PLAY - Earnings call transcript Q4 2021 | Dave & Buster's Entertainment, Inc.

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Operator

Good day, and welcome to the Dave & Buster's Entertainment Incorporated Fourth Quarter 2021 Earnings Results Conference Call. Today's conference is being recorded.

Now I would like to turn the conference over to Michael Quartieri, Chief Financial Officer for opening remarks.

Michael Quartieri

Thank you, operator, and thank you all for joining us today.

Joining me on today's call are Kevin Sheehan, Board Chair and Interim Chief Executive Officer; and Margo Manning, Chief Operating Officer. we happy comments, questions. take prepared our will to be your After call behalf is Incorporated on being copyrighted. Dave This recorded Entertainment of is & Buster's and

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

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

the I'll Now, turn Kevin. call over to

Kevin Sheehan

Mike. Thank morning, you, everyone. Good

results. to with are reported you financial speaking quarter be of We another pleased today as strong we

members who outstanding an strong talented delivering model, assets of business are We team exceptional and a our have experiences and service guests. to group

compared fourth of and approached levels, progress made while great revenue the net have income quarter results EBITDA pre-COVID as adjusted pre-COVID the quarter fourth XXXX. exceeded We to

of to this opportunity However, there more is unlock business. the much potential

Dave creation of and value & new innovation, a phase here begun have Buster's. We growth at

stores great high-traffic, last said have we accretive destination a scale, I As passionate high-volume trade team, and brand with areas. in a significant quarter,

current potential accelerating We optimizing drive our brand. on innovation are traffic to and to full focused stores our incremental

begin with in a we more growth and unit a more remodel prototype. our year, new stores them formal up ramping give line are to our this that's We program will and our look fresh

broadening the are watch more include to sports improvements to including We offering viewing our experiences, entertainment environment. immersive

Margo pay-per-view bring our recently across we to partnership D&B WWE their North As all shortly, announced with UFC events to America. locations and detail will a

Finally, better of our get best-in-class rollout will significant our by even Summer marketing arcade a Games with supported campaign.

you can company. of the about am I excited very this As tell, future

the and have this potential. our meaningful on as that expectations We share can And on year realizing way is quarter, our that, first see upside. update time, Mike? thoughts our operations. we At Manning, from some on COO, After the results XXXX. our you will fourth to quarter and to cover our Mike Margo you fourth going are fiscal quarter for

Michael Quartieri

Thanks, Kevin.

with improvement profitability relatively fourth drive Our comp our despite to to sales ability results significant and compared demonstrated flat XXXX implications. store COVID quarter

enabled and by continue inflation, We and impacts of grow efficient headwinds continued labor pricing mix process a technology, offset higher to these commodity have from marketing more and a have model we margins and through amusements with to see model. investments. operating a wage effective from proactive Even a more benefit adjustments improvements, lean leaner

of we to from COVID initiatives. return and to benefiting the forward, recent for special Looking of removal the levels, our efforts poised new restrictions, are of the return stores events

to Events the excluding XXXX, compared negative softness X.X%, mandates associated decline the experienced we with a reduced Including all mandates had we vaccine of sales, experienced quarter. quarter COVID. comp variant comp sales and vaccine the that due XX business fourth to during the reflecting Omicron stores due X.X% store total and For decrease of Special X.X% and revenue stores,

overall when comps compared timing highlights X.X% Omicron continued to post XX% XX.X% of to to our X.X% in month, lag which negative November, positive Special although X.X%, Events Our business the were at continued our in January, the negative and positive walk-in hit. sales in variant at XXXX. negative comps December By

seasonally Our party holiday in were and walk-in Events comps, November, season X.X% XX.X% positive January. which excluded in December negative the a business our in lagging impact strong negative of Special X.X% during

to sales XX% income quarter with had cash higher positive the due is in in and driven generated XX% overall substantial to mix, the in X% efficient with of F&B XXXX, Power higher with compared diluted period increased the a of comp a reflects Regarding Cards. our minimal quarter, cash which and denomination amusements in approximately by results Net under on our period in was only XXXX, labor million flow X.Xx. amusement million due Special Adjusted leverage compared to debt to senior compared of $X.XX net XXXX. same long-term XX.X% Events performance leverage other and was a our more adjusted improved We at the business. $XXX.X $XX.X mix of discounting model. same in XXXX. of our shift net quarter and basis in or to operating over was EPS consisting higher notes comp facility This million our positive the the the outstanding the of resulting XXXX. of mix for quarter. liquidity $XXX,XXX million mix a of compared XX% of These credit portion than due per and XXXX. letters share. had revolving credit, Total XX.X% maturing continued ratio with with end which million $XXX This $XX points negative million $XXX The and XXX mainly a a our to was was in primarily $XX.X the the EBITDA the margin, quarter EBITDA higher ended was

