Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q2 2014 Earnings Presentation
22 slides from Red Robin Gourmet Burgers's earnings presentation, Aug 14, 2014
Slide 1: Second Quarter 2014 Results
Second Quarter 2014 Results August 14, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking statements in this presentation expansion and restaurant remodeling; the cost and regarding our restaurant revenue, restaurant-level availability of key food products, labor, and energy; the operating profit margins, new restaurant growth and ability to ach
Slide 3: Q2-14 Headlines
Q2-14 Headlines Comparable restaurant revenue up 1.2%, Guest traffic down 2.5% Total restaurant revenue increased 7.4% Restaurant-level operating profit margin decreased 110 bps to 22.2% Diluted EPS of $0.65, a decrease of 15.6% Adjusted EPS of $0.68, a decrease of 11.7% Restaurants opened: 3 Red Ro
Slide 4: Q2 Sales Performance
Q2 Sales Performance Finest™ burgers Appetizer & dessert mix Beverage mix Hercules and The Colossus Burger 3 3
Slide 5: Exterior Before BTI Improvements
Exterior Before BTI Improvements 4 4
Slide 6: BTI Exterior Signage
BTI Exterior Signage 5 5
Slide 7: Financial Update
Financial Update 6
Slide 8: Q2-14 Sales Highlights
Q2-14 Sales Highlights Q2-14 Q2-13 Change (12 Weeks) (12 Weeks) Restaurant revenue $251.8 million $234.5 million +7.4% Total company revenue $256.1 million $238.3 million +7.5% Company-owned comp revenue 1.2% 4.3% -310 bps Price/ Mix 3.7% 5.0% -130 bps Guest Counts -2.5% -0.7% -180 bps Franchised co
Slide 9: Comparable Restaurant Revenue Growth
Comparable Restaurant Revenue Growth 6.0% 5.7% 5.4% 5.0% 4.3% 4.0% 3.7% 3.0% 2.0% 1.2% 1.0% 0.0% Q213 Q313 Q413 Q114 Q214 8
Slide 10: RLOP Margins
RLOP Margins (1) 25.0% 24.0% 23.3% Q2’14 -110 bps 23.0% 22.4% 22.2% 22.0% 21.7% 21.5% 21.2% 21.1% 21.0% 20.6% 20.4% 20.0% 19.7% 19.0% 18.0% 17.0% 16.0% Q1 Q2 Q3 Q4 2012 2013 2014 (1) See reconciliation of non-GAAP restaurant-level operating profit to income from operations and net income on Schedule
Slide 11: Incremental RLOP Margin
Incremental RLOP Margin Change over prior year, in bps 250 220 200 Q2‘14 +140 bps 140 over Q2‘11 150 110 100 90 90 70 70 50 30 30 0 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 -50 -100 -110 -150 10
Slide 12: Q2-14 Restaurant Results
Q2-14 Restaurant Results % of Restaurant % of Restaurant Favorable Revenues Revenues (Unfavorable) Q2-14 Q2-13 Cost of Sales 25.3% 24.7% (60) bps Labor 32.8% 32.7% (10) bps Other Operating 12.3% 12.1% (20) bps Occupancy 7.4% 7.2% (20) bps Restaurant Level Operating Profit (Non- 22.2% 23.3% (110) bps
Slide 13: Adjusted EBITDA
Adjusted EBITDA $ in millions $40.0 $37.0 $113.1 million $35.0 $33.6 trailing 4 quarters $32.5 $29.7 $29.3 $30.0 $25.0 $25.8 $25.8 $25.0 $21.0 $20.0 $20.0 $15.0 $10.0 (1) Q1 Q2 Q3 Q4 2012 2013 2014 See slide 20 for reconciliation of non-GAAP Adjusted EBITDA to Net Income (1) 13 weeks in 2012 12
Slide 14: Accretively Deploying Capital
Accretively Deploying Capital New Restaurants • Full-size (± 5,800 sq. ft.) • Mid-size (± 4,000 sq. ft.) • Red Robin Burger Works (± 2,000 sq. ft.) Brand Transformation Remodels Crown Point, Colorado • Average $350,000-$400,000 per unit • Complete system by end of 2016 Acquisitions • $8 million acqu
Slide 15: Adjusted Net Income
Adjusted Net Income $ in millions $11.9 $12.0 $11.1 $10.6 $10.0 $9.8 $9.5 $9.1 $8.4 $8.0 $7.7 $6.0 $4.7 $4.0 $3.5 $2.0 (1) Q1 Q2 Q3 Q4 2012 2013 2014 See slide 21 for reconciliation of non-GAAP Adjusted Net Income to Net Income (1) 13 weeks in 2012 14
Slide 16: Earnings Per Diluted Share
Earnings Per Diluted Share $0.95 $0.85 $0.82 $0.77 $0.75 $0.71 (1) $0.68 $0.66 (1) $0.65 $0.62 (1) $0.59 $0.55 $0.52 $0.45 $0.35 $0.32 $0.24 $0.25 $0.15 (2) Q1 Q2 Q3 Q4 2012 2013 2014 (1) As adjusted, see slide 21 for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings Per Dil
Slide 17: 2014 Outlook
2014 Outlook Comparable restaurant revenue growth in low single digits 32 acquired restaurants expected to add $44 million of revenues and decrease franchise royalties by approximately $1.5 million RLOP margins expected to be approximately 21.3% Open 20 new company-owned Red Robin® restaurants plus
Slide 18: Appendix
Appendix 17
Slide 19: Cash Flow from Operations
Cash Flow from Operations $ in millions $45.0 $40.4 $40.0 $36.0 $35.0 $30.6 $31.3 $29.6 $30.0 $25.0 $22.3 $22.0 $20.5 $20.1 $20.0 $15.0 $11.2 $10.0 $5.0 $0.0 (1) Q1 Q2 Q3 Q4 (1) 13 weeks in 2012 2012 2013 2014 18
Slide 20: Q2-14 Commodity Update
Q2-14 Commodity Update % of Total COGS in Market v. Contract Q2 2014 Ground beef 14.0% Market Steak Fries 10.8% 100% contract through 10/14 Poultry 10.0% 100% contract through 12/14 80% contract through 9/14, tomatoes 100% Produce 7.6% contract through 9/14 Bacon and riblets 100% contract through 9/
Slide 21: Adjusted EBITDA Reconciliation to Net Income
Adjusted EBITDA Reconciliation to Net Income 2012 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net Income as reported $ 10,558 $ 7,748 $ 3,533 $ 6,492 $ 9,480 $ 11,139 $ 4,661 $ 6,959 $ 11,944 $ 9,470 Adjustments to net income: Income tax expense 3,356 2,408 1,210 1,552 2,977 3,576 1,517 940 4,424 3,521
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 2012 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net Income as reported $ 10,558 $ 7,748 $ 3,533 $ 6,492 $ 9,480 $ 11,139 $ 4,661 $ 6,959 $ 11,944 $ 9,470 Adjustments to net income:
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