Red Robin Gourmet Burgers, Inc. · NASDAQ:RRGB
Red Robin Gourmet Burgers — Q1 2017 Earnings Presentation
24 slides from Red Robin Gourmet Burgers's earnings presentation, May 16, 2017
Slide 1: First Quarter 2017 Results
CLASSIFIED – INTERNAL USE First Quarter 2017 Results May 16, 2017
Slide 2: Forward-Looking Statements
2CLASSIFIED – INTERNAL USE Forward-Looking Statements Forward-looking statements in this presentation regarding the Company’s strategic initiatives, future performance, off-premise sales, marketing campaign, earnings per share, interest expense, statements under the heading “Outlook for 2017” and al
Slide 3: Red Robin Q1-2017 Results
3CLASSIFIED – INTERNAL USE Red Robin Q1-2017 Results • Total revenues increased 4.1% • Comparable restaurant revenue down 1.2% (using constant currency rates) • Restaurant-level operating profit(1) was 20.7% compared to 22.5% in the prior year • Adjusted EBITDA(1) was $45.8 million • Diluted earning
Slide 4: Separating Red Robin from the Pack
4CLASSIFIED – INTERNAL USE Separating Red Robin from the Pack • Upping our game on everyday value leads to traffic outperformance of 120 bps(1) • Reinforcing Gourmet Burger Authority -- “Let’s Burger/Red Robin Yummm!” Campaign • Building awareness, investing to meet growing To-Go demand • Online ord
Slide 5: Meeting Growing Off-Premise Demand
5CLASSIFIED – INTERNAL USE Meeting Growing Off-Premise Demand
Slide 6: Delivering a Superior Guest Experience
6CLASSIFIED – INTERNAL USE Delivering a Superior Guest Experience • Continuing gains in speed of service • Achieving consistently strong Net Promoter Scores • Improving food-to-table times • Retaining Team Members at record levels
Slide 7: Cyber Security Commitment to our Guests
7CLASSIFIED – INTERNAL USE Cyber Security Commitment to our Guests We recognize the importance of data security to our Guests, so we use internal resources and external expertise to help protect Guest data and help prevent the occurrence of data breaches. In the event of a data breach relating to in
Slide 8: Financial Update
CLASSIFIED – INTERNAL USE 8 Financial Update
Slide 9: Q1-17 Sales Highlights
9CLASSIFIED – INTERNAL USE Q1-17 Sales Highlights Q1-17 (16 Weeks) Q1-16 (16 Weeks) Change Restaurant revenue $413.5 million $396.8 million 4.2% Total company revenues $418.6 million $402.1 million 4.1% Company-owned comp revenue(1) -1.2% -2.6% Price/Mix 0.5% 1.5% Guest counts -1.7% -4.1% Franchised
Slide 10: Comparable Restaurant Revenue Trend
10CLASSIFIED – INTERNAL USE Comparable Restaurant Revenue Trend(1) 3.1% 2.9% 3.5% -2.0% -2.6% -3.2% -3.6% -4.3% -1.2% -4.5% -2.5% -0.5% 1.5% 3.5% 5.5% Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 (1) Calculated at constant currency rates.
