January 27, 2021
BurgerFi’s Delivery Sales Up 121% in Q4 of 2020 vs. 2019
PALM BEACH, FL – January 27, 2021 – BurgerFi International Inc. (Nasdaq: BFI, BFIIW), one of the fastest growing better burger chains, that went public last month, is reporting preliminary financial results for the fourth quarter ended December 31, 2020. The preliminary results are subject to completion of BurgerFi’s annual financial reporting process and the preparation of the audited financial statements for the calendar year.
BurgerFi currently expects total revenue for the fourth quarter of 2020 to be approximately $9.0 million compared to $8.9 million in the fourth quarter of 2019. The expected total revenue for the year ended December 31, 2020 was approximately $34.3 million versus $34.2 million for the year ended December 31, 2019.1
Despite the unfavorable operating environment, total revenue was slightly higher than prior year aided by significant increases in delivery and app sales throughout the year and particularly during the fourth quarter.
“While this past year was challenging for the entire restaurant industry, it has been a tremendous year of growth for BurgerFi as they have just gone public. BurgerFi has seen incredible success with delivery sales up over 120% year over year in the fourth quarter. BurgerFi is poised to expand its’ brick and mortar restaurants nationally by 30% this year and has amped up in ghost kitchens plans as well,” said Ophir Sternberg, Executive Chairman of BurgerFi.
Year-Over-Year Delivery Sales
|2019 vs 2020|
Totals in 3rd Party Delivery YTD + BurgerFi App
|January 1, 2020 to December 31, 2020|
|· 1,610,000+ orders|
|· $38.8 million total sales|
|· +41% in order volume|
|· +65% in sales volume|
“Our investments in digital platforms and our swift response to the current environmental challenges has allowed us to have 5 consecutive months of over 90% month over month delivery sales growth. We’ll continue to invest in technology with the goal of delivering a frictionless, omnichannel experience to drive guest satisfaction and sales. ” says Julio Ramirez, CEO of BurgerFi.
In the fourth quarter 2020 versus the fourth quarter 2019, same store sales declined 2.9% compared to down 9.2% in the third quarter of 2020, and down 33.7% in the second quarter of 2020 and down 11.8% in the first quarter. Same store sales continued to sequentially improve each quarter in 2020 since Covid-19 hit in March. Same store sales declined 13.4% for the year ended December 31, 2020 versus the prior year.
In the fourth quarter 2020, BurgerFi company-owned restaurant sales increased 12.4% to $7.0 million versus $6.2 million in the same period last year. Systemwide restaurant sales for the fourth quarter were $34.7 million which represents a decrease of 7.2% of same period in the prior year of $37.4 million. This decrease was due primarily to the effects of Covid, which resulted in significant same store sales declines, particularly in the second quarter in 2020, versus the prior year, and also resulted in 10 temporary closings of franchise restaurants. The decrease was partially offset by 11 new company and franchise-owned restaurant openings in 2020. Systemwide sales were $129.3 million in 2020, down 11.3% from $145.8 million in 2019.
Royalty Revenue of $1.5 million in the fourth quarter 2020 decreased $0.5 million from the same period in 2019, representing a decrease of 24.9%. Royalty Revenue for the year ended December 31, 2020 was $5.6 million which represented a decrease of 23.4% from 2019 Royalty Income of $7.4 million.
New Restaurant Openings
BurgerFi opened 11 system-wide locations during the year ended 2020. Since December 1, 2020, BurgerFi has already opened 4 new restaurants, including BurgerFi’s first drive-thru in Hamburg, KY. BurgerFi is expecting to open 30 to 35 company and franchise operated restaurants in 2021, and a step-up unit growth for 2022 to open a total of 40 to 45 new company and franchise operated restaurants.
Cash and marketable securities on hand
Cash and marketable securities on hand were $39.5 million as of December 31, 2020.
1 Estimated results are preliminary and unaudited and subject to change based upon completion of the audit and the Form 10-K for the year ended December 31, 2020.