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BurgerFi - AI Stock Analysis

Analysis generated May 16, 2024

BurgerFi is a fast-casual restaurant chain that focuses on offering premium quality burgers and an array of other American-style foods. With an emphasis on natural ingredients, including hormone-free and antibiotic-free meats, BurgerFi distinguishes itself in the highly competitive quick-service restaurant (QSR) sector. The company has been expanding its footprint through a mix of company-owned and franchised restaurants.

Fundamental Analysis

Revenue for the latest quarter was $41M. While this shows a 5.03% increase compared to the previous quarter, a year-over-year comparison reveals an 8.33% decline. The quarter-on-quarter growth is a positive indicator, but the year-over-year dip might signal a longer-term issue.

Net income for the last quarter was $11M, but this represents a 113.76% decrease compared to the previous quarter, which is an alarming sign. Nevertheless, it’s worth noting that this figure is up by 59.49% year-over-year, indicating positive growth compared to the same quarter last year.

EBITDA for the latest quarter was $6.1M. This too shows a drastic plummet of 949.83% quarter-on-quarter, suggesting immediate concerns. However, compared to the same quarter last year, EBITDA has increased by 69.35%, highlighting year-over-year improvement.

Another troubling fact is the insider selling of shares over the past couple of months, traditionally seen as a bearish signal.

Technical Analysis

Today's stock price is $0.40, a 4.76% decline from a month ago, pointing to short-term concerns. More worryingly, the stock price has plummeted by 68.99% from a year ago, raising significant red flags about the company’s long-term outlook.

The trend is bearish, indicated by the current Simple Moving Average over 10 periods (SMA10) holding steady at $0.40. The previous SMA10 was also $0.40, suggesting a potential downward trend in price movement.

The Relative Strength Index (RSI) is 48.6, which falls into neutral territory. While this doesn’t signal immediate buy or sell conditions, it does highlight the stock's lack of momentum.

Alternative Data Analysis

Starting with job postings and employee sentiment, BurgerFi has 83 open positions, a number that has remained stable, indicating a steady operational stance.

Regarding customer acquisition, BurgerFi has seen a 61% rise in webpage visitors, now estimated at 220,000. This is a strong bullish signal as more site visits often convert to more customers.

However, app downloads have dropped by 21% recently, currently at an estimate of 100 downloads per day. This downward trend could indicate a decline in user engagement or customer base growth via the mobile platform.

On social media, BurgerFi has 80,000 Instagram followers and 13,000 Twitter followers. The stable Instagram follower count and stagnant Twitter growth (0% change in recent months) both suggest a plateau in social media engagement.

Finally, using AltIndex’s AI score, BurgerFi scores 22 out of 100, signaling a strong sell. This score blends fundamental, technical, and alternative data analyses to provide a holistic assessment.

Conclusion and Recommendation

Based on the data presented, BurgerFi shows a mixed but predominantly negative picture. Revenue growth quarter-on-quarter appears positive, but year-on-year declines can't be ignored. The drastic drops in net income and EBITDA quarter-over-quarter further raise red flags, even though they show improvement on a yearly basis.

The bearish stock price trend, stable job positions, increasing web traffic, declining app downloads, and stagnant social media engagement create a complex scenario. The strong sell signal from the AltIndex AI score (22) lends additional weight to a cautious or negative outlook.

Given the concerning financial metrics, insider selling, and the bearish trend in stock price backed by a strong sell AI score, it would be prudent to approach BurgerFi stock with caution. My recommendation would be to sell or avoid purchase until more positive signs emerge in both fundamental and alternative indicators.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.