Executive Summary

Total revenue was $43.4M, down 4% year over year; consolidated adjusted EBITDA was $2.0M, down from $2.6M YoY, as BurgerFi brand comps declined while Anthony’s comps improved .
Net loss improved sharply to $6.0M ($0.24 diluted EPS) from $60.4M ($2.72) on lower impairments and reduced G&A/D&A; restaurant-level food and paper costs improved 330 bps YoY, partially offset by higher labor/other operating expense mix .
Management maintained full-year FY2023 guidance but guided toward the low end of prior ranges: revenue $175–$180M, adjusted EBITDA $10–$12M, ~15–20 new franchised units, capex ~$2M; CFO cited food cost tailwinds into Q3–Q4 and plans to improve store labor and corporate G&A .
Anthony’s posted +1% same-store sales growth and margin improvement on lower wing costs, while BurgerFi comps fell (-10%) and restaurant-level margin mix worsened; new CEO detailed near-term product refreshes (crispy/grilled chicken, shakes, fry process) to lift topline and customer experience .
Liquidity at quarter-end was $14.7M (cash $10.7M, undrawn revolver $4.0M); subsequent landlord litigation raises potential covenant risk and going concern uncertainty if not settled or refinanced; the Credit Agreement was amended again on July 7, 2023 .

What Went Well and What Went Wrong

What Went Well

Anthony’s same-store sales grew 1% YoY, with restaurant-level operating expenses improving 60 bps YoY on lower food costs, notably wings; adjusted EBITDA for Anthony’s was $2.36M in Q2 .
Consolidated food, beverage and paper costs improved to 26.4% of restaurant sales from 29.7% YoY (330 bps improvement), contributing to lower operating cost of sales .
Management reiterated FY2023 guidance and indicated food cost tailwinds into Q3–Q4, with initiatives to improve store labor and corporate G&A and growing franchise interest (including potential Anthony’s franchising) .

Management quotes:

“We are already experiencing better trends at Anthony’s… As we progress into fall, we believe these positive trends will… spread to our southern restaurant locations as well.” — CEO Carl Bachmann .
“We are cautiously optimistic that restaurant level margins will improve… as we expect food costs to remain a positive tail wind… Additionally, we expect Store Labor and Corporate G&A to begin to improve.” — CFO Chris Jones .

What Went Wrong

BurgerFi brand same-store sales declined (-10%) YoY; corporate-owned BurgerFi same-store sales fell (-15%) YoY, driving lost sales leverage and +500 bps increase in restaurant-level operating expense as % of sales .
Consolidated restaurant-level operating expense mix rose 50 bps YoY (86.2% vs 85.7%), with higher labor rates, training costs, and turnover pressuring margins despite lower food costs .
Legal and covenant risks escalated post-quarter due to a landlord judgment motion; management disclosed substantial doubt about going concern if a settlement or capital actions are not implemented and covenants are breached .

Financial Results

Metric	Q2 2022	Q1 2023	Q2 2023
Total Revenue ($USD Millions)	$45.3	$45.7	$43.4
Net Loss ($USD Millions)	$(60.4)	$(9.2)	$(6.0)
Diluted EPS ($USD)	$(2.72)	$(0.39)	$(0.24)
Adjusted EBITDA ($USD Millions)	$2.6	$2.6	$2.0
Restaurant-Level Operating Expenses (% of Restaurant Sales)	85.7%	83.4%	86.2%

Segment breakdown

Metric	Q2 2022	Q1 2023	Q2 2023
Revenue by Segment – BurgerFi ($USD Millions)	$13.46	$24.15 (six months)	$11.57
Revenue by Segment – Anthony’s ($USD Millions)	$31.84	$65.01 (six months)	$31.86
Systemwide Sales – BurgerFi ($USD Millions)	$42.45	$40.30	$38.82
Systemwide Sales – Anthony’s ($USD Millions)	$31.84	$33.15	$31.86
Same-Store Sales Growth – BurgerFi (%)	(9)%	(4)%	(10)%
Same-Store Sales Growth – Anthony’s (%)	3%	3%	1%
Adjusted EBITDA – BurgerFi ($USD Millions)	$0.182	$(0.502)	$(0.328)
Adjusted EBITDA – Anthony’s ($USD Millions)	$2.433	$3.052	$2.361

KPIs (Consolidated)

KPI	Q2 2022	Q1 2023	Q2 2023
Systemwide Restaurant Sales ($USD Millions)	$74.3	$73.4	$70.7
Corporate-Owned Restaurant Sales ($USD Millions)	$42.06	$43.31	$40.81
Franchise Restaurant Sales ($USD Millions)	$32.23	$30.14	$29.88
Systemwide Same-Store Sales Growth (%)	(3)%	(1)%	(5)%
Corporate-Owned Same-Store Sales Growth (%)	—%	1%	(3)%
Franchise Same-Store Sales Growth (%)	(7)%	(3)%	(8)%
Digital Channel % of Systemwide Sales (%)	35%	32%	31%

Restaurant-level expense mix (Consolidated)

Expense Category (% of Restaurant Sales)	Q2 2022	Q1 2023	Q2 2023
Food, Beverage & Paper	29.7%	26.8%	26.4%
Labor & Related	29.2%	30.5%	31.1%
Other Operating	17.6%	17.2%	19.0%
Occupancy & Related	9.2%	8.9%	9.6%

Guidance Changes

Metric	Period	Previous Guidance (Q1 2023)	Current Guidance (Q2 2023)	Change
Annual Revenues ($USD Millions)	FY2023	$175–$180	$175–$180 (low end expected)	Guided to low end
Corporate-Owned Same-Store Sales Growth (%)	FY2023	Low single-digit	Low single-digit (maintained)	Maintained
New Franchised Restaurants (units)	FY2023	15–20 (incl. 1 Anthony’s)	15–20 (incl. 1 Anthony’s)	Maintained
Adjusted EBITDA ($USD Millions)	FY2023	$10–$12	$10–$12 (low end expected)	Guided to low end
Capital Expenditures ($USD Millions)	FY2023	~$2	~$2	Maintained

Earnings Call Themes & Trends

Note: The Q2 2023 earnings call transcript was not retrievable from the document catalog due to a database inconsistency; themes are derived from the Q2 press release and Q2 10-Q, and prior-quarter Q1 press release .

