Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q3 2012 Earnings Presentation
19 slides from Red Robin Gourmet Burgers's earnings presentation, Oct 29, 2012
Slide 1: Fiscal Q312 Results
FISCAL Q312 RESULTS October 29, 2012 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 Forward-looking statements in this presentation regarding our earnings per share and restaurant sales, new restaurant growth, future economic performance, certain statements including, but not limited to, those under the headings “2012 Outlook – Financials,” and “Foundat
Slide 3: Q312 Highlights
Q312 Highlights Total revenues increased 3.4% and comp sales up 1.1% 0.8% comp traffic growth from marketing and menu initiatives Restaurant-level operating profit margin increased 90 bps to 19.7% EPS $0.24 compared to 2011 EPS of $0.14 on GAAP basis, $0.24 adjusted 3
Slide 4: Q312 Highlights, cont'd.
Q312 Highlights, cont’d. Opened four Red Robin® restaurants and two Red Robin’s Burger Works® Continued discipline managing operating costs On track to open “brand transformation” test restaurants in Q4 4
Slide 5: Enhancing Guest Experience
Enhancing Guest Experience Brand Transformation Support for innovation and culinary team Building new product pipeline 5
Slide 6: Investing for Growth
Investing for Growth Technology infrastructure – iQube Expand base of Red Robin® and Red Robin’s Burger Works® restaurants 6 Up to 20 new restaurants planned for 2013
Slide 7: Q312 Marketing Headlines
Q312 Marketing Headlines Red’s Tavern Double™ and Tavern Styles providing everyday value and increasing traffic Red Royalty™ reward program delivering profitable repeat traffic Taking Back the Bar initiatives continue to expand alcohol and non-alcohol beverage sales Oktoberfest Beer Milkshake genera
Slide 8: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share 8 YTD +13.0% $0.80 $0.71 $0.70 $0.58 $0.60 $0.48 $0.52 $0.50 $0.40 $0.34 $0.28 $0.30 $0.24 $0.24 $0.16 $0.20 $0.13 $0.08 $0.10 $0.00 Q1 Q2 Q3 Q4 2010 2011 2012
Slide 9: Q312 Sales Highlights
Q312 Sales Highlights Q312 Q311 Change Restaurant revenue $209.8 million $202.7 million +3.5% Total co. revenue $213.3 million $206.2 million +3.4% Company-owned comp sales, net +1.1% Price/mix: +0.3% Guest counts: +08% . +1.1% Price/mix: +4.3% Guest counts: -3.2% Franchised comp sales U.S.: -0.6% C
Slide 10: Comparable Net Sales
Comparable Net Sales YTD +0.9% 5.0% 4.0% 3.1% 3.0% 2.0% 1.1% 1.1% 1.0% 0.7% 0.8% 0.0% Q311 Q411 Q112 Q212 Q312 -1.0% 10
Slide 11: Q312 Restaurant Results
Q312 Restaurant Results Line Item % of Rest. Sales Q312 % of Rest. Sales Q311 Favorable (Unfavorable) Cost of Goods 24.8% 25.5% 70 bps Labor 34.2% 33.6% (60 bps) Other 13.5% 14.4% 90 bps Operating Occupancy 7.8% 7.6% (20 bps) RLOP (non GAAP) 19.7% 18.8% 90 bps 11
Slide 12: Growing RLOP Margins
Growing RLOP Margins YTD +90 bps 22.0% 21.2% 21.1% 21.0% 20.8% 19.8% 19.9% 20.0% 19.7% 19.0% 18.8% 18.2% 18.3% 18.0% 17.5% 17.0% 17.0% 16.0% Q1 Q2 Q3 Q4 2010 2011 2012 12
Slide 13: Adjusted EBITDA
Adjusted EBITDA $ in Millions Continued growth in cash generation $40.0 $35.0 $33.6 $29.5 $30.0 $25.0 $25.0 $22.7 $23.2 $20.6 $19.4 $20.0 $20.5 $20.0 $17.3 $16.1 $15.0 $10.0 $5.0 $0.0 Q1 Q2 Q3 Q4 2010 2011 2012 13
Slide 14: Adjusted Net Income
Adjusted Net Income $ in 000s * Fiscal year 2010 adjusted net income assumes a tax benefit of 3.2% YTD +8.1% $ $12,000 $10,558 $10,000 $9,021 $8,000 $7,494 $7,748 $6,000 $5,198 $4,115 $4,000 $3,683 $3,533 $2,542 $2,048 $2,000 $1,305 $0 Q1 Q2 Q3 Q4 14
Slide 15: Cash Flow from Operations
Cash Flow from Operations $ in Millions $35.0 $29.9 $29.6 $30.0 $23.9 $24.3 $25.0 $22.3 $22.6 $20.5 $18.9 $19.1 $20.0 $16.7 $15.0 $11.0 $10.0 $5.0 $0.0 Q1 Q2 Q3 Q4 2010 2011 2012 15
Slide 16: 2012 Outlook – Financials
2012 Outlook – Financials Comparable restaurant net sales growth at or slightly above 0.5% versus prior year Open 14 new company-owned restaurants, including 4 Red Robin’s Burger Works® RLOP margin approximately 20.5% SG&A costs approximately $110 million Capital expenditures of $55 million to $60 m
Slide 17: Q312 Commodity Update
Q312 Commodity Update Category % of Total COGS Market vs. Contract Hamburger 14.2% Market Steak Fries 11.5% Contract through 10/13 Poultry 10.7% Contract through 12/12 Produce 8.7% 80% Contract Bread 6.4% Contract through 12/12 Cheese 5.7% 20% Contact through 3/13, Contract through 12/12 Meat 4.8% o
Slide 18: 2012: Foundational Year
2012: Foundational Year Continued operational discipline Pipeline of initiatives that continue to enhance value Developing new products, elevating guest experience Expanding restaurant base through new unit development 18
Slide 19: Appendix: Adj. EBITDA Reconciliation
Appendix Adj. EBITDA Reconciliation Q3 Q3YTD $ in 000s 2012 2011 2012 2011 Net income as reported $ 3,533 $ 2,069 $21,839 $ 17,672 Adjustments to net income: Income tax expense (benefit) 1,210 (369) 6,974 1,426 Interest expense, net 1,041 1,523 4,097 4,350 Depreciation and amortization 13,284 13,006
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