Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — ICR Conference 2023
15 slides from Red Robin Gourmet Burgers's conference presentation, Jan 9, 2023
Slide 1: Red Robin ICR 2023
Re Robin ICR 2023
Slide 2: Forward Looking Statements
Copyright 20232 Proprietary and confidential FORWARD LOOKING STATEMENTS Forward-looking statements regarding the Company's future performance; “North Star” strategic plan; preliminary results including revenue; Adjusted EBITDA projections; potential Sale-Leaseback transactions, timing, and anticipat
Slide 3: RRGB Overview
Copyright 20233 Proprietary and confidential RRGB OVERVIEW 1) Represents total system, including Company owned and Franchise locations 2) Comparable Company-owned restaurants as of 10/2/2022 3) Total Company-owned restaurants 4) Adjusted EBITDA is a non-GAAP measure. See appendix for reconciliation
Slide 4: Rise to Success
Copyright 20234 Proprietary and confidential RISE TO SUCCESS ▪ Red Robin founded in 1969 ▪ IPO in 2002 ▪ Achieved significant growth throughout early 2000s ▪ Delivered a compelling brand promise of family and friends connecting over awesome American food and bottomless fun ▪ Developed competitive ad
Slide 5: Total Revenue and Restaurant Count Grew Through 2017
Copyright 20235 Proprietary and confidential TOTAL REVENUE AND RESTAURANT COUNT GREW THROUGH 2017 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Restaurants Total Revenue Total Revenue (1,000s)
Slide 6: Decline in Guest Satisfaction vs Casual Dining Average
Copyright 20236 Proprietary and confidential CD Avg 100 103 99 96 96 97 94 93 94 96 93 94 102 102 104 99 97 92 93 85 91 92 90 84 75 80 85 90 95 100 105 110 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD CD Avg Red Robin Overall Rating: Top Box Index Better than Casual Dining Average
Slide 7: Cost-cutting decisions diminished guest experience and results
Copyright 20237 Proprietary and confidential Degradation of food quality Labor reductions that impacted the Guest experience Under investment in the business AFTER MANY YEARS OF GROWTH, COST-CUTTING DECISIONS THAT WERE WELL INTENDED BUT POORLY EXECUTED DIMINISHED BOTH THE GUEST EXPERIENCE AND OUR RE
Slide 8: When we execute on our promise, guests give us a lot of credit
Copyright 20238 Proprietary and confidential WHEN WE EXECUTE ON OUR PROMISE, GUESTS GIVE US A LOT OF CREDIT ▪ Burgers: gourmet burgers, creative take on traditional burgers, we do burgers great ▪ Bottomless Steak Fries and Sides ▪ Fun and Lively Atmosphere: that allows people to be themselves ▪ Fami
Slide 9: Overall satisfaction is highest in top performing restaurants
Copyright 20239 Proprietary and confidential OVERALL SATISFACTION IS HIGHEST IN OUR TOP PERFORMING COMPARABLE RESTAURANT SALES RESTAURANTS 84 86 88 90 92 94 96 98 100 102 Bottom 10% Fourth 25% Third 25% Second 25% Top 25% Top 10% Overall Satisfaction Company Owned Restaurants, Grouped by Comparable
Slide 10: When we execute the brand, we win!
Copyright 202310 Proprietary and confidential 38% 32% 7% 6% 67% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% SSS % Traffic % OSAT % Headcount vs Par GM Tenure in Role (Years) GM Tenure at RRGB (Years) Top Quartile vs. Bottom Quartile Variance Top Quartile vs Bottom Quartile Restaurants: ▪ SSS: 38% better
Slide 11: Our North Star
Copyright 202311 Proprietary and confidential OUR NORTH STAR Transform to an Operations Focused Restaurant Company: ▪ Empower decision making by Operators at the unit level ▪ Incent and reward Operators to drive business growth and results ▪ Restructured support organization Elevate the Guest Experi
Slide 12: Our North Star (cont.)
Copyright 202312 Proprietary and confidential OUR NORTH STAR (CONT.) Remove Costs and Complexity: ▪ Optimize the supply chain to reduce costs and ensure consistent delivery of high-quality product ▪ Evaluate vendors for need, performance, and competitive costs ▪ Implement ongoing process to reduce c
Slide 13: Investor Relations 2023 Calendar
Copyright 202313 Proprietary and confidential January 9-11 ICR Conference January 22-24 Jefferies Winter Restaurant, Foodservice, Gaming, Lodging & Leisure Summit February Q4 and 2022 Earnings Release, Including 2023 Guidance INVESTOR RELATIONS 2023 CALENDAR
Slide 14: Thank You!
THANK YOU!
Slide 15: Appendix: Non-GAAP Reconciliation
Copyright 202315 Proprietary and confidential APPENDIX: NON-GAAP RECONCILIATION (in thousands, unaudited) Fifty Two Weeks Ended 10/2/2022 Net loss as reported (54,918) Interest expense, net 18,870 Income tax provision (benefit) 629 Depreciation and amortization 78,378 EBITDA 42,959 Asset impairment