ICR Conference

January 2016

Forward Looking Statements

ForwardLookingStatements
ThispresentationcontainsforwardlookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995.Forwardlookingstatementscontainedinthispresentationother
thanstatementsofhistoricalfact,includingstatementsregardingourfutureresultsofoperationsandfinancialposition,ourbusinessstrategyandplans,andourobjectivesforfutureoperationsare
forwardlookingstatements.Insomecases,youcanidentifyforwardlookingstatementsbytermssuchasmay,will,should, could,would,expects,plans,anticipates,believes,
estimates,projects,predicts,potential,orthenegativeofthoseterms,andsimilarexpressionsandcomparableterminologyintendedtoidentifyforwardlookingstatements.Theseforward
lookingstatementsinclude,withoutlimitation,statementsregardingthefuturefinancialpositionofTheHabitRestaurants,Inc.(theCompany),includingfinancialtargets,businessstrategy,plans
andobjectivesforfutureoperationsandfutureoperatingresults.ThesestatementsreflecttheCompanyscurrentviewswithrespecttofutureeventsandarebasedonassumptionsandsubjectto
risksanduncertainties.Theseinclude,withoutlimitation,risksanduncertaintiesrelatedtothefollowing:difficultiesopeningnewrestaurantsthatareprofitable,ineffectivelycompetinginthe
restaurantindustry,increasesinfoodandsupplycosts,limitedcontroloverfranchiseesandlicensees,negativepublicityrelatingtotheCompanysrestaurants,andtheimpactofgovernmentallaws
andregulation,andotherfactorssetforthunderRiskFactorsintheCompanysannualreportonForm10Kforthefiscalyear endedDecember30,2014,filedwiththeSecuritiesandExchange
Commission(theSEC)onMarch12,2015,aswellasotherinformationwefilewiththeSEC.TheCompanycautionsinvestorsnottoplaceconsiderablerelianceontheforwardlookingstatements
containedinthispresentation.YoushouldreadtheCompanysannualandquarterlyreports,whenavailable,andanyandallotherfilingswiththeSEC,availableathttp://www.sec.gov,fora
discussionoftheseandotherrisksanduncertainties.Theforwardlookingstatementscontainedinthispresentationspeakonlyasofthedateofthepresentation,andtheCompanyundertakesno
obligationtoupdateorreviseanyforwardlookingstatementsforanyreason,exceptasrequiredbylaw.TheCompanysbusinessissubjecttosubstantialrisksanduncertainties,includingthose
referencedabove.Investors,potentialinvestors,andothersshouldgivecarefulconsiderationtotheserisksanduncertainties.
DataandInformationContainedinthisPresentationThispresentationalsocontainsestimates,projectionsandotherinformation concerningtheCompanysindustry,businessandthemarketforits
productsandservices,aswellasdataregardingmarketresearch,estimatesandforecastspreparedbytheCompanysmanagement. Informationthatisbasedonestimates,forecasts,projections,
marketresearchorsimilarmethodologiesisinherentlysubjecttouncertaintiesandactualeventsorcircumstancesmaydiffer materiallyfromeventsandcircumstancesreflectedinthisinformation.
Certaindatainthispresentationwasobtainedfromvariousexternalsources,andneithertheCompanynoritsaffiliates,advisersorrepresentativeshasverifiedsuchdatawithindependentsources.
Accordingly,neithertheCompanynoranyofitsaffiliates,advisersorrepresentativesmakesanyrepresentationsastotheaccuracyorcompletenessofthatdataortoupdatesuchdataafterthedate
ofthispresentation.Suchdatainvolvesrisksanduncertaintiesandissubjecttochangebasedonvariousfactors.
Thetrademarksincludedhereinarethepropertyoftheownersthereofandareusedforreferencepurposesonly.Suchuseshouldnotbeconstruedasanendorsementoftheproductsorservicesof
theCompanyortheproposedoffering.
NonGAAPFinancialMeasures
ThispresentationcontainscertainnonGAAPfinancialmeasures.AnonGAAPfinancialmeasureisdefinedasanumericalmeasure ofacompanysfinancialperformancethatexcludesorincludes
amountssoastobedifferentthanthemostdirectlycomparablemeasurecalculatedandpresentedinaccordancewithGAAPinthestatementsofincome,balancesheetsorstatementsofcashflow
ofthecompany.TheCompanyhasprovidedareconciliationofAdjustedEBITDA,anonGAAPfinancialmeasure,tonetincomeinthe Appendixtothispresentation.AdjustedEBITDAispresented
becausemanagementbelievesthatsuchfinancialmeasure,facilitatesoperatingperformancecomparisonsfromperiodtoperiodbyisolatingtheeffectsofsomeitemsthatvaryfromperiodto
periodwithoutanycorrelationtocoreoperatingperformanceorthatvarywidelyamongsimilarcompanies.TheCompanyalsopresentsAdjustedEBITDAbecause(i)managementbelievesthese
measuresarefrequentlyusedbysecuritiesanalysts,investorsandotherinterestedpartiestoevaluatecompaniesintheCompanysindustry,(ii)managementbelievesinvestorswillfindthese
measuresusefulinassessingtheCompanysabilitytoserviceorincurindebtednessand(iii)theCompanyusesAdjustedEBITDAinternallyasbenchmarkstoevaluateitsoperatingperformanceor
compareitsperformancetothatofitscompetitors;youshouldnotconsideritinisolation,orasasubstituteforanalysisofresultsasreportedunderGAAP.TheCompanyscalculationofAdjusted
EBITDAmaynotbecomparabletothatreportedbyothercompanies.ForadditionalinformationabouttheCompanysnonGAAPfinancialmeasures,seetheCompanysfilingswiththeSEC.
JOBSAct

