EAT Brinker Jan 2016 Investor Presentation (2)
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Transcript of EAT Brinker Jan 2016 Investor Presentation (2)
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8/20/2019 EAT Brinker Jan 2016 Investor Presentation (2)
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RAVE Restaura
ICR Finance CJa
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is a multi-brand restaurant operating compa
•Founded 1958
•Primarily buffet pizza concept
•237 restaurants open U.S., Middle East, Honduras
•99% Franchise operation
•Consistent royalty revenue stream
•Created 2011
• Leading Fast Casual pizza concept
•400+ restaurants under developm
•Dual development: Company + Fr
•Quarterly system wide sales CAGR
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Sales Contribution and Growth
104,461 103,230 104,170 103,165 105,361108,147
112,248118,289
124,242
131,399
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20,000
40,000
60,000
80,000
100,000
120,000
140,000
1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16
Domestic
System
-
Wide Retail Sales
Pizza Inn Pie Five
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89%
11%
FY14
Pizza Inn Pie Five
70%
30%
2QFY16 (TTM)
Sales Contribution – total retail sales mix
A Fast Changing Company
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Millennial Moms
• 30 – 40 year-old females
• Brings kids and other moms
• Casual environment, easy to park,
can bring the chaos
• Looks for value, variety, speed &
healthy options
• Keep the kids happy with less hassle
Hang Out Gang
• 16-25 year-olds
• Male driven
• Individualism is key
• Casual environment
• Value & variety
• Want to feel important/cool
• 25-35 ye
• Male & f
• Look for
• Elevated
environm
• Expect tr
Our Fans
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Pie Five Restaurant Growth
1518 19
2024
31
40
54
0
10
20
30
40
50
60
70
80
90
1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15
Pie Five Unit Growth
Comp an y Franc hi se
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now open coming soon not here (yet)
82 restau
23 states
22 franch
6 compan
Traditiona
non-tradi
• regio
• Casi
• majo
• trans
1
4
22
21
1
1
2
71
13
2
1
12
2
11
2
1
1
75
1
as of Decem
Geographic Growth – U.S.
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Solid Restaurant Level Economics
Restaurant Level Economics
Annual Unit Sales $750,000 Based on units in 2nd quarter com
Restaurant Operating Cash Flow 17 –
19% margin Occupancy and fixed operating c
Allocated Mktg & Adv Expenses 5% of net sales Invest to build brand understand
Build Out Investment
Size 2,000 – 2,400 s.f. 2,200 is ideal
Location Retail strip center end cap Leased space
Construction $450,000 – $475,000 Before landlord T.I. allowance anexpense
Payback Targets 1.5:1 – 2:1 sales/investment ratio 3 year cash on cash return target
*targets calibrated on units in comparable store base at end of Q2 FY16.
*restaurant operating cash flow represents the pre-tax income earned before:
1) Allocated marketing advertising expenses
2) Depreciation and amortization
3) Pre-opening expenses
4) Operations management and extraordinary expenses; and
5) Deferred rent adjustment (net) and impairment.
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Comp Sales Growth – Quarterly Two Year Trends
17.7 16.6
11.9
19.718.5
-5%
0%
5%
10%
15%
20%
25%
Q1 2015/14 Q2 2015/14 Q3 2015/14 Q4 2015/14 Q1 2016/15 Q
Prior Year Quarter Current Quarter
Two Year Reported Comp Sales Growth*
*comp sales are calculated based on restaurants open 18 months or more in the reported quarter
l d h h
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Evolution – Increased Throughput
Service Line Efficiency Technology Enablers
Reduce Bottlenecks
Fresh Salad Speed Station Online Ordering
Customer Enabled
Checkout
Kiosk
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Evolution - Food & Service
Rave-able, Crave-able Comeback Quality Food
Addition of Garlic Breadstix• and cheesestix
• and bacon cheesestix
Bundle Merchandising
• Pizza bundle
• Salad bundle
• Breadstix bundle• Kids bundle
Larger Pizza... Better Value
Service So Good it Drive
Recruit
• En
• Cu
pro
• Re
ap
int
Training• P FIVE vibe behaviors
• Six Slices of Service
Feedback & Reward• Mystery shop 2X/week
• Next AM feedback
• Quantitative & Qualitative f
• CASH incentives to crews ac
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Investment Highlights
•Multi-branded Restaurant Company
•Pizza Inn providing stable earnings contribution
•Franchise model
•Experienced, local franchise owners
•Pie Five pioneering Fast Casual Pizza Segment with significant growth u
•
Early days for this emerging segment•Strong unit economics and new restaurant pipeline
•Continued concept evolution to maximize success
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Breakouts
11:00 AM Mediterranean –
Salon 5
2:30 PM Coquina Ballroom – Room 2
Company Representatives:• Randy Gier, CEO
• Tim Mullany, CFO