NEW YORK–(BUSINESS WIRE)–#A–Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against BurgerFi International, Inc. (“BurgerFi” or the “Company”) (NASDAQ: BFI, BFIIW) in the United States District Court for the Southern District of Florida on behalf of all persons and entities who purchased or otherwise acquired BurgerFi securities between December 17, 2020 and November 15, 2022, both dates inclusive (the “Class Period”). Investors have until June 5, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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BurgerFi previously operated as a blank-check company, also referred to as a special purpose acquisition company (“SPAC”), which is a development stage company formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business transaction with one or more operating businesses or entities.
On December 17, 2020, the Company announced that it had completed a business combination with BurgerFi International, LLC (“Legacy BurgerFi”), a private Delaware limited liability company touted as “one of the nation’s fastest-growing better burger concepts” (the “Business Combination”). As a result of the Business Combination, among other things, the Company purchased 100% of the membership interests of Legacy BurgerFi, resulting in Legacy BurgerFi becoming a wholly owned subsidiary of the Company, and the Company changed its name to “BurgerFi International, Inc.”
Following the Business Combination, the Company, together with its subsidiaries, has owned and franchised fast-casual and premium-casual dining restaurants.
On November 4, 2021, the Company completed its acquisition of Anthony’s Coal Fired Pizza & Wings (“Anthony’s”) for $156.6 million (the “Anthony’s Acquisition”). Defendant Ophir Sternberg (“Sternberg”), Executive Chairman of the Company, touted the Anthony’s Acquisition as “a significant step forward in BurgerFi’s ongoing growth strategy and transition into a premium multibrand platform.”
Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company had overstated the effectiveness of its acquisition and growth strategies; (ii) the Company had misrepresented to investors the purported benefits of Anthony’s Acquisition and its post-Business Combination business and financial prospects; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 11, 2022, during pre-market hours, BurgerFi issued a press release announcing the Company’s second quarter (“Q2”) 2022 results. Among other results, that press release reported Q2 revenue of $45.3 million, missing consensus estimates by $2.28 million. The Company also disclosed that “[n]et loss in the second quarter was $60.4 million compared to a net income of $9.0 million in the year-ago quarter[,]” which “[wa]s primarily the result of goodwill impairment charges of $55.2 million in relation to BurgerFi and Anthony’s coupled with higher depreciation, amortization of intangibles, share-based compensation, interest expense resulting from the acquisition-related debt” (emphases in original).
On this news, BurgerFi’s stock price fell $0.10 per share, or 3.03%, to close at $3.20 per share on August 11, 2022.
Then, on November 16, 2022, during pre-market hours, BurgerFi issued a press release announcing the Company’s third quarter (“Q3”) 2022 results. Among other results, that press release reported Q3 revenue of $43.3 million, missing consensus estimates by $0.84 million, explaining that “[f]or the BurgerFi brand, same-store sales decreased 11% and 6% in corporate owned and franchised locations, respectively” (emphases in original).
On this news, BurgerFi’s stock price fell $0.24 per share, or 10.57%, to close at $2.03 per share on November 16, 2022.
If you purchased or otherwise acquired BurgerFi shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at [email protected], telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.