Red Robin Gourmet Burgers Inc. (NASDAQ:RRGB) Q2 2019 Earnings Conference Call Transcript

Aug 23, 2019 • 08:30 am ET

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Red Robin Gourmet Burgers Inc. (NASDAQ:RRGB) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, everyone, and welcome to the Red Robin Gourmet Burgers, Incorporated Second Quarter 2019 Earnings Call. [Operator Instructions]

During the course of this conference call, management may make forward-looking statements about the Company's business outlook and expectations. These forward-looking statements and all other statements that are not historical facts reflect management's beliefs and predictions as of today, and therefore, are subject to risks and uncertainties as described in the safe harbor discussion found in the Company's SEC filings.

During the call, the Company will also discuss non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles, but are intended to illustrate an alternative measure of the Company's operating performance that may be useful. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures can be found in the earnings release. The Company has posted its fiscal second quarter 2019 earnings release and supplemental financial information related to the results on its website at www.redrobin.com in the Investors Section.

Now, I would like to turn the call over to Red Robin's Interim CEO, Pattye Moore. You may begin, Ms. Moore.

Executive
Pattye L. Moore

Good morning and thank you for joining us. With me this morning are Lynn Schweinfurth, our Chief Financial Officer; and Guy Constant, our Chief Operations Officer; Jonathan Muhtar, our Chief Concept Officer, is also with us to help answer questions you may have during our call today.

Before we begin our review of Red Robin's second quarter results, I wanted to comment on our recent Board refresh. We recently named three casual dining veterans to our Board of Directors. I'm really pleased to welcome Tom Conforti, an accomplished retail executive who was most recently CFO for Wyndham Worldwide. Previously, Tom was CFO at Dine Brands, where he led the acquisition of Applebee's and the change in IHOP's franchising model. He also has held leadership positions at the Walt Disney Company.

G.J. Hart is a seasoned food and beverage executive with more than three decades in the industry and is currently CEO of Torchy's Tacos. He previously led California Pizza Kitchen's turnaround as the brand CEO, and prior to that was President of Texas Roadhouse.

And David Pace, who also has more than 30 years of leadership experience in food, beverage, retail and consumer products. Most recently, he was CEO of Jamba Juice and previously held leadership positions at Bloomin' Brands, Starbucks and YUM! Brands.

These talented industry leaders bring to Red Robin deep restaurant and retail expertise and strong track records working with public companies, enhancing shareholder value. We are excited and proud to have them on the Red Robin team.

Now, turning to our second quarter performance, as you know, we announced that Q2 had the best same-store sales performance in the past five quarters with sequential improvement from Q1. We are gaining traction on our turnaround efforts and we are seeing very encouraging signs of that momentum accelerating in early Q3. In addition, our customer satisfaction scores continue to