18thAnnualICRConference

January12,2016

Disclaimer
This presentation and the accompanying oral presentation contain forwardlooking statements, as defined by federal and state securities
laws. Forwardlooking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections,
developments, future events, performance or products, underlying assumptions and other statements which are other than statements of
historical facts. In some cases, you can identify forwardlooking statements by terminology such as may, will, should, hope, expects,
intends, plans, anticipates, contemplates, believes, estimates, predicts, projects, potential, continue, and other similar
terminology or the negative of these terms. Forwardlooking statements are only predictions that relate to future events or our future
performance and are subject to known and unknown risks, uncertainties, assumptions, and other factors, including those described under
Risk Factors in our annual report on Form 10K (Annual Report), many of which are beyond our control, that may cause actual results,
outcomes, levels of activity, performance, developments, or achievements expressed, anticipated or implied by these forwardlooking
statements. As a result, we cannot guarantee future results, outcomes, restaurant activity, performance, developments, or achievements,
and there can be no assurance that our expectations, intentions, anticipations, beliefs, or projections will result or be achieved or
accomplished. These forwardlooking statements are made as of the date hereof and are based on current expectations, estimates, forecasts
and projections as well as the beliefs and assumptions of management. Our actual results could differ materially from those stated or
implied in forwardlooking statements. Neither we, nor any of our respective agents, employees or advisors intend or have any duty or
obligation to supplement, amend, or update these forwardlooking statements even though our situation may change in the future. Further,
we encourage you to review the risks that we face and other information about us discussed in the Annual Report and other filings, which
are available at www.sec.gov.
Throughout this presentation, we reference Adjusted EBITDA and restaurantlevel profit margin, which are both nonGAAP financial
measures. Please refer to the Appendix of this presentation as well as the our registration statement for a discussion of Adjusted EBITDA
and restaurantlevel profit margin, as well as a reconciliation of those measures to the most directly comparable financial measure required
by, or presented in accordance with, generally accepted accounting principles in the United States, or U.S. GAAP.
The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be
construed as an endorsement of the products or services of Del Friscos Restaurant Group, Inc.

BusinessOverview
MarkMednansky,CEO

DelFriscosRestaurantGroup

Oneofthepremierfine
diningsteakhouses
Featuresprimebeefandan
awardwinningwinelist

ClassicAmericanGrilleina
casualatmosphere
LeveragesDelFriscos
positioningwithbroader
rangeofpricepoints

Vibrant,energetic,white
tableclothsteakhouse
Featuresfinehand
selected,agedsteaksand
broadofferingofseafood

50restaurants
21states
LTM(a) Revenueof$323.4million
LTM(a) EBITDAof$47.7million

DelFriscos
Grille
Sullivans
(a) Representslast4quarterscompletedasofSeptember8,2015.

InvestmentHighlights

Differentiated,yethighlycomplementaryconcepts

Demonstrated,uniqueoperatingmodel

Highlyattractivenewuniteconomics

Significantgrowthopportunities

Provenmanagementteam
5

TheDelFriscosNextGenerationDifference
Food
Service
Bar

Diversemenuofferinghasbroadappeal
Bolderflavorprofile
Swarmingupbeatservice
Teamworkfocusedserviceapproach
Large,centralbar
Livelybarwithsignaturecocktails

Dcor

Contemporarydesigns
Appealingtobothgendersandwiderage
demographic

Atmosphere

Musicandhighenergy

DFRGDeliversImpressiveGrowth

Higherunitgrowthcomparedtonearestpubliccompanypeers

ExpandedDelFriscosGrilleto18restaurantsorby45%in2014vs.2013

YTDQ315revenueup11.0%comparedtotheyearagoperiod

2014PeerUnitGrowth(a)

DFRGUnitGrowth

25%
20.0%
20%

17.6%
15.0%

15.2%

15%
9.0%

10%
6.8%

5.0%
5%

2.9%

2.8%
0.1%

0%

2013
Growth

2014
Growth

2015E
Growth

a)
Asoflatestavailablepublicfilings
Source:Companyinformation,publicfilings

Differentiated,YetHighlyComplementaryConcepts

Averagecheck

2014AUV(a)
$120
$100
$80
$60
$40
$20
$0

$14.9m

$5.7m

$4.3m

$110
$51

$62

No.of
restaurants(b)

12

20

18

Geography

Premierlocationsin
majormetroareas

Mixofurbanandaffluent
suburbanlocationswith
stronglunchpresence

Mixofurbanandaffluent
suburbanlocations

Buildingsize

11k 24ksq.ft.

6.5k 8.5ksq.ft.

7k 11ksq.ft.

