Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q2 2015 Earnings Presentation
26 slides from Red Robin Gourmet Burgers's earnings presentation, Aug 11, 2015
Slide 1: Second Quarter 2015 Results
CLASSIFIED – INTERNAL USE Second Quarter 2015 Results August 11, 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 remodels, future economic performance, costs, expenses, tax rate, ca
Slide 3: Strategic Priorities
3CLASSIFIED – INTERNAL USE Strategic Priorities Engagement Efficiency Expansion
Slide 4: Red Robin Delivered Strong Q2 Results
4CLASSIFIED – INTERNAL USE Red Robin Delivered Strong Q2 Results • Comparable restaurant revenue up 2.9% • Restaurant revenue increased 14.6% • Restaurant-level operating profit was 22.5% compared to 22.2% in prior year • Adjusted diluted EPS was $0.78, an increase of 14.7% • Adjusted EBITDA was $35
Slide 5: Brand Transformation Initiative Progress
5CLASSIFIED – INTERNAL USE Brand Transformation Initiative Progress • 31 completed during Q2 2015 toward goal of 150 remodels this year • 295 restaurants conforming to new brand standard by year end, including new restaurant openings Patriot Place restaurant in Foxboro, MA
Slide 6: Unique Guest Engagement Tactics
6CLASSIFIED – INTERNAL USE Unique Guest Engagement Tactics • Ziosk deploying nationally • Burgers and a Movie™ - Terminator: Genisys • Genisys Burger • Blue Haze cocktail • Kids Menu – Plating and presentation New kids plates
Slide 7: Red Robin Royalty - Earn money for your school!
7CLASSIFIED – INTERNAL USE Red Robin Royalty - Earn money for your school! • Burgers for Better Schools • Visit www.redrobin.com/betterschools to sign up
Slide 8: Upcoming Traffic Driving Initiatives
8CLASSIFIED – INTERNAL USE Upcoming Traffic Driving Initiatives
Slide 9: Financial Update
CLASSIFIED – INTERNAL USE 9 Financial Update
Slide 10: Adjusted EBITDA
10CLASSIFIED – INTERNAL USE $32.5 $29.7 $21.0 $25.8 $37.0 $29.3 $25.6 $31.1 $47.0 $35.0 $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 Trailing 4 Quarters Q2 2015 $138.7M Q2 2014 $113.1M Adjusted EBITDA ($ in millions) 10 See slide 24 for reconciliation of non-GAAP
Slide 11: Q2-15 Sales Highlights
11CLASSIFIED – INTERNAL USE Q2-15 Sales Highlights Q2-15 (12 Weeks) Q2-14 (12 Weeks) Change Restaurant revenue $288.7 million $251.8 million +14.6% Total company revenues $293.0 million $256.1 million +14.4% Company-owned comp revenue 2.9% 1.2% +170 bps Price/Mix 2.4% 3.7% -130 bps Guest counts 0.5%
Slide 12: Comparable Restaurant Revenue Growth
12CLASSIFIED – INTERNAL USE Comparable Restaurant Revenue Growth 5.4% 1.2% 0.9% 3.6% 3.1% 2.9% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Q114 Q214 Q314 Q414 Q115 Q215
Slide 13: Taking Market Share – Year Over Year (Sales)
13CLASSIFIED – 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% -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 2013 2014 2015 Source: Based on current Black Box Intelligence Casual Dining (All Cuisine) peers as
Slide 14: Taking Market Share – Year Over Year (Traffic)
14CLASSIFIED – 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% -1.0% -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 2013 2014 2015 Source: Based on current Black Box Intelligence Casual Dining
Slide 15: Restaurant-Level Operating Profit Margins
15CLASSIFIED – INTERNAL USE 21.5% 23.3% 20.4% 21.7% 22.4% 22.2% 19.5% 21.3% 23.0% 22.5% 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 15 (1) See reconciliation of non-GAAP restaurant-level operating profit to income from opera
Slide 16: Q2-15 Restaurant Results
16CLASSIFIED – INTERNAL USE Q2-15 Restaurant Results 16 % of Restaurant Revenue Q2-15 % of Restaurant Revenue Q2-14 Favorable (Unfavorable) Cost of sales 24.8% 25.3% 50 bps Labor 32.4% 32.8% 40 bps Other operating 12.3% 12.3% 0 bps Occupancy 8.0% 7.4% (60 bps) Restaurant Level Operating Profit (Non-
Slide 17: Adjusted Net Income
17CLASSIFIED – 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 $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) 17 See slide 26 for reconciliation of non-GAAP Adjusted Net Income to Net Income
Slide 18: Adjusted Earnings Per Diluted Share
18CLASSIFIED – 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 $0.15 $0.35 $0.55 $0.75 $0.95 $1.15 Q1 Q2 Q3 Q4 2013 2014 2015 18 See slide 26 for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings Per Diluted share
Slide 19: 2015 Outlook
19CLASSIFIED – INTERNAL USE 2015 Outlook • Total revenues expected to grow approximately 12.0% • Comparable restaurant revenue growth approximately 3.0% • RLOP margins expected to approach 22.2% • Open 20 new and relocate 3 company-owned Red Robin restaurants, open 3 to 5 Red Robin Burger Works, and
Slide 20: In Closing
20CLASSIFIED – INTERNAL USE In Closing 20
Slide 21: Thank you to all of our Team Members!
21CLASSIFIED – INTERNAL USE Thank you to all of our Team Members! 17
Slide 22: Appendix
CLASSIFIED – INTERNAL USE 22 Appendix
Slide 23: Cash Flow from Operations
23CLASSIFIED – INTERNAL USE $40.4 $30.6 $11.2 $31.3 $36.0 $20.1 $26.8 $40.7 $36.0 $31.3 $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) 23 36.7% Growth Trailing 4 Quarters Q2 2015 $134.8M Q2 2014 $98.6M
Slide 24: Q2-15 Commodity Update
24CLASSIFIED – INTERNAL USE Q2-15 Commodity Update 24 % of Total COGS in Q2-15 Market vs. Contract Ground beef 15.7% Market Poultry 11.3% Chicken tenders: 60% contract through 12/15, All other items 100% contract through 12/15 Steak fries 9.9% Contract through 10/16 Meat 7.1% Bacon through 9/15; Pri
Slide 25: EBITDA and Adjusted EBITDA Reconciliation to Net Income
25CLASSIFIED – INTERNAL USE EBITDA and Adjusted EBITDA Reconciliation to Net Income 25 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net income as reported $ 9,480 $11,139 $4,661 $6,959 $11,944 $9,470 $ 7,208 $3,939 $16,565 $11,166 Adjustments to net income: Income tax expense 2,977 3,576 1,517 940 4
Slide 26: Reconciliation of Adjusted Net Income and Adjusted EPS
26CLASSIFIED – INTERNAL USE Reconciliation of Adjusted Net Income to Net Income and Adjusted Earnings Per Diluted Share to Earnings Per Diluted Share 26 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net income as reported $ 9,480 $ 11,139 $ 4,661 $ 6,959 $ 11,944 $ 9,470 $ 7,208 $ 3,939 $ 16,565 $ 11
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