Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q3 2019 Earnings Presentation
20 slides from Red Robin Gourmet Burgers's earnings presentation, Nov 5, 2019
Slide 1: Third Quarter 2019 Results
Third Quarter 2019 Results November 5, 2019
Slide 2: Forward-Looking Statements
RGRok Robin Forward-Looking Statements saat tastes saci Forward-looking statements in this presentation regarding the Company's future performance, comparable restaurant revenue, costs including selling, general and administrative, net (loss) income, EBITDA, earnings per share, taxes, capital expend
Slide 3: Red Robin Q3-2019 Results
Red Robin Q3-2019 Results Red Robin GOURMET BURGERS 40 BREWS + Comparable restaurant revenue increased 1.6% (using constant currency rates), the third consecutive quarter of improved trends * Comparable restaurant guest counts decreased 3.1% * Off-premise sales increased 37.3%, now comprising 13.2%
Slide 4: Strengthening and Transforming Dine-In Business
Strengthening and Transforming Dine-In Business * Hire, Train and Retain: Management teams essentially fully staffed, decreased turnover + Manager Front Of House Engagement: Improved Guest experience, reduced wait times and walk-aways * Managing the Shoulders to Peak the Peaks: Better throughput and
Slide 5: "All the Fulls" Omni-channel Brand Campaign
“All the Fulls” Omni-channel Brand Campaign + Launched in mid-July with TV and radio media « Encourages fun connections with kids and parents * Received consumer scores that ae HUNGRY? é were among the highest ae | i lal Matefull recorded for the Red Robin i 2 ¥ 5, Red Robin brand and well above ind
Slide 6: Comparable Restaurant Revenue Trend
Comparable Restaurant Revenue Trend“) 4.0% 3.0% 27% 2.0% 1.6% 1,0% 0.5% 00% a _ i om rat jj 1.0% 0.9 1.2% 7 wow 5% 3.0% 2.6% 3.4% 3.3% 4.0% 5.0% 45% QVI7 | Q217) QHI7 417 18218 3-18 = 418-19 219 3-19. (1) Calculated at constant currency rates
Slide 7: Continued Off-Premise Sales Growth
Continued Off-Premise Sales Growth REV Robin GOURMET BURGERS =» BREWS US Comp Locations Off-Premise Sales as a % of Gross F&B Sales 12.0% 10.1% . |)! ill Q-17 O27) QB17 417) t-1B248 «3-18 4-18 | I-19—02-19
Slide 8: Restaurant Level Operating Profit Margins
Restaurant Level Operating Profit(2) Margins 21.3% " 20.8% J 20.5% . 19.3% 19.4% 19.0% 18.6% 18.3% 18.2% 18.0% 17.0% 102% 16.1% 16.0% i 15.0% at a2 a a4 B 217 @ 2018 BM 2019 (1) See Appendix for reconciliation of non-GAAP restaurant-level operating profit to net income (loss) (2) Prior period local
Slide 9: Adjusted EBITDA
Adjusted EBITDA") $5 $4 4 s 0.0 $45.8 saa $42.4 0.0 $3 $35.0 $43 7 $32.3 $30.0 $28.8 $25.5 $255 $25.0 $242 $20.0 $147 $150 $100 é Q1 a2 Q3 B@ 27 @ 218 HM 2019 (1) See Appendix for reconciliation of non-GAAP Adjusted EBITDA to Net Income (Loss) $35.8 $28.4 for] Red Robin GOURMET BURGERS =» BREWS
Slide 10: Adjusted Net Income (Loss)
Adjusted Net Income (Loss)() REIRobin ($in Millions) GOURMET BURGERS =» BREWS $16.0 $14.0 $13.5, $120 $116 $10.2 $10.0 $9.1 $79 $8.0 6 $6.0 ee $54 $40 $24 $27 oy : ig | $0.0 we a -$4.0 $34 S -$6.0 a ford a as @ 27 @ 2018 M2019 (1) See Appendis. for reconciliation of nan-GAAP Adjusted Net Income to N