TheCompanyisanemerginggrowthcompanywithinthemeaningoftheJumpstartOurBusinessStartupsAct.Asaresult,theCompanyissubjecttoreducedpubliccompany
reportingrequirements.

Todays Presenters
Russ Bendel

Ira Fils

Chief Executive

Chief Financial

Officer

Officer

The Original Habit, founded in 1969

Irvine, CA, today

Welcome to The Habit

Fast casual concept specializing
in burgers, sandwiches, salads,
sides, shakes and more
Our Concept

Founded in Santa Barbara in 1969

Distinctive menu built around made-toorder burgers char-grilled over an open

flame

Named the best tasting burger in

America in July, 2014

142 units located in California (117), Utah

(9), Arizona (7), New Jersey (3), Florida
(2), Nevada (1), Idaho (1), Virginia (1),
Washington (1)

Our Differentiation

Quality

Environment

Hospitality

Value

Note: Unit count as 12/29/15

Double Charburger
with Cheese

Sweet Potato Fries

A Taste of The Habit

Our Momentum
Proven history of unit, revenue
and adjusted EBITDA growth

Q3 2015 Revenue Growth: 24.8%

FY 2014 Revenue Growth: 45.0%

Q3 2015 Adjusted EBITDA Growth: 16.6%

FY 2014 Adjusted EBITDA Growth: 50.3%

Units

New
Units

13

17

22

25

32

Revenue
$174.6
$120.4

47 consecutive quarters of
positive SSS (thru Q3 2015)

Q3 2015 SSS: 2.9%

Q3 YTD 2015 SSS: 7.6%

FY 2014 SSS: 10.7%

SSS

$59.2

$28.1

$41.8

2009

2010

2011

1.9%

5.4%

8.7%

$84.2

2012
3.5%

2013

2014

3.6%

10.7%

Adjusted EBITDA (1)

$21.0

Attractive unit economics

$1.9

Q3 2015 Company-operated AUV: $1,924

%

$4.3

$6.6

$10.3

$14.0

2009

2010

2011

2012

2013

2014

6.8%

10.3%

11.1%

12.2%

11.6%

12.0%

Note: Revenue and Adjusted EBITDA $ in mm. 2013 financials include a 53rd week throughout the presentation unless specifically noted otherwise.
1) See page 22 for Adjusted EBITDA reconciliation.

Broad Appeal and Balanced Mix

Entre Mix $s

Gender Mix (1)

Salads
13%

Day Part Mix

Dinner
49%

Male
55%

Burgers
62%

Lunch
51%

Sandwiches
25%

Female
45%

The Habit is more than just burgers

1) Based on an external research report and a third-party customer satisfaction survey.

Huge Market Share Opportunity

The Habit sits at the convergence of two large market opportunities

Fast Casual
$39.0B

Quick Service
QSR
$201.5B

Source: Technomic, Inc.

Varied Menu
Full Service
$52.3B

The Habit Difference

Our Four Pillars
Quality

Hospitality

Value

Char-grilled
preparation

Comfortable and
clean environment

Exceed customers
expectations

Strong value
proposition

Made-to-order

Inviting
destination

Committed to
training and
development

Longstanding
commitment to
value

Culture of
excellence

Broad customer
appeal

Distinctive menu
Commitment to
freshness

Environment

High-quality
accents
Exhibition kitchen
format

Tremendous Customer Value Proposition

Quality

Value
Avg. Check (Per Customer Spend)

+
Environment

$5.89

$7.00

$7.30

LOCO WING PBPB

$7.95

HB

(1)

$8.25

$9.51

$9.98 $10.18

NDLS PNRA ZOES

CMG

Traffic (Avg. Weekly Customers)

4,658

5,058

HB

PNRA

5,604

5,737

2,940

2,634

2,674

2,892

PBPB

NDLS

ZOES WING

Hospitality

10

Source: Company provided and Wall Street research.

