Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.23.3
Segment Information
 9 Months Ended
Oct. 02, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has two operating and reportable segments: BurgerFi and Anthony's.

The Company’s measure of segment income is Adjusted EBITDA. We define Adjusted EBITDA 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). Although the Company had historically considered net income to be an appropriate measure of segment profit and loss, management believes Adjusted EBITDA is a more meaningful measure of the Company’s performance.

Adjusted EBITDA is used by the Company to evaluate its performance, both internally and as compared with its peers, because this measure excludes certain items that may not be indicative of the Company’s operating performance, as well as items that can vary widely across different industries or among companies within the same industry. The Company believes that this adjusted measure provides a baseline for analyzing trends in its underlying business.

The following table presents segment revenue and a reconciliation of adjusted EBITDA to net loss by segment:

Quarter Ended
Consolidated BurgerFi Anthony's
(in thousands) October 2, 2023 October 3, 2022 October 2, 2023 October 3, 2022 October 2, 2023 October 3, 2022
Revenue by Segment $ 39,480  $ 43,255  $ 9,940  $ 11,775  $ 29,540  $ 31,480 
Adjusted EBITDA Reconciliation by Segment:
Net loss $ (4,958) $ (3,332) $ (4,167) $ (1,752) $ (791) $ (1,580)
Employee retention credits —  (2,626) —  (2,626) —  — 
Share-based compensation expense 172  1,010  177  1,010  (5) — 
Depreciation and amortization expense 3,272  4,253  2,123  2,212  1,149  2,041 
Interest expense 2,219  2,245  1,033 1,003  1,186  1,242 
Restructuring costs 353  —  311 —  42  — 
Merger, acquisition and integration costs 96  168  62 168  34  — 
Legal settlements, net of gains (193) 81  (289) 81  96  — 
Store closure costs 162  568  64  548  98  20 
Gain on change in value of warrant liability
 (224) (726) (224) (726) —  — 
(Gain) loss on sale of assets (85) 1  7  (5) (92) 6
Adjusted EBITDA $ 814  $ 1,642  $ (903) $ (87) $ 1,717  $ 1,729 
Nine Months Ended
Consolidated BurgerFi Anthony's
(in thousands) October 2, 2023 October 3, 2022 October 2, 2023 October 3, 2022 October 2, 2023 October 3, 2022
Revenue by Segment $ 128,634  $ 133,484  $ 34,089  $ 37,628  $ 94,545  $ 95,856 
Adjusted EBITDA Reconciliation by Segment:
Net loss $ (20,110) $ (77,269) $ (18,924) $ (36,439) $ (1,186) $ (40,830)
Goodwill impairment —  55,168  —  17,505  —  37,663 
Lease termination recovery (42) —  (42) —  —  — 
Employee retention credits —  (2,626) —  (2,626) —  — 
Share-based compensation expense 5,401  9,295  5,380  9,295  21  — 
Depreciation and amortization expense 9,794  13,427  6,360  7,335  3,434  6,092 
Interest expense 6,508  6,562  2,955  2,960  3,553  3,602 
Restructuring costs 2,397  —  1,389  —  1,008  — 
Merger, acquisition and integration costs 723  2,472  624  2,359  99  113 
Legal settlements, net of gains
 317  393  218  393  99  — 
Store closure costs 333  1,134  138  1,134  195  — 
Loss (gain) on change in value of warrant liability 167  (2,050) 167  (2,050) —  — 
Pre-opening costs —  474  —  474  —  — 
(Gain) loss on sale of assets (96) 1  1  (5) (97) 6 
Income tax expense (benefit) 2  (447) — (451) 2  4 
Adjusted EBITDA $ 5,394  $ 6,534  $ (1,734) $ (116) $ 7,128  $ 6,650