Will Burgerfi International (USA Stocks:BFI) turn things around in June?

Burgerfi International (BFI) has been facing some challenges, as evidenced by its negative return on assets of -0.03 and a loss of $30.8M in income before tax. However, the company's potential upside of 7.5% suggests that there may be room for a bullish reversal in the coming month. Despite the current negative EPS estimate of -1.02 for the current year, investors should keep an eye on BFI's performance in June, as the fast-food industry can often be unpredictable and subject to rapid changes.

Main Points

We offer trading advice for Burgerfi International, supplementing the current expert consensus. Our advanced recommendation engine employs a multidimensional algorithm to assess the company's growth potential, utilizing all available technical and fundamental data.
Published over three weeks ago
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Reviewed by Michael Smolkin

Burgerfi International (NASDAQ: BFI), a prominent player in the Consumer Cyclical sector and Restaurants industry, has been showing signs of a potential bullish reversal. Despite the company's operating margin of -0.05 and an EBITDA loss of $16K, analysts are optimistic about the stock's performance. The highest estimated target price stands at $3.61, indicating a possible upside price of $4.73. However, investors should also be aware of the possible downside price of $0.0039. Despite a net interest income loss of $8.6M and an income before tax loss of $30.8M, the company has managed to maintain a day typical price of $0.39. With a single strong buy recommendation from analysts, the company's stock could be poised for a bullish reversal in June. Investors are advised to keep a close eye on the price action indicator, which currently stands at -0.01. Currently, Burgerfi International's Book Value Per Share is showing an upward trend compared to previous years. The company's Price-to-Book Ratio is projected to rise to 0.60, while its Free Cash Flow Yield is expected to increase to -0.17. Despite the prevailing market sentiment favoring capital preservation over returns, Burgerfi International may be an exception. In June, we will explore the potential of transforming Burgerfi International into a consistent growth stock. This article will also discuss various factors influencing Burgerfi International's products and services, and their potential impact on traders.
The performance of Burgerfi International in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Burgerfi International's stock prices. When investing in Burgerfi International, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Burgerfi Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Burgerfi International carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

Watch out for price decline

Please consider monitoring Burgerfi International on a daily basis if you are holding a position in it. Burgerfi International is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Burgerfi International stock to be traded above the $1 level to remain listed. If Burgerfi International stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Burgerfi International's Liquidity

Burgerfi International financial leverage refers to using borrowed capital as a funding source to finance Burgerfi International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Burgerfi International financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Burgerfi International's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Burgerfi International's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Burgerfi International's total debt and its cash.

Burgerfi International Gross Profit

Burgerfi International Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Burgerfi International previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Burgerfi International Gross Profit growth over the last 10 years. Please check Burgerfi International's gross profit and other fundamental indicators for more details.

What is driving Burgerfi International Investor Appetite?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Burgerfi International has an asset utilization ratio of 65.81 percent. This signifies that the Company is making $0.66 for each dollar of assets. An increasing asset utilization means that Burgerfi International is more efficient with each dollar of assets it utilizes for everyday operations.
 2021 2022 2023 2024 (projected)
Short Long Term Debt Total118.7M123.8M142.3M149.5M
Total Assets276.8M258.5M297.2M212.9M
"As every investor knows, past performance is not indicative of future results. However, Burgerfi International (USA Stocks: BFI) could be poised for a bullish reversal in June. Despite the company's current ratio of 0.58X and a loss of $1.02 per share estimated for the current year, there are signs of potential upside. With a target price of $3 and a potential upside of 7.5%, the company's stock could be a profitable investment. Despite a high probability of bankruptcy at 96.00%, investors should not discount the possibility of a bullish reversal, especially given the company's market capitalization of $10.79M and its enterprise value of $182.6M.".

Is Burgerfi showing sign of lower volatility?

Despite Burgerfi International's recent increase in standard deviation to over 5.51, it doesn't necessarily signal higher volatility. Standard deviation measures data dispersion from its mean. A higher standard deviation could imply a wider dispersion, suggesting the stock's prices are fluctuating within a broader range. However, it could also indicate stabilization from extreme volatility. Therefore, investors should not hastily infer that Burgerfi is showing signs of higher volatility. Instead, they should carefully monitor the stock's price movements and other market indicators to assess its volatility level. Burgerfi International, a potential penny stock, exhibits very low volatility with skewness of 1.98 and kurtosis of 8.56. While Burgerfi International could be a good investment, many penny stocks are speculative and subject to artificial price hype. Investors are advised to understand the potential upside and downside risk of investing in Burgerfi International.
Investors should watch for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, unreported promotions, or demotions released before SEC filings. It's also important to check the biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. While it's possible to profit from Burgerfi International with perfect timing, remember that penny stocks subject to artificial hype usually can't maintain their increased share price for more than a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed by solid fundamentals.In conclusion, given the strong analyst consensus indicating a Strong Buy for Burgerfi International and a possible upside price of 4.73, it's evident that the potential for further frenzy around this stock remains. The analyst target price estimated value is 3.25, suggesting significant growth potential from the current market valuation of 0.39. Moreover, the fiscal year-end in November could bring more opportunities for the stock's performance to be assessed. However, investors should also be aware of the possible downside price of 0.0039. With these considerations in mind, Burgerfi International could potentially provide an attractive investment opportunity..

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Burgerfi International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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