CLASSIFIED – INTERNAL USE
Third Quarter 2017 Results
November 6, 2017
2CLASSIFIED – INTERNAL USE
Forward-Looking Statements
Forward-looking statements in this presentation regarding the Company’s future performance, revenues and
timing thereof, service model changes, new restaurant openings, tax rate, sensitivity of earnings per share
and other projected financial measures, statements under the heading “Outlook for 2017”, 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,” “believe,” “anticipate,” “intend,” “plan,” “project,” “will” or “estimate,”
or the negative or other variations thereof or comparable terminology are intended to identify forward-looking
statements. Except as required by law, the Company undertakes no obligation to update such statements to
reflect events or circumstances arising after such date, and cautions 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 improvement initiatives;
the ability to fulfill planned, and realize the anticipated benefits of completed, expansion and restaurant
remodeling; the effectiveness of our marketing strategies and initiatives to achieve restaurant sales growth;
the cost and availability of key food products, labor, and energy; the ability to achieve anticipated revenue
and cost savings from anticipated new technology systems and tools in the restaurants and other initiatives;
the ability to develop, test, implement and increase online ordering, to-go services, catering and other off-
premise sales; 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 the Company’s
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.
This presentation may also contain non-GAAP financial information. 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 the Company’s financial performance, identifying trends in results, and providing meaningful period-
to-period comparisons. For a reconciliation of non-GAAP measures presented in this document, see the
Appendix of this presentation or the Schedules to the Q3 press release posted on redrobin.com.
3CLASSIFIED – INTERNAL USE
Red Robin Q3-2017 Results
• Total revenues increased 2.3%
• Comparable restaurant revenue down 0.1%
(using constant currency rates)
• Off-premise revenues increased to 7.6% of
total food and beverage sales
• Restaurant-level operating profit(1) was
17.4% compared to 18.6% in the prior year
• Adjusted EBITDA(1) was $25.5 million
• Diluted earnings per share were $0.21
compared to diluted loss per share of $0.10
in Q3 2016. Adjusted diluted EPS(1) were
$0.21 compared to $0.38 in the prior year
• Opened 7 new Red Robin® restaurants
(1) See reconciliations of non-GAAP financial measures to the most
comparable GAAP financial measures in Appendix.
4CLASSIFIED – INTERNAL USE
Red Robin Strategic Priorities
• Maximize brand equities to ensure
a strong foundation
• Rapidly pilot and rollout
transformational changes
• Conceptualize and test
revolutionary new approaches
5CLASSIFIED – INTERNAL USE
Labor Productivity
_________________
*Comp restaurants only, FOH/HOH combined
6CLASSIFIED – INTERNAL USE
Burger Bar
7CLASSIFIED – INTERNAL USE
Off-Premise Sales Trend
5.4%
5.7%
6.3%
7.0%
7.6%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3
US Comp Locations Off-Premise Sales as a % of
Gross F&B Sales
8CLASSIFIED – INTERNAL USE
Traffic vs. Casual Dining (8-quarter trend)
Source: Based on Black Box Intelligence Casual Dining (All Cuisine) peers as of 10/1/2017
-1.5%
-0.9%
-0.6%
1.2%
2.2%
1.2%
3.6%
4.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
CLASSIFIED – INTERNAL USE 9
Financial Update
10CLASSIFIED – INTERNAL USE
Q3-17 Sales Highlights
Q3-17
(12 Weeks)
Q3-16
(12 Weeks)
Change
Q3-17 YTD
(40 Weeks)
Q3-16 YTD
(40 Weeks)
Change
Restaurant revenue $301.1 million $293.9 million 2.5% $1.03 billion $992.7 million 3.4%
Total company revenues $304.2 million $297.3 million 2.3% $1.04 billion $1.00 billion 3.3%
Company-owned comp revenue(1) -0.1% -3.6% -0.2% -2.9%
Price/Mix -0.1% -1.2% -0.1% 0.6%
Guest counts 0.0% -2.4% -0.1% -3.5%
Franchised comp revenue -3.0% -1.4% -2.8% -1.2%
Company avg. weekly revenue/unit(1) – total $52,955 $52,439 1.0% $54,614 $54,555 0.1%
Company avg. weekly revenue/unit(1) – comp $53,233 $53,022 0.4% $55,576 $55,622 -0.1%
Avg. weekly restaurant level operating
profit/unit(1) – comp
$9,360 $10,104 -7.4% $10,965 $11,881 -7.7%
Operating weeks 5,686 5,613 1.3% 18,803 18,205 3.3%
Net Sales/ sq. ft (TTM) $447 $455 -1.8%
(1) Calculated at constant currency rates.
