Download - Chanticleer Holdings (HOTR) Investor Presentation

NASDAQ: HOTR

INVESTOR PRESENTATION

NASDAQ: HOTR

2013

www.chanticleerholdings.com

NASDAQ: HOTR

Safe Harbor Statement

Statements in this presentation that are not descriptions of historical facts are forward-looking statements relating to future events, and as such all forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995. Statements may contain certain forward-looking statements pertaining to future anticipated or projected plans, performance and developments, as well as other statements relating to future operations and results. Any statements in this presentation that are not statements of historical fact may be considered to be forward-looking statements. Words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. These forward-looking statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new stores, successful completion of the Company’s proposed acquisitions and expansion, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed from time to time in our reports filed with the Securities and Exchange Commission. There can be no assurance that our actual results will not differ materially from expectations and other factors more fully described in our public filings with the U.S. Securities and Exchange Commission, which can be reviewed at www.sec.gov.

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NASDAQ: HOTR

Who We Are

• Chanticleer’s growth strategy is to expand the Hooters brand in emerging markets through partnerships and/or acquisition of Hooters Restaurants & new concepts.

• The Company owns all or part of the Hooters franchise rights to develop and operate Hooters restaurants in South Africa, Hungary, 3 states of Brazil, and has joint ventured with the existing franchisee in Australia.

• We partner with highly experienced operators with aligned interests.

• Current Restaurants: South Africa (4), Australia (1), and Hungary (1). • Announced Restaurants Expected to open before end of 2013: Pretoria, South

Africa, Townsville, Australia. • In August 2013 announced LOI’s for existing Hooters location in Nottingham,

England and for 5 restaurant chain American Roadside Burgers, Inc.

Owner & Operator of Hooters Restaurants Internationally

• Hooters of America (HOA): The brand and franchisor - over 430 restaurants operating within 28 countries with approx. $1 billion in system-wide revenue

• Chanticleer controls an interest of 3% in HOA

• Mike Pruitt sits on the Board of Directors of HOA

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NASDAQ: HOTR

Territory Selection Criteria

• International Hooters territory with no existing franchisee or a territory to partner with current franchisee

• Strong local market dynamics – compelling economic growth rates and demographics

• Partner with highly experienced and well capitalized restaurant operators in the local international market

• Identify restaurant locations with attractive leasehold economics

• Maintain a disciplined expansion strategy focusing on expected ROI and driving shareholder value

*With our current territories, we believe HOTR could grow to have more than 75 Hooters locations

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NASDAQ: HOTR

Roll Out Plan

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2009 2010 2011 2012 2013 E

PAST OPENINGS

• Durban, South Africa - December 2009

• Johannesburg, South Africa - June 2010

• Cape Town, South Africa - June 2011

• Campbelltown, Australia - January 2012

• Emperor’s Palace, South Africa - February 2012

• Budapest, Hungary - August 2012

New Openings Expected

Hooters Restaurant Open

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Our Restaurants

Cape Town, South Africa

Emperor’s Palace, South Africa

Budapest, Hungary

Campbelltown, Australia

HOTR Restaurant: Avg. Sq. Ft: 6,700 Avg. Capacity: 246 seats

6 Total Restaurants: South Africa (4), Australia (1), Hungary (1)

Domestic Restaurant: Avg. Sq. Ft: 5,600 Avg. Capacity: 210 seats

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Customized Menu

Chicken Wings

Tailored menus to appeal to local tastes

Burgers Beverages Ribs & Steaks Merchandise

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South Africa

• Chanticleer owns the exclusive franchise rights to develop and operate Hooters in South Africa.

• Chanticleer formed a management company to operate all SA units.

• 4th restaurant in Emperor’s Palace Casino opened in mid-Feb 2012.

• Average net cash cost to open approx. $850k/unit.

• We expect to open our 5th unit in South Africa in the fourth quarter of 2013 in the Willows Shopping Center in Pretoria.

• Other prospective areas for new locations are the Cape Town Waterfront, Secunda and Bloemfontein.

South Africa

*10Q – 6 months ended June 30, 2013 (unaudited)

*Revenue:

Gross Profit:

$2,863,177

$1,751,796

61.2%

Restaurant EBITDA

$131,262

Estimated Market Opportunity - 20 restaurants

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NASDAQ: HOTR

Australia

• Chanticleer formed a JV agreement with the existing Hooters franchisee to cooperatively develop Hooters restaurants going forward.

• HOTR owns 49% interest in the Campbelltown and upcoming second location.

• Our Campbelltown location is the third Hooters restaurant in Australia; and the first restaurant jointly developed with HOTR.

• The JV has entered into a lease agreement, for its 2nd location in Townsville. Construction has commenced and we expect it to open in the fourth quarter of 2013.

