Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q1 2015 Earnings Presentation
23 slides from Red Robin Gourmet Burgers's earnings presentation, May 19, 2015
Slide 1: First Quarter 2015 Results
First Quarter 2015 Results May 19, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking statements in this presentation regarding our revenues, restaurant-level operating profit margins, new restaurant growth (including Red Robin Burger Works) and remodels, future economic performance, costs, expenses, tax rate, capital investments, promotions
Slide 3: Strategic Priorities
Strategic Priorities Engagement Efficiency Expansion 2
Slide 4: Brand Transformation Initiative
Brand Transformation Initiative 3 122 completed through April 19, 2015 Targeting 150 transformations in 2015
Slide 5: Red Robin Burger Works continuing with strong sales
Chicago and D.C. Red Robin Burger Works® continuing with strong sales Planning fourth market for expansion Red Robin Burger Works 4
Slide 6: Q1 Marketing Initiatives Continued
Q1 Marketing Initiatives Continued $6.99 Everyday Value message on television The Wild Pacific Crab Cake Burger (Finest) Strong gift card redemptions The Cure Burger – Secret Menu Item Burgers and a Movie™ - popular Paul Blart Mall Cop 2 5
Slide 7: Financial Update
Financial Update 6
Slide 8: Red Robin Delivered Strong Q1 Results
Comparable restaurant revenue up 3.1%, Guest counts up 1.1% Restaurant revenue increased 16.0% Restaurant-level operating profit was 23.0% compared to 22.4% in prior year Adjusted EBITDA was $47.0 million, an increase of 27.1% Adjusted diluted EPS of $1.10, an increase of 34.1% 1 Red Robin® restaura
Slide 9: Q1-15 Sales Highlights
Q1-15 Sales Highlights (1) Excludes Red Robin Burger Works® fast casual restaurants 8 Q1-15 (16 Weeks) Q1-14 (16 Weeks) Change Restaurant revenue $388.5 million $335.0 million +16.0% Total company revenues $394.9 million $340.5 million +16.0% Company-owned comp revenue 3.1% 5.4% -230 bps Price/Mix 2
Slide 10: Comparable Restaurant Revenue Growth
5.4% 1.2% 0.9% 3.6% 3.1% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Q114 Q214 Q314 Q414 Q115 Comparable Restaurant Revenue Growth 9
Slide 11: RLOP Margins
21.5% 23.3% 20.4% 21.7% 22.4% 22.2% 19.5% 21.3% 23.0% 16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% Q1 Q2 Q3 Q4 2013 2014 2015 (2) (2) (2) RLOP (1) Margins 10 (1) See reconciliation of non-GAAP restaurant-level operating profit to income from operations and net income on Schedule II of
Slide 12: Q1-15 Restaurant Results
Q1-15 Restaurant Results 11 % of Restaurant Revenue Q1-15 % of Restaurant Revenue Q1-14 Favorable (Unfavorable) Cost of sales 25.2% 25.1% (10 bps) Labor 32.0% 33.1% 110 bps Other operating 12.0% 12.1% 10 bps Occupancy 7.8% 7.3% (50 bps) Restaurant Level Operating Profit (Non-GAAP) 23.0% 22.4% 60 bps
Slide 13: Adjusted EBITDA
$32.5 $29.7 $21.0 $25.8 $37.0 $29.3 $25.6 $31.1 $47.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Q1 Q2 Q3 Q4 2013 2014 2015 See slide 21 for reconciliation of non-GAAP Adjusted EBITDA to Net Income Trailing 4 Quarters Q1 2015 $132.9M Q1 2014 $113.5M Adjusted EBITDA $ in millions 12
Slide 14: Adjusted Net Income
Adjusted Net Income $9.5 $11.1 $4.7 $9.1 $11.9 $9.8 $7.2 $9.4 $15.6 $3.0 $5.0 $7.0 $9.0 $11.0 $13.0 $15.0 $17.0 Q1 Q2 Q3 Q4 2013 2014 2015 30.9% Growth Q1 2015 vs Q1 2014 $ in millions 13 See slide 22 for reconciliation of non-GAAP Adjusted Net Income to Net Income
Slide 15: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share $0.66 $0.77 $0.32 $0.62 $0.82 $0.68 $0.50 $0.66 $1.10 $0.15 $0.35 $0.55 $0.75 $0.95 $1.15 Q1 Q2 Q3 Q4 2013 2014 2015 14 See slide 22 for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings Per Diluted share 34.1% Growth Q1 2015 vs Q1 2014
Slide 16: 2015 Outlook
2015 Outlook Total revenues expected to grow 12.0% to 12.5% Comparable restaurant revenue growth expected between 2.5% to 3.0% RLOP margins expected to be approximately 22.0% Open 20 new and relocated 3 company-owned Red Robin restaurants, open 5 Red Robin Burger Works, and complete approximately 15
Slide 17: In Closing
In Closing 16
Slide 18: Thank you to all of our Team Members!
Thank you to all of our Team Members! 17
Slide 19: Appendix
Appendix 18
Slide 20: Cash Flow from Operations
$40.4 $30.6 $11.2 $31.3 $36.0 $20.1 $26.8 $40.7 $36.0 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 Q1 Q2 Q3 Q4 2013 2014 2015 Cash Flow from Operations $ in millions 19 Trailing 4 Quarters Q1 2015 $123.5M Q1 2014 $109.2M
Slide 21: Q1-15 Commodity Update
Q1-15 Commodity Update 20 % of Total COGS in Q1-15 Market vs. Contract Ground beef 16.0% Market Poultry 10.8% 60% Contract through 12/15, 40% through 6/15 Steak fries 9.8% Contract through 10/16 Meat 6.7% Bacon through 9/15; Prime rib through 12/15 Produce 6.6% Contract through 10/15 Bread 6.1% Cont
Slide 22: Adjusted EBITDA Reconciliation to Net Income
Adjusted EBITDA Reconciliation to Net Income Numbers are displayed in Thousands 21 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net income as reported $ 9,480 $ 11,139 $ 4,661 $ 6,959 $ 11,944 $ 9,470 $ 7,208 $ 3,939 $16,565 Adjustments to net income: Income tax expense 2,977 3,576 1,517 940 4,424 3,52
Slide 23: 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 22 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net income as reported $ 9,480 $ 11,139 $ 4,661 $ 6,959 $ 11,944 $ 9,470 $ 7,208 $ 3,939 $ 16,565 Adjustments to net income: Change i
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