Dave & Buster's Entertainment (PLAY) 11 Jun 212021 Q1 Earnings call transcript

Company Profile

Participants

Scott Bowman	CFO
Brian Jenkins	CEO
Margo Manning	COO
Chris O'Cull	Stifel
Jake Bartlett	Truist Securities
Jeff Farmer	Gordon Haskett
Andrew Strelzik	BMO Capital Markets
Nicole Miller	Piper Sandler
Andy Barish	Jefferies
Sharon Zackfia	William Blair
Brian Vaccaro	Raymond James

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, everyone. Welcome to the Dave & Buster's Entertainment Incorporated First Quarter 2021 Earnings Results Conference Call. Today's call is being hosted by Brian Jenkins, Chief Executive Officer. He will be joined on the call by Scott Bowman, Chief Financial Officer and Margo Manning, Chief Operating Officer. I'd like to remind everyone that this call is being recorded and will be available for replay beginning later today.

to remarks. conference like Bowman to would opening for I turn over the Scott Now,

Scott Bowman

operator thank take you, call & comments, like Thank Buster's and remind is we'll After us to and behalf be prepared being today. Entertainment recorded happy of that Incorporated to you your on I'd you questions. this for Dave joining copyrighted. is

All responses attention our our XXXX. SEC with results, may such which uncertainties which I'd these call facts. forward-looking anticipated. factors website our section. within at your of Act to have considered Company's remarks forward-looking www.daveandbusters.com and are items discussion in like statements Information risk Any be published that the to differ to future Reform questions, events filings available Litigation on begin cause meaning fact be on in we Securities are the the the Before could the Relations from based subject on the Investor certain uncertainties, and not of under our which to been and results on relating are risks actual to should those various to statements the Private discussed items entirely historical our of

non-GAAP website. announcement our will available also to addition, Accepted in not these afternoon defined the the our financial Accounting review contained include under comparable this results earnings Principles. remarks In measures our measures which today of on reconciliation Generally to GAAP references that are released Investors is should

to the turn over call I'll Now Brian.

Brian Jenkins

recovery. sales with in first lean our points basis only reflecting restrictions, with to compared with many points of we've Encouragingly, together on XXXX sales of the million earlier This be great want levels. strengthen performance EBITDA half to out high ahead financial X% Scott quarter, by first trend, quarter during our exited review I of excellent few a quarter. D&B fiscal outstanding of But strength highlights. of post-COVID below their I strong to performance the the sales new coupled closing accelerating improvement. operating recovery. XX% trends of total during the out vaccinations stores we and operational in drove XXXX our improvement across a million comp surpassing with the We our Good quarter $XX inspired D&B in initiatives top base, quarter total reopened the a and call end for sales will to continuing brand respective what evidence with and Despite April first New the of momentum, summer XXXX the to margin a capacity with call quarter base generated our first and current the comp the This we total for coupled a down execution payments, established minutes. over of of past XXXX at and the promising quarter. in second accomplished levels. exceeding Company rebound significant today and to in our This revenue to fronts. sales sales, and running XXX only provide range Scott. to you down saw solid our sales comp The of produced everyone demand second are joining a operating strengthened Well, our our including further reopening first just you, quarter expected another afternoon accelerate, few continued flow-through expanding Through slightly significant our driving model combined XXXX store provide entire After the other and thank results weeks example we XX% quarter York $XXX in store announced the California stimulus our team. year the continue of stores. watermark with the of today. commitment EBITDA, thank operate of close outstanding recently five

we for all today, stores have quarter. back year. in of a late will we our As anticipate that Canadian over the the two except past online second we've come Clearly, open way stores long

engagement. about beverage to initiatives implement our menu, our and We service strategic and are optimistic model, food offerings and future guest enhance we modernize entertainment as

more With going ask our our on strategic time, and me provide results foundation, a Margo cover we quarter. second are these to during XXXX recover. positioned insights took to initiatives business to company share update steps now and to will we bolster our our fully more as Scott sales more the expectations guest-centric on some that and financial join this profitable quarter a to of XXXX that I'm plan. to the be an After our the Scott? competitive, for first At

Scott Bowman

major first ended one results a The point with the during quarter. entire well dramatic the opened XXX Buster's beyond and of that for achieved extending quarter. Brian. to our new second our and above weeks mid-April, support quarter have driven of business inflection showing by store into lean a impacts extraordinary model stores, teams. the by the operations stores & momentum, pandemic. marked since profitability, open the first quarter is and the Dave open expectations in strong the five efforts and We of significant we With of Thanks move the our begun also most operating revenues our turnaround We've generating for the including quarter

million total store of XXXX. quarter first the quarter $XXX compared comparable with decline first XX% of the sales For reflects in revenues the

in was higher XX%. Power of were comp, quarter, Amusements driven F&B the negative stores. reopened while sales, and outperformed a of by compared due was and trends April. for to In Throughout negative sales improvement down improvement our our were terms category in reopening March mainly previously in purchases. the steady sequential XX% to XXXX and stores Card amusements comparable XX% in spend down February, showed XX% XX% store comp business improving negative the This average

against store as this comparison. continue sales As a report a believe reminder, meaningful XXXX we more will comparable we to is

in perspective, Regarding improved shift the strong improvement discounting positive sales quarter point first of produced income in marketing labor higher costs profitability the ended and for net quarter, pandemic The time which We or posted first to sales total facility. and of $XX.X the EBITDA stores by during flow $XX of end our of $XXX so These a sales the operating of maturing the used driven senior reduction $XX.X levels since in quarter of XXXX, under net reduced cash posting of returned cash was same million to driven revolving was in XXX $XXX share. consisting million Company million lower a quarter at $XX with stores leverage primarily quarter store XX.X% million for costs. Total letters and of From the facility, $X.XX were revolving our credit million quarter, $XXX XX% in higher denomination our results purposeful pay $XX credit. to debt down of quarter and of completely the our for $XX availability diluted long-term operating of the for also million the mix, Cards. or April. was versus secured amusements and represented compared of XX.X% a with XXXX. minimum XXXX. the million XX.X% the basis per period Power amusements of on at sales staffing pre-opening in onset also by of performance improved a mix, and in due did XX% the notes stood covenant to million liquidity and a credit The million EBITDA

