Papa John’s International, Inc. (NASDAQ:PZZA) Q4 2024 Earnings Conference Call February 27, 2025 8:00 AM ET Company Participants Stacy Frole - Vice President, Investor Relations Todd Penegor - President and CEO Ravi Thanawala - Executive Vice President, International and CFO Conference Call Participants Jim Salera - Stephens Sarah Senatori - Bank of America Brian Bittner - Oppenheimer Lauren Silverman - Deutsche Bank Brian Mullen - Piper Sandler Peter Saleh - BTIG Eric Gonzalez - KeyBanc Todd Brooks - The B ...

Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) Q4 2024 Earnings Conference Call February 26, 2024 4:30 PM ET Company Participants G.J. Hart - President and CEO Todd Wilson - CFO Conference Call Participants Alex Slagle - Jefferies Jeremy Hamblin - Craig-Hallum Andrew Wolf - C.L. King Mark Smith - Lake Street Capital Todd Brooks - Benchmark Company Operator Good afternoon everyone and welcome to the Red Robin Gourmet Burgers Incorporated Fourth Quarter 2024 Earnings Call. This conference is being recorded. Du ...

Financial Data and Key Metrics Changes - System-wide RevPAR growth was reported at 5% for the fourth quarter and 4.6% for the full year, indicating strong performance particularly among luxury brands [4][24][48] - Adjusted EBITDA for the fourth quarter was $255 million, reflecting a 20% increase compared to the previous year, excluding the impact of asset sales [31][75] - Gross fees reached a record $294 million in the quarter, up 17%, driven by franchise and other fees which increased by 27% [27][71] Business Line Data and Key Metrics Changes - Leisure transient rooms revenue increased approximately 4% in the fourth quarter, while group rooms revenue was flat but up 5% when adjusted for holiday timing [5][6][50] - Business transient revenue saw a significant increase of 12% for the year, benefiting major urban markets in the U.S. [8][52] - World of Hyatt membership reached approximately 54 million members, a 22% increase year-over-year, indicating strong engagement [9][53] Market Data and Key Metrics Changes - RevPAR in the United States increased over 3%, with the Americas excluding the U.S. seeing a 9% increase [24][68] - Asia Pacific excluding Greater China reported RevPAR growth of approximately 12%, driven by international inbound travel [25][79] - Europe experienced a 7% increase in RevPAR, supported by both leisure and business transient travel [26][70] Company Strategy and Development Direction - The company aims to accelerate organic net rooms growth in 2025, with a strong pipeline of openings including the Venetian Resort [3][47] - A focus on expanding the luxury and lifestyle hotel portfolio while also entering the upper midscale segment has been emphasized [12][60] - The company is committed to maintaining a brand-led organization to enhance customer loyalty and engagement [15][59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, citing strong demand from both leisure and business travelers [4][24] - The outlook for 2025 includes expected RevPAR growth of 2% to 4%, with strong group and business transient demand anticipated [34][78] - Management noted that the company is well-positioned to drive value creation through expanded management platforms and distribution channels [108][114] Other Important Information - The company repurchased approximately $1.2 billion in shares during 2024, with $1 billion remaining under the share repurchase authorization [32][76] - Adjusted free cash flow is expected to range from $450 million to $500 million, excluding deferred cash taxes related to asset sales [41][85] - The company plans to return capital to shareholders in 2025, beyond quarterly dividends, although specific details are pending due to ongoing transactions [86][88] Q&A Session Summary Question: Insights on net rooms growth and attrition - Management indicated that net rooms growth is expected to accelerate in 2025, with 9,000 rooms already opened in the first part of the year, representing 40% of the annual growth target [93][94] - Attrition related to a franchisee's insolvency has been conservatively factored into the growth outlook, although no hotels have ceased operations [98][102] Question: Update on the Playa transaction - Management refrained from commenting on specific details of the Playa transaction but emphasized the focus on expanding management platforms and optimizing all-inclusive infrastructure [107][108] Question: Appetite for further M&A - Management confirmed that the pace of M&A activity will calm down following the Playa transaction, focusing on optimizing the current brand portfolio [113][114] Question: Environment for real estate sales - Management noted strong relationships with high-end all-inclusive resort investors and indicated an increasing interest from institutional capital in the market [120][124] Question: Co-branded credit card performance - The co-branded credit card contract was renewed in 2021 for five years, with significant growth in membership and spending per cardholder noted [127][129]