Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q3 2016 Earnings Presentation
22 slides from Red Robin Gourmet Burgers's earnings presentation, Nov 2, 2016
Slide 1: Third Quarter 2016 Results
CLASSIFIED – INTERNAL USE Third Quarter 2016 Results November 2, 2016
Slide 2: Forward-Looking Statements
2CLASSIFIED – INTERNAL USE Forward-Looking Statements Forward-looking statements in this presentation regarding the Company’s strategic initiatives, future performance, revenues, EBITDA, capital investments, anticipated number and timing of new restaurant openings, anticipated costs, expenses includ
Slide 3: Red Robin Q3-2016 Results
3CLASSIFIED – INTERNAL USE Red Robin Q3-2016 Results • Total revenues increased 4.9% • Comparable restaurant revenue down 3.6% • Restaurant-level operating profit(1) was 18.6% compared to 21.6% in prior year • Adjusted EBITDA(1) was $27.3 million • Diluted loss per share was $0.10 compared to dilute
Slide 4: Resetting Priorities and Plans for Growth
4CLASSIFIED – INTERNAL USE Resetting Priorities and Plans for Growth • Reasserting Everyday Value • New “Let’s Burger” advertising campaign • Improving speed of service and guest satisfaction • Piloting off-premise – carry out, delivery, catering • Streamlining leadership, reducing overhead and pace
Slide 5: Financial Update
CLASSIFIED – INTERNAL USE 5 Financial Update
Slide 6: Adjusted Earnings Per Diluted Share
6CLASSIFIED – INTERNAL USE Adjusted Earnings Per Diluted Share $0.82 $0.68 $0.50 $0.66 $1.10 $0.78 $0.58 $0.86 $1.27 $0.75 $0.38 $0.15 $0.35 $0.55 $0.75 $0.95 $1.15 $1.35 Q1 Q2 Q3 Q4 2014 2015 2016 6 See Appendix for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings (Loss) P
Slide 7: Adjusted EBITDA
7CLASSIFIED – INTERNAL USE $37.0 $29.3 $25.6 $31.1 $47.0 $35.0 $31.2 $35.0 $51.0 $34.5 $27.3 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 $55.0 Q1 Q2 Q3 Q4 2014 2015 2016 2.4% Growth Trailing 4 Quarters Q3 2016 $147.7M Q3 2015 $144.3M Adjusted EBITDA ($ in millions) 7 See Appendix for recon
Slide 8: Q3-16 Sales Highlights
8CLASSIFIED – INTERNAL USE Q3-16 Sales Highlights (1) Excludes Red Robin Burger Works® fast casual restaurants Q3-16 (12 Weeks) Q3-15 (12 Weeks) Change Q3-16 YTD (40 Weeks) Q3-15 YTD (40 Weeks) Change Restaurant revenue $293.9 million $279.5 million 5.1% $992.7 million $956.7 million 3.8% Total comp
Slide 9: Comparable Restaurant Revenue Trend
9CLASSIFIED – INTERNAL USE Comparable Restaurant Revenue Trend(1) (1) Calculated at constant currency rates
Slide 10: BlackBox Traffic Gap
10CLASSIFIED – INTERNAL USE BlackBox Traffic Gap -150 -90 -60 120 -200 -150 -100 -50 0 50 100 150 Q4-15 Q1-16 Q2-16 Q3-16 Traffic Performance vs. Industry (bps) Source: Based on Black Box Intelligence Casual Dining (All Cuisine) peers as of October 2, 2016
Slide 11: Restaurant Level Operating Profit Margins
11CLASSIFIED – INTERNAL USE 22.4% 22.2% 19.5% 21.3% 23.0% 22.5% 21.6% 21.9% 22.5% 20.9% 18.6% 16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% Q1 Q2 Q3 Q4 2014 2015 2016 Restaurant Level Operating Profit (1) Margins 11 (1) See Appendix for reconciliation of non-GAAP restaurant-level opera
Slide 12: 2016 Outlook
12CLASSIFIED – INTERNAL USE 2016 Outlook • For fourth fiscal quarter: • Revenue growth between 4.0% and 6.0%, lower comparable restaurant revenue between 1.5% and 3.5% • Open five new Red Robin restaurants • G&A costs up to $22 million • Depreciation and amortization approximately $21.5 million • Ad
Slide 13: In Closing
13CLASSIFIED – INTERNAL USE In Closing 13
Slide 14: Thank you to all of our Team Members!
14CLASSIFIED – INTERNAL USE Thank you to all of our Team Members! 17
Slide 15: Appendix
CLASSIFIED – INTERNAL USE 15 Appendix
Slide 16: Q3-16 Restaurant Results
16CLASSIFIED – INTERNAL USE Q3-16 Restaurant Results 16 % of Restaurant Revenue Q3-16 % of Restaurant Revenue Q3-15 Favorable (Unfavorable) Cost of sales 23.6% 24.4% 80 bps Labor 34.8% 33.0% (180 bps) Other operating 14.5% 12.9% (160 bps) Occupancy 8.5% 8.1% (40 bps) Restaurant Level Operating Profi
Slide 17: Adjusted Net Income
17CLASSIFIED – INTERNAL USE Adjusted Net Income(1) $11.9 $9.8 $7.2 $9.4 $15.6 $11.2 $8.3 $12.0 $17.6 $10.3 $5.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 Q1 Q2 Q3 Q4 2014 2015 2016 ($ in millions) 17 (1) See Appendix for reconciliation of non-GAAP Adjusted Net Income to Net Income (Loss)
Slide 18: Cash Flow from Operations
18CLASSIFIED – INTERNAL USE Cash Flow from Operations ($ in millions) 18
Slide 19: Q3-16 Commodity Update
19CLASSIFIED – INTERNAL USE Q3-16 Commodity Update 19 % of Total COGS in Q3-16 Market vs. Contract Ground beef 13.1% Market Steak fries 10.9% Contract through 10/17 Poultry 10.1% 100% covered thru 12/16 Produce 8.2% 90% contracted through 10/17 Meat 7.6% Bacon through 12/16; Prime rib through 12/16
Slide 20: Reconciliation of Adjusted Net Income to Net Income (Loss)
20CLASSIFIED – INTERNAL USE Reconciliation of Adjusted Net Income to Net Income (Loss) and Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted Share 20 ($ in thousands, except per share data) 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net income (loss) as reported $11,944 $9,470
Slide 21: Restaurant Level Operating Profit Reconciliation
21CLASSIFIED – INTERNAL USE Restaurant Level Operating Profit Reconciliation to Income from Operations and Net Income (Loss) ($ in thousands) 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Restaurant revenue $ 334,995 $ 251,818 $ 263,883 $ 278,439 $ 388,509 $ 288,704 $ 279,496 $ 282,189 $ 396,770 $
Slide 22: EBITDA and Adjusted EBITDA Reconciliation to Net Income (Loss)
22CLASSIFIED – INTERNAL USE EBITDA and Adjusted EBITDA Reconciliation to Net Income (Loss) 22 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net income (loss) as reported $11,944 $9,470 $7,208 $3,939 $16,565 $11,166 $8,282 $11,691 $14,225 $7,552 (1,300) Adjustments to net income: Income tax expense
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