BurgerFi Regains Nasdaq Compliance, Reports Declining Sales
BurgerFi is back in compliance with Nasdaq listing requirements, the fast casual reported Thursday, after reporting on its recent results.
The new public channel received a notice a few weeks ago saying it was no longer in compliance with the exchange after postponing the publication of its earnings reports. The delay in filing came after the Securities and Exchange Commission issued a new statement on the accounting practices of Special Purpose Acquisition Companies, or SPACs.
But BurgerFi filed its overdue financial reports and regained compliance, allowing its stock to continue trading on the Nasdaq.
“We are pleased to have regained compliance with Nasdaq listing requirements,” Julio Ramirez, CEO of BurgerFi, said in a statement. “With that behind us, we look forward to continuing to execute our growth strategy in 2021…”
BurgerFi, based in Palm Beach, Florida, went public late last year when it was acquired by Opes Acquisition Corp., a SPAC, for $ 100 million in cash and stock.
BurgerFi reported a decline in same-store sales of 5% for its fourth quarter and 15% for 2020 compared to the previous year.
Its system-wide sales in the fourth quarter were down 7% to $ 34.6 million. System-wide sales fell 11% for the year to $ 129.3 million.
“2020 has been a year of transformation for BurgerFi,” Ramirez said in a statement.
The 119-unit chain declined to provide financial projections for the remainder of 2021, but said it still plans to open around 30 new restaurants during the year.
For 2020, the channel’s digital sales grew by 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 start of 2021, BurgerFi has opened four restaurants, including a second drive-thru. Eight other sites are currently under construction.