134)
The following table summarizes information for the Company’s capital expenditures, long lived assets (including property and equipment, net and operating lease right-of-use assets), and total assets by segment as of and for the years ended January 1, 2024 and January 2, 2023:

(in thousands) January 1, 2024 January 2, 2023
Capital Expenditures:
BurgerFi $ 1,573  $ 1,428 
Anthony’s 930  $ 1,089 
Total $ 2,503  $ 2,517 
Long-lived assets:
BurgerFi $ 19,184  $ 20,093 
Anthony’s 42,989  $ 45,019 
Total $ 62,173  $ 65,112 
Total Assets:
BurgerFi $ 120,792  $ 136,810 
Anthony’s 137,684  $ 139,970 
Total $ 258,476  $ 276,780