Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q1 2016 Earnings Presentation
30 slides from Red Robin Gourmet Burgers's earnings presentation, May 17, 2016
Slide 1: First Quarter 2016 Results
CLASSIFIED – INTERNAL USE First Quarter 2016 Results May 17, 2016
Slide 2: Forward-Looking Statements
2CLASSIFIED – INTERNAL USE Forward-Looking Statements Forward-looking statements in this presentation regarding our strategic initiatives, future performance, revenues, EBITDA, capital investments, anticipated number and timing of new restaurant openings (including Red Robin Burger Works), the antic
Slide 3: Red Robin Q1-2016 Results
3CLASSIFIED – INTERNAL USE Red Robin Q1-2016 Results • Total revenues increased 1.8% • Comparable restaurant revenue down 2.6%, at constant currency rates • Guest counts decreased 4.1%, 90 basis points below casual dining peers • Restaurant-level operating profit was 22.5% compared to 23.0% in prior
Slide 4: Goal: Double EBITDA Over Years
4CLASSIFIED – INTERNAL USE 6 GOAL: DOUBLE EBITDA OVER 5 YEARS • Seating Utilization/Turns • 12+12 Brews Initiative • To-Go • Burger Works – channel growth • Catering • Hispanic Market • Order-Ahead • Delivery • Complete BTI remodels • Restaurant-level Technology • Midsize Unit Emphasis • Franchise A
Slide 5: Making Progress on RED Initiatives
5CLASSIFIED – INTERNAL USE Making Progress on RED Initiatives Revenue Growth • KDS and table management software • To-Go and online ordering Expense Management • Cloud-based repair and maintenance application • Supply chain management software • Project Blueprint cost-saving initiatives Deployment o
Slide 6: Marketing Update
CLASSIFIED – INTERNAL USE 6 Marketing Update
Slide 7: A Strong Brand Foundation
7CLASSIFIED – INTERNAL USE A Strong Brand Foundation
Slide 8: Double Tavern Double Plus Promo
8CLASSIFIED – INTERNAL USE Double Tavern Double Plus Promo
Slide 9: Bottomless Kids Pasta
9CLASSIFIED – INTERNAL USE Bottomless Kids Pasta Red Robin bottomless video at: https://www.youtube.com/watch?v=ngt6azYQBt8
Slide 10: Q1 Product News
10CLASSIFIED – INTERNAL USE Q1 Product News
Slide 11: Our competitive edge: A great Team and can-do culture!
11CLASSIFIED – INTERNAL USE Our competitive edge: A great Team and can-do culture!
Slide 12: Carin Stutz, EVP & Chief Operating Officer
12CLASSIFIED – INTERNAL USE Carin Stutz, EVP & Chief Operating Officer • Recognized industry leader • More than 30 years of restaurant operations experience • Served in leadership roles for top casual dining and fast casual brands • Past board chair and member of board of directors for Woman’s Foods
Slide 13: Financial Update
CLASSIFIED – INTERNAL USE 13 Financial Update
Slide 14: Adjusted EBITDA
14CLASSIFIED – INTERNAL USE $37.0 $29.3 $25.6 $31.1 $47.0 $35.0 $31.2 $35.0 $51.0 $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 14.5% Growth Trailing 4 Quarters Q1 2016 $152.2M Q1 2015 $132.9M Adjusted EBITDA ($ in millions) 14 See appendix for reconciliation
Slide 15: Adjusted Earnings Per Diluted Share
15CLASSIFIED – 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 $0.15 $0.35 $0.55 $0.75 $0.95 $1.15 $1.35 Q1 Q2 Q3 Q4 2014 2015 2016 15 See appendix for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings Per Diluted share
Slide 16: Q1-16 Sales Highlights
16CLASSIFIED – INTERNAL USE Q1-16 Sales Highlights Q1-16 (16 Weeks) Q1-15 (16 Weeks) Change Restaurant revenue $396.8 million $388.5 million 2.1% Total company revenues $402.1 million $394.9 million 1.8% Company-owned comp revenue(2) -2.6% 3.1% Price/Mix 1.5% 2.0% Guest counts -4.1% 1.1% Franchised
Slide 17: Market Share – Traffic Performance vs. Industry
17CLASSIFIED – INTERNAL USE Market Share – Year Over Year 2.4% 1.7% 1.1% -0.9% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 2013 2014 2015 2016 Traffic Performance vs. Industry Source: Based on Black Box Intelligence Casual Dining (All Cuisine) peers as of April 17, 2016 YTD
Slide 18: Market Share – Sales Performance vs. Industry
18CLASSIFIED – INTERNAL USE Market Share – Year Over Year 4.9% 3.2% 1.2% -0.7% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2013 2014 2015 2016 Sales Performance vs. Industry Source: Based on Black Box Intelligence Casual Dining (All Cuisine) peers as of April 17, 2016 YTD
Slide 19: Comparable Restaurant Revenue Trend
19CLASSIFIED – INTERNAL USE Comparable Restaurant Revenue Trend(1) 5.4% 1.2% 0.9% 3.6% 3.1% 2.9% 3.5% -2.0% -2.6%-3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 (1) Calculated at constant currency rates.