Note: The Habit data represents the 52 weeks ended 9/29/15. All other data represents FY 2014. CMG and LOCO as of FY 2013.
Note: Traffic (Avg. Weekly Customers) = AUV / Average Check / 52 weeks.
1) References to HABT per customer spend refer to the total restaurant revenue divided by the number of entrees sold.
2) CMG traffic calculated by multiplying average check by 1.2x to reflect assumed per customer spend.

(2)

CMG

LOCO

Delivering More Bang for Your Buck

Burger, Fries & Drink Combo

11

Cheeseburger

$3.85

$5.69

$5.49

$5.29

$2.75

Fries

$2.00

$3.09

$2.29

$2.99

$1.84

Drink

$1.90

$2.39

$2.09

$2.30

$1.67

Total

$7.75

$11.17

$9.87

$10.58

$6.26

Source: Shake Shack prices from company website on 1/04/16. All other prices from select Southern California locations.

Significant White Space Potential

Significant Expansion Opportunity
in Fast Casual

Compelling Potential Relative to

Legacy QSR Burger Incumbents

Total Potential:
2,000+

12

450

1,600

2,500

2,300

4,000

3,500

Source: Wall Street research, company presentations, SEC filings and Technomic, Inc.
Note: The Habit units as of 12/31/15. 137 company-operated units and 5 franchised/licensed locations.
In-n-out, Five Guys, Wendys, Burger King, McDonalds as of FY 2014, all other data as of Q2 2015.
Note: Domestic units shown.

Proven Site Identification and Development

New Unit Growth Strategy

Penetrate Existing Markets

Diversity of Site Demographics

Enter New Markets

Gender Neutral Competitive Advantage

Selective Licensed / Franchised Locations

Format Flexibility

Traffic Generators

Office Buildings

Movie Theaters

Hospitals

Industrial Parks

Health Clubs

High Density
Residential

High Schools

Recreational Parks

13

Key Drivers of Growth

Colleges

Select Preferred Co-Tenants

Theaters

Grocery Stores

Drug Stores

Strong Unit Level Economics

Existing Units (1)
Traditional
Average Unit Volume

$1.9mm

Restaurant Contribution
Margin

21%+

Cash-on-Cash Return (2)

40%+

New Unit Target

3rd Full Year
Square Footage
Average Unit Volume

14

2,000 2,800
$1.5mm

Cash Build-Out Cost (2)

$750k

Cash-on-Cash Return (2)

30%+

Restaurant model is designed to generate high sales volumes, strong

restaurant-level financial results and high cash-on-cash returns
1)
2)

Figures are for the 52 weeks ended September 29, 2015 for restaurants that had been open for 12 periods or more.
Excludes pre-opening expenses, net of tenant allowances.

Q1'04
Q2'04
Q3'04
Q4'04
Q1'05
Q2'05
Q3'05
Q4'05
Q1'06
Q2'06
Q3'06
Q4'06
Q1'07
Q2'07
Q3'07
Q4'07
Q1'08
Q2'08
Q3'08
Q4'08
Q1'09
Q2'09
Q3'09
Q4'09
Q1'10
Q2'10
Q3'10
Q4'10
Q1'11
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Q3'15

Same Store Sales Momentum

18%

15
Comparable Restaurant Sales History

15%

12%

9%

6%

3%

0%

47 Consecutive quarters of SSS growth (thru Q3 2015)

2009-2014 AUV growth of 45.9%

$1.2M in 2009 to $1.8M in 2014

$1.9M Q3 2015

Exceptional Financial Performance

Revenue

$200.0

$174.6

$150.0

$120.4

$100.0
$50.0

Units (1)

$84.2
$28.1

$41.8

$59.2

$0.0
2009

2010

2011

2012

2013

Adjusted EBITDA(2)

$24.0

2014

Restaurant Contribution (%) (3)

$21.0

30.0%
$14.0

$16.0

21.6%

22.1%

21.9%

22.9%

22.3%

21.3%

2009

2010

2011

2012

2013

2014

$10.3
$8.0
$1.9

$4.3

$6.6

15.0%

$0.0

Margin

16

2009

2010

2011

2012

2013

2014

6.8%

10.3%

11.1%

12.2%

11.6%

12.0%

0.0%

Note: $ in mm. 2013 financials include a 53rd week throughout the presentation unless specifically noted otherwise.
1) Unit count as of 12/29/15. 137 company-operated units and 5 franchised/licensed locations.
2) See page 22 for Adjusted EBITDA reconciliation.
3) See page 23 for Restaurant Contribution reconciliation.

