Financial Data and Key Metrics Changes - Total revenues for the second quarter were $43.4 million, a decrease of 4% from $45.3 million in the same quarter last year [40] - The net loss for the second quarter was $6 million, compared to a net loss of $60.4 million in the prior year [49] - Adjusted EBITDA was $2 million in the second quarter, down from $2.6 million in the previous year [50] - Restaurant level profit margin decreased by 50 basis points year-over-year to 13.8% [41] Business Line Data and Key Metrics Changes - BurgerFi corporate-owned restaurant sales decreased by 12% to $8.9 million, reflecting a decline in same-store sales [42] - System-wide sales for BurgerFi decreased by 9% to $38.8 million compared to $42.5 million in the year-ago quarter [42] - Anthony's restaurant sales were $31.9 million, a slight increase from $31.8 million in the prior year, driven by a 1% increase in same-store sales [102] Market Data and Key Metrics Changes - BurgerFi system-wide same-store sales decreased by 10% for the second quarter compared to the same period in 2022 [43] - Corporate-owned BurgerFi same-store sales decreased by 15%, while franchise restaurant same-store sales decreased by 8% [43] Company Strategy and Development Direction - The company plans to focus on robust manager development at the restaurant level to improve performance and turnover [7] - Five strategic priorities have been identified, including infrastructure, taste and quality, portfolio definition, establishing Gold Standards, and intentional marketing efforts [16][22][23][24] - The company aims to expand its footprint, particularly along the East Coast, and is looking for well-capitalized franchisees with restaurant experience [101][37] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced by both brands are not new to the industry, but believes improvements will begin to manifest [95] - There is optimism about improving labor productivity and addressing menu gaps, particularly in chicken offerings and French fries [56][70] - Management expects to see sequential improvement in same-store sales and is optimistic about the upcoming seasonal uplift in the South [64][104] Other Important Information - The company is maintaining its 2023 guidance, expecting total revenue of $175 million to $180 million and adjusted EBITDA of $10 million to $12 million [52] - The company has opened three new franchise BurgerFi restaurants in the second quarter, with a total of five year-to-date [29] Q&A Session Summary Question: Are you seeing potential green shoots of a turnaround? - Management believes there are signs of improvement in both top-line and cost perspectives, with same-store sales improving recently [64] Question: What are the low-hanging fruit opportunities on the cost side? - Management sees opportunities in improving food cost analytics and reducing food waste through better ordering practices [56] Question: Can you provide context on guidance and same-store sales moving forward? - Management indicates that guidance is based on a combination of same-store sales and new store openings, with expectations for sequential improvement [61] Question: Are there regional differences in performance? - Management notes that northern restaurants are currently outperforming southern ones, indicating a normalization of customer patterns [82] Question: What menu gaps have been identified? - Management highlights the need for new chicken offerings and improvements to French fries, which have received negative feedback [100][70]
BurgerFi(BFI) - 2023 Q2 - Earnings Call Transcript