Fast food burger chain BurgerFi is having a tough time, according to KAFIAM60 on its website, and may have to file for bankruptcy in the near future.
The company filed with the SEC a statement saying it expects to lose $18.4 million in the quarter ending July 1. In the same quarter last year, the burger chain reported a loss of $6 million.
The company warned investors that it had only $4.4 million in cash on hand as of Aug. 14 and that if it received a significant amount of cash, it could be forced to “seek protection under applicable bankruptcy laws.”
BurgerFi said it was unsure if it could keep its 102 restaurants open nationwide. BurgerFi also operates 60 coal-fired Anthony’s pizzerias, which are also at risk of closing.
The company also noted that a wave of store closings led to a significant drop in sales.
The burger maker has closed an undetermined number of underperforming restaurants.
In addition, higher food and labor costs have impacted BurgerFi, including higher prices for chicken wings and higher wages.
BurgerFi joins a growing list of restaurants struggling as high inflation squeezes consumer budgets. As costs rise, many consumers are opting to stay away from fast food and casual dining restaurants such as Boston Market, Red Lobster, Pizza Hut, Buca di Beppo, TGI Fridays, Popeyes, Tijuana Flats, Cracker Barrel and Applebee’s.