Campbelltown *10Q – 6 months ended

June 30, 2013 (unaudited)

*Revenue:

Gross Profit:

$1,204,412

$910,254

75.6%

EBITDA:

$(16,014)


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NASDAQ: HOTR

Hungary

• Partnered with Alex Hemingway and team to form Hungary-based Crown Restaurants to exclusively develop Hooters in Hungary.

• Alex Hemingway, CEO of Crown Restaurants, previously worked as President and Chief Executive of CEFG, owners and operators of Pizza Hut and KFC brands in Hungary, as well as 3 local national brands. During his career, he has operated over 180 units.

• First Hooters location opened in Franz Liszt Square, Budapest on August 27, 2012.

• Plan to roll out into other Eastern European markets.

Budapest *10Q – 6 months ended

June 30, 2013 (unaudited)

Revenue:

Gross Profit:

$419,988

$268,133

63.8%

Restaurant EBITDA

($19,913)


Opened August 27, 2012

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NASDAQ: HOTR

Brazil

• Partnered with Wings Brasil Ltda. to develop in 3 of the most populous states: Rio de Janeiro, Minas Gerais, and Espirito Santo

• Wings Brasil Ltda. currently manages 3 existing São Paulo Hooters

• Rio de Janeiro will host:

o 2014 FIFA World Cup

o 2016 Summer Olympic Games

• We expect to secure our first location in Brazil in Q3 2013


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Operational Initiatives for 2013

• Grow to a total of 10 Hooters restaurants in 2013 from 6 at 2012 year-end

• Achieve same store sales growth, increase consolidated gross margin to 62% from 58.2%, and increase profitability

South Africa • In Q4 2012, implemented price increases, updated menu offerings, and improved appeal of

certain restaurants

• In Q1 2013, launched a Hooters® Loyalty Card

Hungary • In Q1 2013, focus on reducing cost of sales, cost of labor, and increasing overall operating

efficiency

• In Q1 2013, Hooters of Budapest launched its “Girls of Budapest” pictorial

• In the first half of 2013, Hooters of Budapest will be opening its outdoor patio for the first time. The outdoor patio adds 140+ seats, increasing seating by 56% to 390 seats; and in time for tourist season (April through October)

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Consolidated Restaurant Unit Growth

100% 50%

100%

66.7%

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Total Restaurants

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Consolidated Revenue Growth

$1,476m $1,412m $1,728m $1,768m

$1,975m $1,667m $1,666m

FY 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

$1.476m

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Consolidated Six Months Ended June 2013 Financial Results

• Reported revenue of $1.66 million and $3.67 million for the three and six months ended June 30, 2013, respectively, as compared to $1.72 million and $3.13 in the same periods of 2012.

• Earnings per share loss from continuing operations decreased to $0.18 and $0.39 per share in the three and six months ended June 30, 2013, respectively, as compared to a $0.54 and $0.58 per share in the same periods of 2012.

• Restaurants EBITDA was $75k and $111k for the three and six months ended June 30, 2013, respectively, as compared to $63k million and $100k in the same periods of 2012.

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NASDAQ: HOTR

(unaudited) June 30, 2013 Dec 31, 2012

Cash and Cash Equivalents $ 160,550 $1,223,803

Other Current Assets $ 3,510,283 $ 806,572

Property & Equipment, net $2,127,114 $2,316,146

Other Long-Term Assets $3,191,415 $3,299,910

TOTAL ASSETS $8,989,363 $7,646,431

Current Liabilities $4,602,935 $1,772,852

Other Long-Term Liabilities $ 243,863 $ 345,026

TOTAL LIABILITIES $4,846,798 $2,117,878

Stockholders’ Equity $4,142,565 $5,528,553

Total Liabilities & Stockholders’ Equity $8,989,363 $7,646,431

Consolidated Balance Sheets

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NASDAQ: HOTR

Why HOTR?

• Hooters is one of the most recognized iconic brands in the world. • International markets offer strong organic growth and new expansion

opportunities. • Selective Partners: Highly experienced restaurant operators in the

local markets with aligned interests. • Chanticleer controls an interest of 3% in Hooters of America (HOA)

and HOTR’s CEO, Mike Pruitt, sits on the Board of HOA. • Rapid Growth: Projecting to have 10 Hooters restaurants operating in

2013. • With our current exclusive international territories, HOTR could grow

to have more than 75 Hooters locations. • On August 2, 2013, HOTR announced a binding letter of intent (“LOI”)

for the purchase of the Nottingham, England Hooters restaurant for $3,150,000.

• On August 13, 2013, HOTR announced a non-binding LOI for the purchase of American Roadside Burgers, Inc., a Charlotte, N.C.-based chain of 5 restaurants, for 740,000 HOTR units (1 share of common stock and one five-year warrant, priced at $5.00).

“Great food, cold beer, sports, and pretty girls never go out of style.”

-Robert H. Brooks, Founder of HOA

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NASDAQ: HOTR

For More Information Contact: Mike Pruitt, CEO, [email protected]

www.chanticleerholdings.com

THANK YOU!

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