Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q1 2019 Earnings Presentation
22 slides from Red Robin Gourmet Burgers's earnings presentation, May 30, 2019
Slide 1: First Quarter 2019 Results
First Quarter 2019 Results May 30, 2019 CLASSIFIED – INTERNAL USE ONLY
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking statements in this presentation regarding the Company’s future performance, sales and guest traffic, comparable revenue and growth, costs including selling, general and administrative, net income, EBITDA, earnings per share, tax benefit, restaurant closures
Slide 3: Red Robin Q1-2019 Financial Results
Red Robin Q1-2019 Financial Results • Total revenues decreased 2.8% • Off-premise sales increased 220 basis points to 11.6% of total food and beverage sales • Comparable restaurant revenue decreased 3.3% (using constant currency rates) • 2.2% increase in average check • Comparable restaurant guest c
Slide 4: Making Progress Improving Performance
Making Progress Improving Performance • Focusing on fewer operational and financial initiatives • Enhancing dine-in starting to pay off: key metrics showing positive trends • Boosting PPA by encouraging trade out from Tavern to Gourmet and Finest • Growing catering and third-party delivery • Initiat
Slide 5: Enhancing the Dine-in Experience
Enhancing the Dine-in Experience • Hire, Train and Retain • Manager Front Of House Engagement • Managing the Shoulders to Peak the Peaks • Delivering on the Promise of Maestro PAGE 5
Slide 6: Key Strategies to Deliver Value to Shareholders
Key Strategies to Deliver Value to Shareholders Our Five 2019 Strategic Priorities: • Stabilizing dine-in revenue by reinforcing Red Robin’s compelling Value proposition • Continue building To-Go and Catering business • Improving Guest experience and recapturing Red Robin’s known-for “Gift of Time”
Slide 7: Financial Update
Financial Update PAGE 7
Slide 8: Q1-19 Sales Highlights
Q1-19 Sales Highlights Q1-19 Q1-18 Change (16 Weeks) (16 Weeks) Restaurant revenue $400.5 million $414.7 million -3.4% Total company revenues $409.9 million $421.5 million -2.8% Company-owned comp revenue(1)(2) -3.3% -0.9% Price/Mix 2.2% -1.0% Guest counts -5.5% 0.1% Franchised comp revenue(2) -2.6%
Slide 9: Comparable Restaurant Revenue Trend
Comparable Restaurant Revenue Trend(1) 5.0% 4.0% 3.0% 2.7% 2.0% 1.0% 0.5% 0.0% -0.1% -1.0% -0.9% -1.2% -2.0% -3.0% -2.6% -3.4% -3.3% -4.0% -5.0% -4.5% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 (1) Calculated at constant currency rates PAGE 9
Slide 10: Continued Off-Premise Sales Growth
Continued Off-Premise Sales Growth US Comp Locations Off-Premise Sales as a % of Gross F&B Sales 14.0% +220 bps Y-O-Y in 12.0% 11.6% Q1 2019 10.6% 10.1% 10.0% 9.4% 9.6% 8.3% 8.0% 7.6% 7.0% 6.3% 6.0% 4.0% 2.0% 0.0% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 PAGE 10
Slide 11: Restaurant Level Operating Profit Margins
(1)(2) Restaurant Level Operating Profit Margins 25.0% 24.0% 23.0% 22.0% 21.3% 21.0% 20.8% 20.5% 20.0% 20.0% 19.4% 19.3% 19.0% 18.6% 18.3% 18.0% 17.0% 16.8% 16.0% Q1 Q2 Q3 Q4 2017 2018 2019 (1) See Appendix for reconciliation of non-GAAP restaurant-level operating profit to net income (loss) (2) Pri
Slide 12: Q1-19 Restaurant Results
Q1-19 Restaurant Results % of Restaurant % of Restaurant Revenue Revenue Favorable Q1-19 Q1-18 (Unfavorable) Cost of sales 23.4% 23.8% 40 bps Labor 35.7% 34.5% (120 bps) Other operating 13.9% 13.3% (60 bps) Occupancy 8.7% 8.4% (30 bps) Restaurant Level Operating Profit(1) 18.3% 20.0% (170 bps) (1) S
Slide 13: Adjusted EBITDA
Adjusted EBITDA(1) $50.0 $45.8 $45.0 $42.4 $40.0 $35.8 $35.0 $34.3 $32.3 $30.0 $28.8 $28.4 $25.5 $25.0 $24.2 $20.0 $15.0 $10.0 Q1 Q2 Q3 Q4 2017 2018 2019 (1) See Appendix for reconciliation of non-GAAP Adjusted EBITDA to Net Income (Loss) PAGE 13
Slide 14: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share $1.00 $0.90 $0.89 $0.80 $0.78 $0.70 $0.69 $0.61 $0.60 $0.50 $0.46 $0.43 $0.40 $0.30 $0.19 $0.21 $0.20 $0.16 $0.10 $0.00 Q1 Q2 Q3 Q4 2017 2018 2019 See Appendix for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted Share
Slide 15: Outlook for 2019
Outlook for 2019 • Comparable restaurant revenue down 1.0% to up 1.0% • Selling, general and administrative costs of $156 million to $159 million • Net income of $8.0 million to $16.0 million • Adjusted EBITDA of $107 million to $117 million; • Adjusted diluted earnings per share of $1.14 to $1.77,
Slide 16: In Closing
In Closing PAGE 16
Slide 17: Appendix
Appendix PAGE 17
Slide 18: Adjusted Net Income
Adjusted Net Income(1) ($ in Millions) $14.0 $12.0 $11.6 $10.2 $10.0 $9.1 $7.9 $8.0 $6.0 $6.0 $5.4 $4.0 $2.7 $2.4 $2.1 $2.0 $0.0 Q1 Q2 Q3 Q4 2017 2018 2019 (1) See Appendix for reconciliation of non-GAAP Adjusted Net Income to Net Income (Loss) PAGE 18
Slide 19: Cash Flow from Operations
Cash Flow from Operations ($ in Millions) $80.0 $70.0 $70.0 $60.0 $57.0 $50.0 $40.0 $37.5 $34.7 $35.0 $30.0 $25.3 $20.0 $20.0 $16.9 $11.8 $10.0 $0.0 Q1 Q2 Q3 Q4 2017 2018 2019 PAGE 19
Slide 20: Reconciliation of Adjusted Net Income to Net Income (Loss)
Reconciliation of Adjusted Net Income to Net Income (Loss) and Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted Share ($ in thousands, except per share data) 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net income (loss) as reported $ 11,567 $ 6,931 $ 2,714 $ 8,807 $ 4,380 $ (1,874) $
Slide 21: Restaurant Level Operating Profit Reconciliation
Restaurant Level Operating Profit Reconciliation to Income from Operations and Net Income (Loss) ($ in thousands) 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Restaurant revenue $ 413,451 $ 312,351 $ 301,100 $ 338,154 $ 414,702 $ 310,392 $290,218 $300,897 $400,484 Restaurant operating costs(1): Cost of
Slide 22: EBITDA and Adjusted EBITDA Reconciliation to Net Income (Loss)
EBITDA and Adjusted EBITDA Reconciliation to Net Income (Loss) ($ in thousands) 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net income (loss) as reported $ 11,567 $ 6,931 $ 2,714 $ 8,807 $ 4,380 $ (1,874) $ 1,709 $ (10,634) $ 639 Adjustments to net income (loss): Income tax expense (benefit) 2,907 (18
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