Press Release: BurgerFi Provides Fiscal Year 2022 Business Update

Press Release: BurgerFi Provides Fiscal Year 2022 Business Update

7:02 am ET January 9, 2023 (Dow Jones) Print

BurgerFi Provides Fiscal Year 2022 Business Update

Sets Initial Business Outlook for Fiscal Year 2023

FORT LAUDERDALE, Fla., Jan. 09, 2023 (GLOBE NEWSWIRE) — BurgerFi International, Inc. (Nasdaq: BFI, BFIIW) (“BurgerFi” or the “Company”), owner of one of the nation’s leading fast-casual “better burger” dining concepts through the BurgerFi brand, and the high-quality, casual dining pizza brand under the name Anthony’s Coal Fired Pizza & Wings (“Anthony’s”), today reported preliminary sales results for the year ended January 2, 2023. The Company also has introduced its business outlook for fiscal year 2023.

Management Commentary

Ophir Sternberg, Executive Chairman of BurgerFi, stated, “2022 was a transformative year for the company representing the first full year of Anthony’s integrated into our system. We have two very high quality, differentiated brands that are on trend with the consumer. For 2023, we are well positioned on our growth trajectory as we have signed our first multi-unit development agreement for Anthony’s. I believe that we have long runway of growth ahead for asset-light expansion of both brands.”

Ian Baines, Chief Executive Officer of BurgerFi, added, “We are pleased to share these preliminary sales results for fiscal year 2022. Throughout 2022, our teams have been laser focused on initiatives to deliver synergies, improved customer experience with the goal of improve sales and operations to enhance the margin profile of both brands. Notably, we have seen supply chain stabilization and a slowdown in employee turnover in the fourth quarter. While we have begun to see operating improvements, I believe there is ample room for progress throughout 2023 to grow restaurant level margins in both brands. Looking ahead, our 2023 pipeline is strong as we anticipate the opening of 15-20 new franchised restaurants including 2-3 new Anthony’s.”

Preliminary outcomes for the fiscal year ended January 2, 2023 are as follows:

   -- Total revenue of approximately $178 million; 
 
   -- 11 new BurgerFi Restaurants opened this year (3 company-owned and 8 
      franchised); and 
 
   -- No update to our previously communicated Adjusted EBITDA guidance of 
      $9-10 million or capital expenditures of approximately $2 million. 

Restaurant Development

As of January 2, 2023, there were 174 total BurgerFi and Anthony’s restaurants of which 114 were BurgerFi (25 corporate-owned and 89 franchised) and 60 were corporate-owned Anthony’s. During the fourth quarter 2022, there were 2 franchised BurgerFi’s opened and 5 franchise closures.

Preliminary 2023 Outlook

Management is providing the following outlook for the fiscal year 2023:

   -- Annual revenues of $175-$180 million; 
 
   -- Low single-digit same store sales growth; 
 
   -- 15-20 new franchised restaurant openings including 2-3 new Anthony's 
      restaurants; 
 
   -- Adjusted EBITDA of $10-12 million; and 
 
   -- Capital expenditures of approximately $1-$2 million. 

ICR Conference Fireside Chat Discussion

As previously communicated, Ian Baines, Chief Executive Officer, and Mike Rabinovitch, Chief Financial Officer, will participate in a fireside chat hosted by Peter Saleh, Managing Director at BTIG, on Monday, January 9, 2023, at the 25th Annual ICR Conference.

The fireside chat will be webcast live on the Company’s Investor Relations website at https://ir.burgerfi.com/, and available for replay for 90 days. For more information, please contact your ICR representative.

Key Metrics Definitions

The following definitions apply to the terms listed below:

“Systemwide Restaurant Sales” is presented as informational data in order to understand the aggregation of franchised stores sales, ghost kitchen and corporate-owned store sales performance. Systemwide Restaurant Sales growth refers to the percentage change in sales at all franchised restaurants, ghost kitchens and corporate-owned restaurants in one period from the same period in the prior year. Systemwide Restaurant Same Store Sales growth refers to the percentage change in sales at all franchised restaurants, ghost kitchens, and corporate-owned restaurants after 14 months of operations. See definition below for “Sa