Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q4 2014 Earnings Presentation
23 slides from Red Robin Gourmet Burgers's earnings presentation, Feb 13, 2015
Slide 1: Fourth Quarter 2014 Results
Fourth Quarter 2014 Results February 13, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking statements in this presentation regarding our restaurant revenue, restaurant-level operating profit margins, new restaurant growth and remodels, future economic performance, costs, expenses, tax rate, capital investments, promotions, statements under the he
Slide 3: Q4-14 Headlines
Comparable restaurant revenue up 3.6%, Guest counts up 1.2% Total restaurant revenue increased 17.2% (including recent acquisitions) Excluding acquired restaurants, restaurant-level operating profit was 22.2% compared to 21.7% YOY Adjusted diluted EPS of $0.66, an increase of 6.5% 7 Red Robin® resta
Slide 4: Brand Transformation Initiative
Brand Transformation Initiative 3 104 completed through December 28, 2014 Targeting at least 125 more transformations in 2015
Slide 5: Red Robin Burger Works
New Chicago and D.C. Red Robin Burger Works locations off to promising start Evaluating fourth market for expansion Red Robin Burger Works 4
Slide 6: Q4 Traffic Driving Initiatives
Q4 Traffic Driving Initiatives Continued $6.99 Everyday Value message on television Finest news to drive trial in restaurant and improve mix Sports sponsorships in four major markets Added over 1 million Red Robin Royalty members 5
Slide 7: Q4 Traffic Driving Initiatives (cont'd)
Burgers and a Movie™ - popular Hobbit franchise Strong Holiday gift card sales with bonus bucks Q4 Traffic Driving Initiatives (cont’d) 6
Slide 8: What's to come…
Newest LTO for the Finest burger line for the Lenten period • Wild Pacific Crab Cake Burger New addition to desserts – Chocolate Fruffles™ Burgers and a Movie • Paul Blart Mall Cop 2 What’s to come… 7
Slide 9: Financial Update
Financial Update 8
Slide 10: Q4-14 Sales Highlights
Q4-14 Sales Highlights (1) Excludes Red Robin Burger Works® fast casual restaurants 9 Q4 -14 (12 Weeks) Q4-13 (12 Weeks) Change Restaurant revenue $278.4 million $237.6 million +17.2% Total company revenue $282.1 million $241.9 million +16.6% Company-owned comp revenue 3.6% 3.7% -10 bps Price/Mix 2.
Slide 11: Comparable Restaurant Revenue Growth
3.7% 5.4% 1.2% 0.9% 3.6% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Q413 Q114 Q214 Q314 Q414 Comparable Restaurant Revenue Growth 10 FY 2014 +3.1% FY 2013 +4.0%
Slide 12: RLOP Margins
21.2% 21.1% 19.7% 20.6% 21.5% 23.3% 20.4% 21.7% 22.4% 22.2% 19.5% 21.3% 16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% Q1 Q2 Q3 Q4 2012 2013 2014 (2) (2) RLOP (1) Margins 11 (1) See reconciliation of non-GAAP restaurant-level operating profit to income from operations and net income on
Slide 13: Q4-14 Restaurant Results
Q4-14 Restaurant Results 12 % of Restaurant Revenues Q4-14 % of Restaurant Revenues Q4-13 Favorable (Unfavorable) Cost of sales 25.5% 25.2% (30 bps) Labor 32.4% 33.7 130 bps Other operating 12.7% 12.0% (70 bps) Occupancy 8.1% 7.4% (70 bps) Restaurant Level Operating Profit (Non-GAAP) 21.3% 21.7% (40
Slide 14: Adjusted EBITDA
$33.6 $25.0 $20.0 $25.8 $32.5 $29.7 $21.0 $25.8 $37.0 $29.3 $25.6 $31.1 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 Q1 Q2 Q3 Q4 2012 2013 2014 See slide 21 for reconciliation of non-GAAP Adjusted EBITDA to Net Income (1) 13 weeks in 2012 FY 2014: $122.9M FY 2013: $109.0M (1) Adjusted EBITDA $ in milli
Slide 15: Adjusted Net Income
Adjusted Net Income $10.6 $7.7 $3.5 $8.4 $9.5 $11.1 $4.7 $9.1 $11.9 $9.8 $7.2 $9.4 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Q1 Q2 Q3 Q4 2012 2013 2014 FY 2014: $38.4M FY 2013: $34.4M $ in millions 14 See slide 22 for reconciliation of non-GAAP Adjusted Net Income to Net Income (1) 13 weeks in 2012 (1)
Slide 16: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share $0.71 $0.52 $0.24 $0.59 $0.66 $0.77 $0.32 $0.62 $0.82 $0.68 $0.50 $0.66 $0.15 $0.25 $0.35 $0.45 $0.55 $0.65 $0.75 $0.85 $0.95 Q1 Q2 Q3 Q4 2012 2013 2014 15 See slide 22 for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings Per Diluted shar
Slide 17: 2015 Outlook
2015 Outlook Total revenues expected to grow 12.0% -13.0% Comparable restaurant revenue growth expected between 2.0% - 3.0% RLOP margins expected to be approximately 21.4% Open 20 new company-owned Red Robin® restaurants plus five Red Robin Burger Works® Capital investments expected to be approximat
Slide 18: In Closing
In Closing 17
Slide 19: Appendix
Appendix 18
Slide 20: Cash Flow from Operations
$29.6 $20.5 $22.3 $22.0 $40.4 $30.6 $11.2 $31.3 $36.0 $20.1 $26.8 $40.7 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 Q1 Q2 Q3 Q4 2012 2013 2014 Cash Flow from Operations $ in millions 19 (1) 13 weeks in 2012 (1) FY 2014: $123.6M FY 2013: $113.5M
Slide 21: Q4-14 Commodity Update
Q4-14 Commodity Update 20 % of Total COGS in Q4-14 Market vs. Contract Ground beef 16.8% Market Poultry 10.1% 60% Contract through 12/15 Steak fries 10.0% Contract through 10/16 Meat 6.8% Bacon through 3/15; Prime rib through 5/15; Riblets through 2/15 Produce 6.7% Contract through 10/15 Bread 6.2%
Slide 22: Adjusted EBITDA Reconciliation to Net Income
Adjusted EBITDA Reconciliation to Net Income Numbers are displayed in Thousands 21 2012 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net income as reported $10,558 $ 7,748 $ 3,553 $ 6,492 $ 9,480 $11,139 $ 4,661 $ 6,959 $11,944 $ 9,470 $ 7,208 $ 3,939 Adjustments to net income: Income tax expense 3
Slide 23: Reconciliation of Adjusted Net Income and Adjusted Earnings Per Diluted Share
Reconciliation of Adjusted Net Income to Net Income and Adjusted Earnings Per Diluted Share to Earnings Per Diluted Share 22 2012 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net income as reported $10,558 $ 7,748 $ 3,553 $ 6,492 $ 9,480 $11,139 $ 4,661 $ 6,959 $11,944 $ 9,470 $ 7,208 $ 3,939 Adjus
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