million million notes, redeemed but expense we in During resulted the notes the million which $X.X $XX save our annualized senior quarter, of to interest. $X.X in will redeem secured a

stores quarter. invested fiscal In tenant quarter, we stores. year In to the to additional one of We open capital during we in total a Turning opened first plan of April. million the store XXXX, $XX eight new capital spending. plan We net in to additions two open allowances. new

and quarter sound we've year pleased results As going tell, the with footing fiscal the you can XXXX. into we financial fourth are established

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

trends, positive have XXXX. our X.X% compared for comp sales weeks Regarding eight been to first sales the

Our to growth, million, In XXXX walk-in tenant to expected business approximately a produce improve to significant are and on cash net up X.X% execute and on on stores of and drive games business is capital quarter-to-date Events existing XX% quarter-to-date for XX% basis upgrades XX% Fiscal infrastructure down additions, initiatives be dedicated stores, allowances is to $XXX for to profitability our business. flow organic team with Special basis. our and new summary, replacements. a continues improvements XX% and the the for projected our

are Margo. with we are and positioned over progress XXXX. With We it as in enter pleased turn well that, to our fiscal I'll

Margo Manning

Mike, everyone. you, good morning, Thank and

improving our store operations, guest enhancing food, continue simplify commitment and to and We our profitability. entertainment drive and our beverage experience to sales offerings

made Our score] May the our appealing menu to is XXXX change guest [survey of in satisfaction shows guests.

D&B in will limited have to even it Guests make now website we brand dining via a out aimed the able Additionally, check capabilities guests driving rolling table us. be established four offers reserve dine table. easier or attachment. beverage for to with through our of food cadence rooms to in open and at food reservation our throughout the directly we Starting are QX, time a year per new and

we segment Our curated QX, flavor menu we improves the combination and expand In new tightly strong will relevancy. to and beverage marketing revitalize to a was experience, Late programming through elevates QX, of new reach Night appeal. selection and efforts. launched push a both profiles designed In our that a beverage adds make

Our nationally Happy known over featuring content, D&B of the and series mixes of Live. from Night complete Hour a with regional of DJs Late custom club airways D&B initiative consists anti-takeovers nights, taking

programming. have appetite of As visit. appeal These determine calls, these launched have indicate guests are goal discussed more offerings and to entertainment offerings on our guests for prior we reasons several the the tests giving to tests entertainment refine an new our with continuing we to of

and partnership As exciting pay-per-view make to launched Xrd, early America. across both Kevin events in we locations the The their continues bring to UFC launch WWE to this see North April is and effort and July. Buster's in This on & will Xnd partnership the with environment. a fights D&B nationwide SummerSlam WrestleMania Dave the QX, mentioned, an place all with to WWE with up-tempo with

In on integration addition, Madness brought tournament. more we our digital showing digital bracket more March a to signage attention updated with the throughout and including that was signage, visible

and initiatives, technology our high-definition broadcast to enhanced DJ allow sets, in entertainment live video our of the stand-up that support capabilities investing into remote phased real-time, been as to concerts us streaming will rollout with comedy. also such stores content have We

Omicron. during move to depressed which sales recovery, QX event Next, in was let's

our lagging sales to accelerated specifically, are While we Corporate walk-in start event recent rebound. sales, in segment have weeks, seeing

call With incremental sales the outbound believe team, we our activity optimize centralization of to to are drive sales. we positioned

