US$8.50: That's What Analysts Think BurgerFi International, Inc. (NASDAQ:BFI) Is Worth After Its Latest Results

Last week saw the newest quarterly earnings release from BurgerFi International, Inc. (NASDAQ:BFI), an important milestone in the company's journey to build a stronger business. Revenues were US$45m, with BurgerFi International reporting some 4.8% below analyst expectations. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for BurgerFi International

Following the latest results, BurgerFi International's sole analyst are now forecasting revenues of US$181.0m in 2022. This would be a substantial 33% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 57% to US$3.82. Before this latest report, the consensus had been expecting revenues of US$189.8m and US$1.34 per share in losses. While this year's revenue estimates dropped there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target fell 23% to US$8.50, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of BurgerFi International'shistorical trends, as the 76% annualised revenue growth to the end of 2022 is roughly in line with the 74% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So it's pretty clear that BurgerFi International is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at BurgerFi International. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for BurgerFi International going out as far as 2023, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with BurgerFi International , and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.