Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q2 2017 Earnings Presentation
26 slides from Red Robin Gourmet Burgers's earnings presentation, Aug 8, 2017
Slide 1: Second Quarter 2017 Results
CLASSIFIED – INTERNAL USE Second Quarter 2017 Results August 8, 2017
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, off-premise sales, marketing campaign, earnings per share, interest expense, statements under the heading “Outlook for 2017” and al
Slide 3: Red Robin Q2-2017 Results
3CLASSIFIED – INTERNAL USE Red Robin Q2-2017 Results • Total revenues increased 3.3% • Comparable restaurant revenue up 0.5% • Restaurant-level operating profit(1) was 19.9% compared to 20.9% in the prior year • Adjusted EBITDA(1) was $32.3 million • Diluted earnings per share were $0.53 compared to
Slide 4: Driving Satisfaction and Loyalty
4CLASSIFIED – INTERNAL USE Driving Satisfaction and Loyalty • Elevating Guest Experience, Value Perception, Ad Effectiveness, To-Go • Improving speed of service, taste and order accuracy • Continuing to achieve consistently stronger Net Promoter Scores
Slide 5: Value Through High Quality Menu Items vs. Peers
© 2017 Technomic Inc. 5CLASSIFIED – INTERNAL USE %Top Box “Provides Value Through High Quality Menu Items” (vs. peers) Base: 700 recent guests per year for each chain tracked (350 recent guests for 2017 YTD) Source: Consumer Brand Metrics, Technomic Inc. 43.5% 40.1% 48.3% 47.5% 48.1% 49.8% 49.5% 48.
Slide 6: "Let's Burger" Campaign
6CLASSIFIED – INTERNAL USE “Let’s Burger” Campaign
Slide 7: Investing in Off-Premise Opportunities
7CLASSIFIED – INTERNAL USE Investing in Off-Premise Opportunities
Slide 8: Staged Deployment in Carryout
8 Staged Deployment in Carryout 0 460 Online Ordering 0 460 New Packaging 0 460 Call Center 0 460 In-Store Pickup / Designated Resource 0 460 Curbside Q4Q2 Q3Q1Locations Q4 2016
Slide 9: Optimizing Our Labor Models
9CLASSIFIED – INTERNAL USE Optimizing Our Labor Models
Slide 10: Financial Update
CLASSIFIED – INTERNAL USE 10 Financial Update
Slide 11: Q2-17 Sales Highlights
11CLASSIFIED – INTERNAL USE Q2-17 Sales Highlights Q2-17 (12 Weeks) Q2-16 (12 Weeks) Change Q7-16 YTD (28 Weeks) Q2-16 YTD (28 Weeks) Change Restaurant revenue $312.4 million $302.2 million 3.4% $725.8 million $698.9 million 3.9% Total company revenues $315.8 million $305.5 million 3.3% $734.3 milli
Slide 12: Comparable Restaurant Revenue Trend
12CLASSIFIED – INTERNAL USE Comparable Restaurant Revenue Trend(1) 3.1% 2.9% 3.5% -2.0% -2.6% -3.2% -3.6% -4.3% -1.2% 0.5% -4.5% -2.5% -0.5% 1.5% 3.5% 5.5% Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 (1) Calculated at constant currency rates.
