Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q2 2011 Earnings Presentation
14 slides from Red Robin Gourmet Burgers's earnings presentation, Aug 11, 2011
Slide 1: Financial Presentation: Fiscal Second Quarter Financial Review & Outlook
Financial Presentation Fiscal Second Quarter Financial Review & Outlook August 11, 2011 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This presentation includes "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as “improve,” “will,” “expects,” “continue” and other terms with similar meaning. These statements include but are not limited to
Slide 3: Q211 Revenue & Sales Highlights
Q211 Revenue & Sales Highlights Line Item Q211 Q210 Total Company revenue $215.8 M $201.3 M Restaurant revenue $212.1M $198.0 M Franchise royalties & fees $3.3 M $3.1 M Company comp sales +3.1% Price/mix +4.5% Guest counts -1.4% -1.2% Price/mix -2.1% Guest counts +0.9% GAAP diluted EPS $0.44 $0.28 C
Slide 4: Q211 Restaurant-Level P&L
Q211 Restaurant-Level P&L Line Item % of Rest. Sales Q2 ‘11 % of Rest. Sales Q2 ‘10 Variance Food & Beverage 25.2% 24.6% +60 bps Labor 33.3% 35.1% -180 bps Operating 13.7% 14.6% -90 bps Occupancy 7.0% 7.4% -40 bps RLOP (non GAAP) 20.8% 18.3% +250 bps 4
Slide 5: Q211 P&L
Q211 P&L Line Item Q211 ($M) Q210 ($M) Variance Depreciation & amortization $12.6 $13.2 -4.2% Selling, general & administrative $24.5 $20.0 22.7% Pre-opening $1.5 $0.4 NM* Net interest expense $1.5 $1.3 17.2% Effective tax rate 8.8% 9.1% -30 bps Net Income $6.9 $4.3 59.1% GAAP diluted EPS $0.44 $0.2
Slide 6: Project RED
6 Project RED Revenue growth Expense management Deployment of capital
Slide 7: Revenue Growth
7 Revenue Growth Red Royalty Taking back the bar Marketing spend, LTOs and Pricing
Slide 8: Expense Management
8 Expense Management Reduce administrative and restaurant-level expenses Reduce supply chain costs Improve day-to-day efficiency and productivity Improve operating margins by 200 bps. $16M to $18M in annualized savings by YE 2012
Slide 9: Deployment of Capital
9 Deployment of Capital Continue to drive NRO performance and ROIC Expand development plans, test smaller prototype Overhaul data and technology infrastructure Reignite franchise growth Repurchase shares Grow the brand AND maximize long-term shareholder value
Slide 10: Guidelines
Outlook Guidelines Not providing sales or earnings guidance Encouraged by the traction that we’re achieving on Project RED initiatives Precise timing and impact on results difficult to predict Recommend a conservative approach in forecasting how initiatives will impact our financial performance 10
Slide 11: Rules of Thumb
Outlook - Rules of Thumb On an annualized basis: 1% change in Guest counts assumptions equates to about 25 cents a share 1% change in price is about 43 cents a share 10 basis point change in restaurant margins is about 5 cents per share A change in pretax income or expense of $173,000 is a penny a s
Slide 12: Financials: Pricing, Commodities and Labor Outlook
Outlook – Financials Pricing increase of 1.5% taken in April Expect price/mix of approximately +4.5% to +5.0% in fiscal Q3 2011 and +3.5% to +4.0% in fiscal Q4 2011 Commodities increase of 5.0 % to 5.5% for full fiscal year 2011 Includes 18% increase in ground beef costs Full fiscal year 2011 labor
Slide 13: Financials: SG&A, Advertising, Interest and Tax Outlook
Outlook – Financials Full fiscal year 2011 SG&A expense $100.0M to $101.0M TV advertising $12M-$13M in full FY ‘11 Performance-based bonus accruals Systems and technology investment expense Acceleration in new restaurant development Executive transition costs Interest expense of $1.5M per quarter Ef
Slide 14: Financials: CapEx and New Unit Development
Outlook - Financials Full FY ’11 CapEx of $43M-$45M, funded via operating cash flow $23M-$24M for new unit development $12M-$13M million for maintenance capital $8M for data infrastructure New unit development in 2011 Up to 12 Company full-size restaurants – 2 in Q3, 3 in Q4 – plus 1 smaller prototy
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