Ruth's Hospitality — ICR 2020
24 slides from Ruth's Hospitality's conference presentation, Jan 13, 2020
Slide 1: Ruth's Hospitality Group ICR 2020
RUTH’S HOSPITALITY GROUP ICR 2020 NASDAQ: RUTH Exhibit 99.1
Slide 2: Forward-looking statements
This presentation contains “forward-looking statements” that reflect, when made, the Company’s expectations or beliefs concerning future events that involve risks and uncertainties. Forward-looking statements frequently are identified by the words “believe,” “anticipate,” “expect,” “estimate,” “inte
Slide 3: Ruth's Hospitality Group ICR 2020
RUTH’S HOSPITALITY GROUP ICR 2020 NASDAQ: RUTH
Slide 4: A Compelling, Long-Term Investment Opportunity
A COMPELLING, LONG-TERM INVESTMENT OPPORTUNITY Company Overview Evolution Initiatives Investment Overview
Slide 5: Company at a glance: history and global locations
NASDAQ: RUTH YEAR HISTORY INTERNATIONAL FRANCHISE LOCATIONS START UP LOCATIONS GLOBALLY 55 20 $22K 158 MORE THAN
Slide 6: Key metrics: SSS growth, revenue, AUV, capital returned
CONSECUTIVE YEARS OF SSS GROWTH 9 MILLION CAPITAL RETURNED SINCE 2011 $270 NASDAQ: RUTH MILLION COMPANY & FRANCHISE REVENUE (2019 Q3LTM) $750 MILLION AUV $5.6 MORE THAN MORE THAN
Slide 7: Maintain Healthy Core, Disciplined Growth, Return Excess Capital
Maintain Healthy Core Continue Disciplined Growth Return Excess Capital NASDAQ: RUTH NASDAQ: RUTH NASDAQ: RUTH The Secret Behind The Sizzle
Slide 8: Healthy Core: Our People, Our Food, Our Atmosphere
Expert, Tenured Restaurant Team USDA Prime Steaks House-made Desserts Handcrafted Bar Uniquely Designed Locations Healthy Core Our People, Our Food, Our Atmosphere
Slide 9: Disciplined Growth
+9 Company Locations 2018 +5 Company Locations 2019 +7 Leases Signed 2020-2021 Disciplined Growth Target 3-5 New Company Restaurants Per Year 1. 2018 locations include Jersey City, NJ, Paramus, NJ, Reno, NV (operating agreement) and 6 stores in Hawaii previously acquired from a former franchisee. 2.
Slide 10: Franchise-Owned Growth
FRANCHISE-OWNED GROWTH Allows system growth without additional company capital FT. WAYNE, IN NEW RESTAURANT OPENINGS 2019: Chongqing, China 2020-2021: St. George, UT, Manila, Philippines Disciplined Growth Franchise-Owned
Slide 11: We Are an Evolving Iconic Brand
WE ARE AN EVOLVING ICONIC BRAND NASDAQ: RUTH
Slide 12: [Video]
[VIDEO]
Slide 13: Broad Appeal Across Multiple Customer Groups
Broad Appeal Across Multiple Customer Groups Special Occasion Holiday Offerings Birthdays Anniversaries Business Extensive Private Dining Options Off-site Catering Just Because Sizzle, Swizzle & Swirl TasteMaker Wine Dinners
Slide 14: Ruth's Core Target Then
2007 2009 2011 2013 2003 2005 CORE TARGET 35-64 2001 NASDAQ: RUTH NASDAQ: RUTH GREATEST BOOMERS GENERATION X SILENT MILLENNIAL AGE: 40 50 60 70 80 90 30 20 Ruth's Core Target Then
Slide 15: Maintain Core While Continuing Evolution For New Guest
2020 2022 2024 2026 2016 2018 CORE TARGET 35-64 2014 NASDAQ: RUTH NASDAQ: RUTH GREATEST BOOMERS GENERATION X MILLENNIAL AGE: 40 50 60 70 80 90 30 20 Gen Z ON THE HORIZON ENTERING PEAK EARNING YEARS CREATE LOYALTY NOW Maintain Core While Continuing Evolution For New Guest ENTERING RETIREMENT FIXED IN
Slide 16: Experience Variety: Leveraging Guest Research To Inform Evolution
Experience Variety Leveraging Guest Research To Inform Evolution
Slide 17: Amplify Experiences
Amplify Experiences ELEVATE TRADITIONAL STEAK HOUSE EXPERIENCE INCREASE Share Of Life THROUGH VARIETY CREATE NEW WAYS TO EXPERIENCE RUTH’S NASDAQ: RUTH NASDAQ: RUTH Ruth's Reimagined Summary
Slide 18: Ruth's Reimagined: Amplify Experiences And Increase Share Of Life
Ruth’s Reimagined: Amplify Experiences And Increase Share Of Life Leverage Strengths; Tastemaker Brand Elevated Hospitality and Ambiance New Campaign Approach A New Bar Experience Ruth’s Anywhere; Group Ordering & Delivery New Channels; Gifted Experiences
Slide 19: RHGI Investment Summary: Total Return Strategy
RHGI INVESTMENT SUMMARY TOTAL RETURN STRATEGY NASDAQ: RUTH Proven Business Model Consistent Performance Strong Cash Flow Returning Capital
Slide 20: Consistent Net Income And Adjusted EBITDA Growth
Consistent Net Income And Adjusted EBITDA Growth +0.3% +11.4% +2.5% +9.8% +14.3% +8.4% +13.9% +6.3% +8.1% 1. FY 2012 and 2017 include a 53rd week. +8.1% 2009 2010 2011 20121 2013 2014 2015 2016 20171 2018 GAAP Net Income and Adjusted EBITDA ($MM) $33 $36 $37 $41 $47 $51 $58 $61 $66 $72 $2 $16 $20 $1
Slide 21: Company-Owned Target Unit Economics
Company-Owned Target Unit Economics TARGET UNITS 3– 5 units per year TARGET SIZE 8,000 – 10,000 square feet TYPICAL DEMOGRAPHICS Medium and large markets; DMA population > 1 million SALES TARGET $4MM – $6MM NET CASH INVESTMENT $2.5MM – $3.5 MM RESTAURANT LEVEL MARGINS > 20% Denver Tech, CO
Slide 22: Capital Allocation Methodology
Capital Allocation Methodology FINANCIAL PRINCIPLES: Focus on Organic Sales Growth Through Traffic Drive Margin Expansion Deploy Capital to Highest Return Opportunities Maintain a Healthy Balance Sheet Reasonable Debt of < 2X EBITDA Return Excess Capital Debt Paydown, Dividends and Share Repurchases
Slide 23: Thank You
THANK YOU BREAKOUT 11:00 – 11:50 AM – Mediterranean Salon 8 BREAKOUT 1:30 – 2:20 PM – Mediterranean Salon 8
Slide 24: Proven Business Model With A Long History Of Success
PROVEN BUSINESS MODEL WITH A LONG HISTORY OF SUCCESS High-end fine-dining steak experience remains timeless after more than 50 years RECORD OF CONSISTENT PERFORMANCE DRIVEN BY OPERATIONAL EXCELLENCE Consistent Revenue, Net Income, EBITDA and EPS Growth STRONG CASH FLOW SUPPORTS MULTIPLE LEVERS TO DR