Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.23.1
Segment Information
 3 Months Ended
Apr. 03, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has two operating and reportable segments: BurgerFi and Anthony's.

The Company’s measure of segment income is Adjusted EBITDA. We define Adjusted EBITDA as net loss before share-based compensation expense, depreciation and amortization expense, interest expense (which includes accretion on the value of preferred stock and interest accretion on related party note), restructuring costs, merger, acquisition and integration costs, legal settlements, store closure costs, pre-opening costs, loss on change in value of warrant liability and income tax benefit. Although the Company had historically considered net income to be an appropriate measure of segment profit and loss, management believes Adjusted EBITDA is a more meaningful measure of the Company’s performance.

Adjusted EBITDA is used by the Company to evaluate its performance, both internally and as compared with its peers, because this measure excludes certain items that may not be indicative of the Company’s operating performance, as well as items that can vary widely across different industries or among companies within the same industry. The Company believes that this adjusted measure provides a baseline for analyzing trends in its underlying business.

The following table presents segment revenue and a reconciliation of adjusted EBITDA to net loss by segment:
Consolidated BurgerFi Anthony's
(in thousands) Quarter Ended
 April 3, 2023		 Quarter Ended
 March 31, 2022		 Quarter Ended
 April 3, 2023		 Quarter Ended
 March 31, 2022		 Quarter Ended
 April 3, 2023		 Quarter Ended
 March 31, 2022
Revenue by Segment $ 45,726  $ 44,933  $ 12,581  $ 12,396  $ 33,145  $ 32,537 
Adjusted EBITDA Reconciliation by Segment:
Net (loss) income $ (9,151) $ (13,560) $ (9,597) $ (12,960) $ 446  $ (600)
Share-based compensation expense 4,674  7,376  4,674  7,376  —  — 
Depreciation and amortization expense 3,227  4,444  2,090  2,507  1,137  1,937 
Interest expense 2,078  2,071  918  965  1,160  1,106 
Restructuring costs 918  —  665  —  253  — 
Merger, acquisition and integration costs 328  412  328  346  —  66 
Legal settlements 282  125  282  125  —  — 
Store closure costs 121  514  65  534  56  (20)
Loss on change in value of warrant liability 73  534  73  534  —  — 
Pre-opening costs —  474  —  474  —  — 
Income tax benefit — (112) — (110) — (2)
Adjusted EBITDA $ 2,550  $ 2,278  $ (502) $ (209) $ 3,052 $ 2,487