Targetage
group

35 64

25 54

35 54

(a)
(b)

Representsaverageunitvolumesfor52weeksasofDecember30,2014
Restaurantcountasof9/17/15

DelFriscosDoubleEagleSteakHouse

Bigandbold
OneofthepremiersteakhouseconceptsintheU.S.
Extensive,awardwinningwinelist
Contemporaryandclassicdesigns
12locationsinninestatesandD.C.
Foodvs.beveragesplit:66%/34%
3Q2015LTMAUVof$14.8m($12.2mexcl.NYC) (a)

New York

(a)RepresentsLTMaverageunitvolumesfor52weeksasofSeptember8,2015forlocationsopenentireperiod.

Philadelphia

Boston

Chicago

DelFriscosGrille

LeveragespremierpositioningoftheDelFriscosbrand
DelFriscosprimesteaksandsignaturemenuitemsatcomparableprices
Assortmentofupscale,relativelylessexpensiveentrees

Customizedexperiencewithbroadappealforeverydaydining
Foodvs.beveragesplit:65%/35%
Lunchvs.dinnersplit:23%/77%
20locationsinelevenstatesandD.C.
3Q2015LTMAUVof$5.8m($5.3mexcl.NYC) (a)
($5.0m $6.0mtarget)

Irvine

(a)RepresentsLTMaverageunitvolumesfor52weeksasofSeptember8,2015forlocationsopenentire
period.ExcludesGrillesclosedinPalmBeachandPhoenix.

Fort Worth

Houston

Southlake

Atlanta

10

SullivansSteakhouse

DesignedasacomplementaryconcepttoDelFriscos
Finehandselectedagedsteak,freshseafood&customcocktails
Brandresonateswithabroaddemographic
Comfortablefinedininginahighenergyatmosphere
18locationsin14states
Foodvs.beveragesplit:67%/33%
3Q2015LTMAUVof$4.4m (a)
Fourpointplanissharpeningthebrand
Leadership,menu,ambiance,andmarketing
(a)RepresentsLTMaverageunitvolumesfor52weeksasofSeptember8,2015forlocationsopenentire
period.ExcludesSullivansclosedinDenver,Co.

11

OurFood ABoldFlavorProfile

12

OurBeverages ADifferentiatedApproach

13

Recent&FutureGrowthActivity
2014Openings

2015Openings
LittleRock,AR
Q4,2015

Burlington,MA
OpenDate:Jun.2014
Size:7,900sq.ft.

Irvine,CA
OpenDate:Aug.2014
Size:8,000sq.ft.

Tampa,FL
OpenDate:Nov.2014
Size:8,607sq.ft.

Pasadena,CA
OpenDate:Dec.2014
Size:7,177sq.ft.

Stamford,CT
Q3,2015

CherryCreek,CO
Q4,2015

Washington,D.C.
OpenDate:Sept.2014
Size:17,784sq.ft.

NorthBethesda,MD
OpenDate:Sep.2014
Size:7,692sq.ft.

Hoboken,NJ
Q4,2015

Plano,TX
Q3,2015

TheWoodlands,TX
Q2,2015

Orlando,FL
Q3,2015

Complementaryconcepts
Abilitytocoexistinthesamemarkets
Flexibleunitmodels
Targeting5 8newunitopeningsperyear

LargeUniverseofOpportunities
14

Grille TheWoodlands,TX

15

DelFriscos Orlando,FL

16

Grille Stamford,CT

17

SignificantGrowthPotentialforDelFriscosGrille

Thirdpartystudyidentifieda170+unitpotentialwith$5.2+millionAUV

Inclusiveofsixopeningsduring2015,stilllessthan15%ofpotential

18

TargetedUnitEconomics
TargetatLeast25%+CashonCashReturnatEachConcept

Targetednew
unitAUV

$9.0 $10.0m

$5.0 $6.0m

$4.5 $5.0m

Cash
investment
cost

$7.0 $9.0m

$3.0 $4.5m

$3.0 $4.5m

Targeted
sales/cash
investment

1.1x 1.2x

1.2x 1.7x

1.1x 1.5x

Note:Cashoncashreturnsarecalculatedincludingpreopeningcosts.