Our new our center projections. local will D&B the to brand. support store leveraging representatives. augmented launched demonstrated management connected November sales an break D&B booking X for and centralized Rewards linked marketing increased be used level to new already which sales In continues campaign, throughout to TV, app, The has localized is program, by week on QX, exceed spring a

of In one we successful our promotions. back addition, are most bringing

structured, our brand. to run for Our as time April of our to Eat will demand a believe tenant as incremental guests Combo more & and this behavior will guests. spending drive expose from limited We offer value-oriented length Play the on capitalize new

inflow, to we and to our great improve trend you skill past focus reaching the an team. absolute training, our these development efforts hourly to positive D&B this trend staffing I'm which providing all new has increase retaining your refreshing been for of have enabled thank that share entire shift and To family, through employer us in a is a our Lastly, year. for levels, experience. hires on set able stores pleased our This

call life You brand that, fund are reason in With back comes the our heart I'll and Kevin. that the stores. to to of hand you, the over this

Kevin Sheehan

Margo. Thanks,

quarter chain vaccine headwinds, business. mandates, in and We are Events with despite including challenges lagging supply and pleased labor fourth Omicron, wage we Special results numerous delivered the the pressure,

optimizing more business are environment our to headwinds fueling our post-COVID as We we move normalized as become a experienced tailwinds the forward. have we return

We is for potential reality. we exceptional talented company, assets team. to strong have meaningful that driving upside a model, There on laser-focused are an this and and business

prospects and beyond. for the is XXXX about team XXXX extremely well and excited Our

with reporting Omicron. impacted end me came very being despite We record these Let revenue to fourth close quarter significantly by thoughts.

down starting Special was Events annual see in compared XXXX a to an our business, to are We which by XX% XXXX. on recovery in basis

initiatives and also our progress We margins. making great shaping are strategic improving

XXXX, focus heightened on will our Our we sports part to international in of and believe and add betting. latter then start the in viewing can in blend beginning efforts sports you

years. of will All couple actions begin of the these the script write for to next

as seatbelts your we are tighten move. on So the

take will we Thank Now, you. your questions.

Operator

you. Andy Instructions] can and [Operator our ahead We question first take Jefferies. go Thank with from Barish

Andrew Barish

results Yes. guys. impressive. to are which XXXX, Hey. I morning, Good the wanted here on quarter-to-date in focus

if know, more Just obviously, last there after there's coming me a that's a and/or kind there your key anything of give there. anything is this. but out to I stop kind of through and little spring point then – us as sense break if years, messy, been let one calendars contributor the couple of ask

Kevin Sheehan

Andy, company, thanks when in significant. which really going actually for because this it into It's question. true the story very the really dig of tells you what's numbers, that is important on

around the recover an through Omicron, that then for doing and because important the – know, us the December, X.X%. hit went such time, and was really part also first we're we big Events nicely. were to growth you was up Special and that weeks, number a holiday we're as going time of middle starting As our of And through fourth quarter

the before of was been was breakout and all the XX.X%. of X.X%, do quarter of went think go portion So our subsided when Omicron. the we in have second last in XX%. mathematics down three will X.X% that becomes That in weeks business, quarter and we I of tells inside first the once sort power to five you those Then back and the first was the you, weeks, same portion X.X% up the down up first, numbers, the quarter, – then it were the

about is can other it. to on you business fully shape that we've just this talked that and we to that of really understand – drive many starting the demand. beginning things than we're So other got fire, so We've on calls the Omicron,

prospects So are for we're we about future. we're about the and excited today, where excited the

feel us, so So you with a you incremental and understand the we can could think guys going behind that how were as by the Omicron good why what's better significantly understand I on guidance business now we we're going impacted that about is inside where company.

Andrew Barish

like the you've time fun the then us give and enjoying CEO of seems having Kevin. fairly that perspective of some can extended search a in for just kind Thanks, been period you where interim on process role, in given And now. it you're stands quickly, role

Kevin Sheehan

Yes. young going that's – XX deserve years. reality ways about is younger, going five-plus to build I'm I this on talked mean a for skill all we the brand in and set we've next XX that the energetic-driven the

think So into our deserves new some some that blood, fresh blood business. I

We getting have right careful next working this like opportunity. we'll very we try interviewing a and non-governance right process now I and right this serious candidates our growth we've candidate And CEO. new critical. in been And the a of announce going in over to vetting an multiple the the important of say, innovation great And coming find is committee say And very quarter, that for to have, because very person such on selective [indiscernible] period the I would the hopefully, candidates. mad and would that is Board.

