Granite City Food & Brewery Ltd · OTC:GCFB
Granite City Food & Brewery — ICR Xchange (January 2007)
37 slides from Granite City Food & Brewery's conference presentation, Jan 11, 2007
Slide 1: ICR Xchange Investor Presentation
ICR Xchange Investor Presentation
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure This presentation contains forward-looking statements of expected future developments, as defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this presentation refer to our expectations regarding continued operating improvements a
Slide 3: Granite City Highlights
Granite City Highlights Granite City is a “Modern American” Upscale Casual Restaurant Chain Squarely Positioned In The American Consumer Sweet Spot We Operate Very Popular High Volume Restaurants That Are Among The Sales Leaders In Every Market Where We Compete Our Unit Level Economics Are Among The
Slide 4: Granite City Highlights: Operating Fundamentals
Granite City Highlights Our Operating Fundamentals Are Very Strong In A Tough Environment Highlighting Our Concept Strength And Execution Our Restaurant Concept Is A Great Business So We Attract Great People We Are Early In Our Growth Cycle And Have Tremendous Growth Potential, 18 Restaurants Open A
Slide 5: Concept
Concept Granite City Was Designed To Attract A Wide Range Of Consumers For The High Frequency Dining Occasions Lunch, Dinner, Brunch, Gathering We Are The Best In Our Category Our Concept is Right in the Middle – We Provide Guests A Reliable High Quality Experience In A Friendly And Affordable Way
Slide 6: Concept: Serious Restaurant First
Concept We Are A “Serious Restaurant First” High Quality And Proprietary “Made-From-Scratch” Recipes
Slide 7: Concept: Beautiful Restaurants
Concept We Have Beautiful Restaurants To Complement Our Food And Create An Exceptional Value Proposition An Upscale Experience At A Casual Price We Have a Distinctive Look and Feel Ambiance is Modern but Familiar
Slide 8: Fun, Energetic, Everyday Atmosphere
Fun, Energetic, Everyday Atmosphere Conveys A Warm And Inviting Experience That Can Be Repeated Frequently
Slide 9: Bright, Spacious, Open Setting
Bright, Spacious, Open Setting That Is Upscale, But Casual And Unpretentious
Slide 10: Showcase Kitchens and Brewery Finishing Tanks
Our Food Focus Is Highlighted By Our Showcase Kitchens Our Brewery Finishing Tanks Create Theater In Our Dining Areas
Slide 11: Proprietary Beverages Complement Our Food
Proprietary Beverages Complement Our Food We Are Not A “Brew Pub” Though We Feature Craft Brewed Beers – This Distinction Works For Our Customers And It Works For Us
Slide 12: Granite City Travels
Granite City “Travels” There Is Nothing Regional About Our Concept Identity Our Concept Is Fully Refined – We Are Popular In Various Size Markets In Multiple States with a Broad Customer Demographic Pull
Slide 13: Vision For Growth
Vision For Growth Concept Positioning Menu Architecture Operational Principles Expansion Strategy Capitalization
Slide 14: Exceptional Unit Level Economics
Exceptional Unit Level Economics Average Unit Volume Average Check Restaurant Level EBITDA Square Feet Sales per Square Foot “This is a Great Business” $4.6M $12.91 18.7% 9,200 $500
Slide 15: Strong Q1-Q3 2006 Comparable Sales
Strong Q1-Q3 2006 Comparable Sales 5.5% 2.5% 5.1% -1.3% 3.4% -0.6% 5.0% 0.0% Q1 2006 Q2 2006 Q3 2006 2006 YTD Granite City Knapp-Track
Slide 16: Strong Q4 2006 Comparable Sales
Strong Q4 2006 Comparable Sales 6.6% 7.1% 10.2% 8.3% 5.5% Oct-06 Nov-06 Dec-06 Q4 2006 2006 YTD
Slide 17: Comparative Average Sales Volume
Comparative Average Sales Volume (in millions) Source: SEC filings, 10-K, analyst reports, company presentations, and Restaurant Research Journal Add decimals Chili’s Outback Granite City PF Chang’s 2.5 3.2 3.3 3.5 4.4 4.6 5.1 5.6 11.1 Applebee's TGIF Champps BJ's Cheesecake
Slide 18: Concept Position
Concept Position Premium Food Quality: Presentation, Flavor Profile, Variety, Quality Superior Service Level: Strong Openings And Maintain High Performance Standards Ambiance: Sophisticated But Unpretentious Deliver An Upscale Restaurant Experience A Notch Above Casual Dining With Upscale Attributes
Slide 19: Concept Position: Mass Market Price Points
Concept Position Deliver The Granite City Experience At Price Points Closer To “Mass Market” Casual Dining Chains (Applebee’s, Chili’s, TGI Friday’s) Deliver A $25 Experience For Under $15
Slide 20: Casual Dining Concepts Price Point
Casual Dining Concepts Price Point Champps Chili’s Applebee’s TGI Friday’s Lower Olive Garden Outback Steakhouse Macaroni Grill Red Lobster Mid Level The Cheesecake Factory PF Chang’s McCormick and Schmick’s Houston’s Upscale Attributes
Slide 21: Senior Management Team
Senior Management Team 20 Champps COO Tim Cary 25 Champps Executive Chef Art Nermoe 22 Il Fornaio, Red Lion Hotels, Nighthawk, Price Waterhouse CFO Peter Hausback 30 Champps CEO Steve Wagenheim Years Experience Title Name Over 100 Years of Restaurant Industry Experience
Slide 22: Current Locations
4. Des Moines, IA 5. Cedar Rapids, IA 6. Davenport, IA 7. Lincoln, NE 8. Maple Grove, MN1. St. Cloud, MN 2. Sioux Falls, SD 3. Fargo, ND9. Wichita, KS 10. Eagan, MN 11. Kansas City, MO 12. Kansas City, KS 13. Olathe, KS 14. West Wichita, KS 15. St. Louis Park, MN 16. Omaha, NE 17. Roseville, MN 18.