down the vendor quarter, payables negotiated on $X balance million of we and had deferrals end the of approximately balance deferred all $XX the at rent sheet. million paid Additionally, the had of our

throughout back XXXX, pay approximately of fiscal deferred million and XXXX of thereafter. to expect $XX rent fiscal in million the remainder $XX We remainder

notes. in received addition, Act approximately paid tax secured million resulting CARES of million our first senior from interest In in quarter, and semiannual legislation a $XX the on we $X refund

a refund $X in resulting receive quarter to related losses. fiscal CARES the first XXXX late additional of in million carryback to fiscal expect early receive the million in tax the quarter of $XX XXXX legislation Act an to of refund fourth We from and or expect of XXXX over

and Turning to capital a spending. total additions in quarter $XX store invested of net million We in capital first opened the one allowances. new tenant of

additional expect new of one in We three open to the remaining the year. of fiscal quarters store each

with the we team year, As to encouraged grateful very very progress functions are outstanding our the success. operations for we and driven our that have our and I'm remainder supporting look of forward

fiscal of Turning outlook. the I'd to for quarter our insights offer to some XXXX. like second

demand strong barring of For second total $XXX are which setbacks, our significant the reopen. XXXX. Based million we to five range revenues is trends compared to on Canadian with and X% the any for to expect $XXX brand sales of weeks continued second see comparable down in million comp the to to yet be of the XXXX. quarter we've our current quarter, Two to stores first

margins and amusement the first of EBITDA costs, decline due expect a quarter higher to We compared moderation marketing to to sales seasonal our costs mix. and labor higher commodity

$XX line and XX% perspective, CapEx for Importantly, fiscal milestone to million reiterating for for games in to dedicated our new levels, we brand. we with CapEx for initiatives, expect needs. approximately million with $XX EBITDA other are From in and XXXX XX% invest a XX% to be dollars maintenance major operating XXXX our a to stores plan

we driven like back in With by and to points commitment basis Margo labor margin model, I'd spending. labor improvement management as hourly be G&A AUV and XXXX I'll structural discuss Finally, strategic will Brian it to initiatives. XXX achieve turn that, our which of level, to changes largely our to over our reiterate EBITDA reached

Brian Jenkins

We're continuing covered. quarter just results Scott Scott. the by and encouraged thanks, Well, momentum the first early quarter that very second

date our set we've to strategic we've on great the the then turn quarters, them implementing those us commentary. initiatives guest up experience several think is enhance outlined to over a the strong several and Over we to made would initiatives Margo of call the for really season brand. some and follow progress going past going progress additional for which you up I'll bring I'm to what with to be up to our on

Margo. Here's

Margo Manning

already initiatives. objective our food at appreciate March, the momentum profitability. and positive is drive Brian, initiative and efficiently making were us for enhance Thank this end afternoon. the The an excited you guest the progress give talked our today. you, model service of we long-term improve to the on increased sales, I'm about thanks to of When key opportunity our update and overarching everyone and experience we joining

on completed This items, COVID. our menu identity, Inspired offers food we the menu On have Kitchen. representing transition the were food XX items the XX% American fewer with menu a to new prior front, than to new

While guest. resonating it chips, and like is Hawaiian chicken and are Stout still IPA with the dishes big sandwich, the our Mushroom sellers fish on and clearly early, Burger menu

As move with on the of we'll This drinks evaluating understand guests the fully performance summer, the offers. sales form guest summer, tempted will deployed be of into impact LTOs, menu the and our on longer-term be limited to its experience. we in better seasonal time

plan We a give culinary products drive Our of guests summer advantage our offering margaritas. to selection and options use Elderflower to to food the strategy take Pop and be seasonal food to in sales. includes Bomb tonics and new of fall lineup Starting stream well constant football of amazing LTO LTOs for of freshness a that Oktoberfest. attachment LTO guests our both pair and heartier beverage our September, we'll

brandwide we level of execute initiatives and also menu to makes the it both seamless in at our ovens by a the kitchen. flow completed have more by of simplifying rollout third our our the easier high of XX% upgrade, by and These operation. management kitchen for teams the facilitating at reducing times cook system back-of-the-house a high-speed Additionally, food aimed on

teamed kitchen research guests that by system the ovens great of define are D&B deliver our that fast, and food hot the food dining to that experience up guests. says management Our new our new combination is to a and high-speed served quality menu,

an increased beverage increasing drive food to food menu experience attachment new rate, and improved our guest toward all aimed and expect We sales.