So on just stay that. tuned

Andrew Barish

Okay. Thanks, guys. Kevin. Thanks,

Operator

Instructions] take and question next go [Operator our from Jeff Gordon ahead with Farmer Haskett. We'll

Jeffrey Farmer

guys. you, Thank morning. Good Hi.

rollout, but how frequency your touch metric? any color meant for some program could are customers responding or spend You and has if on – visit their it, that you I'm provide relevant did to that on what curious other and additional rewards

Margo Manning

Hi, Jeff, it's Margo.

have I bit So little of information. a

in per I the to average compared on engagement seen time of the per current early in we the on of retention tell prior spend any just also would see is – the increase launch, was being on program excited day. use And up. months. and the are well. user that the so But spend more you We in the We've loyalty spending terms higher members an nine don't as in seeing were longer, on I the the have week, our trending spend. increased stat to they're person spend person

you launched When think we're November So in we've X. encouraged. it just about it,

excited And we're start so has about potential early promising. very the because its been

Jeffrey Farmer

is as is, there to be are – But business loud decisions just announced? perspective, what those strategic then sort a Meaning, CEO, said if And a until that direction the things heard Andy's company opportunities is I up that and challenging from helpful. things a question, not CEO the that pent what until That's not announced? made terms decisions will on a is are sort And are it's types so, clear. Okay. follow-up but of in strategy there that the of pursue would question a you some new of new question there will be? understanding CEO of strategic or type

Kevin Sheehan

is for say and we interim of very has new would strategy thoughts. there paper cognizant be sheet this CEO shape sit comes to of doing – period that, say, the I'm and on company, this you he I company. demand she this in are said back are the when clean that Yes. a the that future their when of things the ability opportunities that what or a own different lot take of to in, going with their success and drive Having drive the can

coming sensitive So in here sense. clearly to I makes we that do so that we that. trying could sense, to going things would I'm much that do to anybody have conflict are are wow, opportunity But that be not that as say, things that makes with said,

from those, So of thoughtful we're great being running but on coming take all in. new to a person not of also the opportunity away

Jeffrey Farmer

you. Thank Okay.

Kevin Sheehan

welcome. are You

Operator

Jake take our Truist We'll go with question right. and from Bartlett next All Securities. ahead

Jake Bartlett

the to less on pandemic, to or a check taking back & go strong for Eat benefited promotion. My with you've strong very first the risk from Play decision a Thanks the spend is the question. very Throughout Great. discounting.

like And and about – wondering do doesn't have you've I'm inflation here than kind could are it then investors amusements seen. comps. wobbling focusing it's that prices, other But with benefit on any from recent So whether consumer there sort to be that the what check your this given beginning driver for consumer the seeing that's that are the also, just of they're given might contending items? of nondiscretionary more as of XX% check or sound gas – that major concerns you more traffic your the

Kevin Sheehan

Yes.

and meeting think all my been One strong thing, of to to interesting date, we're the seeing open far we're most nuances, sure I'm So as emerging demand the going and But bring we've through the I missing to anticipating that view out, of course, eyes we're wide we to in make recently of trends that. the was continuing. long-term being was of for our the the Margo and introduced GMs. supportive and company Managers leadership in XXX regional the just we of had this, plan And where GMs all hugely and a for incentive Las company time this together. General for all first new Vegas, GMs had we of our

I So owner. like focused we I if history feeling you're know and made knows anybody entrepreneurship – about my and the don't –

these XXX% So your every focused a we your for on eligible of GMs one domain. of that of store, growth made organic program is

that it's in a X% And or every little CAGR years. So basis, little below four-year you gets – four-year disproportionate But it a upside. on a get into of gets the the you ride the bit program. a a money, of through you you – each above bit a a CAGR can above

things store. their to that days at call better the bag day. they delivering them their of own the So of we They we're a excited I ways of incremental goes the world is can it driving it of the of about tricks. Kevin week, a be a them They bag help the tricks, are hours of things, with of store. what simple they raise on. this own now equipping They focus. we because own own now And

of stock those based of numbers, going on. And going But one this, things was prices, on for they’re echo hugely we're are to we they're price. significantly today's on which we in to excited business team now be kinds organic guys because their organic that line, need about owning stock lots know that you to But of growth. Margo hit they so if and prove to all every possible is I get their finish single that deliver different, if can't that today's it's we particular, that to when the in store. tell drive we prices you, there's and now because day everything So to these will based wildly do off growth, going undervalued

guys And to these guys make and make can team. drive raised years, on four can that a we're that. the I just that another doing of gals of our So so think that's payout stuff of huge behaviors example in focus

Michael Quartieri

Yes.

