Financing

BurgerFi regains Nasdaq compliance, reports sales decline

The better-burger chain saw same-store sales fall 5% during its fourth quarter and a 15% drop for fiscal 2020.
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BurgerFi is back in compliance with Nasdaq’s listing requirements, the fast casual reported Thursday, after reporting its recent earnings.

The newly public chain received notice a couple of weeks ago that it had fallen out of compliance with the stock exchange after postponing the release of its earnings reports. The filing delay came after the Securities and Exchange Commission released a new statement on accounting practices for Special Purpose Acquisition Companies, or SPACs.

But BurgerFi filed its overdue financial reports and regained compliance, allowing its stock to continue being traded on Nasdaq.

“We are pleased to have regained compliance with Nasdaq listing requirements,” BurgerFi CEO Julio Ramirez said in a statement. “With this behind us, we look forward to continue executing our growth strategy in 2021 …”

Palm Beach, Fla.-based BurgerFi became a public company late last year when it was acquired by Opes Acquisition Corp., a SPAC, for $100 million in cash and stock.

BurgerFi reported a same-store sales decline of 5% for its fourth quarter and a 15% drop for 2020 compared to the previous year.

Its systemwide sales in Q4 decreased 7%, to $34.6 million. Systemwide sales fell 11% for the fiscal year, to $129.3 million.

“2020 was a transformative year for BurgerFi,” Ramirez said in a statement.

The 119-unit chain declined to provide financial projections for the remainder of 2021, but it said it still plans on opening roughly 30 new restaurants during the year.

For 2020, the chain’s digital sales increased 41% in order volume and 64% in sales volume.

The fast casual opened 11 new locations in 2020, including its first drive-thru. It also opened nine delivery-only ghost kitchens through a partnership with Reef Technology and Epic Kitchens.

Since the beginning of 2021, BurgerFi has opened four restaurants, including a second drive-thru unit. Eight more locations are currently under construction.

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