Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q4 2019 Earnings Presentation
19 slides from Red Robin Gourmet Burgers's earnings presentation, Feb 25, 2020
Slide 1: Fourth Quarter 2019 Results
Fourth Quarter 2019 Results February 25, 2020 CLASSIFIED – INTERNAL USE ONLY
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-looking statements in this presentation regarding the Company’s future performance, including accelerating growth, and all other statements that are not historical facts, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1
Slide 3: Red Robin Fourth Quarter Financial and Operating Results
Red Robin Fourth Quarter Financial and Operating Results • Comparable restaurant revenue increased 1.3% (using constant currency rates), the second consecutive quarter of positive growth • Off-premise sales increased 26.9%, now comprising 13.9% of total food and beverage sales, including catering •
Slide 4: Our Plan
Our Plan 1 Recapture Our Soul 2 Deliver the Brand Promise 3 Tell Our Story 4 Accelerate Profitable Growth New Service Menu Donatos® Model Rationalization Investment in Significant Off- Portfolio Technology Premise Growth Optimization Deliver long-term value creation for stockholders PAGE 4
Slide 5: Accelerating Our Business Turnaround
Accelerating Our Business Turnaround PAGE 5
Slide 6: Comparable Restaurant Revenue Trend
Comparable Restaurant Revenue Trend(1) (1) Calculated at constant currency rates PAGE 6
Slide 7: Continued Off-Premise Sales Growth
Continued Off-Premise Sales Growth +330 bps Y-O-Y in Q4 2019 PAGE 7
Slide 8: Restaurant Level Operating Profit Margins
Restaurant Level Operating Profit(1)(2) Margins (1) See Appendix for reconciliation of non-GAAP restaurant-level operating profit to net income (loss) (2) Prior period local marketing costs have been reclassified from Other operating to Selling to conform with the current period presentation PAGE 8
Slide 9: Adjusted EBITDA
Adjusted EBITDA(1) (1) See Appendix for reconciliation of non-GAAP Adjusted EBITDA to Net Income (Loss) PAGE 9
Slide 10: Adjusted Net Income (Loss)
Adjusted Net Income (Loss)(1) ($ in Millions) (1) See Appendix for reconciliation of non-GAAP Adjusted Net Income to Net Income (Loss) PAGE 10
Slide 11: Adjusted Earnings (Loss) Per Diluted Share
Adjusted Earnings (Loss) Per Diluted Share(1) (1) See Appendix for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted Share PAGE 11
Slide 12: Cash Flow from Operations
Cash Flow from Operations ($ in Millions) PAGE 12
Slide 13: Appendix
Appendix PAGE 13
Slide 14: Fourth Quarter 2019 Sales Highlights
Fourth Quarter 2019 Sales Highlights Q4-19 Q4-18 Change Q4-19 YTD Q4-18 YTD Change (12 Weeks) (12 Weeks) (52 Weeks) (52 Weeks) Restaurant revenue $296.8 million $300.9 million -1.4% $1289.5 million $1316.2 million -2.0% Total company revenues $302.9 million $306.8 million -1.2% $1315.0 million $1338
Slide 15: Fourth Quarter 2019 Restaurant Results
Fourth Quarter 2019 Restaurant Results % of Restaurant % of Restaurant Revenue Revenue Favorable Q4-19 Q4-18 (Unfavorable) Cost of sales 23.0% 23.6% 60 Labor 34.5% 34.7% 20 Other operating 14.7% 13.6% (110) Occupancy 8.9% 8.7% (20) Restaurant Level Operating Profit(1) 18.9% 19.4% (50) (1) See Append
Slide 16: Fourth Quarter 2019 Commodity Update
Fourth Quarter 2019 Commodity Update % of Total COGS in Q4-19 Variable vs. Fixed Pricing Ground beef 16.5% Variable (market driven) Steak fries 12.4% 100% fixed through 10/21 Poultry 8.7% Fixed through 1/21 for 40%; through 1/20 for 60% Produce 7.4% 80% fixed through 10/21 Bread 6.1% 100% fixed thro
Slide 17: Restaurant Level Operating Profit Reconciliation
Restaurant Level Operating Profit Reconciliation to Income (Loss) from Operations and Net Income (Loss) ($ in thousands) 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Restaurant revenue $413,451 $312,351 $301,100 $338,154 $414,702 $310,392 $290,218 $300,897 $400,484 $302,418 $289,862 $296,757 R
Slide 18: EBITDA and Adjusted EBITDA Reconciliation to Net Income (Loss)
EBITDA and Adjusted EBITDA Reconciliation to Net Income (Loss) ($ in thousands) 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net income (loss) as reported $11,567 $6,931 $2,714 $8,807 $4,380 $(1,874) $1,709 $(10,634) $639 $981 $(1,821) $(7,702) Adjustments to net income (loss): Income tax expe
Slide 19: Reconciliation of Adjusted Net Income and Adjusted Earnings Per Diluted Share
Reconciliation of Adjusted Net Income to Net Income (Loss) and Adjusted Earnings (Loss) Per Diluted Share to Earnings (Loss) Per Diluted Share ($ in thousands, except per share data) 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net income (loss) as reported $11,567 $6,931 $2,714 $8,807 $4,380
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