UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8‑K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 12, 2016
RED ROBIN GOURMET BURGERS, INC.
(Exact name of registrant as specified in its charter)
|
| | |
Delaware | 001-34851 |
84-1573084 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
|
| |
6312 S. Fiddler’s Green Circle, Suite 200N Greenwood Village, Colorado |
80111 |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (303) 846-6000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
| |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
| |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
| |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
| |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 Results of Operations and Financial Condition
On January 12, 2016, Red Robin Gourmet Burgers, Inc. issued a press release describing selected preliminary unaudited financial results for the fiscal fourth quarter of 2015. A copy of this press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02, including the information set forth in Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
| |
ITEM 7.01 | Regulation FD Disclosure |
On January 13, 2016, the Company is making an investor presentation that includes the slides furnished as Exhibit 99.2 to this Current Report on Form 8-K. The slides contained in Exhibit 99.2 are also posted on the Company's website at www.redrobin.com.
The information in this Item 7.01, including the information set forth in Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01 Financial Statements and Exhibits
(d) Exhibits
|
| | |
Exhibit No. | | Description |
99.1 | | Red Robin Gourmet Burgers, Inc. Press Release dated January 12, 2016 |
99.2 | | Red Robin Gourmet Burgers, Inc. Investor Presentation dated January 13, 2016 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: January 12, 2016
RED ROBIN GOURMET BURGERS, INC.
By: /s/ Stuart B. Brown
Stuart B. Brown
Senior Vice President and Chief Financial Officer
EXHIBIT INDEX
|
| | |
Exhibit No. | | Description |
99.1 | | Red Robin Gourmet Burgers, Inc. Press Release dated January 12, 2016 |
99.2 | | Red Robin Gourmet Burgers, Inc. Investor Presentation dated January 13, 2016 |
Red Robin Reports Preliminary Results for the Fiscal Fourth Quarter of 2015
Announces Date for Fiscal Fourth Quarter of 2015 Earnings Call
Greenwood Village, Colo. – January 12, 2016 – Red Robin Gourmet Burgers, Inc., (NASDAQ: RRGB), a casual dining restaurant chain focused on serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today announced preliminary, unaudited financial results for its fiscal fourth quarter ended December 27, 2015 in conjunction with management’s appearance at the 18th Annual ICR Investor Conference at the JW Marriott Orlando Grande Lakes.
The Company expects to report the following financial results for the fiscal fourth quarter 2015:
| |
• | Total revenues of approximately $286.3 million |
| |
• | Comparable restaurant revenue decrease of 2.0% using constant currency rates |
| |
• | Net income between $11.1 and $11.7 million |
| |
• | Earnings per diluted share between $0.80 and $0.84 |
The above results are preliminary and subject to year-end closing adjustments. The Company plans to report fiscal fourth quarter 2015 results on February 12, 2016.
“While we are disappointed with our sales this quarter, we understand the issues and are well on our way to addressing them. Looking at the year as a whole, we are nonetheless pleased that our 2015 annual comparable sales growth of 2.1% over 2014 reflects our sixth consecutive year in which we have taken market share from our competitors,” said Steve Carley, Red Robin Gourmet Burgers, Inc. chief executive officer. “In 2016, we will have a strong line-up of craveable new food and beverage offerings, launch new promotional initiatives, complete our Brand Transformation remodels and continue to invest in technologies enabling both improved guest service and cost savings.”
Presentation at the 18th Annual ICR Conference
The Company will present at the 18th Annual ICR Conference at the JW Marriott Orlando Grande Lakes in Orlando, FL on January 13, 2016 at 11:30 AM Eastern Time. Investors and interested parties may listen to a webcast of this presentation by visiting the Company’s website at www.redrobin.com under the investor relations section.
Fourth Quarter Release and Conference Call
Red Robin will host an investor conference call to discuss its fiscal fourth quarter 2015 results on Friday, February 12, 2016 at 10:00 a.m. ET. The conference call number is (800) 750-4984, or for international callers (913) 312-0860. A replay will be available from two hours after the end of the call and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers; the conference ID is 9549831. The replay will be available until Friday, February 19, 2016. The call will be webcast live from the Company's website at www.redrobin.com under the investor relations section.
About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., is the Gourmet Burger Authority™, famous for serving more than two dozen craveable, high-quality burgers with Bottomless Steak Fries® in a fun environment welcoming to guests of all ages. In
addition to its many burger offerings, Red Robin serves a wide variety of salads, soups, appetizers, entrees, desserts and signature Mad Mixology® Beverages. Red Robin offers a variety of options behind the bar, including its extensive selection of local and regional beers, and innovative adult beer shakes and cocktails, earning the restaurant the 2014 VIBE Vista Award for Best Beer Program in a Multi-Unit Chain Restaurant. There are more than 500 Red Robin restaurants across the United States and Canada, including Red Robin Burger Works® locations and those operating under franchise agreements. Red Robin... YUMMM®! Connect with Red Robin on Facebook, Instagram and Twitter.
