Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q3 2015 Earnings Presentation
29 slides from Red Robin Gourmet Burgers's earnings presentation, Nov 3, 2015
Slide 1: Third Quarter 2015 Results
CLASSIFIED – INTERNAL USE Third Quarter 2015 Results November 3, 2015
Slide 2: Forward-Looking Statements
2CLASSIFIED – INTERNAL USE Forward-Looking Statements Forward-looking statements in this presentation regarding our revenues, restaurant-level operating profit margins, new restaurant growth (including Red Robin Burger Works and new prototypes) and remodels, future economic performance, costs, expen
Slide 3: Strategic Priorities
3CLASSIFIED – INTERNAL USE Strategic Priorities Engagement Efficiency Expansion
Slide 4: Red Robin Delivered Strong Q3 Results
4CLASSIFIED – INTERNAL USE Red Robin Delivered Strong Q3 Results • Comparable restaurant revenue up 3.5% • Restaurant revenue increased 5.9% • Restaurant-level operating profit* was 21.6% compared to 19.5% in prior year • Diluted EPS was $0.58, an increase of 16.0% • EBITDA* was $31.2 million, an in
Slide 5: Brand Transformation Initiative Progress
5CLASSIFIED – INTERNAL USE Brand Transformation Initiative Progress • 53 completed during Q3 2015 toward goal of 150 remodels this year. Completed 102 year to date. • Over 300 restaurants conforming to new brand standard by year end, including new restaurant openings Patriot Place restaurant in Foxb
Slide 6: Ziosk deployed nationally
6CLASSIFIED – INTERNAL USE robin™ Ziosk deployed nationally ahead of planned launch date • Guests appreciate ability to pay-at-the table • Accelerates Red Robin Royalty™ registrations • Provides us real time guest feedback • Entertainment options enhance guest experience
Slide 7: New Center Bar prototype
7CLASSIFIED – INTERNAL USE New “Center Bar” prototype • Opened new prototype designed to enhance restaurant flow and improve exterior branding while keeping key BTI elements including separation of dining areas • First two free-standing, mid-sized prototypes were opened in Castleton (Indianapolis),
Slide 8: Food Innovation
8CLASSIFIED – INTERNAL USE Food Innovation Fall Promotion: • Uberburger- Finest Line LTO with a ½ pound Black Angus burger topped with candied bacon, grilled bratwurst and beer cheese on a pretzel bun • Great Northern Poutine Fries – 1st national chain to roll out • Our famous steak fries topped wit
Slide 9: Great American Beer Fest Success
9CLASSIFIED – INTERNAL USE Great American Beer Fest Success
Slide 10: Red Robin Royalty - Burgers for Better Schools
10CLASSIFIED – INTERNAL USE Red Robin Royalty - Earn money for your school! • Burgers for Better Schools • Visit www.redrobin.com/betterschools to sign up
Slide 11: Traffic Driving Initiatives
11CLASSIFIED – INTERNAL USE Traffic Driving Initiatives
Slide 12: Financial Update
CLASSIFIED – INTERNAL USE 12 Financial Update
Slide 13: Adjusted EBITDA
13CLASSIFIED – INTERNAL USE $32.5 $29.7 $21.0 $25.8 $37.0 $29.3 $25.6 $31.1 $47.0 $35.0 $31.2 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Q1 Q2 Q3 Q4 2013 2014 2015 22.8% Growth Trailing 4 Quarters Q3 2015 $144.3M Q3 2014 $117.6M Adjusted EBITDA ($ in millions) 13 See slide 28 for reconcil
Slide 14: Q3-15 Sales Highlights
14CLASSIFIED – INTERNAL USE Q3-15 Sales Highlights Q3-15 (12 Weeks) Q3-14 (12 Weeks) Change Q3-15 YTD (40 Weeks) Q3-14 YTD (40 Weeks) Change Restaurant revenue $279.5 million $263.9 million 5.9% $956.7 million $850.7 million 12.5% Total company revenues $283.4 million $267.4 million 6.0% $971.3 mill
Slide 15: Comparable Restaurant Revenue Growth
15CLASSIFIED – INTERNAL USE Comparable Restaurant Revenue Growth 5.4% 1.2% 0.9% 3.6% 3.1% 2.9% 3.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Q114 Q214 Q314 Q414 Q115 Q215 Q315
Slide 16: Taking Market Share – Sales Outperformance vs. Industry