19

OrganicGrowthDrivers
Multipleinitiativesinplacetodrivecontinuedcomparablesalesperformance

AverageCheck

Tablesideupsellingoffooditemsandmenuenhancements
Continuedfocusonwineselectionandcocktails

PrivateDining

Dedicatedresourcesdrivingstrongprivatedininggrowth
Investmentinadditionalprivatediningcapacity
Increaseguestcountsthrougheffectivemarketing, includingexpansionof

Marketing
Remodelsand
Renovations

digitalandsocialmarketingwithimprovedonlinepresence
Continuedexpansionofloyaltyprogram
Selectiveremodelsandrenovationstoenhanceguestexperience
Increasedpatioandprivatediningcapacity
Completedthree Sullivans inFY14 andtwoSullivansinFY15

20

ExperiencedManagementTeam
Name

Position

MarkMednansky

CEO

TomPennison

CFO

RayRisley

SVP, Operations
Grille

BillMartens

VP,Development
&Construction

JimKirkpatrick

VP,RealEstate

ThomasDritsas

VP,Culinary&
ExecutiveChef

AprilScopa

VP,People&
Education

LisaKislak

VP,Brand
Marketing

Selectedpreviousexperience

21

FinancialOverview
TomPennison,CFO

Unit&SSSGrowthDrivesStrongRevenueGrowth
ComparableRestaurantSalesGrowth

UnitGrowth

11.2%
11.0%
9.0%

50

46

7.0%

40

4.1%

5.0%
3.0%

1.5%

1.0%

0.5%

1.3%

1.0%

2.4%

0.2%

2011

2012

2013
DFRG

Source:KnappTrack

1.4%

27

30

34

0.1%

1.4%

3.0%

2.5%

2014
KnappTrack

0.4%

3Q14
YTD

3Q15
YTD

2010

2011

2012

2013

2014

2015

Revenues($m)

($inmillions)

$320.0

$271.8

$301.8

$232.4

$240.0

$198.6

$196.0

$217.5

$162.9

$160.0
$80.0
$0.0
2010

2011

2012

2013

2014

3Q14YTD

3Q15YTD
23

CostStructure
FoodandBeverageCostsasa%ofSales

2014CostofSalesComposition

40.0%
30.4% 30.6% 30.6% 30.2% 30.2%
30.0%

30.1% 28.9%

Other Food
9.0%
Produce/Cheese
9.2%

Wine & Other

Beverages
32.5%

20.0%
Seafood
15.0%

10.0%
0.0%
2010

2011

2012

2013

2014

3Q14
YTD

RestaurantOperatingCostsasa%ofSales
50.0%

44.2% 43.5% 43.1% 44.8% 45.6%

Meat
33.9%

3Q15
YTD

3Q15LTMCostofSalesComposition
OtherFood
9.0%

46.3% 47.7%

40.0%

Produce/Cheese
9.3%

30.0%
20.0%

Meat
34.5%

Seafood
14.8%

10.0%
0.0%
2010

2011

2012

2013

2014

Note:Allfinancialinformationadjustedfordiscontinuedoperations.

3Q14
YTD

3Q15
YTD

Wine&Other
Beverages
32.3%
24

StrongAdjusted&RestaurantLevelEBITDA
AdjustedEBITDA
$50.0
$45.0
$40.0
$35.0
$30.0
$25.0
$20.0
$15.0
$10.0
$5.0
$0.0

$43.0

$44.7

40.0%

$46.4

35.0%

$36.4
$29.9

$28.0

$29.3

30.0%
AdjustedEBITDA

25.0%
18.3%

18.5%
16.4%

15.4%

18.4%

Adj.EBITDAMargin

20.0%
14.3%

13.5%

15.0%
10.0%

2010

2011

2012

2013

2014

3Q14YTD 3Q15YTD

RestaurantlevelEBITDA

50.0%

$80.0
$70.0

$62.1
$56.5

$60.0

$42.2

$38.7
23.8%

$30.0
$20.0

40.0%

$47.3

$50.0
$40.0

$67.0

24.3%

$46.0

RestaurantlevelEBITDA

30.0%
22.9%

22.2%

23.8%

21.6%

$10.0

21.1%

20.0%

RestaurantLevelEBITDA
Margin

10.0%

$0.0

2010

2011

2012

2013

2014

3Q14YTD 3Q15YTD

25

SegmentInformation 3Q15YTD
36WeeksEndedSeptember8,2015(unaudited)
DelFrisco's
Sullivan's
Grille
Consolidated

($inthousands)

Revenues
Costsandexpenses:
Costofsales
Labor
Operatingexpenses
Occupancy
Restaurantoperatingexp.
Marketingandadvertising
RestaurantlevelEBITDA

$106,255 100.0% $52,966 100.0% $58,286 100.0% $217,507 100.0%

31,747
25,020
10,814
7,451
43,285
1,731
$29,492

RestaurantlevelEBITDA%YTD2014

29.9%
23.5%
10.2%
7.0%
40.7%
1.6%
27.8%
28.0%

15,929
15,846
7,963
3,595
27,404
1,601
$8,032

30.1%
29.9%
15.0%
6.8%
51.7%
3.0%
15.2%

15,163
18,644
7,895
6,604
33,143
1,550
$8,430

14.8%

26.0%
32.0%
13.6%
11.3%
56.9%
2.6%
14.5%

62,839
59,510
26,672
17,650
103,832
4,882
$45,954

15.7%

28.9%
27.3%
12.3%
8.1%
47.7%
2.2%
21.1%
21.6%

EBITDAMargin%
GrilleClassification

Locations

(1)

Operatingallof2014
Underperforming(closedinQ4)
2014/2015NewOpeningsbuildingtowardnormalizedmargins
Total

(2)

3Q15YTD

9
2

20.8%
21.0%

6.6%

19

14.5%

3Q14YTD
18.5%
6.6%

(1)

RepresentsallGrillesopenasoftheendof2013excludingUnderperformingcategory.