Slide 11: Restaurant Level Operating Profit Margins
11CLASSIFIED – INTERNAL USE 23.0% 22.5% 21.6% 21.9% 22.5% 20.9% 18.6% 19.0% 20.7% 16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% Q1 Q2 Q3 Q4 2015 2016 2017 Restaurant Level Operating Profit (1) Margins 11 (1) See Appendix for reconciliation of non-GAAP restaurant-level operating profit
Slide 12: Q1-17 Restaurant Results
12CLASSIFIED – INTERNAL USE Q1-17 Restaurant Results 12 % of Restaurant Revenue Q1-17 % of Restaurant Revenue Q1-16 Favorable (Unfavorable) Cost of sales 22.9% 23.3% 40 bps Labor 35.2% 33.5% (170 bps) Other operating 13.2% 12.5% (70 bps) Occupancy 8.0% 8.2% 20 bps Restaurant Level Operating Profit(1
Slide 13: Adjusted EBITDA
13CLASSIFIED – INTERNAL USE $45.5 $33.6 $30.0 $34.3 $48.9 $33.5 $26.8 $29.2 $45.8 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 $55.0 Q1 Q2 Q3 Q4 2015 2016 2017 Adjusted EBITDA(1)(2) ($ in millions) 13 (1) See Appendix for reconciliation of non-GAAP Adjusted EBITDA to Net Income (Loss) (2) T
Slide 14: Adjusted Earnings Per Diluted Share
14CLASSIFIED – INTERNAL USE Adjusted Earnings Per Diluted Share $1.10 $0.78 $0.58 $0.86 $1.27 $0.75 $0.38 $0.35 $0.89 $0.15 $0.35 $0.55 $0.75 $0.95 $1.15 $1.35 Q1 Q2 Q3 Q4 2015 2016 2017 14 See Appendix for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted
Slide 15: Outlook for 2017
15CLASSIFIED – INTERNAL USE Outlook for 2017 • Diluted EPS projected to be from $2.80 to $3.10, with approximately 45% expected in the first half of 2017 and 55% during second half of 2017 • Interest expense for 2017 of approximately $10 million Note on Guidance Policy: The Company intends to provid
Slide 16: In Closing
16CLASSIFIED – INTERNAL USE In Closing 16
Slide 17: Thank you to all of our Team Members!
17CLASSIFIED – INTERNAL USE Thank you to all of our Team Members! 17
Slide 18: Appendix
CLASSIFIED – INTERNAL USE 18 Appendix
Slide 19: Adjusted Net Income
19CLASSIFIED – INTERNAL USE Adjusted Net Income(1) $15.6 $11.2 $8.3 $12.0 $17.6 $10.3 $5.0 $4.5 $11.6 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 Q1 Q2 Q3 Q4 2015 2016 2017 ($ in millions) 19 (1) See Appendix for reconciliation of non-GAAP Adjusted Net Income to Net Income (Loss)
Slide 20: Cash Flow from Operations
20CLASSIFIED – INTERNAL USE $36.0 $31.3 $34.0 $39.6 $42.5 $24.6 $27.6 $4.3 $70.0 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 Q1 Q2 Q3 Q4 2015 2016 2017 Cash Flow from Operations ($ in millions) 20
Slide 21: Q1-17 Commodity Update
21CLASSIFIED – INTERNAL USE Q1-17 Commodity Update 21 % of Total COGS in Q1-17 Market vs. Contract Ground beef 12.6% Market Steak fries 11.2% 100% contracted through 10/17 Poultry 10.0% 100% contracted though 1/18 Meat 7.7% Bacon 80% through 6/17; Prime rib 100% through 10/17 Produce 7.6% 70% contra
Slide 22: Reconciliation of Adjusted Net Income and Adjusted EPS
22CLASSIFIED – INTERNAL USE Reconciliation of Adjusted Net Income to Net Income (Loss) and Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted Share 22 ($ in thousands, except per share data) 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net income (loss) as reported $ 16,565 $ 11,166 $ 8
Slide 23: Restaurant Level Operating Profit Reconciliation
23CLASSIFIED – INTERNAL USE Restaurant Level Operating Profit Reconciliation to Income from Operations and Net Income (Loss) ($ in thousands) 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Restaurant revenue $ 388,509 $ 288,704 $ 279,496 $ 282,189 $ 396,770 $ 302,117 $ 293,858 $ 287,924 $ 413,451 Restaur
Slide 24: EBITDA and Adjusted EBITDA Reconciliation
24CLASSIFIED – INTERNAL USE EBITDA and Adjusted EBITDA Reconciliation to Net Income (Loss) 24 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net income (loss) as reported $16,565 $ 11,166 $ 8,282 $11,691 $14,225 $ 7,552 $ (1,300) $ (8,752) $ 11,567 Adjustments to net income (loss): Income tax expense (be
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