11CLASSIFIED – 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%
0.5%
-0.1%
-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 Q2-17 Q3-17
(1) Calculated at constant currency rates.
12CLASSIFIED – INTERNAL USE
23.0%
22.5%
21.6%
21.9%
22.5%
20.9%
18.6%
19.0%
20.7%
19.9%
17.4%
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
12
(1) See Appendix for reconciliation of non-GAAP restaurant-level operating profit to net income (loss)
13CLASSIFIED – INTERNAL USE
Q3-17 Restaurant Results
13
% of Restaurant
Revenue
Q3-17
% of Restaurant
Revenue
Q3-16
Favorable
(Unfavorable)
Cost of sales 23.8% 23.6% (20 bps)
Labor 35.3% 34.8% (50 bps)
Other operating 14.9% 14.5% (40 bps)
Occupancy 8.6% 8.5% (10 bps)
Restaurant Level Operating Profit(1) 17.4% 18.6% (120 bps)
(1) See Appendix for reconciliation of non-GAAP restaurant-level operating profit to net income (loss)
14CLASSIFIED – INTERNAL USE
$45.5
$33.6
$30.0
$34.3
$48.9
$33.5
$26.8
$29.2
$45.8
$32.3
$25.5
$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)
14
(1) See Appendix for reconciliation of non-GAAP Adjusted EBITDA to Net Income (Loss)
(2) To conform with current period presentation and to provide an EBITDA measure comparable to other companies in our industry,
stock-based compensation is included in EBITDA in all prior periods presented.
15CLASSIFIED – 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
$0.61
$0.21
$0.15
$0.35
$0.55
$0.75
$0.95
$1.15
$1.35
Q1 Q2 Q3 Q4
2015 2016 2017
15
See Appendix for reconciliation of non-GAAP Adjusted Earnings Per Diluted Share to Earnings (Loss) Per Diluted Share
16CLASSIFIED – INTERNAL USE
Outlook for 2017
• Earnings per diluted share projected to range from $0.45 to $0.60
for the fourth quarter and range from $2.16 to $2.31 for full-year
2017.
• Comparable restaurant revenue is projected to range from flat to up
0.5% for full-year 2017.
Note on Guidance Policy: The Company provides only annual guidance as it relates to revenues, comparable restaurant
revenue growth, operating weeks associated with locations opened, cost of sales and restaurant labor costs as a percentage
of restaurant revenue, other operating expenses (other than interest expense), depreciation and amortization, general and
administrative expense, selling expense, pre-opening expense, income tax rate, EBITDA, earnings per diluted share, overall
capital expenditures and restaurant openings and closings. The Company intends to only provide updates if there is a
material change versus the previously communicated guidance.
17CLASSIFIED – INTERNAL USE
Our Unique, Differentiating Strengths
• Craveable, customizable burgers
• Reputation for service and speed
that meets the needs of Guests
• Best-in-class value perception
with Bottomless promise,
“affordable abundance”
18CLASSIFIED – INTERNAL USE
Thank you to all of our Team Members!