16CLASSIFIED – INTERNAL USE Taking Market Share – Year Over Year 2.4% 5.2% 7.7% 5.2% 7.0% 2.6% -0.6% 2.3% 1.1% 1.7% 3.1% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Q1 Q2 Q3 Q4 Sales Outperformance vs. Industry 2013 2014 2015 Source: Based on current Black Box Intelligence Casual Dining (All
Slide 17: Taking Market Share – Traffic Outperformance vs. Industry
17CLASSIFIED – INTERNAL USE Taking Market Share – Year Over Year 1.7% 2.1% 4.6% 2.2% 4.2% 0.5% -1.1% 1.8% 2.1% 2.3% 1.5% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% Q1 Q2 Q3 Q4 Traffic Outperformance vs. Industry 2013 2014 2015 Source: Based on current Black Box Intellig
Slide 18: RLOP Margins
18CLASSIFIED – INTERNAL USE 21.5% 23.3% 20.4% 21.7% 22.4% 22.2% 19.5% 21.3% 23.0% 22.5% 21.6% 16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% Q1 Q2 Q3 Q4 2013 2014 2015 (2) (2) (2) (2) RLOP (1) Margins 18 (1) See reconciliation of non-GAAP restaurant-level operating profit to income from
Slide 19: Q3-15 Restaurant Results
19CLASSIFIED – INTERNAL USE Q3-15 Restaurant Results 19 % of Restaurant Revenue Q3-15 % of Restaurant Revenue Q3-14 Favorable (Unfavorable) Cost of sales 24.4% 25.9% 150 bps Labor 33.0% 33.7% 70 bps Other operating 12.9% 12.9% 0 bps Occupancy 8.1% 8.0% (10 bps) Restaurant Level Operating Profit (Non
Slide 20: Adjusted Net Income
20CLASSIFIED – INTERNAL USE Adjusted Net Income $9.5 $11.1 $4.7 $9.1 $11.9 $9.8 $7.2 $9.4 $15.6 $11.2 $8.3 $3.0 $5.0 $7.0 $9.0 $11.0 $13.0 $15.0 $17.0 Q1 Q2 Q3 Q4 2013 2014 2015 ($ in millions) 20 See slide 29 for reconciliation of non-GAAP Adjusted Net Income to Net Income
Slide 21: Adjusted Earnings Per Diluted Share
21CLASSIFIED – INTERNAL USE Adjusted Earnings Per Diluted Share $0.66 $0.77 $0.32 $0.62 $0.82 $0.68 $0.50 $0.66 $1.10 $0.78 $0.58 $0.15 $0.35 $0.55 $0.75 $0.95 $1.15 Q1 Q2 Q3 Q4 2013 2014 2015 21 See slide 29 for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings Per Diluted
Slide 22: 2015 Outlook
22CLASSIFIED – INTERNAL USE 2015 Outlook • Total revenue growth near 11.0% • Comparable restaurant revenue growth of approximately 2.5% • RLOP margins expected to be approximately 22.3% • Open 20 new and relocate 3 company-owned Red Robin restaurants, open 3 Red Robin Burger Works, and complete appr
Slide 23: In Closing
23CLASSIFIED – INTERNAL USE In Closing 23
Slide 24: Thank you to all of our Team Members!
24CLASSIFIED – INTERNAL USE Thank you to all of our Team Members! 17
Slide 25: Appendix
CLASSIFIED – INTERNAL USE 25 Appendix
Slide 26: Cash Flow from Operations
26CLASSIFIED – INTERNAL USE $40.4 $30.6 $11.2 $31.3 $36.0 $20.1 $26.8 $40.7 $36.0 $31.3 $34.0 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 Q1 Q2 Q3 Q4 2013 2014 2015 Cash Flow from Operations ($ in millions) 26 24.2% Growth Trailing 4 Quarters Q3 2015 $142.0M Q3 2014 $114.3M
Slide 27: Q3-15 Commodity Update
27CLASSIFIED – INTERNAL USE Q3-15 Commodity Update 27 % of Total COGS in Q3-15 Market vs. Contract Ground beef 15.1% Market Poultry 10.7% 100% covered thru 12/15; 40% covered thru 12/16 Steak fries 10.3% Contract through 10/16 Meat 7.7% Bacon through 11/15; Prime rib through 6/16 Produce 7.3% 90% co
Slide 28: EBITDA and Adjusted EBITDA Reconciliation to Net Income
28CLASSIFIED – INTERNAL USE EBITDA and Adjusted EBITDA Reconciliation to Net Income 28 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net income as reported $ 9,480 $11,139 $4,661 $6,959 $11,944 $9,470 $ 7,208 $3,939 $16,565 $11,166 $8,282 Adjustments to net income: Income tax expense 2,977 3,576 1
Slide 29: Reconciliation of Adjusted Net Income and Adjusted EPS
29CLASSIFIED – INTERNAL USE Reconciliation of Adjusted Net Income to Net Income and Adjusted Earnings Per Diluted Share to Earnings Per Diluted Share 29 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net income as reported $ 9,480 $ 11,139 $ 4,661 $ 6,959 $ 11,944 $ 9,470 $ 7,208 $ 3,939 $ 16,565 $
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