BurgerFi International (BFI)

[Televet]

BurgerFi International is called a post-COVID winner by BTIG
May 17, 2022 11:12 AM ETBurgerFi International, Inc. (BFI)By: Clark Schultz, SA
BTIG stayed positive on BurgerFi International (NASDAQ:BFI +2.4%) after taking in the restaurant operator's earnings report.

"Though BurgerFi same-store sales were sizably below our estimate, mostly owing to the Omicron disruption, revenue and adjusted EBITDA were largely in-line with our estimates owing to stronger Anthony's sales," noted analyst Peter Saleh.

Saleh and team see the BFI quarter as the low point for the year with sales and restaurant margins forecast to show steady improvement through the year as COVID fades, menu pricing builds and heightened commodity inflation is lapped.

BFI is still rated at Buy at BTIG with the chain's development opportunity, margin potential and sales recovery all noted. Lower industry-wide valuation multiples led BTIG to cut its price target to $8.50 from $11, which after the more than 50% drop this year still leaves plenty of upside potential.