Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB

Red Robin Gourmet Burgers — Q2 2013 Earnings Presentation

22 slides from Red Robin Gourmet Burgers's earnings presentation, Aug 15, 2013

  1. Slide 1: Fiscal Q213 Results

    Fiscal Q213 Results August 15, 2013

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements 1 Forward-looking statements in this presentation regarding our expected earnings per share, restaurant sales, new restaurant growth, brand transformation initiative, future economic performance, costs and capital expenditures, certain statements under the headings “Brand

  3. Slide 3: Q213 Headlines

    Comp sales up 4.3% -- 12th consecutive quarter of same store sales growth Total restaurant revenues increased 6.6% Restaurant-level operating profit margin increased 220 bps to 23.3% EPS $0.77 compared to $0.52 in Q212 Q213 Headlines 2

  4. Slide 4: "24 Burgers. A Million Reasons" Campaign

    “24 Burgers. A Million Reasons” Campaign FPO 3

  5. Slide 5: Menu Innovation

    Menu Innovation 4

  6. Slide 6: Red Robin

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  7. Slide 7: Brand Transformation

    Brand Transformation Launched most impactful changes system wide Elevated bar experience New plating, presentation and service model Favorable guest feedback on changes Continued testing; plans to transform additional 20 restaurants in 2013 6

  8. Slide 8: Financial Update

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  9. Slide 9: Adjusted Earnings Per Diluted Share

    Adjusted Earnings Per Diluted Share Note: Fiscal Q4 2012 contained 13 weeks compared to 12 weeks in 2011 8 See slide 21 for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings Per Diluted share +16% YTD 2013

  10. Slide 10: Q213 Sales Highlights

    Q213 Q212 Change Restaurant revenue $234.5 million $219.9 million +6.6% Total company revenue $238.3 million $223.7 million +6.5% Company-owned comp revenues +4.3% Price/mix: +5.0% Guest counts: -0.7% +0.8% Price/mix: -0.1% Guest counts: +0.9% Franchised comp revenues U.S.: +1.9% Canada: +1.2% U.S.:

  11. Slide 11: Comparable Sales Growth

    Comparable Sales Growth Red Robin 5.0% 4.3% 4.0% 3.0% 2.0% 1.4% 1.1% 1.0% 0.8% 0.0% i 212 312 aai2 a113 213

  12. Slide 12: Leading RLOP Margins

    Leading RLOP Margins Red Robin 25.0% 24.0% 23.3% 23.0% 22.0% 14 2 20.8% 21.0% 19.7% a a2 03 m2011 2012 2013 20.0% 19.0% 18.0% 17.0% 16.0%

  13. Slide 13: RLOP Margin Improvement

    RLOP Margin Improvement Change over prior year, in bps 12

  14. Slide 14: Q213 Restaurant Results

    Line Item % of Restaurant Revenues Q213 % of Restaurant Revenues Q212 Favorable (Unfavorable) Cost of Sales 24.7% 25.4% 70 bps Labor 32.7% 33.2% 50 bps Other Operating 12.1% 13.1% 100 bps Occupancy 7.2% 7.2% No change Restaurant Level Operating Profit (Non-GAAP) 23.3% 21.1% 220 bps Q213 Restaurant R

  15. Slide 15: Adjusted EBITDA

    Adjusted EBITDA $ in millions 14 $62.2 million YTD 2013

  16. Slide 16: 2013 Outlook – Financials

    2013 Outlook – Financials Capital investments approximately $70 million Open 20 new company-owned Red Robin® restaurants plus several Red Robin’s Burger Works® Comparable restaurant revenue growth of approximately 3.0% versus 2012 RLOP margins approximately 21.3% G&A costs between $89 million and $9

  17. Slide 17: Appendix

    Appendix 16

  18. Slide 18: Q213 Commodity Update

    Category % of Total COGS in Q2 2013 Market vs. Contract Hamburger 14.3% Market Steak Fries 10.8% 100% contract through 10/13 Poultry 10.8% 100% contract through 12/13 Produce 7.9% 100% contract through 9/13 Bread 6.5% 100% contract through 12/13 Cheese 5.5% Market Meat 4.6% 100% contract through 8/1

  19. Slide 19: Adjusted Net Income

    Adjusted Net Income $ in millions 18 See slide 21 for reconciliation of non-GAAP Adjusted Net Income to Net Income

  20. Slide 20: Cash Flow from Operations

    Cash Flow from Operations $ in millions 19

  21. Slide 21: Adjusted EBITDA Reconciliation to Net Income

    Adjusted EBITDA Reconciliation to Net Income 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net income as reported $8,708 $6,895 $2,069 $2,905 $10,558 $7,748 $3,533 $6,492 $9,480 $11,139 Adjustments to net income: Income tax expense (benefit) 1,132 663 (369) 85 3,356 2,408 1,210 1,552 2,977 3,576 Inte

  22. Slide 22: Reconciliation of Adjusted Net Income to Net Income and Adjusted EPS

    Reconciliation of Adjusted Net Income to Net Income and Adjusted Earnings Per Diluted Share to Earnings Per Diluted Share 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net income as reported $ 8,708 $ 6,895 $ 2,069 $ 2,905 $ 10,558 $ 7,748 $ 3,533 $ 6,492 $ 9,480 $ 11,139 Adjustments to net income: L

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