Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q4 2013 Earnings Presentation
26 slides from Red Robin Gourmet Burgers's earnings presentation, Feb 14, 2014
Slide 1: Fiscal Q413 Results
Fiscal Q413 Results February 14, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking statements in this presentation regarding our expected restaurant sales growth, new restaurant openings, future economic performance, costs and capital expenditures and investments, certain statements under the heading “2014 Outlook -- Financials” and all o
Slide 3: Q413 Headlines
Q413 Headlines Comp sales up 3.7%, Guest traffic down 1.4% Total restaurant revenues increased 0.4% to $237.6 million on a 12 week quarter vs. 13 weeks in 2012 Restaurant-level operating profit margin increased 110 bps to 21.7% Adjusted earnings per diluted share $0.62 compared to $0.59 in Q412 (12
Slide 4: More Guests, More Often and More Delighted
More Guests, More Often and More Delighted •Create Unique Connection With Our Guests •Customize Guest Experiences •Deliver Total Value Proposition •Continually Elevate Burger Authority Guest Engagement •Grow Market Share to Exploit Brand Strengths •Add New Trade Areas in Growth Markets •Fill-in Matu
Slide 5: Brand Transformation
Brand Transformation 4
Slide 6: "24 Burgers. A Million Reasons"
“24 Burgers. A Million Reasons” FPO 5
Slide 7: Launch of Red Robin's Finest
Launch of Red Robin’s Finest 6 Launched Smoke & Pepper burger, inspired by 2013 SoBe Wine & Food Festival Best of the Bash winner. First in our Finest line featuring Black Angus beef, specialty toppings and distinctive plating. Bookends the premium end of our burger barbell strategy ranging from $6.
Slide 8: Holiday Lineup
Holiday Lineup 7
Slide 9: Burger Works 2.0
Burger Works 2.0 8 2014 plan is to expand central business district locations Expanding to Washington D.C. and Chicago markets 2.0 includes: • Menu development and evolution • Kitchen/POS enhancements • New interior package
Slide 10: Financial Update
Financial Update
Slide 11: Q413 Sales Highlights
Q413 Sales Highlights Q413 (12 weeks) Q412 (13 weeks) Change Restaurant revenue $237.6 million $236.7 million +0.4% Total company revenues $241.9 million $240.7 million +0.5% Company-owned comp revenue +3.7% Price/mix: +5.1% Guest counts: -1.4% +1.4% Price/mix: +1.1% Guest counts: +0.3% Franchised c
Slide 12: Comparable Sales Growth
Comparable Sales Growth Red Robin 6.0% 5.7% 5.0% 43% 4.0% 3.7% 3.0% 2.2% 2.0% 1.4% . [J 0.0% 412 113 0213 0313 413
Slide 13: Comparable Sales Growth by Year
Comparable Sales Growth by Year 12
Slide 14: Continuous RLOP Quarterly Improvement
Continuous RLOP Quarterly Improvement 13
Slide 15: RLOP Margin Improvement
RLOP Margin Improvement Change over prior year, in bps 14
Slide 16: RLOP Long Term Trend
RLOP Long Term Trend 24.0% 23.0% 22.0% 21.0% 20.7% 20.0% 19.8% 19.0% 18.9% 18.0% 17.8% 17.0% [| 16.0% 2009 2010 2011 2012 2013 15
Slide 17: Q413 Restaurant Results
Q413 Restaurant Results Line Item % of Restaurant Revenues Q413 % of Restaurant Revenues Q412 Favorable (Unfavorable) Cost of Sales 25.2% 25.2% - Labor 33.7% 33.7% - Other Operating 12.0% 13.0% 100 bps Occupancy 7.4% 7.5% 10 bps Restaurant Level Operating Profit (Non-GAAP) 21.7% 20.6% 110 bps 16
Slide 18: Adjusted EBITDA
Adjusted EBITDA $ in millions 17 $109.0 million in 2013 $104.4 million in 2012 $92.6 million in 2011
Slide 19: Adjusted Net Income
Adjusted Net Income $ in millions 18 See slide 25 for reconciliation of non-GAAP Adjusted Net Income to Net Income
Slide 20: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share Note: Fiscal Q4 2012 contained 13 weeks compared to 12 weeks in 2013 and 2011 19 See slide 25 for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings Per Diluted share $2.37 in 2013 $2.06 in 2012 $1.58 in 2011
Slide 21: 2014 Outlook – Financials
2014 Outlook – Financials Comparable restaurant revenue growth in low single digits Open 20 new company-owned Red Robin® restaurants plus 5 Red Robin’s Burger Works® Capital investments expected to total between $85 million and $90 million RLOP margins expected to exceed 21.0% G&A costs expected to
Slide 22: Appendix
Appendix
Slide 23: Cash Flow from Operations
Cash Flow from Operations $ in millions 22
Slide 24: Q413 Commodity Update
Q413 Commodity Update Category % of Total COGS in Q4 2013 Market vs. Contract Ground beef 13.9% Market Steak Fries 11.0% 100% contract through 10/14 Poultry 10.4% 100% contract through 12/14 Produce 7.5% Tomatoes and lettuce 100% contract through 9/14 Bread 6.4% 100% contract through 6/14 Cheese 5.5
Slide 25: Adjusted EBITDA Reconciliation to Net Income
Adjusted EBITDA Reconciliation to Net Income 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net income as reported $8,708 $6,895 $2,069 $2,905 $10,558 $7,748 $3,533 $6,492 $9,480 $11,139 $4,661 $6,959 Adjustments to net income: Income tax expense (benefit) 1,132 663 (369) 85 3,356 2,408 1,210 1,
Slide 26: Reconciliation of Adjusted Net Income and Adjusted EPS
Reconciliation of Adjusted Net Income to Net Income and Adjusted Earnings Per Diluted Share to Earnings Per Diluted Share 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net income as reported $ 8,708 $ 6,895 $ 2,069 $ 2,905 $ 10,558 $ 7,748 $ 3,533 $ 6,492 $ 9,480 $ 11,139 $ 4,661 $ 6,959 Adjust
Red Robin Gourmet Burgers — Q4 2013 Earnings Presentation on 6ix