Sets Initial Business Outlook for Fiscal Year 2024
Focused on Five Key Strategic Initiatives
Management Commentary
Bachmann continued, “In December, we celebrated the grand opening of our first-ever co-branded
“Looking forward, we expect the
Preliminary Outcomes for the Fourth Quarter 2023 are as Follows*:
- Total revenue of approximately
$42 million ; - Consolidated systemwide restaurant sales of approximately
$65 million ; - Corporate-owned same-store sales decreased 3% at Anthony’s;
- Systemwide same-store sales decreased 9% at
BurgerFi .
Preliminary Outcomes for the Fiscal Year 2023 are as Follows*:
- Total store revenue of approximately
$170 million ; - Systemwide restaurant sales of approximately
$275 million ; - Corporate-owned same-store sales decreased 1% at Anthony’s;
- Systemwide same-store sales decreased 7% at
BurgerFi . - No update to our previously communicated Adjusted EBITDA1 guidance of
$6-8 million or capital expenditures of approximately$2 million .
*The fourth quarter and fiscal year 2023 reporting periods for
As of
Key Strategic Initiatives
During fiscal year 2024, the Company will continue executing its five key strategic initiatives, which are positioning
- Infrastructure
- Decrease turnover at both brands and significantly reduce the training labor needed at the restaurant level;
- Achieve higher consumer satisfaction scores as well as faster throughput and ticket times; and
- Upgrade the POS system across both brands so they are on one system to allow for better inventory control.
- Taste and Quality
- Added new menu items at both brands; and
- Rightsized the menu at
BurgerFi , removing less popular and process intense items.
- Gold Standards
- Pride in product, process and facility and creates Brand Promises;
- Listening to employee and guest feedback; and
- Removed the AI-phone answering bot at Anthony’s.
- Telling the World About Our Brands
- Being intentional with marketing efforts; and
- Focusing on driving digital engagement and the rewards programs.
- Defining the Portfolio
- Closely reviewing existing portfolio and pipeline;
- Closing underperforming units; and
- Focusing growth on infilling the eastern seaboard within existing markets, where there is already strong brand awareness.
Preliminary Fiscal Year 2024 Outlook
- Total revenue of approximately
$170-$180 million ; - Reopened flagship, company-owned,
BurgerFi inNew York City ; - 10-15 new franchised restaurant openings including 1 new Anthony’s;
- Continued improvement in COG’s driven by increased adoption of inventory management at both brands
ICR Conference Fireside Chat Discussion
As previously communicated,
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 Franchise Restaurant Sales and Corporate-Owned Restaurant Sales performance. Systemwide Restaurant Sales growth refers to the percentage change in sales at all franchised restaurants 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 and corporate-owned restaurants after 14 months of operations. See definition below for “Same-Store Sales”.
“Corporate-Owned Restaurant Sales” represent the sales generated only by corporate-owned restaurants. Corporate-Owned Restaurant Sales growth refers to the percentage change in sales at all corporate-owned restaurants in one period from the same period in the prior year. Corporate-Owned Restaurant Same-Store Sales growth refers to the percentage change in sales at all corporate-owned restaurants after 14 months of operations. These measures highlight the performance of existing corporate-owned restaurants.
“Franchise Restaurant Sales” represent the sales generated only by franchisee-owned restaurants and are not recorded as revenue, however, the royalties based on a percentage of these franchise restaurant sales are recorded as revenue. Franchise Restaurant Sales growth refers to the percentage change in sales at all franchised restaurants in one period from the same period in the prior year. Franchise Restaurant Same-Store Sales growth refers to the percentage change in sales at all franchised restaurants after 14 months of operations. These measures highlight the performance of existing franchised restaurants.
“Same-Store Sales” is used to evaluate the performance of our store base, which excludes the impact of new stores and closed stores, in both periods under comparison. We include a restaurant in the calculation of Same-Store Sales after 14 months of operations. A restaurant which is temporarily closed, is included in the Same-Store Sales computation. A restaurant which is closed permanently, such as upon termination of the lease, or other permanent closure, is immediately removed from the Same-Store Sales computation. Our calculation of Same-Store Sales may not be comparable to others in the industry.
“Adjusted EBITDA,” a non-GAAP measure, is defined as net loss before goodwill impairment, lease termination recovery, employee retention credits, share-based compensation expense, depreciation and amortization expense, interest expense (which includes accretion on the value of preferred stock and interest accretion on the related party note), restructuring costs, merger, acquisition and integration costs, legal settlements, net of gains, store closure costs, loss (gain) on change in value of warrant liability, pre-opening costs, (gain) loss on sale of assets and income tax expense (benefit).
Unless otherwise stated, Systemwide Restaurant Sales, Systemwide Sales growth, and Same-Store Sales are presented on a systemwide basis, which means they include franchise restaurants and company-owned restaurants. Franchise restaurant sales represent sales at all franchise restaurants and are revenues to our franchisees. We do not record franchise sales as revenues; however, our royalty revenues and brand royalty revenues are calculated based on a percentage of franchise sales.
About
Anthony’s. Anthony’s is a premium pizza and wing brand with 60 restaurants (59 corporate-owned casual restaurant locations and 1 dual brand franchise location), as of
About Non-GAAP Projected Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the measure Adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use this non-GAAP financial measure for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. This non-GAAP financial measure also facilitates management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe this non-GAAP financial measure is useful to investors both because (1) it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) it is used by our institutional investors and the analyst community to help them analyze the health of our business.
There are a number of limitations related to the use of this non-GAAP financial measure. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from this non-GAAP financial measure and evaluating this non-GAAP financial measure together with its relevant financial measures in accordance with GAAP.
A reconciliation of Adjusted EBITDA guidance is not being provided due to the nature of this forward-looking non-GAAP measure containing certain elements that are impractical to predict given their market-based nature, such as share-based compensation expense and gain and losses on change in value of warrant liabilities, without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information, nor can we accurately predict all of the components of the applicable non-GAAP financial measure and reconciling adjustments thereto; accordingly, guidance for the corresponding GAAP measure may be materially different than guidance for the non-GAAP measure. Such forward looking information is also subject to uncertainty and various risks, and there can be no assurance that any forecasted results or conditions will actually be achieved.
Forward-Looking Statements
This press release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including statements relating to
Investor Relations:
ICR
IR-BFI@icrinc.com
646-277-1224
Company Contact:
IR@burgerfi.com
Media Relations Contact:
Ink Link Marketing
Kmiller@inklinkmarketing.com
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