Slide 13: Restaurant Level Operating Profit Margins
13CLASSIFIED – INTERNAL USE 23.0% 22.5% 21.6% 21.9% 22.5% 20.9% 18.6% 19.0% 20.7% 19.9% 16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% Q1 Q2 Q3 Q4 2015 2016 2017 Restaurant Level Operating Profit (1) Margins 13 (1) See Appendix for reconciliation of non-GAAP restaurant-level operating p
Slide 14: Q2-17 Restaurant Results
14CLASSIFIED – INTERNAL USE Q2-17 Restaurant Results 14 % of Restaurant Revenue Q2-17 % of Restaurant Revenue Q2-16 Favorable (Unfavorable) Cost of sales 23.7% 23.4% (30 bps) Labor 34.7% 34.0% (70 bps) Other operating 13.7% 13.4% (30 bps) Occupancy 8.0% 8.3% 30 bps Restaurant Level Operating Profit(
Slide 15: Adjusted EBITDA
15CLASSIFIED – INTERNAL USE $45.5 $33.6 $30.0 $34.3 $48.9 $33.5 $26.8 $29.2 $45.8 $32.3 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 $55.0 Q1 Q2 Q3 Q4 2015 2016 2017 Adjusted EBITDA(1)(2) ($ in millions) 15 (1) See Appendix for reconciliation of non-GAAP Adjusted EBITDA to Net Income (Loss)
Slide 16: Adjusted Earnings Per Diluted Share
16CLASSIFIED – INTERNAL USE Adjusted Earnings Per Diluted Share $1.10 $0.78 $0.58 $0.86 $1.27 $0.75 $0.38 $0.35 $0.89 $0.61 $0.15 $0.35 $0.55 $0.75 $0.95 $1.15 $1.35 Q1 Q2 Q3 Q4 2015 2016 2017 16 See Appendix for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings (Loss) Per D
Slide 17: Outlook for 2017
17CLASSIFIED – INTERNAL USE Outlook for 2017 • Earnings per diluted share projected to range from $0.20 to $0.30 for the third quarter and will approximate the low end of the $2.80 to $3.10 guidance for full-year 2017. • Cost of sales, as a percentage of restaurant revenue, projected to be in the ra
Slide 18: In Closing
18CLASSIFIED – INTERNAL USE In Closing 18
Slide 19: Thank you to all of our Team Members!
19CLASSIFIED – INTERNAL USE Thank you to all of our Team Members! 17
Slide 20: Appendix
CLASSIFIED – INTERNAL USE 20 Appendix
Slide 21: Adjusted Net Income
21CLASSIFIED – INTERNAL USE Adjusted Net Income(1) $15.6 $11.2 $8.3 $12.0 $17.6 $10.3 $5.0 $4.5 $11.6 $7.9 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 Q1 Q2 Q3 Q4 2015 2016 2017 ($ in millions) 21 (1) See Appendix for reconciliation of non-GAAP Adjusted Net Income to Net Income (Loss)
Slide 22: Cash Flow from Operations
22CLASSIFIED – INTERNAL USE $36.0 $31.3 $34.0 $39.6 $42.5 $24.6 $27.6 $4.3 $70.0 $34.7 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 Q1 Q2 Q3 Q4 2015 2016 2017 Cash Flow from Operations ($ in millions) 22
Slide 23: Q2-17 Commodity Update
23CLASSIFIED – INTERNAL USE Q2-17 Commodity Update As of July 9, 2017, approximately 67% of the Company’s estimated food and beverage purchases for the last half of 2017 were covered by fixed price contracts, most of which are scheduled to expire at various times through the end of 2017. 23 % of Tot
Slide 24: Reconciliation of Adjusted Net Income and Adjusted EPS
24CLASSIFIED – INTERNAL USE Reconciliation of Adjusted Net Income to Net Income (Loss) and Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted Share 24 ($ in thousands, except per share data) 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net income (loss) as reported $ 16,565 $ 11,166
Slide 25: Restaurant Level Operating Profit Reconciliation
25CLASSIFIED – INTERNAL USE Restaurant Level Operating Profit Reconciliation to Income from Operations and Net Income (Loss) ($ in thousands) 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Restaurant revenue $ 388,509 $ 288,704 $ 279,496 $ 282,189 $ 396,770 $ 302,117 $ 293,858 $ 287,924 $ 413,451 $ 31
Slide 26: EBITDA and Adjusted EBITDA Reconciliation to Net Income
26CLASSIFIED – INTERNAL USE EBITDA and Adjusted EBITDA Reconciliation to Net Income (Loss) 26 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net income (loss) as reported $ 16,565 $ 11,166 $ 8,282 $11,691 $14,225 $ 7,552 $ (1,300) $ (8,752) $ 11,567 $ 6,931 Adjustments to net income (loss): Income tax
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