Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q4 2011 Earnings Presentation
17 slides from Red Robin Gourmet Burgers's earnings presentation, Feb 16, 2012
Slide 1: Fiscal Q411 Results
FISCAL Q411 RESULTS February 16, 2012 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 Forward-looking statements in this presentation regarding our expected earnings per share and restaurant sales, new restaurant growth, and all statements that are not historical facts, including without limitation statements concerning our future economic performance, pl
Slide 3: Q411 Headlines
Q411 Headlines Higher sales, net income, and earnings per share Increased company-owned restaurant gross sales Significant cost savings – ahead of schedule Opened 13 new company-owned restaurants in 2011, including first Red Robin’s Burger Works™ Delivered on 2011 business objectives 3
Slide 4: Q411 Performance Highlights
Q411 Performance Highlights 4 Q411 Q410 Change Restaurant revenue $202.5 million $189.3 million +7.0% T t l $206 0 illi $192 6 illi +7 0% Total co. revenue 206.0 million 192.6 million 7.0% Company-owned comp sales +4.8% +0.8% Price/mix: +5.6% Guest counts: -0.8% Price/mix: -0.3% Guest counts: +1.1%
Slide 5: Comparable Gross Sales Growth
Comparable Gross Sales Growth 5 FY 2011 Comp Growth 2.9% 0.8% 1.9% 3.1% 2.1% 4.8% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Q410 Q111 Q211 Q311 Q411
Slide 6: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share 6 FY 2011 Adjusted EPS of $1.58 grew 123% from FY 2010 $0.58 $0.48 $0.24 $0.28 $0.13 $0.08 $0.34 $0.16 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 Q1 Q2 Q3 Q4 2010 2011
Slide 7: Cash Flow from Operations
Cash Flow from Operations 7 $ in Millions $95.7 million FY 2011 $70.6 million FY 2010 $29.9 $24.3 $18.9 $22.6 $19.1 $16.7 $11.0 $23.9 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 Q1 Q2 Q3 Q4 2010 2011
Slide 8: Adjusted Net Income
Adjusted Net Income 8 $24.3 million FY 2011 $11.1 million FY 2010 119% higher $ in 000s * Fiscal year 2010 adjusted net income assumes a tax benefit of 3.2% $9,021 $7,494 $3,683 $4,115 $2,048 $1,305 $5,198 $2,542 $0 $2,000 $4,000 $6,000 $8,000 $10,000 Q1 Q2 Q3 Q4 2010* 2011
Slide 9: 2011 Objectives
2011 Objectives 9
Slide 10: Revenue – Driving Guest Sales
Revenue – Driving Guest Sales Red Royalty™ enhancing relationships with guests Great LTO offerings, optimizing media & marketing spend Taking Back the Bar, increasing beverage PPA 10
Slide 11: Expense Management
Expense Management Reduction in operating costs are being realized quicker than planned In 2011, captured nearly two-thirds of $16-$18 million in targeted savings 11
Slide 12: Deployment of Capital
Deployment of Capital Drive NRO performance and ROIC Continue full-size unit development, continue testing Red Robin’s Burger Works™ Overhaul data and technology infrastructure 12
Slide 13: Q411 Restaurant-Level P&L
Q411 Restaurant-Level P&L 13 Line Item % of Rest. Sales Q411 % of Rest. Sales Q410 Favorable (Unfavorable) Food & Beverage 25.4% 24.4% (100 bps) Labor Operating 33.5% 35.8% 230 bps 13 5% 15 0% 150 bps Occupancy 7.7% 7.8% 10 bps RLOP (non GAAP) 19.9% 17.0% 290 bps
Slide 14: Growing RLOP Margins
Growing RLOP Margins 14 FY 2011 improvement of 200 bps 19.8% 20.8% 18.8% 19.9% 17.0% 17.5% 18.3% 18.2% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% Q1 Q2 Q3 Q4 2010 2011
Slide 15: 2012 Outlook – Financials
2012 Outlook – Financials Low single-digit comparable restaurant sales growth versus prior year Open 13 to 15 new restaurants, including four new Red Robin’s Burger Works™ Cost of sales increase of 60 to 80 bps from 25.3% in 2011 RLOP margin increase of 10 to 20 bps from 19.8% in 2011 Selling, gener
Slide 16: Advancing Our Brand
Advancing Our Brand Making major investments in new business systems Updating our menu and growing Red Royalty Expanding Red Robin’s Burger Works™ test Testing next generation restaurant prototype Building our pipeline of new restaurants Delivering a superior Guest experience
Slide 17: Foundation for Growth
Foundation for Growth 2011: “transitional” year for strengthening the Red Robin business 2012: building foundation for long-term growth Establishing culture of continuous improvement Robust brand strategies include brand refresh to create great, more relevant, adult experience 17
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