Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q4 2012 Earnings Presentation
24 slides from Red Robin Gourmet Burgers's earnings presentation, Feb 19, 2013
Slide 1: Fiscal Q412 Results
FISCAL Q412 RESULTS February 19, 2013 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 Forward-looking statements in this press release regarding our expected earnings; restaurant sales; operating, marketing and growth initiatives; future economic performance; costs and capital expenditures; certain statements under the heading “2013 Outlook – Financials”
Slide 3: Q412 Highlights
Q412 Highlights Total revenues increased 16.8% and comp sales up 1.4% 0.3% comp traffic growth – 390 bps above casual dining competitors* Restaurant-level operating profit margin increased 70 bps to 20.6% Adjusted EPS $0.59 compared to $0.28 in Q411 *Source: Black Box Intelligence 3
Slide 4: Red Robin Road Map
Red Robin Road Map 4 Long-term sustainable growth and profitability
Slide 5: Road Map Initiatives
Road Map Initiatives 2013 2014 2015 Engagement: Enhancing our guest experience Efficiency: Productivity & operational effectiveness Expansion: Growing our operational footprint 5
Slide 6: Guest Engagement
Guest ENGAGEMENT Brand Transformation Elevating service, spiral menu and food presentation Exploring premium segment Red Robin Royalty™ Team Member Foundations 6
Slide 7: Operating Efficiency
Operating EFFICIENCY Technology infrastructure Labor management 7
Slide 8: Footprint Expansion
Footprint EXPANSION 20 new restaurants planned for 2013 including mid-size prototype Underserved markets: Florida New York, New Jersey, Chicago, New Jersey, Chicago, Texas Refining and growing Red Robin’s Burger Works® 8
Slide 9: Financial Update
Financial Update
Slide 10: Adjusted Earnings Per Diluted Share (Quarterly)
$0.16 $0.34 $0.08 $0.13 $0.58 $0.48 $0.24 $0.28 $0.71 $0.52 $0.24 $0.59 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 Q1 Q2 Q3 Q4 2010 2011 2012 Adjusted Earnings Per Diluted Share +36% for Q4 Excl. $0.21 for extra week Note: Fiscal Q4 2012 contained 13 weeks compared to 12 weeks in 2011 and
Slide 11: Adjusted Earnings Per Diluted Share
Adjusted Earnings Per Diluted Share $0.71 $1.58 $2.06 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 2010 2011 2012 Note: Fiscal 2012 contained 53 weeks compared to 52 weeks in 2011 and 2010 +17% for FY 2012 Excl. $0.21 for extra week
Slide 12: Adjusted Net Income
Adjusted Net Income $2.5 $5.2 $1.3 $2.0 $9.0 $7.5 $3.7 $4.1 $10.6 $7.7 $3.5 $8.4 $0 $2 $4 $6 $8 $10 $12 Q1 Q2 Q3 Q4 2010* 2011 2012 $ in millions * Fiscal year 2010 adjusted net income assumes a tax benefit of 3.2% +24.3% for FY 2012
Slide 13: Q412 Sales Highlights
Q412 Sales Highlights Q412 Q411 Change (13 weeks) (12 weeks) Restaurant revenue $236.7 million $202.5 million +16.9% Total co. revenue $240.7 million $206.0 million +16.8% +1.4% +3.1% Company-owned comp revenue Price/mix: +1.1% Guest counts: +0.3% Price/mix: +3.9% Guest counts: -0.8% U.S.: +1.4% U.S
Slide 14: Comparable Sales Growth
Comparable Sales Growth 3.1% 0.7% 0.8% 1.1% 1.4% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% Q411 Q112 Q212 Q312 Q412 FY 2012 +1.1%
Slide 15: Q412 Restaurant Results
Q412 Restaurant Results % of Rest. % of Rest. Sales Sales Favorable Line Item Q412 Q411 (Unfavorable) Cost of Goods 25.2% 25.4% 20 bps Labor 33.7% 33.5% (20 bps) Other Operating 13.0% 13.5% 50 bps Occupancy 7.5% 7.7% 20 bps Restaurant Operating Profit 20.6% 19.9% 70 bps (Non-GAAP)
Slide 16: Growing RLOP Margins
Growing RLOP Margins 18.2% 18.3% 17.5% 17.0% 19.8% 20.8% 18.8% 19.9% 21.2% 21.1% 19.7% 20.6% 16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% Q1 Q2 Q3 Q4 2010 2011 2012
Slide 17: Growing RLOP Margins
Growing RLOP Margins 17.8% 19.8% 20.7% 0.16 0.17 0.18 0.19 0.2 0.21 0.22 2010 2011 2012 +290bps Last 2 years 17
Slide 18: Adjusted EBITDA
Adjusted EBITDA $22.7 $20.6 $17.3 $16.1 $29.5 $23.2 $19.4 $20.5 $33.6 $25.0 $20.0 $25.8 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 Q1 Q2 Q3 Q4 2010 2011 2012 $ in Millions 18
Slide 19: Adjusted EBITDA
Adjusted EBITDA $76.7 $92.6 $104.4 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 2010 2011 2012 +12.7% FY 2012 $ in Millions 19
Slide 20: Cash Flow from Operations
Cash Flow from Operations $ in Millions $23.9 $11.0 $16.7 $19.1 $29.9 $24.3 $18.9 $22.6 $29.6 $20.5 $22.3 $22.0 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 Q1 Q2 Q3 Q4 2010 2011 2012 20
Slide 21: 2013 Outlook – Financials
2013 Outlook – Financials Comparable restaurant net sales growth of 2.5% to 3.0% versus 2012 Open 20 new company-owned restaurants, including up to 5 Red Robin’s Burger Works® RLOP margins flat to down 10 bps versus 2012 G&A costs $83 million to $84 million; Selling expense 2.8% of sales Capital exp
Slide 22: 2013: Accelerating Growth
2013: Accelerating Growth Develop new products and service platform, elevate, guest experience and perceived value Test Brand Transformation program Expand restaurant base Develop smaller prototype and Red Robin’s Burger Works® to meet needs of smaller markets and non-traditional locations Invest in
Slide 23: Appendix: Adj. EBITDA Reconciliation
Appendix Adj. EBITDA Reconciliation Q4 Q4YTD $ in 000s 2012 2011 2012 2011 Net income as reported $ 6,492 $ 2,905 $ 28,331 $ 20,577 Adjustments to net income: Income tax expense 1,552 85 8,526 1,511 Interest expense, net 1,217 1,473 5,314 5,823 Depreciation and amortization 13,000 12,521 55,468 55,2
Slide 24: Q412 Commodity Update
Q412 Commodity Update Category % of Total COGS Market vs. Contract Hamburger 14.5% Market Steak Fries 11.6% 100% contract through 10/13 Poultry 9.6% 100% contract through 6/13 Produce 7.8% 80% contract through 9/13 Bread 6.4% 100% contract through 6/13 Cheese 6.2% 20% contract through 3/13 Meat 4.8%
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