Del Taco Restaurants — Investor Presentation (December 2015)
28 slides from Del Taco Restaurants's investor presentation, Dec 9, 2015
Slide 1: Investor Presentation December 2015
Investor December 2015 247 150 70 238 47 36 156 199 70 205 205 205 Exhibit 99.1 Presentation
Slide 2: Disclaimer
Disclaimer Disclaimer The information contained in this presentation is as of the date hereof, and the Company has no obligation to update such information, including in the event that such information becomes inaccurate. This presentation has been prepared solely for informational purposes only. Th
Slide 3: Management
Management Management Background Paul J.B. Murphy, III President, CEO & Director Joined Del Taco in 2009 Former CEO & President of Einstein Noah Restaurant Group More than 30 years of restaurant experience with a focus on limited service chains and a proven track record for brand growth, strategic p
Slide 4: Agenda
Investment Highlights Growth Strategies Financial Overview Agenda
Slide 5: Investment Highlights
Investment Highlights Leading Mexican QSR Chain with Loyal Following Successful Brand Strategy: “Combined Solutions” in Early Stages Our Position: We Start with Fresh & Serve with Value Our Food: UnFreshingBelievable® Our Menu: Diverse Menu Targets Broad Consumer Base Our Price: High Quality Food at
Slide 6: Del Taco at a Glance
Del Taco at a Glance Based on unit count. Represents FY2014 data. #2 Mexican QSR concept in the U.S.(1) Regional icon on West Coast Differentiated menu showcases a mix of Mexican-inspired cuisine and American classics Our Concept Positioned for Growth Attractive balance of traffic and check growth d
Slide 7: Brand Positioning: We Start with Fresh & Serve with Value
Brand Positioning: We Start with Fresh & Serve with Value Del Taco Combines the Best Attributes from both QSR and Fast Casual. We call this QSR+ Quick Service Speed of Service and Value Proposition Fast Casual High Quality Food and Dining Experience Strong Value Proposition Convenience & Speed Drive
Slide 8: Attractive Positioning in the Growing Mexican Category
Attractive Positioning in the Growing Mexican Category Mexican QSR 2014 System-wide Units System wide 2014 Sales ($millions) $8,200 $656 $730 $329 $316 $303 $81 $78 Source: Industry data provided by Technomic Top 500 report. Represents Del Taco’s U.S. footprint. Excludes 1 franchised restaurant in G
Slide 9: Accelerating Financial Performance Across the System
Accelerating Financial Performance Across the System Same Store Sales Momentum Driven by Attractive Balance of Growth in Traffic and Check Source: Public company filings. Note: Weighted QSR average includes Burger King, Jack in the Box, Kentucky Fried Chicken, McDonald’s, Popeye’s, Sonic, Taco Bell
Slide 10: Our Food: Fresh and High Quality
Real working kitchens High quality food made-to-order Marinated chicken freshly grilled in restaurant 100% real cheddar cheese grated fresh daily Whole pinto beans slow cooked in our kitchens Hand Sliced Fresh Avocado Salsa made from scratch with fresh tomatoes and cilantro Working kitchens and made
Slide 11: High Quality Food at a Tremendous Value
High Quality Food at a Tremendous Value Source: Company internal price survey as well as self-conducted survey of Los Angeles restaurant prices as of February 2015 and are subject to change. Freshly grilled chicken, seasoned black beans, diced onions, fresh cilantro, and handmade pico de gallo, serv
Slide 12: Foundation of Our Model: Combined Solutions
Foundation of Our Model: Combined Solutions Accelerating Operations Improvements Best Practice Improvement Fresh Value Pricing Platform New Engagement Platform & Advertising Campaign Guest Experience Measurement Menu and New Product Development Ambience Shake-Up Reimaged Stores with New Fresh Image
Slide 13: Growth Strategies
Increase Same Store Sales Expand our Restaurant Base Enhance Restaurant Operations and Leverage Infrastructure Growth Strategies
Slide 14: Increasing SSS through Our Tiered Menu Strategy
Increasing SSS through Our Tiered Menu Strategy Caters to diverse preferences and budgets, capturing a broad consumer base irrespective of macroeconomic climate Leverages branded platforms to provide consumers with strong variety while enabling pricing flexibility and margin growth Each tier provide
Slide 15: Increasing SSS through Menu Innovation
