Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.23.2
Segment Information
 6 Months Ended
Jul. 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 goodwill impairment, 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 related party note), restructuring costs, merger, acquisition and integration costs, legal settlements, store closure costs, loss (gain) on change in value of warrant liability, income tax expense (benefit) and (gain) loss on sale of assets. 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:
Quarter Ended
Consolidated BurgerFi Anthony's
(in thousands) July 3, 2023 June 30, 2022 July 3, 2023 June 30, 2022 July 3, 2023 June 30, 2022
Revenue by Segment $ 43,427  $ 45,298  $ 11,567  $ 13,458  $ 31,860  $ 31,840 
Adjusted EBITDA Reconciliation by Segment:
Net loss $ (6,001) $ (60,377) $ (5,159) $ (21,726) $ (842) $ (38,651)
Goodwill impairment —  55,168  —  17,505  —  37,663 
Lease termination recovery (42) —  (42) —  — 
Share-based compensation expense 556  909  529  909  27  — 
Depreciation and amortization expense 3,295  4,730  2,147  2,616  1,148  2,114 
Interest expense 2,211  2,246  1,004  992  1,207  1,254 
Restructuring costs 1,127  —  413  —  714  — 
Merger, acquisition and integration costs 299  1,893  234  1,846  65  47 
Legal settlements 228  187  225  187  3  — 
Store closure costs 50  52  9  52  41  — 
Loss (gain) on change in value of warrant liability 318  (1,858) 318  (1,858) —  — 
Income tax expense (benefit) 2  (335) — (341) 2 6
(Gain) loss on sale of assets (10) — (6) — (4) —
Adjusted EBITDA $ 2,033  $ 2,615  $ (328) $ 182  $ 2,361  $ 2,433 
Six Months Ended
Consolidated BurgerFi Anthony's
(in thousands) July 3, 2023 June 30, 2022 July 3, 2023 June 30, 2022 July 3, 2023 June 30, 2022
Revenue by Segment $ 89,154  $ 90,228  $ 24,148  $ 25,853  $ 65,005  $ 64,375 
Adjusted EBITDA Reconciliation by Segment:
Net loss $ (15,153) $ (73,937) (14,757) $ (34,686) $ (396) $ (39,251)
Goodwill impairment —  55,168  —  17,505  —  37,663 
Lease termination recovery (42) —  (42) —  —  — 
Employee retention credits —  —  —  —  —  — 
Share-based compensation expense 5,230  8,285  5,203  8,285  27  — 
Depreciation and amortization expense 6,522  9,174  4,237  5,123  2,285  4,051 
Interest expense 4,289  4,318  1,922  1,957  2,367  2,361 
Restructuring costs 2,044  —  1,078  —  966  — 
Merger, acquisition and integration costs 627  2,304  562  2,191  65  113 
Legal settlements 510  312  507  312  3  — 
Store closure costs 171  566  74  586  97  (20)
Loss (gain) on change in value of warrant liability 391  (1,324) 391  (1,324) —  — 
Pre-opening costs —  474  —  474  —  — 
Income tax expense (benefit) 2  (447) — (451) 2 4 
(Gain) loss on sale of assets (10) —  (6) —  $ (4) — 
Adjusted EBITDA $ 4,581  $ 4,893  $ (831) $ (28) $ 5,412  $ 4,921