BurgerFi Faces Bankruptcy Risk

BurgerFi, the fast-casual burger chain and owner of Anthony’s Coal Fired Pizza, is grappling with severe financial difficulties, indicating a potential bankruptcy filing. The company anticipates reporting a staggering loss of $18.4 million for the quarter ending July 1, a significant increase from the $6 million loss reported in the same quarter of 2023. This alarming trend highlights the broader challenges faced by fast-casual dining establishments as consumers increasingly opt for home dining or seek better value options. The financial woes of BurgerFi reflect a wider industry struggle, with major chains like McDonald’s, Starbucks, Burger King, and Wendy’s also experiencing decreased foot traffic and sales. In response, these companies have introduced value meal options to attract customers. Meanwhile, other chains, such as Mod Pizza, are fighting to avoid bankruptcy, and Red Lobster has already succumbed to financial pressures. In an SEC filing, BurgerFi warned that without sufficient relief from its senior lender or additional cash from external sources, it may have to seek protection under bankruptcy laws. The company’s senior lender holds the power to declare the debt due immediately, which could lead to foreclosure on BurgerFi’s assets if the company cannot meet its obligations. With cash reserves dwindling, BurgerFi is uncertain about the future of its 60 pizza stores and 102 burger restaurants. The company has attributed its declining sales primarily to store closures and has recently secured $2.5 million in emergency funding to navigate its financial crisis.