Jefferies Consumer Conference 205
Safe Harbor Statement Certain statements made in this presentation constitute forwardlooking statements, within the meaning of the Private Securities Litigation Reform Act of 995, regarding the company's future plans, objectives and expected performance. Statements that are not historical facts, including statements accompanied by words such as "believe," "expect," "estimate," "intend," or "plan," are intended to identify forward-looking statements and convey the uncertainty of future events or outcomes. The Company cautions that any such forward-looking statements are based on assumptions that are subject to a wide range of risks, and actual results may differ materially. 2
Two Complementary Brands BRAVO! Cucina Italiana Upscale affordable Italian restaurant serving broad menu of freshly-prepared classic Italian food Warm, inviting atmosphere with sophisticated design 52 company-owned BRAVO! restaurants across 22 states Average unit volume of $3.4 million BRIO Tuscan Grille Upscale affordable Italian chophouse restaurant serving authentic northern Italian food in a Tuscan Villa atmosphere Typically located in high-traffic, high-visibility locations within affluent suburban and urban markets 62 company-owned Brio restaurants across 22 states, one additional location under a management agreement Average unit volume of $4.4 million
Broad Appeal with Attractive Guest Base Day Part Mix Dinner, 70% Lunch, 30% Social Travelers, 0% Business, 2% Type of Guest Personal/ Social, 78% Gender Mix Age Breakdown 00% 00% 80% 60% 62% 65% 80% 60% 50% 44% 40% 20% 0% 38% 35% BRAVO! BRIO 40% 20% 0% 37% 4% 3% 5% BRAVO! BRIO Male Female <29 30-49 >50
Sales Mix & Brand Data Sales by Brand Liquor 2% Brio 62% Bravo 38% Liquor 7% Food 79% Food 83% 5
Brand & Day Part Guest Data Guest Counts by Brand Dinner 58% Lunch 42% Brio 58% Bravo 42% Dinner 6% Lunch 39% 6
Affordability Menu prices drive broad concept appeal and attractive guest demographic Our ability to drive traffic appeals to national and local developers $60.00 Average Check Across Restaurant Industry $50.00 Upscale Affordable $50.00 $40.00 $39.00 $30.00 $20.00 $0.00 $5.00 $9.30 $2.63 $23.50 $26.00 $26.70 $- Olive Garden Cheesecake Factory Bravo PF Changs Brio Maggiano's Seasons 52 Del Frisco's Grille Sources: SEC Filings, Industry and Company Reports, Presentations and Estimates 7
What Makes BBRG Unique HIGH-QUALITY FOOD GREAT SERVICE FLEXIBLE REAL ESTATE MODEL ATTRACTIVE AMBIANCE AFFORDABILITY BROAD APPEAL 8
Culinary Focused Experienced, culinary-trained chefs BRAVO! Made-to-order and freshly prepared Traditional, Italian culinary techniques BRIO Attention to detail and focused execution 9
Service Driven Consistent and attentive service High wait staff-totable ratio Experienced management teams Motivated to create and sustain a Spirit of Hospitality 0
Attractive Ambiance Lively, high-energy environment Dramatic design elements and inviting atmosphere Exhibition kitchens, high ceilings, white tablecloths Centerpiece lively and relaxing patios day or night Bar as key feature of design Elegant, multi-purpose Banquet rooms available for Large Parties and a la carte seating
Flexible Real Estate Model Nationally recognized restaurant anchor, resulting in: Prime location within a retail center Tenant allowances and favorable lease terms We attract approximately 2,700 4,500 guests each week Co tenants benefit from BBRG s strong velocity of guest traffic and attractive guest demographics Retailers seek out locations in BBRG occupied developments 2
Guests View of Value Value = Product + Service + Atmosphere +Brand Price 3
New Online Reservation System Completed roll-out in Q4 of 204 Caters to frequent and last-minute diners, business travelers and millennials Provide our core guestbase an easier way to dine with us Powerful marketing platform to reach new guests through greater brand awareness
Eat / Repeat / Reward Enhanced Loyalty Program Rolled out late 204 Intended to promote retention of our loyal guests and encourage frequent visits
Chef Feature Cards Ø Showcases the talents of our culinary trained Executive Chefs Ø Continued focus on the use of seasonal and sustainable ingredients Ø Offering unique, rotating dishes to further encourage repeat visits
Lunch Daily Features Offering three select items, rotating weekly for $7.95 (BRAVO!) & $8.95 (BRIO) Offered Monday-Friday until 3pm Includes selection of pasta, flatbreads, entrée salads and house specialties