QX that evolve our our move menu disciplined guest a same we'll Next, the beverage to offering research freshly programs an the one have challenging that largely approach earmarked the and staffing used with to hiring goal beverage will of to attention improve curated we The beverage most menu. the my extensive investment estimated season. summer levels that attachment incentives. we thoughtfully to seen be launching that career. beverage upcoming the is the to we placed we summer, have on order I is in improve capitalize D&B relevance sales. retention the and market need help to early for and talent great for attract has fans We expect facing This drive the this demand need at million today people fully alike our in been to a us significant in and bring in $X are labor that To QX

deliver over involves combination Another give evolving This service their to key service is control model by a experience a and new more to this a initiative to levels and of more completely expand a tablets, platform more the to to deploying mobile model, platform contactless efficient. the of stores guests experience. be our able a size in-store The on server experience. have enable integrated web been reduce order-pay sections operating staffing

will model new We of have have next over brandwide half this deployment on month. stores our and

guest the us model, points more for also is web-enabled adoption self-serve will us mobile two on team to up to technology by most. business average strong our our a operate the ordering matter in focus to that this touch adoption members we completely four-week efficiently rolling guest testing mobile help stores. allow freeing over grow We our fun culture social believe transform Due guests, XX%. Our of by our experience are and

As I very team, of D&B. heart want to thank wrap I our up, the

passion the I'm our the bring looking call an team Brian. to every back team the they embracing brand. guests. has over and for for Our is the that, resilience talented change our D&B back With can strong to quarter I'm and exceptionally of grateful result you, for to fun going and first operating very turn performance member how

Brian Jenkins

initiatives a strong take to season minutes I'll Margo. Thanks, to new designed on the update next balance engagement and our of few summer you fuel guest and entertainment year.

a work system, summer all premier at have as Dungeons guests ensure best to Minecraft destination of the This of board exclusively Dave will of continue games entertainment classic that Dave performing games their titles and Hippos which game across the in & like where launched version feature seven to Buster's together. version to remains discover two themselves of & the entire Hungry latest Hungry life-size We diligently Buster's, enjoy can established categories. the arcade new our our which already

game release capitalize postponement that made Top later the launch will back Gun movie this proprietary this With decision to film's the the the we on push of of November, the awareness the VR year. new to to brand accompany

edition, and given an awareness to has this more we enhanced opportunity Terminator: us has one released Guardian to year our our popular this titles. of However, draw already version of which that VR of become Fate earlier special most

theme are We very through offering with new high-energy leader executing starting entertainment dueling our partnership programming in a a brought we a with lens, expanding entertainment market with our trivia events. recurring of to appeal Tampa [indiscernible] our begin in plan, continue will brand, national interactive developing the testing broadening and the piano wide weeks, music at dedicated increase production and in on By events. Moon. range function visit our nights our entertainment leaders, recently successful test the coming produced our look well-known Finally, the own will In live we store broaden Howl we of frequency. and began conjunction for

designed proprietary Dave guests entertainment video upcoming have include we beverage of These the football compelling ultimate and promotions. the content, and initiatives into course, draw contests a the planned establish tailgate destination. to markets, season, as in Buster's food game, to & our of select For number live

deeper is to recovery. engagement quarter converging and forces potential look in to our We also an betting to see later we as with negotiations sales But partners we guest look our important this three to and forward this progress QX accelerate make concluding quarter continue drive sports year. discussions

past First, we're with seeking in household and entertainment seeing stores. savings social reopening months, pent-up our of from after demand the the punctuated the the people marketplace of higher coupled of lockdowns levels XX by

The first which this campaign investment to sound our new the This social highlights window will is situations arcade campaign prominently by force turns approach influencers. and TikTok zones. summer reach and moments. leverages new to our in DING TV to accompanied will Dave connected followed a brand card trade we This quarter. through campaign DING of key be strategy. will signaled Buster's mark our DING new higher which marketing video during modern begin mix seasonal to significant guests positioning, the be partnerships fourth transformation audiences holiday featured media mix to media that brand our is social extraordinary the & into by new the while by in summer second The drive is next increasing from ordinary conversion how iconic The a activations reach within a significantly shifts unique ranging digital to bank our

new accelerating news final motivator and that conversion message, important new it for force third the is new food introduction message is Communication both recovery will will products. of games, summer. powerful this know of key outside new our product behind to beverages. our drive an The be We exciting highlight new inside this visitation and and and a stores,

bring rewards. playing As and to guests to the have program we complete a robust to level late eating, drive challenges new additional look our will program that must mobile games. also the a as and encourage personalization earn guest app up by targeting drinking loyalty QX capabilities to deeper relevance Launching developing use we're engagement, in to will guests also app and

I during occurred time to Buster's than preparation engagement. truly strategy, suggests exciting and program the the that current now guests is resilience the am pandemic planning our the offering how are is research of an & by and the I plan more that as higher our in this significantly It close how to and attractive Dave Our at drive to will to the appreciate confident together & encouraged accelerate our I'll by team's recovery. emphasizing Buster's Dave proven new today brand commitment, much heights. our drive how coming am I

back. brand Our is

We have a move ready full speed solid to financial foundation into ahead and we summer. are

we'd - your the questions, to Now call take to on operator. to like

Operator

is first And Instructions] [Operator our Chris will question from of we to go O'Cull Stifel.

Chris O'Cull

guidance Company's than AUV quarter the is and XX% the actuals second based for math, Scott, XXXX. second revenue the on second implied to similar lower of about is the quarter quarter total our XXXX

had that is I then correct? And follow-up. First, a

Scott Bowman

That's - it sounds yes, about right.

Chris O'Cull

Okay.

Scott Bowman

pretty sounds I but don't have don't have, I that results some close.