Increasing SSS through Menu Innovation Innovative Food Platforms Track Record of Strong New Product Development State-Of-The-Art R&D Capabilities and Test Kitchen BUCK & UNDER MENU® EPIC BURRITOS® FRESCA BOWLS BUCK & UNDER MENU® TURKEY TACOS HANDCRAFTED ENSALADAS
Slide 16: Increasing SSS through Day-Part and Occasion Expansion
Increasing SSS through Day-Part and Occasion Expansion Late-Night Day-Part Aligned day-part with brand position combined with leveraging value and new product platforms Expanded breakfast menu with Mid-Tier and Premium offerings Epic Scrambler Burrito Bacon & Egg Quesadilla Breakfast Day-Part Occasi
Slide 17: Increasing SSS through Guest Engagement
Increasing SSS through Guest Engagement High Quality Food Fresh Ingredients Working Kitchen Value Affordability Speed & Convenience Changing the Conversation Surrounding Del Taco from Price Value to Quality… We Start with Fresh… …And Serve with Value “I’ve been going to Del Taco for years and I didn
Slide 18: Increasing and Sustaining SSS through Our Ambiance Shake-Up
Increasing and Sustaining SSS through Our Ambiance Shake-Up Ambience Shake-Up: High impact restaurant reimage program focused on critical guest-facing elements Exterior refresh and interior upgrades signaled change and communicated Fresh, Quality and Value 100% of Company-owned restaurants completed
Slide 19: Operations Improvements Creating a Better Guest Experience
Operations Improvements Creating a Better Guest Experience We significantly improved overall guest satisfaction and generated higher “likelihood to return” and “recommend” scores among targeted guest segments through operations-focused Combined Solutions elements Best Practice Improvement Accelerati
Slide 20: Accelerating Our Unit Growth
Accelerating Our Unit Growth 50‐year heritage in core Southern California market with strong brand presence and meaningful new unit in‐fill upside Success in multiple markets beyond Southern California, including Sacramento, Las Vegas, Salt Lake City, Phoenix and Denver, with Company joining franchi
Slide 21: Significant Unit Growth Opportunity
Significant Unit Growth Opportunity Source: Public company filings. Based on internal analysis and a study prepared by a leading national consulting firm. Excludes 1 franchised restaurant in Guam. Percentage of Domestic Potential Unit Growth Remaining Unit Potential 2,000+ 2,300 2,000 4,000 8,000 #
Slide 22: Our New Restaurant Prototype
Our New Restaurant Prototype Design aligns brand Identity and QSR+ positioning Provides restaurant design needed to execute growth strategy New restaurant incorporates: Modern exterior with attractive interior features Quality cues evolved to include freshness cooler More open view of our fresh cook
Slide 23: Attractive Company-Operated Unit Economic Model
Year 3 Target ($Thousands) Average Unit Volume ~$1,350 Restaurant Contribution Margin(1) ~17% Net Investment Cost ~$900 Cash-on-Cash Return ~25% Attractive Company-Operated Unit Economic Model 23 Restaurant contribution is defined as company restaurant sales less company restaurant expenses. Restaur
Slide 24: Financial Overview
Continued Strong Momentum into Q3 2015 Optimized Balance Sheet for Future Growth Industry Leading Food Cost Management Financial Overview
Slide 25: Financial Summary
Represent company and franchised restaurants. Restaurant contribution is defined as company restaurant sales less company restaurant expenses. Restaurant contribution margin is defined as restaurant contribution as a percentage of company restaurant sales. Please refer to the Appendix for Fiscal 201
Slide 26: Strong Momentum Continues in Q3 2015
Strong Momentum Continues in Q3 2015 Restaurant contribution is defined as company restaurant sales less company restaurant expenses. Restaurant contribution margin is defined as restaurant contribution as a percentage of company restaurant sales. Please refer to the Appendix for Q3 2014 and Q3 2015
Slide 27: Appendix
peeqace Appendix
Slide 28: Adjusted EBITDA and Restaurant Contribution Reconciliation
Adjusted EBITDA and Restaurant Contribution Reconciliation Includes non-cash, stock-based compensation. Loss on disposal of assets includes the loss on disposal of assets related to retirements and replacement or write-off of leasehold improvements or equipment. Includes costs related to impairment
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