I mindset Mike Quartieri, everybody. we a look what's to point a one of just at the add think to one on. on let the on around kind Saturday, other just and vast just majority me prices period. gas week, and inflation back doing our the of understanding other When point coming that's Sunday step Friday, business just our that on through days business take is seven add and

are like. we So on how opportunities for the to that's we opportunities promotional that and available that build whether can the got now midweek through look see also we

the week, the we kind driving that incremental perspective of just will rest revenue it's a continue of So many line. believe bottom to to fill change in as which the kind from through really of to process sales add

Jake Bartlett

Northeast. markets and like that's That's the you're days know you Can the just as understand still to I in kind tank then pre-COVID from regional my Great. Northeast? of imagine and performance. I'm really helpful. left other more of question markets recovery these was us the Thanks. big And seeing California let really context in like sales markets down recover? the juice about California those still the versus the – in And trying are quarter-to-date

Kevin Sheehan

wanting people enjoy about For the a themselves. to see recovery most quickly dramatic part, you can and as around

benefit bit room perfect, as of are that we it, all bookings seeing of The thing They're quite there's some historic to special recovery. our to because say in on forward going is some last above a not continue basis. the we've week-to-week move I that actually of weeks, the to provide So a enjoyed events we're in still would but some markets. back on nice number levels

back that the trend same, where So pre-pandemic. that that's an were bring towards stays hopefully quickly emerging very we environment we're in, given will us the

Margo Manning

the the have in, which lifted. I'll stores, and this in sales. California. And and in sure, bit still is on The just We Northeast is Margo. a were mandates, you California, were Northeast vaccine for as little add facing we know, dragging for burdensome

be But other So us. outliers. than have well markets those for that, performing would been those very

Jake Bartlett

Great. Thank you very much.

Kevin Sheehan

welcome. You're

Operator

go question ahead and We'll Deutsche Bank. with Brian from right. next Mullan take our All

Brian Mullan

expansion prior XXXX, recaptured. The basis EBITDA points Kevin a of inflation first you an you. that we've Mike fully thank the acceleration there's since economy, assuming across sales was were of average also new of Hey, management framework both But versus seen provided weekly roles. framework and had given once XXX margin of been the

that EBITDA it would clarify everyone calling there does worth be think framework still stand? to or have any Or out changes Just noting? expansion for margin been helpful

Kevin Sheehan

different a couple Yes, points. of

So XXXX, basis up back to points. XXX we're

north management. talking So that's were about under old previously of XXX obviously that we the

XX%, with from XX% much Now lower labor amusement associated that coming level versus is because of our mix that. business a some is of of just

So about points. XXX or is points roughly we are XXX that, getting some which sorry, – benefit basis from

a one-third changes about from the rest to we made. and think labor that it, of that that the labor when is helped price coming that changes mix. commodity, you a The just perspective not of have from So and model inflation, offset about

So of by just to allowed the introduction increase think xDine. us tables the one-third. can xDine server number about that about a handle of

see future. that about changing more And XX% means that us. I rate don't helps models. inflation, which That offset headcount labor model, for efficient sitting at in don't is So that the see your cuts you less translation that into take labor because I necessary, taking employees today pay

that increase perspective, how beef. a only years. we're But our chicken that. primarily stay, and a was again, if that's no two so protein, able adjusted around open increases pricing be on have we're going think to So that wide it's we F&B, so it's there And commodity on about you price and to to your the offset and X%. From slight in about with something eyes prior is it, to last meat, which managed got here

a price So reasonable very we're to modest market. increase in accordingly it's and the what seeing

And so the of that we about combination that us is that margin all XXX keeping of at that roughly talked basis.

Michael Quartieri

words, So in – confidence get our will better owning year we bps have confidence at and that, that see XXX it cost other and budget we on we continue future through as this calendar the on better into structure.