Chris O'Cull

EBITDA in margin guys levels Company the higher then the you you lower making But the achieve basis I the investment Company And stated similar that able XXXX XXXX are XXXX. million AUV level. a if to thinking be exclude at it the at second is seem the AUV Am quarter, would than points XXX $X about correctly? that would much EBITDA to margin labor

Scott Bowman

how as Yes, we we because approach think give where to couple of points about XXX things about is point XXXX quarter. the that's you you get a me AUVs, off, as we first achieve to the are With couple thought a the savings, give level think about as going savings. are items basis we right things that correct, of into now, could think second to we kind this you of in dynamic let of

common food there. little costs higher common out off, front, is I think the first commodity bit - So on which are very a

you year out the there some as bit higher our of commodity incentives the So as I kind more a are to cost expect second well quarter see having on and costs the back mentioned position. of labor we kind And in half the of we'll staffing bolster front, well. in little

a a and attract second quarter position some try it kind quarter talent standpoint, on of kind staffing. about right. taking the for different fourth to touched marketing going bit bit we're From the and of of we a be spend where heavier, little million, more we'll little there, so $X to is to And money a

make so taking menu we're of want with time We need approach windows-based the reach push new get second new to pretty And in heavy marketing kind our coinciding to and the the during we're media frame, really impact. this to really and games. an that we going strong where, especially a have quarter, with have summer

from how little we've with of past And so even bit - more more in it little a a an done that's of of a the bit a shift spread.

that kind QX. over the bit of a So than then can bit QX standpoint. sales marketing a in in headwind you in up in see year. We'll then you'll X were in mix little we'll see amusements prior will And from give QX, and lighten numbers then the the QX a that from in be thing. standpoint, mix a in a same And of little points heavier we higher were we us

nice it that so in overall some obviously upside margins. And with carries

moderate that and what our Cards amusement. to We will Time will new some pretty per Power shift the but exactly expect mix increases buying heavy higher-value just and is, that much there that how sales saw we of somewhat. tell normal the cap, kind really in people contributed in

we in assume So some did second amusements as quarter the moderation the in well.

we So But those the number are comfortable the EBITDA. some kind here lined that, with costs. for a you of G&A of about as nuggets management labor three take modeling areas that labor, and takeaway reminder, we one, there savings at quarters look hourly very a important I the and have out that help is is feel that think

caveat quarter-to-quarter comfortable standpoint, is you that. some fluctuations But the may still And so we until structural only from feel get see there. with a we

Chris O'Cull

on a bow wrap to this. Just

about incremental XXXX. basis more that relative You to about margin XXXX lower quarter talked volume or second costs right? Am in in XXX I with the points thinking roughly than flat of XX%

Scott Bowman

correct. that's Yes,

Chris O'Cull

great. Okay,

Scott Bowman

this drag I in with see occupancy and one hefty just think year a drag big things us a lower to that's is expense that is more as fixed the because occupancy. volumes, other will we still pretty another standpoint, about so really to for an going - the yes, well of from nature throughout think no from be

Operator

Bartlett Truist Jake next Securities. go we'll of And to

Jake Bartlett

on My quarter-to-date the was first sales. one

in second with - above, mentioned that quarter I line line. more you running are were the in guide was actually think second 'XX, quarter roughly the but but you guidance the no of

the just to I'm rest maybe So for the increases modest that, the quarter drivers of more what are. wondering

Brian Jenkins

the Jake, appreciate question. Well,

was level bit. quarter Our the top the a guide end above is for our by actually XXXX

five just guide, surpassing So we weeks saying same basically the here. are end in, of top our currently XXXX thing the in

don't of I at in the here. this quarter seen top any different guide we've it's that materially the And So think… know what so than far end I

Jake Bartlett

Okay.

Brian Jenkins

we of - extremely where really first across this optimistic is store of now. about our strength a have all, definitely base said, we're business We're right broadly seeing Scott As here. lot

volumes discounting that And optimistic quarter. of some things so Scott being extremely virtually now, will. up, seen are up we're watching talking if the you per our now here driven price Cards drivers by here right COVID before The and but pent-up And elevated the history demand discounting. our some cap we've money. we're a is pulling of around about in of really elements are come here on done, are and off, We're is effective mentioned there in amusement right elevated. around, getting purposeful years. locked we've that XX amusement, that A folks as There not the and a not is out on here so Power high restrictions per a helping stimulus cap that bit that about business there's lot things lot people increase and quite on demand of lot

seeing - New in in we'll a settles and excited the that super of recovery see and in patterns and a we're we're York. think so how we're out. the benefactor all But certainly I bit about recovery that California of kind

get in summer, relatively third have COVID. going bit quiet and to time that was it think you But cancel. are get is good guests the back we positioned to got we're of some put to back saving and of a We a first front energized. peers and with - media in our last a our since this been a timing going bit, to ways if couldn't really think the we've able We is is powder, COVID the of we year I had rewinding obviously little and and perfect. were quarter team out the vaccines. the products some will, strong we're I So voice be that to with out really great big summer

This So we're lot a than year going really bring. ago. excited to about a year is is summer different what this

that put Let's it way.

Jake Bartlett

I Yes, great. that and you. sounds that appreciate Thank

last had other on The question how much wondering quarter, I I'm provided tightened. just of you that was quartiles performance. has

like, your of Maybe provide I'd maybe good of how are data that imagine now? stores portion that you could terms better of right range sounds if stores are you 'XX. can do share, any doing - that in a doing terms again of in of you it than the If that - just have

Brian Jenkins

Sure.

broad recovery, said, strong now. As Jake, I we're seeing broad - recovery right

in So we're we a really factors as think, encouraged company certainly I variability minds our you by a that. of, regional But have that key are some as might has expect, and couple driving that.

early curve that seen we you've think call COVID. the I we graphs out in some that of on the - put of sort maturity

would either that's form we that and of locations store are and COVID in and fears different that got subject certain where where of And there stores about I'm performing is, curve. impacting along markets discomfort some with factor We've or clearly, are still we say regions are that then talking capacity a maturity opened better. of of in about operate those here number the been is markets some we've the are southern of XX% something Our think got still that our have markets restriction operating other have I else. the longer and further to base really - we some restrictions.