Forward-Looking Statements
Forward-looking statements in this press release regarding the timing of our first quarter earnings release, our preliminary financial results for our fiscal fourth quarter 2015, including estimates of revenues, net income and earnings per diluted share, our anticipated initiatives for 2016 including those involving food and beverage offerings, promotions, remodels and technology investments, and all other statements that are not historical facts, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as “expect,” “anticipate,” “intend,” “plan,” “project,” “will” or “estimate,” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. We undertake no obligation to update such statements to reflect events or circumstances arising after such date, and we caution investors not to place undue reliance on any such forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements based on a number of factors, including but not limited to the following: the anticipated financial results reported are preliminary and subject to year-end closing adjustments; the effectiveness of the Company’s marketing strategies and initiatives to achieve restaurant sales growth; the ability to fulfill planned expansion and restaurant remodeling; the cost and availability of key food products, labor, and energy; the ability to achieve anticipated revenue and cost savings from our anticipated new technology systems and other initiatives; availability of capital or credit facility borrowings; the adequacy of cash flows or available debt resources to fund operations and growth opportunities; federal, state, and local regulation of our business; and other risk factors described from time to time in the Company’s Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission.
For investor relations questions contact:
Stuart Brown, Chief Financial Officer
(303) 846-6000
For media relations questions contact:
Jennifer DeNick, Coyne PR
(973) 588-2000
Red Robin - Continuing the Momentum Investor Presentation ICR Conference January 2016
2 Forward-Looking Statements Forward-looking statements in this presentation regarding our strategic plan and business initiatives, brand transformation efforts, new restaurant development, AUV growth opportunities, certain statements including, but not limited to, those under the headings “Causes Identified – Solves in Place,” “2016 Back on Track,” “Project RED²,” “Growing Free Cash Flow,” and “Key Take-Aways” and all other statements that are not historical facts, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions believed by the Company to be reasonable and speak only as of the date on which such statements are made. Without limiting the generality of the foregoing, words such as “complete,” “continue,” “increased,” “emphasize,” “planned,” “developing,” “expanding,” “growing” or “potential,” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. We undertake no obligation to update such statements to reflect events or circumstances arising after such date, and we caution investors not to place undue reliance on any such forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements based on a number of factors, including but not limited to the following: the effectiveness of the Company’s business initiatives and strategies related to guest engagement, operational efficiencies and restaurant development; the ability to achieve anticipated revenue and cost savings from these and other initiatives; general economic conditions; competition in the casual dining market and discounting by competitors; changes in commodity prices; the cost and availability of key food products, labor and energy; availability of capital or credit facility borrowings; the adequacy of cash flows or available debt resources to fund operations and growth opportunities; the ability to fulfill planned expansion, including in both new and existing markets; federal, state and local regulation of our business; and other risk factors described from time to time in the Company’s Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports) (“Reports”) filed with the U.S. Securities and Exchange Commission. This presentation also contains non- GAAP financial information including adjusted EBITDA. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP measures used in this presentation, see our website at www.redrobin.com under the “Investors” tab. Investors are directed to consult the Company’s Reports for further information.
3 Recognized & Differentiated Burger Authority • 528 casual-dining restaurants in 44 states and 2 Canadian provinces o 429 company-owned o 99 franchised • 10 Red Robin Burger Works fast casual restaurants • Recognized for high-quality, innovative burger creations since 1969 • Strong brand differentiation and recognition • Three levels of burgers – Finest, Gourmet and Tavern • Family focused and adult-friendly Finest Burgers
