Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — ICR Conference 2016
15 slides from Red Robin Gourmet Burgers's conference presentation, Jan 12, 2016
Slide 1: Red Robin - Continuing the Momentum
Red Robin - Continuing the Momentum Investor Presentation ICR Conference January 2016
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Forward-looking statements in this presentation regarding our strategic plan and business initiatives, brand transformation efforts, new restaurant development, AUV growth opportunities, certain statements including, but not limited to, those under the headings “Causes I
Slide 3: Recognized & Differentiated Burger Authority
3 Recognized & Differentiated Burger Authority • 528 casual-dining restaurants in 44 states and 2 Canadian provinces o 429 company-owned o 99 franchised • 10 Red Robin Burger Works fast casual restaurants • Recognized for high-quality, innovative burger creations since 1969 • Strong brand differenti
Slide 4: Project RED: Five Years of Great Returns
4 Project RED: Five Years of Great Returns • Tavern to Finest Barbell • Brand Transformation • Red Robin Royalty™ • ‘Take Back the Bar’ • Apps/Drinks/Desserts • “robin” – Server’s Sidekick • New Restaurants • Remodels • Burger Works • New Market Entries • Franchise Acquisitions • Stock Buy-Backs • T
Slide 5: Steady Growth: 2010 to 2015
5 Steady Growth: 2010 to 2015 0 20 40 60 80 100 120 140 800 900 1,000 1,100 1,200 1,300 1,400 2010 2011 2012 2013 2014 TTM Q3 15 Revenue and Adjusted EBITDA (mm) Revenue Adjusted EBITDA REVENUE CAGR: 7.7% EBITDA CAGR: 13.2% Rev EBITDA Note: Adjusted EBITDA is a non-GAAP number. See reconciliation av
Slide 6: Improving Cash Returns 2010 to 2015
6 Improving Cash Returns 2010 to 2015 12.1% 15.1% 17.0% 17.8% 18.7% 19.3% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 2010 2011 2012 2013 2014 TTM Q3 2015 Cash Returns on Invested Capital Note: Cash Returns on Invested Capital calculated as Adjusted EBITDA less a tax rate of 27% divided by average Invested
Slide 7: Opportunities Remain
7 Opportunities Remain • Supply Chain Management & Cost Controls o Legacy systems constrain ability to harvest Blueprint opportunities o Further margin expansion possible in food and beverage costs • Heart-Of-House Tools o Current tools primarily manual and cumbersome o Speed of service and capacity
Slide 8: Q4 2015 Turbulence
8 Q4 2015 Turbulence • Total Revenues $286.3 mm, an increase of 1.5% • Comparable restaurant revenue -2.0% (constant currency) o Year to date +2.1% • Net Income of $11.1 mm to $11.7 mm • EPS of $0.80 to $0.84 per diluted share Note: Q4 2015 Results are on a preliminary, unaudited basis
Slide 9: Causes Identified
9 Causes Identified • “Deal” Environment Heated Up Quickly o $6.99 Tavern Double Everyday Value overwhelmed • Lost the “Buzz” of Fun News o Limited conversation since first quarter • Self-Inflicted Damage o Traffic-driving tactics failed to comp sports sponsorships o Eliminated Bottomless Pasta for
Slide 10: The Next Five Years – Harvesting the Opportunities
10 The Next Five Years – Harvesting the Opportunities 0 20 40 60 80 100 120 140 800 900 1,000 1,100 1,200 1,300 1,400 2010 2011 2012 2013 2014 TTM Q3 15 Revenue and Adjusted EBITDA (mm) Revenue Adjusted EBITDA Note: Adjusted EBITDA is a non-GAAP number. See reconciliation available on www.redrobin.c
Slide 11: Goal: Double EBITDA Over 5 Years - Project RED²
11 6 GOAL: DOUBLE EBITDA OVER 5 YEARS • Seating Utilization/Turns • 12+12 Brews Initiative • To-Go • Burger Works – channel growth • Catering • Hispanic • Order-Ahead • Delivery • Complete BTI remodels • Store-level Technology • Midsize Unit Emphasis • Franchise Acquisitions • Stock Buy-Backs • Incr
Slide 12: Growing Free Cash Flow
12 Growing Free Cash Flow 30 50 70 90 110 130 150 170 190 210 2010 2011 2012 2013 2014 TTM Q3 15 2016e 2017e 2018e 2019e 2020e Cash Flow and Investments (mm) Other Investments BTI Remodels Operating Cash Flow 1) 2015 Investments represents Outlook per Q3 2015 earnings call Note: Excludes future fran
Slide 13: Key Take-Aways
13 Key Take-Aways • Five-year track record of increasing guest engagement and returns • Q4 turbulence – a call to action • RED – Double EBITDA over 5 years • Robust multi-year plan mapped out with significant opportunities • Considerable white space for development • Significant free cash flow engin
Slide 14: Appendix
APPENDIX —EEEE
Slide 15: EBITDA and Adjusted EBITDA Reconciliation to Net Income
15 EBITDA and Adjusted EBITDA Reconciliation to Net Income 15 2010 2011 2012 2013 2014 2015 YTD YTD YTD YTD YTD Q1 Q2 Q3 Net income as reported $ 7,299 $ 20,577 $ 28,331 $ 32,239 $ 32,561 $ 16,565 $ 11,166 $ 8,282 Adjustments to net income: Income tax expense 5,003 5,823 8,526 9,010 9,298 6,220 4,41