bbrg jan 2016 investor presentation

8/20/2019 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

•

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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6

2

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1

7

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2 5

51 BRAVO! Restaurants

66 BRIO Restaurants

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1

2

1

1

5

2

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3

3

2

7

1

3

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12

1

1

121

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Prospective Restaurants

1


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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?

bbrg jan 2016 investor presentation

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