Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q4 2015 Earnings Presentation
29 slides from Red Robin Gourmet Burgers's earnings presentation, Feb 12, 2016
Slide 1: Fourth Quarter 2015 Results
CLASSIFIED – INTERNAL USE Fourth Quarter 2015 Results February 12, 2016
Slide 2: Forward-Looking Statements
2CLASSIFIED – INTERNAL USE Forward-Looking Statements Forward-looking statements in this press release regarding our strategic initiatives, future performance, revenues, EBITDA, capital investments, anticipated number and timing of new restaurant openings (including Red Robin Burger Works) and opera
Slide 3: Red Robin FY 2015 Results
3CLASSIFIED – INTERNAL USE Red Robin FY 2015 Results • Comparable restaurant revenue growth of 2.1% • Adjusted EBITDA growth of 20.5% to $148.2 million • Adjusted diluted EPS growth of 24.8% to $3.32 per share Note: EBITDA and EPS numbers are adjusted to exclude asset impairments, a one-time benefit
Slide 4: Red Robin Q4-2015 Results
4CLASSIFIED – INTERNAL USE Red Robin Q4-2015 Results • Total revenues increased 1.5% • Comparable restaurant revenue down 2.0%, at constant currency rates • Restaurant-level operating profit was 21.9% compared to 21.3% in prior year • Adjusted diluted EPS was $0.86, an increase of 30.3% over prior y
Slide 5: Brand Transformation Initiative Progress
5CLASSIFIED – INTERNAL USE Brand Transformation Initiative Progress • Completed 57 remodels to new brand standards during Q4 2015 for a total of 157 transformations in FY 2015. Over 325 restaurants now conform to new brand standards, including new restaurant openings • Plan to transform 70 additiona
Slide 6: Financial Update
CLASSIFIED – INTERNAL USE 6 Financial Update
Slide 7: Q4-15 Sales Highlights
7CLASSIFIED – INTERNAL USE Q4-15 Sales Highlights ????? ???? ????? ????? ???? ????? ?????? ????????? ???? ????? ????????? ???? ????? ?????? ?????????????????? ??????? ??????? ??????? ??????? ???? ????????????? ????????????? ???? ????????????? ???????? ??????? ??????? ??????? ??????? ???? ???????????
Slide 8: Q4-15 Restaurant Results
8CLASSIFIED – INTERNAL USE Q4-15 Restaurant Results ? ???????????????? ???????? ????? ???????????????? ???????? ????? ????????? ????????????? ???? ???????? ????? ????? ??? ??? ????? ????? ????? ???????? ??????????????? ????? ????? ??? ???? ????????? ???? ???? ??? ???? ????????????????? ?????????????
Slide 9: Adjusted EBITDA
9CLASSIFIED – INTERNAL USE ?????? ?????? ?????? ?????? ?????? ?????? ?????? ?????? ?????? ?????? ?????? ?????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ?? ?? ?? ?? ???? ???? ???? ????????????? ???????????? ???????????? ???????????? Adjusted EBITDA ($ in millions) ? ?????????????????????
Slide 10: Adjusted Earnings Per Diluted Share
10CLASSIFIED – INTERNAL USE Adjusted Earnings Per Diluted Share ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ?? ?? ?? ?? ???? ???? ???? ?? ??????????????????????????????????????????????????????????????????????????????????????????????????
Slide 11: Comparable Restaurant Revenue Trend
11CLASSIFIED – INTERNAL USE Comparable Restaurant Revenue Trend(1) ???? ???? ???? ???? ???? ???? ???? ????? ????? ????? ???? ???? ???? ???? ???? ???? ???? ????? ????? ????? ????? ????? ????? ????? ????? ??????????????????????????????????????????
Slide 12: Taking Market Share – Year Over Year
12CLASSIFIED – INTERNAL USE Taking Market Share – Year Over Year ???? ???? ???? ???? ???? ???? ????? ???? ???? ???? ???? ?????????? ????? ???? ???? ???? ???? ???? ???? ???? ???? ???? ?? ?? ?? ?? ?????????????????????????????? ???? ???? ???? ???????????????????????????????????????????????????????????
Slide 13: Taking Market Share – Year Over Year
13CLASSIFIED – INTERNAL USE Taking Market Share – Year Over Year ???? ???? ???? ???? ???? ???? ????? ???? ???? ???? ???? ????? ????? ????? ????? ????? ???? ???? ???? ???? ???? ???? ???? ???? ???? ???? ???? ?? ?? ?? ?? ???????????????????????????????? ???? ???? ???? ??????????????????????????????????