4 Project RED: Five Years of Great Returns • Tavern to Finest Barbell • Brand Transformation • Red Robin Royalty™ • ‘Take Back the Bar’ • Apps/Drinks/Desserts • “robin” – Server’s Sidekick • New Restaurants • Remodels • Burger Works • New Market Entries • Franchise Acquisitions • Stock Buy-Backs • Table Top and Other Technology Revenue Expense Capital Deployment • Project Blueprint • Labor Management System • iLearning • Pay at the Table/Ziosk • Human Capital Management Driving Improved Margins and Improved Guest Experience
5 Steady Growth: 2010 to 2015 0 20 40 60 80 100 120 140 800 900 1,000 1,100 1,200 1,300 1,400 2010 2011 2012 2013 2014 TTM Q3 15 Revenue and Adjusted EBITDA (mm) Revenue Adjusted EBITDA REVENUE CAGR: 7.7% EBITDA CAGR: 13.2% Rev EBITDA Note: Adjusted EBITDA is a non-GAAP number. See reconciliation available on our website at www.redrobin.com
6 Improving Cash Returns 2010 to 2015 12.1% 15.1% 17.0% 17.8% 18.7% 19.3% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 2010 2011 2012 2013 2014 TTM Q3 2015 Cash Returns on Invested Capital Note: Cash Returns on Invested Capital calculated as Adjusted EBITDA less a tax rate of 27% divided by average Invested Capital (calculated as Total Assets less Current Liabilities and Deferred Rent)
7 Opportunities Remain • Supply Chain Management & Cost Controls o Legacy systems constrain ability to harvest Blueprint opportunities o Further margin expansion possible in food and beverage costs • Heart-Of-House Tools o Current tools primarily manual and cumbersome o Speed of service and capacity compromised o Undermines incremental impact of “To-Go” and other initiatives • Capacity Constraints o At effective capacity across dayparts o Barriers to achieving ideal peak hour potential o Limits further guest experience enhancements
8 Q4 2015 Turbulence • Total Revenues $286.3 mm, an increase of 1.5% • Comparable restaurant revenue -2.0% (constant currency) o Year to date +2.1% • Net Income of $11.1 mm to $11.7 mm • EPS of $0.80 to $0.84 per diluted share Note: Q4 2015 Results are on a preliminary, unaudited basis
9 Causes Identified • “Deal” Environment Heated Up Quickly o $6.99 Tavern Double Everyday Value overwhelmed • Lost the “Buzz” of Fun News o Limited conversation since first quarter • Self-Inflicted Damage o Traffic-driving tactics failed to comp sports sponsorships o Eliminated Bottomless Pasta for kids • Implementing New Plans For 2016
10 The Next Five Years – Harvesting the Opportunities 0 20 40 60 80 100 120 140 800 900 1,000 1,100 1,200 1,300 1,400 2010 2011 2012 2013 2014 TTM Q3 15 Revenue and Adjusted EBITDA (mm) Revenue Adjusted EBITDA Note: Adjusted EBITDA is a non-GAAP number. See reconciliation available on www.redrobin.com • Expand EBITDA Margins 200 bps+ • Grow Four Wall Volumes • Accelerate New Unit Growth
11 6 GOAL: DOUBLE EBITDA OVER 5 YEARS • Seating Utilization/Turns • 12+12 Brews Initiative • To-Go • Burger Works – channel growth • Catering • Hispanic • Order-Ahead • Delivery • Complete BTI remodels • Store-level Technology • Midsize Unit Emphasis • Franchise Acquisitions • Stock Buy-Backs • Increased Pace of Growth • Supply Chain Management System • Service Models • G&A Leverage Revenue Expense Capital Deployment Project RED²
12 Growing Free Cash Flow 30 50 70 90 110 130 150 170 190 210 2010 2011 2012 2013 2014 TTM Q3 15 2016e 2017e 2018e 2019e 2020e Cash Flow and Investments (mm) Other Investments BTI Remodels Operating Cash Flow 1) 2015 Investments represents Outlook per Q3 2015 earnings call Note: Excludes future franchisee acquisitions; 2016e to 2020e are illustrative 1
13 Key Take-Aways • Five-year track record of increasing guest engagement and returns • Q4 turbulence – a call to action • RED – Double EBITDA over 5 years • Robust multi-year plan mapped out with significant opportunities • Considerable white space for development • Significant free cash flow engine 2017 and beyond • Organization that delivers ²
14 APPENDIX
15 EBITDA and Adjusted EBITDA Reconciliation to Net Income 15 2010 2011 2012 2013 2014 2015 YTD YTD YTD YTD YTD Q1 Q2 Q3 Net income as reported $ 7,299 $ 20,577 $ 28,331 $ 32,239 $ 32,561 $ 16,565 $ 11,166 $ 8,282 Adjustments to net income: Income tax expense 5,003 5,823 8,526 9,010 9,298 6,220 4,410 2,325 Interest expense, net (2,569) 1,511 5,314 2,632 2,955 1,088 805 777 Depreciation and amortization 56,738 55,272 55,468 58,200 64,579 23,003 17,260 18,618 Non-cash stock-based compensation 4,212 3,319 3,808 3,823 4,167 1,446 1,403 1,194 EBITDA $ 70,683 $ 86,502 $ 101,447 $ 105,904 $ 113,560 $ 48,322 $ 35,044 $ 31,196 Loss on debt refinancing - - 2,919 - - - - - Change in estimate for gift card breakage (3,507) 2,228 - - - (1,369) - - Executive transition costs 2,559 4,337 - - 544 - - - Impairment and closure charges 6,972 (438) - 1,517 8,833 - - - Non-recurring special bonus - - - 1,626 - - - - Adjusted EBITDA $ 76,707 $ 92,629 $ 104,366 $ 109,047 $ 122,937 $ 46,953 $ 35,044 $ 31,196 ($ in thousands)
Red Robin Gourmet Burgers (NASDAQ:RRGB)
Historical Stock Chart
From Jul 2024 to Aug 2024
Red Robin Gourmet Burgers (NASDAQ:RRGB)
Historical Stock Chart
From Aug 2023 to Aug 2024