17
CLASSIFIED – INTERNAL USE 19
Appendix
20CLASSIFIED – INTERNAL USE
Adjusted Net Income(1)
$15.6
$11.2
$8.3
$12.0
$17.6
$10.3
$5.0
$4.5
$11.6
$7.9
$2.7
$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)
20
(1) See Appendix for reconciliation of non-GAAP Adjusted Net Income to Net Income (Loss)
21CLASSIFIED – INTERNAL USE
$36.0
$31.3
$34.0
$39.6
$42.5
$24.6
$27.6
$4.3
$70.0
$34.7
$16.9
$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)
21
22CLASSIFIED – INTERNAL USE
Q3-17 Commodity Update
22
% of Total
COGS in Q3-17
Market vs. Contract
Ground beef 13.9% Market
Steak fries 11.1% 100% contracted through 10/18
Poultry 9.2% 100% contracted though 12/18
Produce 8.1% 70% contracted through 10/18
Meat 8.0% Prime rib 100% through 3/18
Bread 6.2% Frozen bread 100% contracted through 3/18
Seafood 3.1% Cod and Shrimp 100% contracted through 3/18
Fry oil 1.7% 100% contracted through 6/18
23CLASSIFIED – INTERNAL USE
Reconciliation of Adjusted Net Income to Net
Income (Loss) and Adjusted Earnings Per Diluted
Share to Earnings (Loss) Per Diluted Share
23
($ in thousands, except per share data)
2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Net income (loss) as reported $ 16,565 $ 11,166 $ 8,282 $ 11,691 $ 14,225 $ 7,552 $ (1,300) $ (8,752) $ 11,567 $ 6,931 $ 2,714
Adjustments to net income (loss):
Asset impairment and restaurant closure
costs
- - - 581 825 3,860 9,321 20,420 - 1,584 -
Litigation contingencies - - - - 3,900 - - - - - -
Reorganization costs - - - - - - - 1,322 - - -
Change in estimate for gift card breakage (1,369) - - - - - - - - - -
Income tax (expense) benefit of adj. 439 - - (227) (1,356) (1,153) (2,993) (8,470) - (618) -
Adjusted net income $ 15,635 $ 11,166 $ 8,282 $ 12,045 $ 17,594 $ 10,259 $ 5,028 $ 4,520 $ 11,567 $ 7,897 $ 2,714
Diluted net income (loss) per share(1):
Net income (loss) as reported $ 1.16 $ 0.78 $ 0.58 $ 0.84 $ 1.03 $ 0.55 $ (0.10) $ (0.68) $ 0.89 $ 0.53 $ 0.21
Adjustments to net income (loss):
Asset impairment and restaurant closure
costs
- - - 0.04 0.06 0.28 0.70 1.58 - 0.12 -
Litigation contingencies - - - - 0.28 - - - - - -
Reorganization costs - - - - - - - 0.10 - - -
Change in estimate for gift card breakage (0.09) - - - - - - - - - -
Income tax (expense) benefit of adj. 0.03 - - (0.02) (0.10) (0.08) (0.22) (0.65) - (0.04) -
Adjusted EPS - diluted $ 1.10 $ 0.78 $ 0.58 $ 0.86 $ 1.27 $ 0.75 $ 0.38 $ 0.35 $ 0.89 $ 0.61 $ 0.21
(1) For the third and fourth quarters of 2016, the impact of dilutive shares is included in the calculations as the adjustments for the quarter resulted in
adjusted net income. In the fourth quarter of 2016, the calculation for Asset impairment and restaurant closure costs includes $0.01 related to the effect
of the diluted shares on net loss per share as reported.
