Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q3 2013 Earnings Presentation
22 slides from Red Robin Gourmet Burgers's earnings presentation, Nov 5, 2013
Slide 1: Fiscal Q313 Results
Fiscal Q313 Results November 5, 2013
Slide 2: Forward-Looking Statements
Forward-Looking Statements 1 Forward Looking statements in this presentation regarding our expected restaurant sales growth, new restaurant openings, brand transformation initiative, future economic performance, costs and capital expenditures and investments, certain statements under the heading “20
Slide 3: Q313 Headlines
Comp sales up 5.7%, Guest traffic up 1.1% Total restaurant revenues increased 8.1% Restaurant-level operating profit margin increased 70 bps to 20.4% EPS $0.32 compared to $0.24 in Q312 Q313 Headlines 2
Slide 4: Brand Transformation
Brand Transformation 3
Slide 5: "24 Burgers. A Million Reasons"
“24 Burgers. A Million Reasons” FPO 4
Slide 6: Summer Promo
Summer Promo 5
Slide 7: Octoberfest-inspired Fall Lineup
Octoberfest-inspired Fall Lineup 6
Slide 8: va Red Robin’
72 va Red Robin’ “~~ i
Slide 9: Q313 Sales Highlights
Q313 Q312 Change Restaurant revenue $226.8 million $209.8 million +8.1% Total company revenue $230.7 million $213.3 million +8.1% Company-owned comp revenues +5.7% Price/mix: +4.6% Guest counts: +1.1% +1.1% Price/mix: +0.3% Guest counts: +0.8% Franchised comp revenues U.S.: +4.8% Canada: +4.1% U.S.:
Slide 10: Comparable Sales Growth
Comparable Sales Growth 6.0% 5.7% 5.0% 4.3% 4.0% 3.0% 2.2% 2.0% oO 1.1% 1.0% 0.0% 9312 0412 113
Slide 11: Restaurant-Level Operating Profit Margin
19.8% 21.2% aa 21.5% 20.8% 21.1% 23.3% 18.8% 2011 m2012 2013 19.7% a3 20.4% 19.9% 20.6% a4
Slide 12: RLOP Margin Improvement
RLOP Margin Improvement Change over prior year, in bps 11
Slide 13: Q313 Restaurant Results
Line Item % of Restaurant Revenues Q313 % of Restaurant Revenues Q312 Favorable (Unfavorable) Cost of Sales 25.2% 24.8% (40 bps) Labor 33.8% 34.2% 40 bps Other Operating 13.0% 13.5% 50 bps Occupancy 7.6% 7.8% 20 bps Restaurant Level Operating Profit (Non-GAAP) 20.4% 19.7% 70 bps Q313 Restaurant Resu
Slide 14: Adjusted EBITDA
Adjusted EBITDA $ in millions 13 $83.3 million YTD 2013
Slide 15: Adjusted Net Income
Adjusted Net Income $ in millions 14 See slide 21 for reconciliation of non-GAAP Adjusted Net Income to Net Income
Slide 16: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share Note: Fiscal Q4 2012 contained 13 weeks compared to 12 weeks in 2011 15 See slide 21 for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings Per Diluted share +18.2% YTD 2013
Slide 17: 2013 Outlook – Financials
2013 Outlook – Financials Capital investments approximately $75 million Open 21 new company-owned Red Robin® restaurants plus 1 Red Robin’s Burger Works® Comparable restaurant revenue growth of close to 4.0% versus 2012 RLOP margins approximately 21.7% G&A costs expected to exceed $92 million 16
Slide 18: Appendix
Appendix 17
Slide 19: Cash Flow from Operations
Cash Flow from Operations $ in millions 18
Slide 20: Q313 Commodity Update
Category % of Total COGS in Q3 2013 Market vs. Contract Hamburger 13.9% Market Steak Fries 10.8% 100% contract through 10/14 Poultry 10.4% 100% contract through 12/13 Produce 7.4% Tomatoes and lettuce 100% contract through 9/14 Bread 6.5% 100% contract through 12/13 Cheese 5.3% 60% contract 10/13 to
Slide 21: 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 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 Adjustments to net income: Income tax expense (benefit) 1,132 663 (369) 85 3,356 2,408 1,210 1,552 2,977
Slide 22: 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 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 Adjustments to ne
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