The BurgerFi merger is complete! BurgerFi stock, formerly OPES Acquisition Corp., is now up and running, trading under the ticker BFI. Since the merger completion, the stock has been extremely volatile, prompting many to wonder: Should I Buy BurgerFi Stock? There are many pros and cons for the company, but overall we are pretty bullish.
What is BurgerFi?
The best way to find out if you want to put your hard earned cash into a company is to really dive deep into their business model, executives and growth prospects.
So what is BurgerFi?
According to BurgerFi’s Investor Presentation:
BurgerFi is a fast-casual “better burger” concept with approximately 125 franchised and corporate-owned units, delivering an all-natural premium burger experience in a refined, contemporary environment and through seamless digital ordering channels.
BurgerFi is committed to an uncompromising dining experience featuring an increasingly relevant menu that appeals to the growing base of consumers who place a high value on quality ingredients, transparency and a desire to avoid antibiotics, steroids, chemicals and additives
Essentially, BurgerFi is a health-centric burger joint with 125 locations and counting.
The company, in my opinion, is a combination of the fast food elements of popular fast food restaurants, with a strong emphasis on clean eating.
This is a massively growing trend, and will inevitably come to dominate the majority of the outdoor dining industry as consumer habits shift.
Don’t believe me?
Check out their roadmap from inception below:
You may be asking, “so what? Another burger place, who cares? How are they different and how will they compete with McDonalds and others in the industry?”
The only way to really answer common investor questions is to see how BurgerFi’s menu and growth strategy really differs from its competitors.
What makes it so different?
According to this graphic, the company offers a diverse menu for its health-conscious user base. This includes everything from antibiotic-free beef burgers and plant based protein to craft wine and beers.
As you can see, other restaurants in this niche fall short of the assortment of unique health conscious offerings.
I mean…who doesn’t love a good burger spot? Have you ever been to any of their locations?
I have, and the burgers are delicious!
Although the restaurant business is known for not having high margins, BurgerFi does have a sustainable business model with an increasing customer base and plans to expand significantly over time.
Thankfully, the company has provided a strategic and systematic breakdown of its revenue, growth prospects and competitive advantage.
The company plans to expand to over 250 locations in the next couple of years. That is over double the current locations!
Fun fact, stocks go up when companies grow. With a doubling of locations, the outlook for the company appears to be bullish.
Finally, check out their senior executive team below.
If you are looking to be a long term investor, I would highly recommend researching each one of BurgerFi’s Executive Team.
According to the company, their executive team has, on average, over 25 years of experience in the industry.
To create a strong and sustainable company, you are going to want a highly experienced executive team with in-depth knowledge of the industry.
The Merger is Complete!
Good news, the merger is complete!
From BurgerFi’s Press Release:
PALM BEACH, Fla., Dec. 17, 2020 (GLOBE NEWSWIRE) — OPES Acquisition Corp. (Nasdaq: OPES, OPESW) (“OPES” or the “Company”) and BurgerFi International, LLC (BurgerFi), one of the nation’s fastest-growing better burger concepts, have completed their previously announced business combination. As a result of the business combination, OPES changed its name to BurgerFi International, Inc. and its common stock will commence trading this morning on the Nasdaq Capital Market under the ticker symbol “BFI” and the warrants will trade under the ticker symbol “BFIIW.”
Full disclosure, we have a position in BurgerFi. Both stock and warrants.
We believe this company has incredible potential, and put our money where our mouth is.
BurgerFi Stock Prediction
Currently, the stock is trading around $13.50, with a market cap of about $100 Million.
We think this is a very very low point for the company.
A great analog of this is Shake Shack, which just hit an all time high today of $113, with a market cap of almost $5 Billion.
It may take some time to catch up, but fast food restaurants will continue to adapt to this health conscious environment. And BurgerFi will be right there to take charge.
In our opinion, we believe BurgerFi will continue to grow along with its peers at an accelerated pace.
As a result, out price target for the company is $100 by 2025. Yes, $100.
That would give the company a market cap of about $1B.
Since there are not that many shares outstanding, we expect the stock to grow rapidly, and the $100 price target is a conservative estimate.
In our opinion, this stock has a lot of strong prospects, including the executive team, expansion plans and health conscious niche.
We expect strong growth, particularly when the Covid19 pandemic ends, and restaurants begin to open. Even during the pandemic, we still expect BurgerFi to continue growing as it adapts to the new era of online delivery services.
Overall, we like this stock and company, and will continue to update with all the ups and downs.
Agree or disagree? Tell us in the comments!
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