(2)

RepresentsfiveGrillesopenedduring2014andthreeinQ2/Q32015.
26

CapitalStructurePositionedForGrowth

Historicallyfundednewrestaurantgrowthfromoperatingcashflow
Limitedworkingcapitalrequirements
Strongliquiditysupportedbycashflowfromoperationsandcreditfacility
$15.0millionrevolvinglineofcreditexpandableto$30.0millionupon
requestenteredintoinOct2012,asamended,pricedatLIBOR+1.50%
Purchased268,996sharesfor$6.3millionduring2014and189,027shares
for$3.0millionduring2015.Authorityinplacetorepurchaseuptoan
additional$22millionoverthenext3years
($m)

Actualasof
December31,
2014

Sept.8,
2015

Cash&CashEquivalents

$3.5

$1.2

TotalDebtOutstanding

15.1

Debt/Adjusted EBITDA

0.3x
27

Q42015Update(from1/12/2016pressrelease)

Revenue/
Growthvsprioryear
ComparableSales:
DelFriscosDouble Eagle
Grille
SullivansSteakhouse
Restaurantdevelopment

RestaurantClosures

16Weeks Ended(Q4)

52WeeksEnded
(Year)

$113.9to$114.1million,
+7.8%

$331.4to$331.6million,
+9.9%

2.2%

0.7%

1.6%

+0.1%

4.5%(traffic 0.7%)

4.4%

1.8%

+0.2%
OneDel Friscos
Six DelFriscosGrilles
ClosedtwoDelFriscos
Grilles

28

LongTermGrowthModel(a)
48Newunitopeningsperyear(a)

2.0% 3.0%Comparablerestaurantsalesgrowth

Maintainstrongrestaurantlevelmargins

ModestG&Aandinterestexpenseleverage

TargetlongtermEPSgrowth
15% 18%
(a) During

2016, the Company will limit growth to 2-3 Grilles and one Del Friscos relocation with expectations within
the above Long-Term Growth Model in 2017 and beyond.
29

InvestmentHighlights

Differentiated,yethighlycomplementaryconcepts

Demonstrated,uniqueoperatingmodel

Highlyattractivenewuniteconomics

Significantgrowthopportunities

Provenmanagementteam
30

EBITDAAdjustments
Adjustments

Descriptionofadjustments
36WeeksEnded

($thousands)

2012

2013

2014

Sept.9,

Sept.8,

2014

2015

Operatingincome

$24,621 $17,891 $24,540

Depreciationand
amortization

8,675 11,300 13,598 9,053 11,001

3,338

Preopeningcosts

4,058 3,758 4,735

2,867 3,790

Managementfees
andexpenses

1,252

Secondarypublic
offeringcosts

$43,068 $44,688 $46,414

Primarilyconsistofmanagersalaries,
relocationcosts,recruitingexpenses,
employeepayrollandrelatedtrainingcosts
fornewemployees,includingrehearsalof
serviceactivities,aswellasleasecosts
incurredpriortoopening

Alsoincludemarketingcostsincurredprior
toopeningaswellasmealexpensesfor
entertaininglocaldignitaries,familiesand
friends

Currentlytargetpreopeningcostsper
restaurantof$800,000foraDelFriscos
restaurantandforaGrillerestaurant,and
$600,000foraSullivansrestaurant

Noncashimpairmentchargeduring2013
relatedtooneSullivansSteakhouseand2014
oneGrille

Managementfeesandexpensesconsistedoffees
andexpensespaidtoLoneStarFundand
affiliatecompanies

Adjustmentsrelatedtothecompletionofour
IPOinJuly2012andsecondaryofferingsinclude:

Publicoffering
1,462 8,355
transactionbonuses
AdjustedEBITDA
perSECfilings

3,000

1,024 5

Preopeningcostsarecostsincurredpriorto
openingarestaurant

$16,121 $11,214

Noncash
2,360 3,536
impairmentcharges

Assetadvisory
terminationfee

$28,046

$29,343

Terminatedassetadvisoryagreementfor
onetime$3millionfee

Noncashexpenseofpublicoffering
transactionbonusespaidbyLoneStarFund

31

18thAnnualICRConference
January12,2016