Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q3 2014 Earnings Presentation
25 slides from Red Robin Gourmet Burgers's earnings presentation, Nov 4, 2014
Slide 1: Third Quarter 2014 Results
Third Quarter 2014 Results November 4, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking statements in this presentation regarding our restaurant revenue, restaurant-level operating profit margins, new restaurant growth and remodels, future economic performance, costs, expenses, tax rate, royalties and capital investments, promotions, statement
Slide 3: Q3-14 Headlines
Comparable restaurant revenue up 0.9%, Guest traffic down 2.3% Acquired 32 restaurants from a franchisee on 7/14/14 Total restaurant revenue increased 16.3% (including recently acquired restaurants) Excluding acquired restaurants, restaurant-level operating profit was 20.1% compared to 20.4% a year
Slide 4: Brand Transformation Initiative complete by year-end
Brand Transformation Initiative 3 95 complete by year-end Targeting 125 more in 2015
Slide 5: New Red Robin Burger Works locations off to promising start
New Red Robin Burger Works locations off to promising start • Chicago − Michigan Avenue – opened 6/23 − Chicago Avenue – opened 7/7 • Washington D.C. − L’Enfant Plaza – opened 10/6 Red Robin Burger Works 4
Slide 6: Traffic and Trade-Up
Traffic and Trade-Up Returned to Everyday Value message on-air and Finest news to trade guests up once in restaurant 5
Slide 7: Tavern Double Tuesday Sports Sponsorships
Tavern Double Tuesday Sports Sponsorships 6
Slide 8: Holiday Promo, Big Sky Finest Burger LTO
Holiday Promo Big Sky Finest Burger LTO Added new permanent dessert item 7 2014 South Beach Wine & Food Festival
Slide 9: Burgers and a Movie & Gift Cards for Holiday
Burgers and a Movie™ & Gift Cards for Holiday 8
Slide 10: Plans to Transform Canadian Business
Plans to Transform Canadian Business 9
Slide 11: Financial Update
Financial Update ry ae
Slide 12: Q3-14 Sales Highlights
Q3-14 Sales Highlights (1) Excludes Red Robin Burger Works® fast casual restaurants 11 Q3 -14 (12 Weeks) Q3-13 (12 Weeks) Change Restaurant revenue $263.9 million $226.8 million +16.4% Total company revenue $267.4 million $230.7 million +15.9% Company-owned comp revenue 0.9% 5.7% -480 bps Price/Mix
Slide 13: Comparable Restaurant Revenue Growth
5.7% 3.7% 5.4% 1.2% 0.9% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Q313 Q413 Q114 Q214 Q314 Comparable Restaurant Revenue Growth 12 YTD +2.9%
Slide 14: RLOP Margins
21.2% 21.1% 19.7% 20.6% 21.5% 23.3% 20.4% 21.7% 22.4% 22.2% 19.5% 16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% Q1 Q2 Q3 Q4 2012 2013 2014 (2) RLOP (1) Margins 13 (1) See reconciliation of non-GAAP restaurant-level operating profit to income from operations and net income on Schedule I
Slide 15: Q3-14 Restaurant Results
Q3-14 Restaurant Results 14 % of Restaurant Revenues Q3-14 % of Restaurant Revenues Q3-14 Favorable (Unfavorable) Cost of sales 25.9% 25.2% (70 bps) Labor 33.7% 33.8% 10 bps Other operating 12.9% 13.0% 10 bps Occupancy 8.0% 7.6% (40 bps) Restaurant Level Operating Profit (Non-GAAP) 19.5% 20.4% (90 b
Slide 16: Adjusted EBITDA
$33.6 $25.0 $20.0 $25.8 $32.5 $29.7 $21.0 $25.8 $37.0 $29.3 $25.6 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 Q1 Q2 Q3 Q4 2012 2013 2014 See slide 23 for reconciliation of non-GAAP Adjusted EBITDA to Net Income (1) 13 weeks in 2012 $117.5 million trailing 4 quarters (1) Adjusted EBITDA $ in millions 1
Slide 17: Adjusted Net Income
Adjusted Net Income $10.6 $7.7 $3.5 $8.4 $9.5 $11.1 $4.7 $9.1 $11.9 $9.8 $7.2 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Q1 Q2 Q3 Q4 2012 2013 2014 $ in millions 16 See slide 24 for reconciliation of non-GAAP Adjusted Net Income to Net Income (1) 13 weeks in 2012 (1)
Slide 18: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share $0.71 $0.52 $0.24 $0.59 $0.66 $0.77 $0.32 $0.62 $0.82 $0.68 $0.50 $0.15 $0.25 $0.35 $0.45 $0.55 $0.65 $0.75 $0.85 $0.95 Q1 Q2 Q3 Q4 2012 2013 2014 17 See slide 24 for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings Per Diluted share (1)
Slide 19: 2014 Outlook
2014 Outlook Comparable restaurant revenue growth approaching 3.0% RLOP margins expected to be approximately 21.3% Open 19 new company-owned Red Robin® restaurants plus 3 Red Robin Burger Works® Capital investments expected to be approximately $100 million, excluding acquisitions G&A costs expected
Slide 20: In Closing
In Closing 19
Slide 21: Appendix
Appendix 20
Slide 22: Cash Flow from Operations
$29.6 $20.5 $22.3 $22.0 $40.4 $30.6 $11.2 $31.3 $36.0 $20.1 $26.8 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 Q1 Q2 Q3 Q4 2012 2013 2014 Cash Flow from Operations $ in millions 21 (1) 13 weeks in 2012 (1)
Slide 23: Q3-14 Commodity Update
Q3-14 Commodity Update 22 % of Total COGS in Q3-14 Market vs. Contract Ground beef 15.5% Market Poultry 10.4% Contract through 12/14; 40% through 12/15 Steak fries 10.2% Contract through 10/16 Produce 7.1% Contract through 10/14 Meat 6.7% Bacon through 12/14; Prime rib through 12/14; Riblets through
Slide 24: Adjusted EBITDA Reconciliation to Net Income
Adjusted EBITDA Reconciliation to Net Income 23 2012 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net income as reported $ 10,558 $ 7,748 $ 3,553 $ 6,492 $ 9,480 $ 11,139 $ 4,661 $ 6,959 $ 11,944 $ 9,470 $ 7,208 Adjustments to net income: Income tax expense 3,356 2,408 1,210 1,552 2,977 3,576 1,517 94
Slide 25: Reconciliation of Adjusted Net Income to Net Income and Adjusted EPS
Reconciliation of Adjusted Net Income to Net Income and Adjusted Earnings Per Diluted Share to Earnings Per Diluted Share 24 2012 2013 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net income as reported $ 10,558 $ 7,748 $ 3,553 $ 6,492 $ 9,480 $ 11,139 $ 4,661 $ 6,959 $ 11,944 $ 9,470 $ 7,208 Adjustments t
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