BurgerFi, the fast casual restaurant chain, posted a net loss of $4.95 million in the third quarter of 2023, reflecting a notable rise from the $3.33 million net loss recorded a year ago.
The increase in net loss was linked by the company to a decrease in same-store sales and the lack of gains from employee retention credits in comparison to the previous period.
For the quarter ending on October 2, 2023, total revenue amounted to $39.48 million, a decrease from the $43.25 million reported a year earlier.
In the most recent quarter, the company witnessed a drop in consolidated systemwide sales, decreasing from $70.6 million in the year-ago period to $65.3 million.
In this timeframe, BurgerFi experienced a 9% decline in systemwide sales, amounting to $35.7 million compared to the same period in the previous year.
The restaurant company incurred restaurant-level operating expenses of $32.9 million for the quarter, a decrease from the $35.2 million recorded in the previous year.
In the third quarter, the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the company amounted to $0.8 million, showing a decrease from the $1.6 million reported in the corresponding period last year.
During the quarter, the company expanded its presence by opening five new BurgerFi franchised locations and acquiring an additional four from franchisees year to date.
BurgerFi CEO Carl Bachmann said, “Our third quarter performance is not reflective of what we believe these brands and the people at this organization can and will accomplish.
“Having arrived here ten days into the quarter, these results are in no way indicative of our work to date or where we intend to take the business.
“Using my prior experience at enhancing pizza and burger concepts, BurgerFi is now implementing strategic priorities that should position the Company for long-term, profitable growth.”