Slide 20: Restaurant Level Operating Profit Margins
20CLASSIFIED – INTERNAL USE 22.4% 22.2% 19.5% 21.3% 23.0% 22.5% 21.6% 21.9% 22.5% 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 20 (1) See reconciliation of non-GAAP restaurant-level operating profit to income fro
Slide 21: 2016 Outlook
21CLASSIFIED – INTERNAL USE 2016 Outlook • Total revenue growth around 8.0% • Flat to slightly negative comparable restaurant revenue growth • EBITDA is expected to range between $150 and $155 million • Open approximately 25 new Red Robin restaurants, 3 Red Robin Burger Works, and complete around 70
Slide 22: In Closing
22CLASSIFIED – INTERNAL USE In Closing 22
Slide 23: Thank you to all of our Team Members!
23CLASSIFIED – INTERNAL USE Thank you to all of our Team Members! 17
Slide 24: Appendix
CLASSIFIED – INTERNAL USE 24 Appendix
Slide 25: Q1-16 Restaurant Results
25CLASSIFIED – INTERNAL USE Q1-16 Restaurant Results 25 % of Restaurant Revenue Q1-16 % of Restaurant Revenue Q1-15 Favorable (Unfavorable) Cost of sales 23.3% 25.2% 190 bps Labor 33.5% 32.0% (150 bps) Other operating 12.5% 12.0% (50 bps) Occupancy 8.2% 7.8% (40 bps) Restaurant Level Operating Profi
Slide 26: Adjusted Net Income
26CLASSIFIED – INTERNAL USE Adjusted Net Income $11.9 $9.8 $7.2 $9.4 $15.6 $11.6 $8.3 $12.0 $17.6 $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) 26 See slide 30 for reconciliation of non-GAAP Adjusted Net Income to Net Income 12.5% Growth Q1 2016 vs Q1 2
Slide 27: Cash Flow from Operations
27CLASSIFIED – INTERNAL USE $36.0 $20.1 $26.8 $40.7 $36.0 $31.3 $34.0 $39.6 $42.5 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 Q1 Q2 Q3 Q4 2014 2015 2016 Cash Flow from Operations ($ in millions) 27 19.3% TTM Growth Q1 2016 $147.4M Q1 2015 $123.5M
Slide 28: Q1-16 Commodity Update
28CLASSIFIED – INTERNAL USE Q1-16 Commodity Update 28 % of Total COGS in Q1-16 Market vs. Contract Ground beef 12.9% Market Steak fries 10.8% Contract through 10/16 Poultry 10.8% 100% covered thru 12/16 Meat 7.1% Bacon through 7/16; Prime rib through 12/16 Produce 7.5% 90% contracted through 10/16 B
Slide 29: EBITDA and Adjusted EBITDA Reconciliation to Net Income
29CLASSIFIED – INTERNAL USE EBITDA and Adjusted EBITDA Reconciliation to Net Income 29 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net income as reported $11,944 $9,470 $ 7,208 $3,939 $16,565 $11,166 $8,282 $11,691 $14,225 Adjustments to net income: Income tax expense 4,424 3,521 1,032 321 6,220 4,410
Slide 30: Reconciliation of Adjusted Net Income and Adjusted EPS
30CLASSIFIED – INTERNAL USE Reconciliation of Adjusted Net Income to Net Income and Adjusted Earnings Per Diluted Share to Earnings Per Diluted Share 30 2014 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net income as reported $11,944 $ 9,470 $ 7,208 $ 3,939 $ 16,565 $ 11,166 $ 8,282 $ 11,691 $14,225 Adjustm
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