Slide 11: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share“) $1.20 $1.03 1.00 5 $0.89 $0.80 $0.69 $0.61 $0.60 $0.46 $0.40 $0.21 $0.20 td $0.16 - a | $0.20 0 $0.24 -$0.40 a1 a2 a3 M@ 2017 M@ 2018 M 2019 (1) See Appendix for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted Share
Slide 12: Cash Flow from Operations
Cash Flow from Operations REGRobin GOURMET BURGERS =» BREWS ($ in Millions) $80.0 $70.0 $70.0 $60.0 $67.0 $50.0 7, oon $347 335.0 S75 $200 $253 $20.0 $20.0 $164 $169 $118 $100 a $0.0 = $0.1 $10.0 at a2 a3 as @ 2017 @ 2018 M 2019
Slide 13: Outlook for 2019
Outlook for 2019 * Comparable restaurant revenue down 1.0% to flat (using constant currency rates) * Selling, general and administrative costs of $154 million to $157 million ¢ Net loss of $6.3 million to $1.7 million « Adjusted EBITDA, a non-GAAP measure, of $104 million to $110 million * Adjusted
Slide 14: Appendix
Appendix
Slide 15: Q3-19 Sales Highlights
Q3-19 Sales Highlights Q3.19 Q3-18 Change Q3.19 YTD Q3.18 YTD Change (12Weeks) (12 Weeks) (40 Weeks) (40 Weeks) Restaurant revenue $289.9 million $290.2 million 0.1% $992.8 million $1,015.3 million 22% Total company revenues $294.2 million $294.9 million 0.2% $1,012.1 million $1,031.8 million 19% Co
Slide 16: Q3-19 Restaurant Results
Q3-19 Restaurant Results % of Restaurant % of Restaurant Revenue Revenue Q3-19 Q3-18 Cost of sales 23.8% 23.8% Labor 36.2% 35.3% Other operating 15.3% 15.0% Occupancy 86% 92% Restaurant Level Operating Profit(”) 16.1% 16.8% (1) See Appendix for reconciliation of non-GAAP restaurant-ievel operating p
Slide 17: Q3-19 Commodity Update
Red Robin Q3-19 Commodity Update ee ea * of Total COGS in Market vs. Contract Pricing Q3-19 Steak fries 13.0% 100% contracted through 10/21 Ground beef 15.1% Market Poultry 95% 40% contracted though 1/21 Produce 79% 70% contracted through 10/21 Meat 3.9% Market Bread 6.0% 100% contracted through 12/
Slide 18: Restaurant Level Operating Profit Reconciliation to Income (Loss) from Operations and Net Income (Loss)
Restaurant Level Operating Profit Reconciliation to Income Red Robin (Loss) from Operations and Net Income (Loss) nics ie ($ in thousands) 2017 2018 2019 Qi Q2 Q Q4 Q Q2 Q3 Q4 Q Q2 Q ‘Restaurant revenue $413,451 $312,351 = $301,100 $338,154 $414,702 $310,302 $200,218 $300,807 $400.484 $302418 $280,8
Slide 19: EBITDA and Adjusted EBITDA Reconciliation to Net Income (Loss)
EBITDA and Adjusted EBITDA Reconciliation to Net Income (Loss) Red Robin (in ) GOURMET BURGERS = BREWS 2017 2018 2019 at a2 a3 a at a2 Qa Oo a a2 a Net income (loss) as reported $11567 $6,031 $2,714 «$8,807 $4,380 $1,874) $1,700 (10.634) $030 $081 (1,821) Adjustments to net income (loss): Income tax
Slide 20: Reconciliation of Adjusted Net Income to Net Income (Loss) and Adjusted Earnings Per Share
Reconciliation of Adjusted Net Income to Net Income (Loss) and Adjusted Earnings (Loss) Per Diluted Share to Earnings (Loss) Per Diluted Share ($ in thousands, except per share data) er @ 3 o a ee @ a er a a [Net income (toss) as reported Sse $0081 —«SDTI4~—=«CSBAOT ~—«CMASRO.—~=«CNLETA)~—«ST-TOO~—«
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