rt ruby tuesday jan 2016 investor presentation

8/20/2019 RT Ruby Tuesday Jan 2016 Investor Presentation

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ICR ConferenceJanuary 13th, 2016


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Forward-Looking Statements

This presentation contains various forward-looking statements. Please-

recently filed Form 10-Q.

Throughout this presentation, we will be presenting Non-GAAPnanc al measures nc lud ng ad usted net ncome, ad usted EBITDA

and adjusted EPS. This information is not calculated in accordance

with U.S. GAAP and may be calculated differently than other’ -

Reconciliations of our Non-GAAP financial measures to their mostdirec tly comparable GAAP measures appear on our website.

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Experienced Management Team

Chairman, President & CEO

21 year restaurant industry veteran25 yea rs in the c onsumer space

building, marketing, strategicplanning and c onsumer resea rchfor major restaurant andentertainment companies

J ill GolderChief Financial Officer& Treasurer

J oined Ruby Tuesda y in April 201325+years restaurant industry andFinance experience

In-depth knowledge andexperience in corporate financ e,trea sury, analytics, tec hnology,and investment o timization

David SkenaChief Marketing Officer

J oined Ruby Tuesda y in J uly 201520+ yea rs marketing & c onsulting

experience

Particular expertise in brand-building, campaign management,

marketing & business strategydevelopment, including digital and

Brett PattersonRuby Tuesday Concept

J oined Ruby Tuesda y in J uly 201325+ years restaurant industry veteran

Extensive experience in Operations,leading and developing teams,enhancing efficiencies,

strea mlining processes andimproving business results

Rhonda ParishChief Legal Officer & Secretary

J oined Ruby Tuesda y in March 201530+ yea rs retail & restaurant industry

Extensive exec utive, legal andregulatory experienc e in restaurant

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Historical Context

Brand Shift to Polished Casual – Pre-2013

• Objec tive was to move the Ruby

Change in Use of Ruby Tuesday Brand2012 versus 2007

Polished Casual dining segment• Polished Casual positioning was not

a viable strategy for Ruby Tuesday 55+

Age

Ruby Tuesday not viewed as acredible polished casual brand

Fewer dining occasions exist in theolished casual dinin s ace 35-54

No polished casual chains over200+ restaurantsRuby Tuesday’s guest base andrestaurant portfolio not aligned 25-34with polished casual diningsegment

< $40 $40 to $75 > $75INCOME

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Ruby Tuesday - Today

• Casual-Dining BrandStrong brand rec ognitionBroadly appealing menu

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• Annual Revenue $1.1 billion• Average Sales Volume $1.7 million• 733 restaurants

Unique point of differentiation683 locations in the United States50 international locations

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Progress on Fundamentals

• Increased variety of family friendly food

• Broadened price points

• Engaged with families

• Energized Happy Hour

• Business model improvements

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Compelling New Promotions

7American Rib Festival


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Reintroducing Guest Favorites

8Colossal Burger


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Introduced New Signature Dishes

9Double ‐Decker Chicken 9


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Energizing Happy Hour

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Engaging Families with Kids

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Bar and Grill Category is Crowded

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Salad Concepts are Rapidly Emerging

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We Are a Salad Concept With a Full Menu

Energetic

casual dining

ContemporaryGarden Bar

HandcraftedAmerican

Favorites

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Current Garden Bar

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Bigger, Bolder, Better

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Expanding Successful Test

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After Remodel - Exterior

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After Remodel – Night Exterior

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After Remodel - Bar

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After Remodel - Bar

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After Remodel –Interior Elements

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Communication Strategy

Reaching our Core Consumer:Women with young families (aged 25 – 40)

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Social / Digital is Attractive

• Enables multiple creative

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• Can be quickly optimized

• Enables effective reach

a ower s

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Nov/Dec: Test, Learn, Apply, Repeat

Cohort System Testing Variables

ControlMEDIA DIST.:

Social channelAd unit typeAd plac ement

Test Group A

AUDIENCE:AgeGender

SoConnectedHome location

Test GroupTest GroupAFFINITY:

Purchaser DataLIFESTYLE:Family friendly

CB

Entre Preferenc eFamily Meals

Brand Promotions

Millennial friendly Time of Day

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oca ons w sm ar resu s un e o ana yze mpac o wee y es s○ Assured that lift in a cohort could be attributed to the variablebeing tested

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,the learnings of the previous week


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Tailored Promotional Messaging

● Happy Hour○ Message on Mobile

Platforms -

● Kids Eat Free on Tuesday○ Message on Sunday,

Monday, Tuesday -

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Highly Localized Messaging

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Restaurant-Level Optimization

● Get granular to deliver the right message○ Continually analyze CPE of individual messages at the region and store level○ Serving images of entrees specific to what sells best in the respective region

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How is it Going?

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Significant Progress on the Business Model

Adjusted EBITDA increased over 50%• FY15 Adjusted EBITDA of $80.6M increased 52% from FY14

• FY15 Adjusted EBITDA margins improved 260 bps to 7.2%

Stabilized the Top Line - .

down -5.3% in FY14

• FY15 Same Restaurant Guest Counts of -1.4% were in line-

Strengthened Cost Structure• . , .

• SG&A reduced $21.8 million to 10.2% of Sales

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Fiscal 2016 Second Quarter Highlights

Restaurant Sales Margins

+

vs.KnappTrack

. vs. Prior Year

+$0.04+$3.9MEBITDA EPS

a ovelast year

a ovelast year

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Opportunity to Grow Average Unit Volumes

$2.1 $2.2

$1.7

FY07 FY15 GOAL

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$ in Millions


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Achieving Goal Creates Significant Value

ons

FY15 GOALAverage Unit Volume $1.7 $2.2

Restaurant Level Margin % 16.9% 18.0%

Adjusted EBITDA $81 $130Adjusted EBITDA Margin 7.2% 9.0%

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Note: Goal Results assume 655 company owned units and SG & A expense of 9.5%$ in Millions


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Strong Balance Sheet

Ended Q2 FY16 with a Stronger Balance Sheet• Cash Balance of $45.3 million

• Book Debt of $231.9 million

• Reduced debt $63.5 million over last 10 quarters

Priority for Cash: Create Shareholder Value•

• Invest in our key brand transformation initiatives

• Pay down debt and/or repurchase shares

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Owned Real Estate Provides Flexibility

Own land and building for 303 open restaurants

• 206 are debt free

• 49 were independently appraised inDecember 2013 at $101.4 million

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Positioned to Drive Shareholder Value

Key Priorities of Brand transformation

• Continued Menu Innovation

• Garden Bar Test

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• Communicating more effectively with target customer

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rt ruby tuesday jan 2016 investor presentation

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