Operations

BurgerFi CEO 'enthusiastic' about development pipeline

Provided

March 24, 2023

BurgerFi International Inc., which owns BurgerFi and Anthony's Coal Fired Pizza & Wings, reported revenue was up 29%, to $45.2 million, in Q4 2022, surpassing the consensus of $44.9 million, despite BurgerFi systemwide sales falling 5% to $38.7 million. Systemwide same-store sales fell 9% at BurgerFi, but CEO Ian Baines is "enthusiastic about the development pipeline" in place as well as the long runway of white space opportunities ahead for both brands.

"In total, we plan to open 15-20 new franchised restaurants, including two to three Anthony's in 2023," he said in a company press release.

Other highlights included:

• Restaurant-level operating expenses were $36.4 million compared to $26.9 million in the previous year.
• Loss per share was $1.18 compared to $5.84.
• Adjusted EBITDA was $2.6 million in Q4 of 2021 and 2022.
• Consolidated systemwide sales decreased by 2% to $71.6 million.
• Corporate restaurant same-store sales for Anthony's increased 1%.
• Systemwide sales for BurgerFi decreased 5% to $38.7 million.
• Systemwide same-store sales decreased 9% at BurgerFi.
• Opened two franchised BurgerFi restaurants in the fourth quarter.
• Restaurant-level operating expenses as a percentage of sales increased by 1.5%
• Total revenue increased 160% to $178.7 million in the fiscal year 2022 driven by the Anthony's acquisition compared to fiscal year 2021.
• Consolidated systemwide sales of $289.6 million for both fiscal years 2022 and 2021, respectively.
• Corporate restaurant same-store sales for Anthony's increased 5%.
• Systemwide sales for BurgerFi decreased 3% to $160.8 million.
• Systemwide same-store sales for BurgerFi decreased by 7%.
• Opened 11 BurgerFi restaurants (three corporate-owned and eight franchises)

For 2023, the company reiterated BurgerFi will have annual revenues of $175 million-$180 million vs. consensus of $177.4 million and an adjusted EBITDA of $10 million-$12 million. It also sees single-digit same-store sales growth for corporate-owned locations.

"2022 was a pivotal year for BurgerFi as we integrated the Anthony's acquisition into our system," Ophir Sternberg, executive chairman of BurgerFi, said in the release. "We now have two high-quality brands that are on trend with the consumer, and we believe that we are in the early innings of growth across both brands. Early this year, we opened a franchised BurgerFi in Newark Liberty Airport, followed by a franchised BurgerFi in Orlando's O-Town West. Airports continue to deliver high volumes and we expect airports to continue to be a growing part of our development strategy. We are also very excited for this year's planned launch of our first Anthony's franchise as part of our growth strategy in expanding the brand. I'm enthusiastic about the opportunities that lie ahead for both brands for 2023 and beyond."

Baines said the company has progressrf executing several strategic initiatives at BurgerFi and Anthony's.

"We completed our back-office integration of the two companies and delivered on our goal of achieving over $2.5 million in annualized synergies," he said in the release. "In the fourth quarter, we began to see margins stabilize with sequential improvement as a result of our procurement initiatives. I am optimistic that we can continue driving improvement in profitability and operating margins in 2023 in both brands."