going think the three over The these sort They gate green very still I'm to that ramping of the that strong, curve. are stronger us. other regions and is here stores for their up, pretty separate maturity regions. view self-correct are stores of factors got all and kind things time, are good of those So out the going big specifically California. our quartiles But they're of much than we speak news to in in about

fears COVID we restrictions vaccination get to think and I are declining see the lifted. with expect operating expanding

created has on being optimistic are So there differences. question pretty but quartile here, created, separations specifically separation that your we're here

quartile in weeks just shy top XXX%. is Our last the of five

by XXXX XX%. had we above quartile they're XX%. about The lowest So is about

to being We over of we said quartile market. as moving their maturity California So that of in as to bit opportunity sort still have as separation. higher view of a point definitely a because part that and bottom I I'd in quite there's time that an restrictions earlier get the big

our this and I'm third two quartiles, 'XX in say at average between of second to So levels them. the going right

I So base, are about into we good head as boats store the the we summer. see and said, feel really rising we're we optimistic as really

Jake Bartlett

question, on I is. the like up that, you quickly, last insight know and difficult and my your as - I a how guys you're just bonuses you things then I believe - so of think having for ramp if you but to giving staffing And have - hires are great to some it can you're and challenges because

of stripping you be any been quarter then terms So can the fairly going going in think last months that provide insight change I is it's better? this lean second the other of maybe bonuses and of think whether there's any few to your to there as do feel issues? you is know be getting running staffing? the terms that you are from out, light? staffing to you be that because going efforts new in weeks Do in to or do but And you extra how cost

Brian Jenkins

- ahead. go Well

Margo Manning

can Brian I'll or in on. join So, then Scott Jump and

flow this getting it is of pulling your seeing some - part on markets the are applicant markets some in is the we're better? of where back actually seeing We significantly. first pretty are Just stimulus, increase in they which getting question

but flow seeing show little applicant And only having in at you're people in of bit are increasing actually and markets. a So is offers the terms is staffing specific accept up the work. getting we that not easier,

and into So it almost that then flow change. essentially it seeing and applicant interview didn't in a would like hire that we're that having where we're but result translate would - an activity looks

staffing start QX. QX. we're we so, hold, take also some by and by in So that our that We're we're to in programs retention as we of that referral encouraged recruiting mentioned the seeing encouraged and it relates program go specifically as into to had

see past be we've in QX from to as quarter. think don't the a operated I standpoint difficult So going staffing you're as that what

model is out It's us the rolling operate to the the the bigger new more cover We're on guests we're really to. acclimate powerful for technology pretty efficiently. to teams like able has easy that off Additionally, to station, new us. for and been it, the technology a service allowing

really you encouraged situation better So staffing the of add? we're those months. coming Anything of us about all want for upcoming to help together in the this combination to make things

Brian Jenkins

Sounds great.

Margo Manning

Yes. Okay.

Operator

question Gordon from to go we'll And next Farmer Jeff Haskett. our of

Jeff Farmer

you actually those made. staffing guys up some just follow wanted just that to I of on comments lean

more in of benefit terms in there the are first about second picture quarter, those initiatives you theoretically, deeper cost quarter? of or sort stand? full over the controls big where see of several guys thinking have place you as the into In the terms in the to put So initiatives come do months, the last of you of get

Brian Jenkins

of rolling and out the halfway over out mean the efficiency as I in that the rolling new Well, terms prepared we're We're her course of server - web put not service remarks, system our really help said place the little POS, in and Margo quarter. facilitate mobile in first handhelds we're the through sort really a model. over of we've that initiatives

So end - of done be and tail July. will

room on So we still to that. go have

store So summer. the as course dividends we'll of see through the that rest of get base the some over we over the

Jeff Farmer

separate Okay. And then question.

meaning what whatever you currently it of understand the effective capacity in open that capacity, to where an use that stands I just with an to all where stores into You term earlier you it question, is, the today two want effective think mentioned better wanted moving what but the to of today, your answer terms number be, use whatever floor, bar like areas, summer? deeper it all might the ability be looks versus the amusement might in of to

Brian Jenkins

of a Now bit call. little that's hard a

or of table we the limitations could terms dining pointing for capacity to we've But limitations, XX% particularly limiting months, said, that of able like stores - some we're and business. lot And bar I less a the not of think it I know in of I to things us. that of on kind being see we this get feel which use course impact think of an games, the factor casual got still of of these had As going stuff read over have roughly I lifted. a the be is form limitation, as coming primary to California

at not said is and recover for stuff, hours of to numbers XXX%, because well us just our that as with over stores Certainly, quartile the issue bigger and when size as restrictions, this these get you producing XXX% before, top peak we've I scale, an as are we As look and big our sheer square feet pressure restrictions. stores have. we've but put capacity that had - can at

see impactful, it's - dining. not would an it's in casual magnitude of same So it's but that you kind the

Jeff Farmer

apologize. I And

one quick more Just one.

as conversation where guys So broadly but into not inflation, sector your business, about what out for of into and on like, the are but your you and rate across of rate the of thoughts XXXX. sort thoughts in market get 'XX the we looks just more wage levels early labor and inflation on a moving staffing looking wage only half any back lot potential

Scott Bowman

that Sure. start on I can one.

benefits that. So wage from a than we the for of as get kind subside expect average there overtime, more for months well as technology willing and about course, in half, incremental should hours additional is reopen with levels, going unemployment to most go our far, somewhat schools inflation work to there few that start already to of early should And overtime. we pressure folks pulled as to more over earlier that we that mean COVID kind labor are the then September, fears some factors in opening the out had the as I just course start as kind In model, back, past. think the With next but really being. to as overtime we've that we think California we talked with states But that that's seen, of say return I tablets to that's will mix, second shortage with have to we actually of a by see couple think staffing the fewer internally. which some due the just when away even and And time just also with wage ease in moderate and kind augmenting well. store reasons we'll definitely continue of that you standpoint, of the of to the add some the with the we help situation. is that labor augment lower to meantime, with itself of we've the of as into operating helping these few us charges We service raise

