Operations

BurgerFi CEO: '2020 was a transformative year'

Provided

April 29, 2021

Although BurgerFi reported that Q4 sales decreased 7%, total revenue was up 12% and delivery and digital sales rose by more than 80% over the period ending Dec. 31, 2020. Building on that momentum, the Florida-based chain will add 30 units by year's end, including its first location in Saudi Arabia, said CEO Julio Ramirez, who called 2020 a "transformative year."

"We made progress expanding our footprint with 11 new restaurants, including our first drive-thru location in Kentucky," he said in a company press release. "Additionally, we opened nine delivery-only ghost kitchens with Reef Technology and Epic Kitchens to test out specific markets and build brand recognition."

BurgerFi also launched curbside service via digital channels for contactless service.

"As customer habits shifted during the pandemic, I am incredibly proud of our team's adaptability and the strategic investments we made in our digital platforms to provide a better omnichannel customer experience," Ramirez said. "These investments allowed us to recover same-store sales sequentially since the start of the pandemic, while also growing our systemwide delivery and digital sales by over 64% for the year.

Q4 highlights include:

• Total revenue increased 12% to $9.8 million compared to $8.7 million.
• Same-store sales at company-owned restaurants decreased 5%.
• Systemwide sales decreased 7% to $34.6 million compared to $37.3 million.
• Net income attributable to controlling interests and common shareholders increased to $6 million compared to $0.9 million; the current quarter included non-cash gain on change in value of warrant liability of $5.6 million.
• Adjusted EBITDA increased 19% to $1.2 million compared to $1 million

"As I look at the number of BurgerFis under development, the recent investments in digital capabilities, the unique expansion opportunities ahead and the bolstered management team and board, I believe that we are just beginning to tap into our true growth potential," Ophir Sternberg, BurgerFi executive chairman, said in the release.

Although the chain is "optimistic about its long-term prospects," it said it was suspending its financial outlook for 2021, "due to COVID-related volatility that is impacting its ability to deliver updated financial projections."

Established in 2011, BurgerFi has 119 BurgerFi restaurants domestically and internationally.