Brian Mullan

and great. reason you of work your stores? that just units is Thank you to type eight you speak of new all development existing on to the all the open And for that and they to what doing guidance Can given be speak for XXXX you'd this a pipeline willing then the then the in Or be building the base to to Okay, formats on accelerate try next those do to weekly for year you'd be? expect you're how year. to the some if thanks now? new just to might those on And planning? different expect mirror I'm sales beyond, asking would if question average you expect that. And gauge units – just to

Kevin Sheehan

Yes, sure.

going that, a are to location. of space there that be able be a advantage opportunities different kind square around foot to of format. XX,XXX But going of and larger some with So stores the we're where to is we'll get Generally, start we're we're that's able than mix. to the in be take off to type that opening with targeting eight that

the opposed location as only with we're that's So target, a really to it. for and about set going what it's allows

some year. and have what we coming is So for flexibility that's eight this around stores up plan these that, the

As a through under got the that, pipeline of already solid takes development get end beyond us we we've XXXX. that

That XX,XXX And allows said line, with us of targeting earlier, so – I store. into I'll markets spot foot kind integrate that density. level about along more to that we say, prime as of are

always two capital center, we smaller we've still return As as opposed to invested on one have same and the mega could yield footprints, have.

Michael Quartieri

it's The to of get the behind everyone understand we every what that and And footprint XXX% Board store is it's stores take to we're just of small get keep two building that invest going everything point where – concept and once through other stores, the get management year, every and that years a then stay every to to fresh going store every this team, through we certain or this, with a feel rolling. us for today. closer then should all look three the so in to on change. to is have but continues to we important we critically – get our the the existing cycle can are it modifications, But thing the seventh not major

be the of environment. is somewhat not able in cost you going the by what's to of stores efficiency a the stores, help to the end guys of building a incremental we're And and all of lot funded will by that is of But bit this. on that the because know, smaller the muted at accomplish going day, which the capital, with us So little as well. parts

really we're because to existing about going So our excited feel them in think this I well. growth stores and drive fresh organic making is as exciting investing and

Operator

take next and We from All can Andrew BMO. our go Strelzik question right. ahead from

Andrew Strelzik

it today are for morning. Great. XXXX? inflation what as [indiscernible] guess about I thinking Thank questions. stands labor very margin much. How much following across and up you the you on Good

Kevin Sheehan

Yes.

from anytime future. XX%, an labor, in for rate I it's think the about and overall roughly that changing perspective we see don't

able that being do portion and other xDine improvements to able I more as that. efficient model so of a said, Plus, significant with offset And to made a again, labor we've we're mix addition, amusement some in extra between to see helps special provide margin covers of in return of going then versus the those F&B the events. costs. that you're And future, the that

efficient business labor that planning those events because F&B results have slightly model of normal our higher will special of events. house the in F&B Our is really back than carry XX% types for for more and you margin about better that a a of

Andrew Strelzik

it. Got

sense. balance right guess utilizing of on obviously, makes dynamics. over then, and I just you net just the about just Thanks. dynamics? That at And the those how curious, thoughts? any thinking how Michael, level you a know leverage the I'm curious I'm quarter, was time? think other share the you're levels high announced and Okay. some I balance curious sheet I CapEx sheet the of I leverage talked And balance the last about about authorization. sheet, guess

Michael Quartieri

debt net our X.Xx. is Look,

well, balance can Kevin it. the We're sheet about value that strategic add sure of as not the we're of what very just weigh have perspective, adding more long-term in growth. can really do long-term leverage, obviously, the strategic grows to also going company. from that a but the So But it's for make sake we to to leverage going support is

And us allows that comes. sheet that, we'll take advantage time and so the to of we have a do when that balance

Kevin Sheehan

we our mean day, to uses paying evaluating X.Xx officially to the when because shareholders of will at management want be alternative I the cash end we're that by team return don't debt of levered. you to the expect the have down

it debt. alternative. we point, until shareholders the some inexpensive successful really down Of to But course, – have do some gets that strategic in sort will a pay of we at

Andrew Strelzik

Great. Thank you very much.

Operator

Brian we'll ahead from take James. and go And question next Raymond our with Vaccaro

Brian Vaccaro

on we that period, the could average sure quarter-to-date to were in morning. comments the if weekly sales wanted circle I page. all good And back we're quarter-to-date just if handy? same And what on you to could. Thanks. make have share the you Mike,

Michael Quartieri

about $XXX,XXX So for $XXX looked per when previous the store we've period. eight weeks, been $XXX,XXX we looking at or to first the right compared for at –

this at some of in seasonality, is spring on itself of breaks are the point, light. there just based that's washed but the when kind timing Now

of So at this point, we're kind that. behind

we comparable that a So is feel relatively period.

