Download - BBRG Jan 2016 Investor Presentation
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ICR Conference 2016
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Safe Harbor Statement
Certain statements made in this presentation constitute forward-looking statements, within the meaning of the Private SecuritiesLitigation Reform Act of 1995, regarding the company's future plans,objectives and expected performance. Statements that are nothistorical facts, including statements accompanied by words such as
"believe," "expect," "estimate," "intend," or "plan," are intended toidentify forward-looking statements and convey the uncertainty of future events or outcomes. The Company cautions that any suchforward-looking statements are based on assumptions that are subjectto a wide range of risks, and actual results may differ materially.
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Brian O’MalleyChief Executive Officer
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Two Complimentary Brands
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Upscale affordable Italian restaurant serving broadmenu of freshly-prepared classic Italian food
• Warm, inviting atmosphere with sophisticated design
• 51 company-owned BRAVO! restaurants across 22states
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Average unit volume of $3.2 million
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Two Complimentary Brands
• Upscale affordable Italian chophouse restaurant servingauthentic northern Italian food in a Tuscan Villa
atmosphere• Typically located in high-traffic, high-visibility locations
within affluent suburban and urban markets
• 64 company-owned Brio restaurants across 22 states, onelocation under a management agreement and one
franchise location opened in 2015• Average unit volume of $4.2 million
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What Makes BBRG Unique
CHEF
DRIVENUPSCALE
AESTHETICGUEST
CENTRICSTRONG
ECONOMICSGROWTH
POTENTIAL
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Culinary Vision•
Experienced, culinary-trained chefs
• Made-to-order and freshly prepared
• Attention to detail and focusedexecution
• Continue menu evolution
• BRAVO! – Italian with a twist
• BRIO – Focus on grill/specialties
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Light Menu Offerings
Direct response to guests’ desire to lead ahealthier lifestyle
– All items under 650 calories
– Menus include appetizers, side andentrée salads and a selection of entrées
Gluten-Free menu available at both Brands
Culinary Vision
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Chef FeatureCards Program
Showcases the talents of
our culinary trainedExecutive Chefs
Continued focus on theuse of seasonal andsustainable ingredients
Offering unique, rotatingdishes to furtherencourage repeat visits
Culinary Vision
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A limited time offer at BRIO!ran in 2015
Featured a rotating series ofthree-course meals designed tohighlight our grilled menu
offerings
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A limited time offer at BRAVO!
Guests may choose fromseveral entrees, including:
• Shrimp Scampi ( pictured )• Grilled Chicken Piccata• Baked Chicken Parmesan
Paired with a choice of sidesalad or soup
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A limited time offer at BRIOcommencing in early 2016
Featuring two new, fresh entrees:
• Coldwater Lobster Tail with Shrimp Risotto
• Sea Scallop and Ratatouille Risotto
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Marketing Strategy Elements
Investing greater resources in our various
marketing channels:
• Human Capital
• Local store marketing – Various community partnerships
• Digital Media – Email club, social media, web site, digital ads
• Traditional Marketing – Direct Mail, in-store merchandising, radio and
print
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• Followers on each platform have significantlyincreased in 2015
• Results driven by a combination of posts, one-to-oneengagement, and promotions within these top threenetworks
• Ranking within Restaurant Social Media EngagementIndex has meaningfully increased
Increased Presence on Social Media
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• Maximizing capacity
• Caters to frequent andlast-minute diners,business travelers and
millennials
• Provides our core guest-base an easier way todine with us
• Powerful marketing
platform to reach newguests through greaterbrand awareness
Online Reservation System
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Loyalty Program
• Encouragesfrequent visits
• Rewards our mostloyal guests
• Data collectedprovides consumer
insights
Rewarding Loyal Guests
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Banquet• Growth segment
• Elegant , multi-purposeBanquet rooms for:
– Large Parties – a la carte seating
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Bar
• Centerpiece of current designs
• VIBE VISTA Award for our BestSpirits Program – Martini specials Wednesday – Wine specials Thursday
– Updated bar menus
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Jim O’ConnorChief Financial Officer
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Flexible Real Estate Model
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• Nationally recognized restaurantanchor, resulting in:
– Prime location within a retailcenter
– Tenant allowances and favorablelease terms
•We attract approximately 2,700
‐4,500
guests each week
• Co‐tenants benefit from BBRG’sstrong velocity of guest traffic andattractive guest demographics
• Retailers seek out locations in BBRGoccupied developments
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Long-term New Unit Growth Potential
• Significant opportunity toexpand in new and existingmarkets
– Growth in existing marketsbuilds density that drivesoperating leverage and brandrecognition
– New markets in Northeast andWest largely untapped
• Proven portability and ability
to grow
– Flexible real estate modelappeals to landlords
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51 BRAVO! Restaurants
66 BRIO Restaurants
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Prospective Restaurants
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HuntsvilleAlabama
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Dolphin MallMiami, FL
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RookwoodCincinnati, OH
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Liberty Town CenterLiberty Township, OH
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Shareholder Return Plan
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Total
Return
ImproveHealth of
Core Business
DisciplinedGrowth
Return Excess
Capital viaShare
Repurchase
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Capital Expenditures
Development
– Opened six new restaurants in 2015 and ourfirst franchised location in San Juan, PuertoRico.
– Three new restaurants in 2016 (two Bravo’sand one Brio)
– 15 to 25 restaurants over the next five years
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Optimize Capital Structure
• Expect to continue generating free cash flow
– Used free cash in fiscal 2015 to pay down debt
– In Q4 2015, Board of Directors approved new $15 million share
repurchase authorization – Expect to use free cash in 2016 to repurchase shares and pay
down debt.
• Since onset of repurchasing activity (through Q3, 2015), wehave bought back approximately 5.1 million shares for $73.0
million
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Summary
• BRAVO! and BRIO are two unique and complementary brands
• Capital efficient unit economics
– 30%+ cash-on-cash target returns for new restaurants
• Will continue to deploy free cash in shareholder friendly manner
• Driving traffic and profitability• Limited-time offers and culinary innovation
• Focus on digital marketing platform
• Driving check and occasions through banquet and bar initiatives
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Questions?