EAT Brinker Jan 2016 Investor Presentation (2)

8/20/2019 EAT Brinker Jan 2016 Investor Presentation (2)

1/18

RAVE Restaura

ICR Finance CJa


2/18


3/18

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


4/18

Sales Contribution and Growth

104,461 103,230 104,170 103,165 105,361108,147

112,248118,289

124,242

131,399

-

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


5/18

89%

11%

FY14

Pizza Inn Pie Five

70%

30%

2QFY16 (TTM)

Sales Contribution – total retail sales mix

A Fast Changing Company


6/18


7/18


8/18


9/18

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


10/18


11/18

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


12/18

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.


13/18

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.


14/18

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


15/18

Evolution – Increased Throughput

Service Line Efficiency Technology Enablers

Reduce Bottlenecks

Fresh Salad Speed Station Online Ordering

Customer Enabled

Checkout

Kiosk


16/18

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


17/18

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


18/18

Breakouts

11:00 AM Mediterranean –

Salon 5

2:30 PM Coquina Ballroom – Room 2

Company Representatives:• Randy Gier, CEO

• Tim Mullany, CFO

Documents

EAT Brinker Jan 2016 Investor Presentation (2)