Operator

of to And we'll Andrew Strelzik go Capital Markets. BMO next

Andrew Strelzik

the My demographics question. the you've driving first quarters over the taking for I couple last the and millennial recovery heavy talked more being really think one, of of about Thanks I'm sales broaden curious families or of really more if you're seeing base? that to out recovery this is include still by start of customer driven buckets one those two be sales the to

Margo Manning

Margo. Andrew, it's

then a I'll in. So can join Brian add little Scott color and and

tool going it's our and It learn we - new spot. in insights. platform a it's deeper social. great about welcome guests kind guests basically desperation it's it's it's and Buster's. feedback, And It's a are both that we're of a and more back comprehensive everything you guest experience adults to it's seeing And all and we've families variant, the import one launched offer looking for to [indiscernible]. while been captures mobile to to all & Dave that at May, time, So also through return

TripAdvisor So in for today about us and the to from an going execution. standpoint, position think actual of better understand have what put about to that out and operations going it's revenue guests it's side, going the a the help us improving want all feedback all

wow also more planted but now. to the guest we're balanced reflected in pre-COVID only it again base It's And welcome not where to excited more we're seeing point more a adult. little So them. of a earlier the guests to was your bit back

Brian Jenkins

Yes. one thing. And, Andrew, I'd just add

think May. on calls, really here I this just in prior launched we I told program this one So of the

tools, During we the the on guest pulled back course of just to actually our those due had and a kind made cost of COVID, satisfaction, management. investments lot we of

about feel it up kind ended we significantly whole compared better the that different. dashboard market the get today reengineering lot a before we the to because has we So comprehensive is platform of here that

was So time. in today talking system in a and a we little is had platform than lot guests that returning more what was we about a of place and for terms a when in of anecdotal it was are long

reality that's but So not to the be evasive here. on the specifics

Margo Manning

though, in the Thank coming color Good you. picture,

Andrew Strelzik

and were kind How question you that you like curious layering I'm My about you're in second layering sounds over thinking more just, is of that how opportunity. how think about thinking talking back It you promotional back back on about broadly do pulled sticky in? versus this promotions much as just the and an exciting of how time. you're levels

Brian Jenkins

a need capita go mentioned frequently as I now here significant it's great mean, question discount we're I seeing the the right mean I without that's into really don't a prepared per strong where his and we're our it back remarks. Scott having talking strong now. about and demand - territory to feel impact it sort we in of on

going term pulsing strategy. we're toward to planning hop versus much something we're It's more not something constant a discount that discounting an because near not to it's back going So to always-on do trend. things

Andrew Strelzik

quick you're in If squeeze above that changes I model It implementing. beyond more of could here. one like sounds one just and kind service

in like? what detail fully You you two a kind more that's mentioned F&B automated Can situation. just give looks testing stores of little that about

Margo Manning

we been can Now, so really the and is and these had complete situations for the said, looking they uncomfortable well-received. experience the their where control can server themselves. that interesting basically order beverage high That of the stores adapt, if guest what's pretty guest it's so been both is then adoption but is and we've we for we food to two via offered have experience have ability them being guests to the phone

So we're by that. encouraged

at we're rolling we've that web local better rollout we other practices. at the different have that out as Additionally, thing regions, and the guest seen the is the platform better gotten in

every So we're adoption week when new with on a guest come stronger region the they on bringing beginning. in

experience enabled the mobile overall that throughout a are basically for stores encouraging our building. an brand the contactless situation rollout been guest the it's additionally, So two in in

Brian Jenkins

to just using mean the add we're service here. pretty how change transformative to This about technology really is terms transform model. I something in Yes, of thinking a

Square, the really roles talking transaction experience to the one technology piece, we're and one Dallas being moving about the - and actually Time the is in here rewritten. are So two in stores, the is so over

environment, So a this role. in technically really server not it's

scripted roles roles, defined we've So engagement to guest the and enhance experience. drive

So over, our roles of members. the transactions reimagined moved team

and evolving. work it's it's a So lot been of

and team think we'll with work could done transformative team operations be it where it really technology see brand. Our along some our I here for great excited, our very am have they I but goes.

Operator

Miller And we'll Sandler. Nicole of from Piper hear next

Nicole Miller

questions. two Just

around on new first how think understand EBITDA the how that of for half and be wanted pencil making the is, G&A we that's get would CapEx pipeline store said development. sitting both I I to here? out you strength the just the - and restarted you The do of sure top as kind line Thanks. bench

Scott Bowman

a strength the notch now the and with financial by COVID stronger terms two our ourselves seeing flow of I the out that's We're there's we in our business - of at doubt Well, getting events to is that and this back our in capital guess, ability no stores lot is put or foundation a returning. because day. that's of cash about build point

So development. to begin I think the we have flexibility to reaccelerate

place. of in lease is their heavily negotiations. COVID It was. have But in what pivoting complete we really place They team and and during development team a now. fill role obviously - was an in on development we the incredible pivot Our were they focused focus are are terms

strength to power lower on other in on we have some difficulty is industries move and move other We've we pain points just post-COVID. where people to and bench at because operating are had field the the As the companies. levels more

the the some team going about that's as get Every the take leadership better, stores. going time. time little but really to to take we're So to that we day that's that's more goes now by of our numbers work fuel recovery going to a that to back And - and rebuild. that's powers, that's better, gets our something the adding think rebuilding have

where running in a in to So I that and not near be XX kind move don't we were going pre-COVID the foresee position to stores back the - we're term. of numbers we're going to