Topic	Previous Mentions (Q4 2022 / Q1 2023)	Current Period (Q2 2023)	Trend
Product performance and menu innovation	Emphasis on revenue growth and margin improvement; no specific product pipeline disclosed in Q1 PR beyond execution focus	CEO detailed rollout of new crispy/grilled chicken sandwiches, improved shakes, and fry process changes aimed at topline and CX	Increasing focus on product refresh
Labor/turnover	Margin improvement with efficiencies and headcount reductions in support center; ongoing labor inflation	Hourly turnover declined; mgmt turnover improved; plan to improve store labor and corporate G&A through execution	Operational stabilization targeted
Food cost inflation/supply chain	Q1 margin gains driven by lower food costs (wings) at Anthony’s	CFO cites food cost tailwinds into Q3–Q4; Anthony’s margins improved on lower wing prices	Continued tailwind
Brand comps/regional trends	Anthony’s +3% SSS; BurgerFi -4% SSS in Q1	Anthony’s +1% SSS; BurgerFi -10% SSS; CEO notes stronger trends in northern locations with expected seasonal spread south	Mixed: Anthony’s resilient, BurgerFi pressured
Franchising/units	15–20 new franchised units plan; first franchised Anthony’s anticipated	Maintained unit plan; increasing franchise interest, including Anthony’s program; 3 BurgerFi franchise openings in Q2	Momentum building
Legal/regulatory and covenants	Normal course disclosures	Landlord litigation could trigger covenant breach; substantial doubt about going concern if not settled/refinanced; Credit Agreement amended again	Risk elevated
Digital channel	32% of sales in Q1	31% of sales in Q2; continued relevance but down YoY	Slight decline YoY

Management Commentary

Turnaround playbook and near-term product fixes: “We have been focused on improving the products and customer experience… launching a much-needed new crispy chicken and grilled chicken sandwiches and improving the milk shakes… fixing the french fries… as simple as changing processes in the kitchen.” — CEO Carl Bachmann .
Alignment with shareholders: “I invested heavily into BFI equity when I started, so I am firmly aligned with our shareholders.” — CEO Carl Bachmann .
Profitability path and cost controls: “It will require improved execution… along with improvements on cost controls… cautiously optimistic that restaurant level margins will improve… expect food costs to remain a positive tail wind… expect Store Labor and Corporate G&A to begin to improve.” — CFO Chris Jones .
Guidance posture: “These trends are why we are maintaining our full year financial guidance, while also guiding towards the low end of the previously provided range.” — CFO Chris Jones .

Q&A Highlights

The Q2 2023 call transcript was not accessible via the document tools due to a catalog error; therefore, Q&A-specific exchanges are unavailable. Notable clarifications from filed materials:

Guidance stance clarified as “maintain, guide to low end,” with expected food cost tailwinds into Q3–Q4 and operational improvements in labor and G&A .
Disclosure of legal/covenant risks post-quarter, including potential judgment and Credit Agreement covenant implications, elevating going concern uncertainty absent settlement or capital actions .
Unit development: three BurgerFi franchised openings in Q2; five YTD; nine more expected including the first dual-brand franchise location .

Estimates Context

Wall Street consensus via S&P Global was unavailable for BFI Q2 2023 due to missing Capital IQ mapping in the estimates tool; as a result, comparisons vs consensus estimates cannot be provided. Values retrieved from S&P Global are unavailable for this ticker at this time.
Based on company-reported outcomes: revenue $43.4M; diluted EPS $(0.24); adjusted EBITDA $2.0M, with Anthony’s segment strength and BurgerFi softness driving the mix .

Key Takeaways for Investors

Near-term narrative hinges on executing the product refresh (chicken, shakes, fries) and operational fixes to stabilize BurgerFi comps, while leveraging Anthony’s momentum and lower wing costs; watch Q3/Q4 for tangible comp/margin impact .
Risk management is critical: landlord litigation and covenant risk introduce going concern uncertainty if not resolved; monitor settlement progress, refinancing, and covenant compliance disclosures .
Guidance held but at the low end: expect conservative FY2023 delivery; key swing factors are BurgerFi comp recovery, cost tailwinds, and franchise unit openings pace .
Margin mix improved in food costs but worsened in labor/other operating; management targets improvements—labor trends and turnover reductions will be a leading indicator of margin recovery .
Anthony’s remains the profit engine (Q2 adjusted EBITDA $2.36M vs BurgerFi $(0.33)M); franchising Anthony’s could unlock growth if execution and unit economics prove out .
Liquidity adequate near term ($14.7M), but capital flexibility may be needed if litigation outcomes pressure covenants; the July amendment expanded non-recurring items in EBITDA definition—track how this affects covenant calculations .
Trading setup: headline catalysts will be product launch updates, Q3/Q4 food cost tailwinds materializing, comp trajectories at BurgerFi vs Anthony’s, and any legal/covenant resolution; downside risk from comp softness and legal developments, upside from visible product/ops wins and franchise signings .

BurgerFi International, Inc. (BFI)·Q2 2023 Earnings Summary