Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q1 2013 Earnings Presentation
24 slides from Red Robin Gourmet Burgers's earnings presentation, May 21, 2013
Slide 1: Fiscal Q113 Results
Fiscal Q113 Results May 21, 2013
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2
Slide 3: Q113 Headlines
Comp sales up 2.2% -- 11th consecutive quarter of same store sales growth Total revenues increased 2.3% Restaurant-level operating profit margin increased 30 bps to 21.5% EPS $0.66 compared to $0.71 in Q112 Q113 Headlines 3
Slide 4: Brand Transformation
Brand Transformation Elevated service, spiral menu and food presentation Promising results to date, especially in “fully transformed” locations Continued testing; plans to transform additional 20 restaurants in 2013 5
Slide 5: New Restaurant Prototypes
New Restaurant Prototypes Applying brand transformation learnings to “next generation” prototype restaurants Smaller 4,000-s.f. footprint Greater flexibility in site selection Lower construction costs Potentially higher returns 3 mid-size units opened to date, 6 additional mid-sized units planned fo
Slide 6: Marketing Update
Marketing Update 7
Slide 7: Brand Transformation: Guest Response
Brand Transformation: Guest Response 8
Slide 8: "24 Burgers. A Million Reasons" Campaign
“24 Burgers. A Million Reasons” Campaign 9
Slide 9: Financial Update
ae Boe Financial Update ge wa = a _ oe -— Red Robin’ we i
Slide 10: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share Note: Fiscal Q4 2012 contained 13 weeks compared to 12 weeks in 2011 11 See slide 25 for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings Per Diluted share
Slide 11: Q113 Sales Highlights
Q113 Q112 Change Restaurant revenue $301.3 million $294.6 million +2.3% Total company revenue $306.3 million $299.5 million +2.3% Company-owned comp revenues +2.2% Price/mix: +2.8% Guest counts: -0.6% +0.5% Price/mix: +4.1% Guest counts: -3.6% Franchised comp revenues U.S.: -1.0% Canada: +3.2% U.S.:
Slide 12: Comparable Sales Growth
Comparable Sales Growth Red Robin 5.0% 4.0% 3.0% 2.2% 2.0% 1.4% 1.1% 1.0% 0.8% = mm aii2 212 312 412 113 -1.0%
Slide 13: Restaurant Level Operating Profit Margin
22.0% 21.0% 20.0% 19.0% 18.0% 17.0% 16.0% Red Robin 21.5% ahs 21.1% 20.8% 20.6% 19.9% WIS 19.7% 18.8% au a2 a3 a4 2011 m2012 2013
Slide 14: RLOP Margin Improvement
RLOP Margin Improvement Change over prior year, in bps 15
Slide 15: Q113 Restaurant Results
Line Item % of Restaurant Revenues Q113 % of Restaurant Revenues Q112 Favorable (Unfavorable) Cost of Sales 24.9% 25.5% 60 bps Labor 33.8% 33.5% (30 bps) Other Operating 12.3% 12.7% 40 bps Occupancy 7.5% 7.2% (30 bps) Restaurant Level Operating Profit (Non-GAAP) 21.5% 21.2% 30 bps Q113 Restaurant Re
Slide 16: Adjusted EBITDA
Adjusted EBITDA $ in millions 17
Slide 17: 2013 Outlook – Financials
2013 Outlook – Financials Increasing projected capital investments to around $70 million Open 20 new company-owned Red Robin® restaurants, plus several Red Robin’s Burger Works® Comparable restaurant revenue growth of 2.5% to 3.0% versus 2012 RLOP margins near 20.9% G&A costs near $87 million 18
Slide 18: 2013: Accelerating Growth
Develop new products and service platform, elevate guest experience and perceived value Continue testing of Brand Transformation Expand restaurant base with full-size, mid-size and Burger Works locations Invest in talent, financial and supply chain systems and other value-enhancing initiatives 2013:
Slide 19: Appendix
Appendix 20
Slide 20: Q113 Commodity Update
Category % of Total COGS in Q1 2013 Market vs. Contract Hamburger 14.4% Market Steak Fries 11.5% 100% contract through 10/13 Poultry 10.9% 100% contract through 6/13, 70% contract 7/13 to 12/13 Produce 8.2% 80% contract through 9/13 Bread 6.3% 100% contract through 6/13 Cheese 5.7% Market Meat 4.5%
Slide 21: Adjusted Net Income
Adjusted Net Income $ in millions 22 See slide 25 for reconciliation of non-GAAP Adjusted Net Income to Net Income
Slide 22: Cash Flow from Operations
Cash Flow from Operations $ in millions 23
Slide 23: Adjusted EBITDA Reconciliation to Net Income
Adjusted EBITDA Reconciliation to Net Income 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net income as reported $8,708 $6,895 $2,069 $2,905 $10,558 $7,748 $3,533 $6,492 $9,480 Adjustments to net income: Income tax expense (benefit) 1,132 663 (369) 85 3,356 2,408 1,210 1,552 2,977 Interest expense, net
Slide 24: 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 Net income as reported $ 8,708 $ 6,895 $ 2,069 $ 2,905 $ 10,558 $ 7,748 $ 3,533 $ 6,492 $ 9,480 Adjustments to net income: Loss on debt
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