News

Little Big Burger hints at buying competitor amid Q1 loss

May 16, 2019

Chanticleer Holdings Inc., parent company of Little Big Burger, said revenues were slightly up for Q1 ending March 31, but the chain suffered an operating loss of $1.7 million. That loss, however, was substantially less than the $2.4 million it lost in the first quarter of 2018.

Chairman and CEO Mike Pruitt was confident that the executive team he recently assembled will take the company in the right direction. Fred Glick, a former executive at Karl Strauss Brewing Co., joined the company last year as the brand’s president, for example, and Troy Shadoin and Patrick Harkleroad joined this year as chief accounting officer and chief financial officer, respectively.

"With the recent additions of Fred, Patrick and Troy, I continue to believe we have put together an outstanding executive team capable of stewarding the company’s future growth both operationally and financially," Pruitt said. "We expect to report meaningful increases in both revenues and EBITDA throughout the balance of 2019 as recent partnerships, systems and processes begin to contribute tangible top line and bottom results."

The chain, which also owns American Burger Company, BGR – Burgers Grilled Right, , Just Fresh and Hooters, may hinted about acquiring a better-burger brand within the next coupe months as long as it's able to secure financing, according to an email to FastCasual from the company.

"The target company has reported revenues of $10 million per year and historically demonstrated store level EBITDA of approximately 20%," Pruitt said.

Q1 highlights

• Revenue for the year was $10.2 million in the first quarter of 2019 compared with $10.0 million in the first quarter of 2018.
• Cost of sales as a percentage of restaurant sales improved to 33.1% in the first quarter of 2019 compared to 33.5% in the first quarter of 2018.
• Operating loss was $1.7 million in the first quarter of 2019 compared to $2.4 million in the first quarter of 2018.
• Net loss attributable to Common Shareholders was $1.9 million, ($0.51) per share in the first quarter of 2019, compared to net loss of $2.6 million, ($0.83) per share in the first quarter of 2018.
• Non-GAAP Restaurant EBITDA was $560,000 in the first quarter of 2019 compared to $1.1 million in the first quarter of 2018.
• Non-GAAP Adjusted EBITDA was negative $766,000 in the first quarter of 2019 compared to $10,000 in the first quarter of 2018.
• Opened one Little Big Burger location.
• Sold one underperforming company-owned location, which resulted in non-cash impairment charges and is expected to contribute to improved operating performance in future periods.