The Art of Grilling The Art of Grilling Ø A rotating series of three-course meals designed to highlight our grilled menu offerings Summer Fixe Ø Limited time prix fixe menu offering a salad, choice of one of the three entrees and dessert for a single price
Lighter Side Offerings Direct response to our guests desire to lead a healthier lifestyle All items under 595 calories Menus include appetizers, side and entrée salads and a selection of entrées Gluten-Free menu available at both Brands
Growth & Finances
Long-term New Unit Growth Potential Significant opportunity to expand in new and existing markets Growth in existing markets builds density that drives operating leverage and brand recognition New markets in Northeast and West largely untapped Proven portability and ability to grow Flexible real estate model appeals to landlords 2 2 2 2 2 52 BRAVO! Restaurants 62 BRIO Restaurants Prospective Restaurants 6 2 2 2 2 5 6 2 2 2 7 2 2 3 3 3 3 5 3 2 2
Significant Underpenetration Significantly less penetrated than comparable upscale affordable and Italian restaurants Expect to open 25-35 additional locations in the next five years Number of Restaurant Locations 300 250 200 59 89 20 244 50 00 50 52 62 - Bravo Brio BJ's Cheesecake Factory PF Chang's Carrabba's Sources: SEC Filings, Industry and Company Reports, Presentations and Estimates
Industry-leading New Unit Economics Target cash-on-cash return of 30%+ Four wall economics leads upscale affordable restaurant segment ($ in millions) Bravo! Brio PFCB BJ s DRI / O.G. CAKE Target Cash Return 30.0% 40.0% 34.0% 27.5% 24.0% 2.5% Sales to Investment Ratio.9x 2.0x 2.0x.3x.x.2x Median AUV $3.4 $4.4 $4.6 $6.0 $4.4 $9.9 Target Net Cash Investment $.8 $2.2 $2.3 $4.5 $4. $8.6 Sources: SEC Filings, Industry and Company Reports, Presentations and Estimates 23
Recent Restaurant Openings Sarasota, FL Cincinnati, Ohio Huntsville, AL Fair Oaks, VA
Shareholder Return Plan Disciplined Growth Improve Health of Core Business Return Excess Capital via Share Repurchase Total Shareholder Return 25
Optimize Capital Structure Expect to continue generating free cash flow Post our 200 IPO, used free cash to pay down term-debt Continued to pay down debt and commenced a share repurchase program in late 202 Allocated more free cash to share repurchase throughout 204 Completed $50 million modified Dutch auction tender offer in December, 204 financed through new credit facility Since onset of repurchasing activity, we have bought back more than 5.0 million shares for $73.0 million 26
Free Cash Flow Projection Ø Free cash flows generated in 205 and beyond will be used to finance development and pay down long term debt $30.0 $25.0 $20.0 $6.7 $7.7 $20.3 $22.4 $5.0 $2.4 $0.0 $5.0 $- FY205P FY206P FY207P FY208P FY209P 27
Modified Dutch Auction Objectives: Drive shareholder value through aggressive share repurchase given our current low multiple Transaction is accretive in 205 and beyond Took advantage of favorable interest rates by leveraging balance sheet in a prudent but not aggressive manner Decreased our cost of capital Results Repurchased ~3.6 million shares ($50 million) at $4 per share Using midpoint of annual 204 Diluted EPS as a baseline, expect this transaction to be $0.06 accretive to 205 diluted EPS 28
Q 205 Annual Results & Annual Guidance Net Revenues of $08.2 million and Net Income of $2.5 million Q 205 Diluted EPS of $0.6 per share Q 205 Comparable Sales of minus.2% Annual 205 Guidance Revenues of $42 million to $429 million Diluted EPS of $0.63 to $0.69 Capital Expenditures of $6 million to $8 million Development of five new restaurants ( three Bravo s and two Brio s) plus an additional Brio unit to open in Puerto Rico to be operated by a franchisee. Diluted share count of approximately 6.0 million Development New Bravos opened in Huntsville, AL and Cincinnati, OH in Q, 205; and a new Brio Fairfax, VA and Bravo in Las Vegas, NV in Q2, 205 and a new Brio in Miami, FL. in Q4. 29
Summary BRAVO! and BRIO are two unique and complementary brands Capital efficient unit economics 30%+ cash-on-cash target returns for new restaurants Significant new unit growth opportunity 25-35 medium-term new store opening opportunities Significant white-space in all geographies Multiple initiatives driving organic revenue and profitability growth Lighter Side menu is a strategic focus to capture growing healthierdining lifestyle Key drivers to capture new/higher income guests (Open Table), our most frequent guests (Eat/Repeat/Reward loyalty program) and Value seeking guest (Chef Daily Features) 30
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