Slide 14: Restaurant Level Operating Profit Margins
14CLASSIFIED – INTERNAL USE ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ?? ?? ?? ?? ???? ???? ???? ??? ??? ??? ??? Restaurant Level Operating Profit (1) Margins ?? ??? ????????????????????????????????????????????
Slide 15: 2016 Outlook
15CLASSIFIED – INTERNAL USE 2016 Outlook • Total revenue growth between 8.5% and 9.5% • Comparable restaurant revenue growth in low single digits • EBITDA is expected to range between $155 and $165 million • Open approximately 25 new Red Robin restaurants, 5 Red Robin Burger Works, and complete arou
Slide 16: Project RED: Five Year Track Record of Great Returns
16CLASSIFIED – INTERNAL USE Project RED: Five Year Track Record 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 • Franch
Slide 17: Steady Growth: 2010 to 2015
17CLASSIFIED – INTERNAL USE Steady Growth: 2010 to 2015 ? ?? ?? ?? ?? ??? ??? ??? ??? ??? ??? ????? ????? ????? ????? ????? ???? ???? ???? ???? ???? ???? ????????????????????????????? ??????? ??????? ??????????????? EBITDA CAGR: 14.1% Revenue CAGR: 7.8% ??????????????????????????????????????????????
Slide 18: Goal: Double EBITDA Over Years
18CLASSIFIED – INTERNAL USE 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 • Restaurant-level Technology • Midsize Unit Emphasis • Franchise Acquisiti
Slide 19: Marketing Update
CLASSIFIED – INTERNAL USE 19 Marketing Update
Slide 20: Holiday Promotion
20CLASSIFIED – INTERNAL USE Holiday Promotion • #NameThatChickenBurger • First Chicken Burger in the Finest Line • Mad Love Burger • LTO On Finest Line
Slide 21: Traffic Driving Initiatives
21CLASSIFIED – INTERNAL USE Traffic Driving Initiatives • 12 Days of Burgers • Double Tavern Double Plus
Slide 22: In Closing
22CLASSIFIED – INTERNAL USE In Closing ??
Slide 23: Thank you to all of our Team Members!
23CLASSIFIED – INTERNAL USE Thank you to all of our Team Members! ??
Slide 24: Appendix
CLASSIFIED – INTERNAL USE 24 Appendix
Slide 25: Adjusted Net Income
25CLASSIFIED – INTERNAL USE Adjusted Net Income ???? ????? ???? ???? ????? ???? ???? ???? ????? ????? ???? ????? ???? ???? ???? ???? ????? ????? ????? ????? ?? ?? ?? ?? ???? ???? ???? ($ in millions) ?? ????????????????????????????????????????????????????? ????????????? ????????? ???????????? ??????
Slide 26: Cash Flow from Operations
26CLASSIFIED – INTERNAL USE ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ????? ???? ???? ????? ????? ????? ????? ????? ????? ????? ????? ?? ?? ?? ?? ???? ???? ???? Cash Flow from Operations ($ in millions) ?? ???????????? ???????????? ????????????
Slide 27: Q4-15 Commodity Update
27CLASSIFIED – INTERNAL USE Q4-15 Commodity Update ?? % of Total COGS in Q4-15 Market vs. Contract Ground beef 13.1% Market Steak fries 10.9% Contract through 10/16 Poultry 10.8% 100% covered thru 12/16 Meat 7.9% Bacon through 3/16; Prime rib through 9/16 Produce 7.5% 90% contracted through 8/16 Bre
Slide 28: EBITDA and Adjusted EBITDA Reconciliation to Net Income
28CLASSIFIED – INTERNAL USE EBITDA and Adjusted EBITDA Reconciliation to Net Income ?? 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net income as reported $ 9,480 $11,139 $4,661 $6,959 $11,944 $9,470 $ 7,208 $3,939 $16,565 $11,166 $8,282 $11,691 Adjustments to net income: Income tax expense 2,
Slide 29: Reconciliation of Adjusted Net Income and Adjusted EPS
29CLASSIFIED – INTERNAL USE Reconciliation of Adjusted Net Income to Net Income and Adjusted Earnings Per Diluted Share to Earnings Per Diluted Share ?? 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net income as reported $ 9,480 $11,139 $ 4,661 $ 6,959 $11,944 $ 9,470 $ 7,208 $ 3,939 $16,565 $
Red Robin Gourmet Burgers — Q4 2015 Earnings Presentation on 6ix