Nicole Miller

sense. make all That

thing nothing basically would and the was place. dramatically. team I Next is mean in there change that

pivot think direction. is the point to it's comment shift again going just I important though super

thank that. for you So

does the XXX% an top might How top those on absolute long it's the back I of kind spending little The are are But understand look how quartile. We coming, real time the are their you've question, above, they doing to coming long know or kind running more second how Thank watching of what the because different XXX% that how the difficult track What the in week you stores? sports? like average the are right? said days and percentage - understand mix behavior same in you to stores as playing day, those also just able But is a basis, the the to of reported. time? and they was behavior? are they you're they on some - think times bit guests. everybody you. curious around compare or of I to Meaning, how but research very sitting was to how eat

Brian Jenkins

the in second It's a of a have we separation in there. the first big lot amusement the quarter, to - here that Obviously, questions of into sector pretty performance seeing relative F&B kind in still and early we're quarter.

metrics of and people traffic of drill of spending time, of now into kind are the indicative business spend Scott If traffic, see increase in amusement mentioned, you entertainment amusements us the which side, down the similar. for how as right is are about capita their sort our per we same sort massive And number. on side. pretty They're versus in beverage food pretty

deferring from stat a point that those half if Power and to a per you shifts So I on I I cards two, more and ways. in on a they're some performance. in similar hour consuming their that to these we had of our deferred spending offering you don't we biggest and number that our they're said, may large cap really amusement hit to in that think and direct don't notice we spending they're revenue are had the That an terms they don't - the know got in some is to reduction with terms in their metric, give sort attaching indicate we here on - of would buying since the of higher have guests pretty pretty release Cards. how quarter. our to quarterly a staying big And that chips we've bit. in going can't - more that of But been of pressure time adjustment I've a sales they're that time, some that The are spend would of

is in are of same, a more about - beverage, think terms So spending in time I that but probably arcade. mix it's little they food, the the consuming sort consuming of

Nicole Miller

And behavior the they miss to terms don't XXXX. any sure see. on lower can a all. their I It's in make let's in geography just I confirm to the But It just consumer shifts you like isn't store mobilization. say, above the store, how in that whether XXX% want sales sounds at in behavior the point of of consumer use shifting of finer

Brian Jenkins

more about to quartile more California box, amusements, certain consuming the of or top right system a open, the relative that's back they is think our is traffic, more train. their trail at lot stores driven low much food opportunity by more rest stores or I the now. coming geographies you to less It's people about the got where but about separation of when less food that. quartile, people the relative return box the it's is. still or - on our look They less and into in

to our going California think They will change. likes be I that's brand. back.

Operator

we'll question of Andy Jefferies. from next And Barish to go our

Andy Barish

has of that recent done on some anecdotally track. already lot work closures of even and you've any A out of stuff comment there sort folks you're if Wondering the that set the in competitive or been the asked. can you seeing

Brian Jenkins

Good Andy. we That's Yes. in saw question, virtually every closures COVID evolving. competitor. when Clearly, hit, temporary

point and few it where that's units reopened permanently, would sets closed sits is have that say competitor As but we open competitive a every say right of there point. this largely this - the There I some now. kind largely today, at at is virtually that

relative because with competitive we earlier look as what we in grow not collectively of all and was expect of somewhat the obvious, we into to that. competitors XXXX, it challenges right at XXXX shut set, and years. down doing XXXX accelerate to set which kind it was saw were in probably pretty openings appears faster XXXX COVID, during 'XX deceleration XXXX in than wrestled they do earlier. us high strong growth We back pronounced think what is And XXXX at as those and but obviously versus or just I as the collective going is and the look to that to

think before, I attractive about. of Did it's to think we're beyond I likely space. an in it's So investment - lull and temporary up back in happen, reaccelerate, and talked understand were we. I begin will that's we probably that still kind see But there to 'XX. a gear in going be that there we're not as competitors We and as said to XXXX competitive we're

the in As would I my best view, said for say we us, team. I before, have

model. business We very a have strong

a balance We is have stronger. that sheet much

in. invest have We flexibility to

We have a great plan.

So we're competitor emerge as stronger gear I'm confident all back that as even going an to up. we

Operator

of Zackfia question And Sharon Blair. we'll from next William go to our

Sharon Zackfia

now pent-up been a stores that restrictions clarify just quite guess volumes locations to that kind of the sales I Are Brian, the have you for in less think of something, demand. areas you beginning I any I or talked seeing have wanted for about had while?

Brian Jenkins

Are for long had performance where less seeing restrictions people stronger we a time…

Sharon Zackfia

No.

a it when hypothesis first - all these doors, off. demand, come that I the tapers So there and in folks think and on then pent-up reopen meaning is you

you have I just obviously over So was all stores wondering, the country.

bit in of quite market slowdown any have been it been longer areas Some a open sales of those as or longer. the maintaining? has you seeing trends is open kind Are

Brian Jenkins

start because Look, pretty on with continued stores curve, maturity how and had improvement so stops had out fits of many it and time. kind good we starts COVID. over We we our gradual published there a had haven't

most recent doing California, they first in I than they're think and today our of York for reopening. doing were better New week the stay

have So over-indexing space gradual of - kind performance we same a I maturity That time have particularly. that these think that our of them we're and have said, in long in are significantly, curve seeing reality opened sort recovery. the that been stores for stores

XXX%. the I the dialed So in second third that said in of that say I as surpassing is quartile have shy and we lot felt strength particular a quartile quartile would they XXXX back of before, and is and just that top

felt it, we kind we sit. where So good really about of

Sharon Zackfia

then I'm And that process revenue on of the the and this, if the seasonality as about and guidance talked you've know you that's guidance. quarter the I on quiet front But as you Okay. missed marketing was been but for second I thought mentioned, sorry quarter giving you changing. all kind to second look really normal

sales kind you I'm in just now? starting So the that's any include lift from did wondering marketing of

Scott Bowman

definitely we did. Yes,

Sharon Zackfia

Okay.