Slide 23: Beverage Leverage: Proprietary Brewing Process
Beverage Leverage Proprietary Brewing Process Creates Advantages Of A Brewpub Without Prohibitive Costs Eliminates Costly Onsite Brewery And Brewery Equipment Eliminates The Need For On-Site BrewMasters Centralized Production Facility For Non-Alcoholic “Wort” Which Is Transported To Our Restaurants
Slide 24: Beverage Leverage: Patent Approved
Beverage Leverage Approved This Patent Gives Granite City Federal Protection For Its Proprietary Brewing Process Patent
Slide 25: Beverage Leverage: Half the Cost of National Brands
Beverage Leverage We Produce Beer At Half The Cost Of National Brands Which Provides A Margin Advantage. National Brands (Bud, Miller, Coors): $100 - $120 per Barrel Premium Brands (Rolling Rock, Guinness): $122 - $245 per Barrel Granite City Craft Beers: $60 - $70 per Barrel Granite City Proprietar
Slide 26: Dunham Company Real Estate Partnership
Dunham Company Is A Commercial Real Estate Development Company Attractive Growth Capital And Development Arrangement For A Company Our Size And Increased Access To “A” Sites Cooperative Site Selection, Development, Construction Build Out Competitive Bidding Process Guaranteed Maximum Costs Outsource
Slide 27: Dunham Net Leases and Equipment Financing
20-year Net Leases With Extension Options We pay 10.5% Of Construction plus Land Cost Completed $16M Equipment Financing Package To Support Growth Dunham Company – Real Estate Partnership
Slide 28: 2006 Q3 YTD Financial Highlights
2006 Q3 YTD Financial Highlights $4.7 M (11.4% as a % of Revenue) G&A $(.28) Loss Per Share 16.8% 18.7% EBITDA % $41.3 M $26.2 M (AUV:$4.6M) Revenue Company Mature Restaurants
Slide 29: Sales Growth
Sales Growth (in millions) Source: SEC filings and internal projections CAGR 56% $14.1 $30.6 $36.2 $58.5 $85.0 2003200420052006E2007E
Slide 30: Unit Growth
Unit Growth Source: SEC filings and internal projections CAGR 51% 5 8 11 18 26 20032004200520062007E
Slide 31: Gaining G&A Efficiency
Gaining G&A Efficiency Source: SEC filings and internal projections G&A Leverage 13.0% 8.5% 13.7% 10.9% 8.9% 2003200420052006E2007E
Slide 32: Guidance
Guidance Restaurant Openings Total Restaurants Revenue Store-Level EBITDA 2006 7 18 $57.0 to $58.1 $9.6 to $10.0 Restaurant Openings Total Restaurants Revenue Store-Level EBITDA 2007 7-8 25-26 $84.0 to $87.0 $14.0 to $14.5 Millions Millions Millions Millions
Slide 33: Built G&A Infrastructure To Support Growth
Built G & A Infrastructure To Support Growth Granite City University New Restaurant Opening Team Director Of Operations Corporate Support Staff Test Kitchen Dunham Development Agreement Production Facility Supports An Additional 18-23 Restaurants Patent Approved And We Own The Franchise Support Stru
Slide 34: 2006 Openings
2006 Openings Kansas City, KS Olathe, KS West Wichita, KS St. Louis Park, MN Omaha, NE Roseville, MN Madison, WI
Slide 35: 2007 Openings
2007 Openings Creve Cour, MO Peoria, IL Rockford, IL Rogers, AR Orland Park, IL Burr Ridge ,IL Minneapolis, MN St. Louis, MO
Slide 36: 2008 Openings
2008 Openings Good Major and Second Tier Markets
Slide 37: Future Growth Potential
Future Growth Potential Modern American Sweet Spot High Volume Restaurant Beverage Leverage Great Business Works Anywhere
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