Continued Performance In Q3 2015

7 new company-operated units opened in Q3

2015 in three different states: California,
Utah and Florida

Q3 2015 comp store sales: 2.9%

Q3 2015 revenue growth: 24.8%

Revenue
$80.0
$60.0

$58.6
$47.0

$40.0
$20.0
$0.0
Q3 '14

Restaurant Contribution (2)

Adjusted EBITDA (1)

$8.0
$6.0

$6.8

$5.8

$10.3

$12.4

$9.0
$6.0

$2.0

$3.0

$0.0

17

$15.0
$12.0

$4.0

Margin

Q3 '15

Q3 '14

Q3 '15

12.3%

11.5%

Note: $ in mm.
1) See page 22 for Adjusted EBITDA reconciliation.
2) See page 23 for Restaurant Contribution reconciliation.

$0.0

Margin

Q3 '14

Q3 '15

21.8%

21.2%

Consistent Same Store Sales Growth

2-Year Stacked Same Store Sales
19.8%

18.7%

19.1%

18.6%
15.2%

7.5%

16.5%

9.7%

Preliminary

3-Year Stacked Same Store Sales

22.5%

12.4%

21.7%

20.1%

22.7%

22.0%

18.6%

13.3%

Preliminary

18

Note: 2013 financials include a 53rd week throughout the presentation unless specifically noted otherwise.

Preliminary 2015 Results and 2016 New Store Guidance

Preliminary 2015 Results

Total Revenue of approximately $230.6M up 32.1% from Prior Year

Q4 Revenue of $60.6M up 25.4%

Comp Store Sales of 6.4% for the Full Year 2015

Q4 2015 comp sales growth of 3.3%

28 new company-operated and 4 Franchise/License locations in 2015

13 company and 1 franchise opening in Q4 of 2015

Q4 Pro-Forma EPS expected to be approximately $0.04 per fully distributed

share

2016 New Store Guidance

19

Expect to open 30-32 Company operated locations for 2016

3-5 new franchised / licensed locations for 2016

Investors Should Make It a Habit

Our Investment Highlights
Fresh,custommadefoodata
greatvalue

Attractiveunitgrowthand
financialmetrics

Differentiatedbrandand
culture becoming
everyonesfavoriteHabit

Strong,experiencedsenior
managementteamwitha
deepbench

Disciplinedexecutiondriving
robust,profitablegrowth
Multiprongedgrowth
strategywithwhitespace
opportunities

20

Appendix

Adjusted EBITDA Reconciliation

($ in thousands)

Adjusted EBITDA Reconciliation

Net income

Fiscal Year End

2012
2013
2014
$ 3,058

5,750

7,552

39 Weeks Ended
Sept 30,
Sept 29,
2014
2015
$

6,908

7,582

Non-GAAP Adjustments
Provision for income taxes

299

Interest expense

548

735

909

756

342

3,923

6,008

8,472

5,991

8,163

7,529

12,492

17,232

13,655

18,176

Share-based compensation expense

301

260

515

304

852

Management fees

160

144

635

114

15

141

115

(9)

1,902

1,147

1,342

613

445

1,217

21,038

$ 15,780

$ 21,645

12.0%

12.5%

12.7%

Depreciation and amortization

EBITDA

Loss on disposal of assets

Legal settlement
Pre-opening costs

1,458

2013 additional operating week impact

Offering Related Expenses

Adjusted EBITDA
Margin

22

800

$ 10,251
12.2%

1,754
(661)
$

13,996
11.6%

2,089

58

Restaurant Contribution Reconciliation

($ in thousands)

Restaurant Contribution Reconciliation

$ 84,158

$ 120,373

Food and paper costs

26,396

Labor and related expenses

Occupancy and other operating expenses

Restaurant Revenue

Restaurant Contribution
Margin

23

2012

Fiscal Year End

2013
2014
$

39 Weeks Ended
Sept 30,
Sept 29,
2014
2015

174,544

$ 126,210

$ 169,796

38,789

58,260

41,928

54,754

25,831

35,782

51,898

37,362

51,666

12,687

18,906

27,184

19,485

25,722

$ 19,243

$ 26,896

37,202

$ 27,435

$ 37,654

22.9%

22.3%

21.3%

21.7%

22.2%