Scott Bowman

from. that was that lift and assume inputs them did many we There's one of

Operator

of we go next to Vaccaro will And James. Brian Raymond

Brian Vaccaro

and reopened then range think back recovery down system. on hopefully mid-XXXs just to quickly And California recent since I low weekly that wanted mentioned. pace the quantification any X% you York the sales to right. circle New in And, the just across on in could the provide to sales on I or additional set make of puts average level quarter-to-date the you had months? that's somewhere both you Scott, sure wanted on I

Brian Jenkins

take to want first? the You

Scott Bowman

first sure. the then York one and give some Yes, correct on on you're New you California. can Yes, and Brian color

Brian Jenkins

last talked bit time New York little about Brian, a Yes. around. we

of markets of stronger than They've sense, right. of of for But there's states, makes got kind a I think fear. a remember initial of so earlier right. been those still our view, just I terms any lot in both in of lot COVID the that and actually kind really lot closed of out a those the long we state of opened up, weeks gate if

quoting. out index So they of that in gate the been terms of we've that got stronger

but than back better of point, our are I this our to stores York, it New bit average this essentially this, At had a overall we've system we at - kind point. our New in California. think York I think said

That kind restrictions. So lagging, it a X%, right. than that's weeks sort that's of off good of - still the look They're the is been they're trailing, reopening. first at better space to and a The the it's out hunt. of you California - minus subject is It's of if in news, right that's our it's gate little recovering. started slower

opened restrictions. of that is what I factors, the as are fair there. locked restricted York We're fear, New has It's that of California I the - think a probably up. COVID think would not around still COVID. a think, there a about state. states a one argue, the I And talked lot I is when I They've and is pretty be been long to down would time. in there still aggressive would I some fear California point consumer been

get California we're back. want It’s - think like I to there. slower, to and to and going So opportunity, they people, back think socialize look, their get bit I be a are recovered think I will lives the and we're going but people that's to just -

Brian Vaccaro

of country? bit the expect front? ends the that sales, how you sense. it know be here I moving more Makes it's incremental to around during to is and seasonality that And I of into of as school summer, well end of around guess, the for differs June thinking about the as July country. how is driver school little the from your a moving guess, important on the that August opposed historical business I driver season? mixed the But an May though a as month to important relative year Would

Brian Jenkins

to take - Well that? want you

Scott Bowman

Sure. Yes.

weekly so into get of our in average do average XX% average about, the we're August We're about about talking we as under-index about we sales. weekly Brian, then So overall at time you're the frame, sales May, and or even. typically

of at a sales July as is least, are just kind months. July the average for and in see the top It's then July cadence weekly highest the and and June is heavier - we look our seasonality. one June, we ramp-up at three So us. normal of

Brian Vaccaro

many more front, us levels to how up could one the where front, to stronger be squeeze labor staffing you help yourselves to the levels is on you've see or I able employees level demand the in, to just you if On hire compared current pre-COVID-XX maybe catch labor can set to are seen? needing

Margo Manning

going That's vary it pretty market. to will - really dramatically by

Brian Jenkins

know I Brian, now. don't right I if Yes, have the stat here,

in me think I I pre-COVID, here, a we I say want had to am XX,XXX of now. if XX,XXX we're right something range team, and hourlys correct around wrong the

Scott Bowman

short we've the couple done little over of We're Yes, XX,XXX. actually better last just a weeks.

Brian Jenkins

Is that where we are.

Scott Bowman

short XX,XXX of just Yes, people.

not to full some yet go to We're go. there's there, at So but and We ways catching getting we have still more a there. still up. bit little volume we're operating are so

Brian Vaccaro

Yes.

these as expect driver everybody's days. leave today rest it's big And great. of well. Thank there. it your I'll through not that's you commodity inflation it moving and you. radar on a I But of as obviously cost structure And inflation, the know what 'XX? seems a Okay, do normally topic level of

Scott Bowman

in dairy, biggest off, of thankfully. correct, metric as year big balance in increase we're estimated end right of probably of a the about as for now. of the to seeing chicken, - down X% this at beef food we costs. we as like we the feel the the issue toward not first some actually, Yes, us surprised. are key Yes, seeing inflation proteins X% list the kind get top, of That's we not it's what But look and and an year you

Operator

And [Brian] we do a from have (sic) Chris with question Stifel. follow-up O'Cull

Chris O'Cull

in to question did the of sales clarify guidance? the to is reflected I lift just is question make or a a that a you response Scott, list potential the advertising sure that wanted planned to that's from the say earlier.

Scott Bowman

Yes. is. It

Chris O'Cull

missing? roughly curious what comp the of I'm in am trend, softening? midpoint X% underlying of quarter-to-date expecting quarter-to-date down the with guidance Why the So that below I some are you sort

Scott Bowman

we're of on we the about as no that there'll the in kind that seeing built well, and that be second when of and question we've some of as increase seeing, also pent-up We that quarter. look we're question assuming there with happen, exactly will really is talked that assumptions we're side. when into the moderates, good is of understand we but that as are, have that may some a big the per in built moderation That's moderating. we that look see cap, there but but at signs It we especially demand that to be a our where perfect amusement

Operator

take have And do to additional questions? we time

Brian Jenkins

a I appreciate we're I I ought and to running call probably No, minutes, bit. XX here everybody's this little think it. overshot about sorry, think we've by attention over we

Operator

final call I the any will to back presenters for comments. turn the

Brian Jenkins

the appreciate Wish look night. summer. Get one get families great stores very you and active you Thank you we're out out a can a virtually and of Well, your come and there, great call really we and we guys very us today. folks, everywhere joining have open see our soon much. because to and

Operator

And concludes your so this for today's Thank participation. you call.

now disconnect. You may

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.