24CLASSIFIED – INTERNAL USE
Restaurant Level Operating Profit Reconciliation
to Income from Operations and Net Income (Loss)
($ in thousands)
2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Restaurant revenue $ 388,509 $ 288,704 $ 279,496 $ 282,189 $ 396,770 $ 302,117 $ 293,858 $ 287,924 $ 413,451 $ 312,351 $ 301,100
Restaurant operating costs(1):
Cost of sales 97,950 71,665 68,197 66,825 92,325 70,831 69,447 65,646 94,607 73,903 71,642
Labor 124,356 93,513 92,097 93,551 132,984 102,847 102,294 101,107 145,519 108,422 106,205
Other operating 46,584 35,356 36,144 36,260 49,708 40,275 42,463 41,531 54,680 42,712 44,846
Occupancy 30,147 23,210 22,804 23,846 32,498 24,905 25,121 24,884 33,119 25,140 25,868
Restaurant-level operating profit 89,472 64,960 60,254 61,707 89,255 63,259 54,533 54,756 85,526 62,174 52,539
Add – Franchise royalties, fees,
and other revenue
6,392 4,275 3,916 4,111 5,356 3,432 3,449 3,535 5,106 3,420 3,148
Deduct – Other operating:
Depreciation and amortization 23,003 17,260 18,618 18,493 23,951 19,159 21,468 22,117 28,044 21,173 21,258
General and administrative
expenses
34,995 23,044 23,709 21,257 31,980 19,972 20,328 19,015 30,913 21,927 18,562
Selling 13,066 11,082 7,899 8,027 11,408 11,047 8,718 9,169 12,362 10,167 10,308
Pre-opening and acquisition costs 955 1,369 2,239 2,445 2,372 2,238 2,382 1,033 1,855 1,377 1,503
Other charges(2) - - - 581 4,725 3,860 9,321 21,742 - 1,584 -
Total other operating 72,019 52,755 52,465 50,803 74,436 56,276 62,217 73,076 73,174 56,228 51,631
Income (loss) from operations 23,845 16,480 11,705 15,015 20,175 10,415 (4,235) (14,785) 17,458 9,366 4,056
Interest expense, net and other 1,060 904 1,098 747 1,638 1,486 1,612 2,046 2,984 2,453 2,032
Income tax expense (benefit) 6,220 4,410 2,325 2,577 4,312 1,377 (4,547) (8,079) 2,907 (18) (690)
Total other 7,280 5,314 3,423 3,324 5,950 2,863 (2,935) (6,033) 5,891 2,435 1,342
Net income (loss) $ 16,565 $ 11,166 $ 8,282 $ 11,691 $ 14,225 $ 7,552 $ (1,300) $ (8,752) $ 11,567 $ 6,931 $ 2,714
(1) Excluding depreciation and amortization, which is shown separately.
(2) Certain amounts presented in prior periods have been reclassified to conform with the current period presentation. See condensed consolidated
statement of operations in Exhibit 99.1 for explanation of Other charges.
25CLASSIFIED – INTERNAL USE
EBITDA and Adjusted EBITDA
Reconciliation to Net Income (Loss)
25
2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Net income (loss) as reported $ 16,565 $ 11,166 $ 8,282 $11,691 $14,225 $ 7,552 $ (1,300) $ (8,752) $ 11,567 $ 6,931 $ 2,714
Adjustments to net income
(loss):
Income tax expense (benefit) 6,220 4,410 2,325 2,577 4,312 1,377 (4,547) (8,079) 2,907 (18) (690)
Interest expense, net 1,088 805 777 959 1,655 1,555 1,822 2,161 3,249 2,626 2,222
Depreciation and amortization 23,003 17,260 18,618 18,493 23,951 19,159 21,468 22,117 28,044 21,173 21,258
EBITDA(1).. $ 48,322 $ 33,641 $ 30,002 $ 33,720 $ 44,143 $ 29,643 $ 17,443 $ 7,447 $ 45,767 $ 30,712 $ 25,504
Asset impairment and
restaurant closure costs
- - - 581 825 3,860 9,321 20,420 - 1,584 -
Litigation contingencies - - - - 3,900 - - - - - -
Reorganization costs - - - - - - - 1,322 - - -
Change in estimate for gift card
breakage
(1,369) - - - - - - - - - -
Adjusted EBITDA $ 45,507 $ 33,641 $ 30,002 $ 34,301 $ 48,868 $ 33,503 $ 26,764 $ 29,189 $ 45,767 $ 32,296 $ 25,504
($ in thousands)
(1) To conform with current period presentation and to provide an EBITDA measure comparable to other companies in our industry,
stock-based compensation was excluded from EBITDA in all prior periods presented.