Kevin Sheehan

remember, the you just the bump had when the weeks, see performance to And alluded weekly weeks, break you'll last weekly in and between first the now that as five earlier in three the bigger I call, results.

Brian Vaccaro

some Historically, we've a talked April And a breaks, comment days I back has Easter? we spring compare from breaks in on benefited to Yes. back Understood. Has may March and there the been And to just Easter March from think be about taking breaks? that XXXX, – together. is disconnected shift spring if spring XXXX. few compare difference

Kevin Sheehan

like No, be would one to the the week. week next differential

behind all this point. us that's So at

behind break we spring seasonality when eight talk any about it So full is weeks, us. around the all adjust first

Brian Vaccaro

the Okay. some front, And on? And much taken? price believe how was testing settle Could did you amusements. when I increases share on were you on pricing that of an you increase

Kevin Sheehan

we've better pushed actually just at are bit we testing to much I even digits the this be we forward, on – and that. than a to pretty going but double But price we're of maybe sure increases would a in the Yes, go end out get basis the the as day, make that right. testing say we net

Brian Vaccaro

And it's seeing when improvement and leave? where reload spend of $XX visit? test or Okay. Does you how curious I extend a behaviorally much you an inclined in spend, guess about the in they set or I'm seeing? a load that behavior card a per just response. consumer pricing, on average sort you and card are have say, cap the on customer they're the saw gone to I'm the gone, more and it's some are Or of thinking $XX

Kevin Sheehan

always both, it's which it's think combination a I of No, been.

really the think raise price. actual, back in meaningful what was we I October when we adjustment the buy-in the call

still that We've some changing QX in the in in behavior it's a which but testing get QX calendar used and still... any QX, affect, but it about that still when QX, start to It buy-in. when point. point, quarters, that's more spend, out we versus That's you $XX but call saw But regular – of, change saw increased So to – itself. impact, when at I'm get we $XX you just actual positive confusing. the card the you got done real game in from that customer behavior doing a calendar change of – bump the of at price test, of game sorry, of didn't itself. we've now QX, say you bit change coming the to it, to that's you changed of I'd increase haven't when the price little pricing up increase – in consumer And really retail the that, QX the we the saw this no a COVID, because seen had actual say, saw a COVID to you going still let's minimum

Margo Manning

significant. recharge, Slight not increase but in

we're So that. still working at

Brian Vaccaro

high-level labor, guess for And Okay. one then the moving all movements OpEx, of would helpful. appreciate annual That's it even last business assuming the some no update EBITDA COVID I circumstances? Great. to you given et in the that change willing But guardrails and me. on quarter to or give Mike, pieces I other margin first expectation quarter-to-date with EBITDA as the have lines, comps. the cetera. relates be in sort Would you

Michael Quartieri

away get looking guidance we've part weeks but described pain the the of the we be simple quarter, and mathematics that shape everybody weeks in that to first at last the with looking you extrapolate the breakdown business done out few shape, suspect of got the going to I for this can to way that five by trying quarter, And from anybody out come as quarter. to good I've in we're going math. think it the the through for then do we're the I first so the at you're acceleration that

to be Sorry [indiscernible].

Brian Vaccaro

pass I'll along. you. enough. Thank Fair it

Operator

at any the conference that time, conclude question-and-answer turn I session. for And will Mr. closing you Sheehan, or to remarks. today's back this will additional

Kevin Sheehan

of to different. you, meeting. additive very meeting general this everybody, to all listen this tell time enthusiasm and half us We a I was ago away prospects with morning. that and excitement a to for the we're lot all a got managers walked the about and of from Thanks, is people taking excited at the the about week to

which taking art generation We're way and beginning by this is lot growth we're the on differently. we're I'd tainted innovation. it of so a The And thinking of in new to a of business like not describe long clean history, sheet don't the possible? Mike But solid and paper coming so saying, of a alluded of what the wrong. a get very and in me the history, is is to back we're do out there lower hard to and friends to people a that could out, to hang date. the the to we week night that are viewed figure days. the what trying that time and traffic with the level can events things of their building in different with very types late days the that And the come want to evenings on of be draw a to

we to and us. So you where come. so Stay tuned, about we're much happy the joining a very future. Thank excited are and for lot with

Operator

you participation. concludes your for all Thank today's This call.

disconnect. You may now

Dave & Buster's Entertainment (PLAY) 29 Mar 222021 Q4 Earnings call transcript