Dave & Buster's Entertainment (PLAY) 7 Jun 222022 Q1 Earnings call transcript

Company Profile

Participants

Michael Quartieri	Chief Financial Officer
Kevin Sheehan	Chairman and Interim Chief Executive Officer
Margo Manning	Senior Vice President and Chief Operating Officer
Jake Bartlett	Truist Securities
Nicole Miller Regan	Piper Sandler
Andrew Barish	Jefferies
Patrick Johnson	Stifel
Jeff Farmer	Gordon Haskett Research Advisors
Andrew Strelzik	BMO Capital Markets
Brian Vaccaro	Raymond James

Call transcript

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Operator

Good morning and welcome to Dave & Buster's First Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Michael Quartieri, CFO. ahead. go Please

Michael Quartieri

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

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

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

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

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

Kevin Sheehan

of our and our first normalized returning both have months trajectory records more the for about we we driving a of I'm visitation operating toward very to adjusted Thanks, so welcomed confident begin line income even growth. Mike. that and. set in financial stores. teams back traffic-driving report other We're proud the outstanding to environment our they morning, results. pleased rollout as yet of as to particular, and net the our progress We and top next quarter, games in our initiatives EBITDA quarter to success We're the everyone. few reflecting summer stores. Good are revenue, of guests drive business enthusiastically excited will in another

teams first to our on our drive profitability, quarter organic improve by execute for results, significant and cash our demonstrated continue growth, to As initiatives the business. flow produce

growth have We creation, innovation, we And potential. potential. continued deliver on and on can significant our focus upside with that value

this quarter I this quarters. to is our return ongoing the the time, look You Margo state can I'm At the company. about coming comments. final the going tell and the cover of Mike? will progress first optimistic business will in very some Mike operations. our sharing on to you Then COO, results. of excited Manning, with After update that, about future We're forward

Michael Quartieri

Thanks, Kevin.

strong our demonstrated results and profitability, quarter first to record flow Our drive despite in ability cash continued headwinds revenue, economy. the

to higher a continue operating mix and of from amusements leaner benefit We a model.

and offset thoughtful more efficiencies comp still XX.X% In sales same pressures XXXX. the margins a model. are our quarter. pricing to wage inflation, first to commodity actions. costs in improve and we While store with savings cost labor as have we efficient from experiencing compared period inflationary continue the and increased

to post business continued XX.X% our events strong up lag XX.X%, XXXX. special comps, to with sales walk-in while continued compared Our down

our which play the of restrictions a substantial as eat our and return was by quarter, was combo XX.X% advance and April were lifted our the fourth the in and sales by overall season, looking business portion up Omicron of was quarter this the this store the is the spring we was showed March flat XX.X% of comp from in believe at recovering. COVID improvement variant, break sequential of due up However, When February helped part to promotion. month,

continued has the sales comps in of during are five uplift as comp weeks up first store overall XX.X%. QX Our

with is with the primarily was to million $XXX.X results $XXX.X which and resulting of a higher These business, credit, in million compared cash XXXX, minimal increased ended was the had $XXX.X a XXXX. F&B we quarter million higher substantial due of Adjusted share. the leverage XXX due in which amusements labor the amusement power a due compared continued of sales in positive $XXX same than more is had and of This on of believe and the with letters cash portion XXXX, million comp to to The XX.X% period record the This shift in EBITDA mix in Net approximately a model. the higher our in basis and cards. was X.X% overall discounting EPS was XX% starting denomination solid of under higher of Regarding mainly EBITDA a our a softness per million generated same million comp our revolving quarter. of of and driven XX.X% We $XX XX.X% for special rebound. to adjusted was credit. diluted $XX.X by $X.XX mix XXXX. performance net period to XX% income efficient positive or compared quarter events with compared the mix, other outstanding flow the reflects quarter which in liquidity to points margin, improved a in mix XXXX. any negative operating

improvement our to net XX As ratio our a decreased leverage operating over has trailing months, in result times. debt of the X.X results our continued

Georgia Dakota Sioux opened in our locations we from directly store spending, May XXXX, our in later capital stores. to new Falls, of Center, one across eight Turning capital open million in South and plan to total additions, $XX.X allowances, Atlantic which open of plan store Center, tenant Modesto, location Barclay new month, is we the three Augusta, QX. this year making fiscal We and California Brooklyn In a to a openings total quarter. of new net opened this invested in and

strong XX.X%, increased sales With our facing the continuous seeing. stores Through costs in the season with philosophy, the are special factors levels a event and As shareholders. five-week diligent drive quarter execute and the rollout the while we period. cash program. the ensure today. comp you and can on we very to seeing the weeks improvement five we comp improve store first quarter, store XX.X% highest Walk-in compared are the second same games pleased XX.X% and tell, results comp summary, of closely team In momentum increased of remain XXXX. spending on our produce our growth, we upcoming summer to our significant weekly sales from to of our bullish possible summer traffic basis, watching remain remain macroeconomic the we We in returns are profitability, for initiatives our to that on for business. period flow on We based business first mindful continues capital do deliver everyone organic the our that, declined

and year pleased to XXXX. to that, with our deliver With positioned Margo. are it We are I'll results over in progress well fiscal turn improved financial

Margo Manning

Thank And good morning, everyone. Mike. you,

QX, enhancing We continue entertainment our drive to to improving of our successful with promotions. food, profitability. and our most and one commitment sales offerings simplify brought our back we In operations, guest and beverage store experience

capitalize reserve pent throughout website sales QX during items improvement capabilities limited comp and positive now to window. food brand-wide a us. as to more ran easier OpenTable. time the guests. both late the beverage from our April can eat reservation We count our a saw Guests rooms demand with In offer in food length directly up store combo and via with play and May, for the or even value-oriented eat on for the guests play D&B comp of turning we make rollout dining the in combo Our dine campaign completed through it of to our table sequential

us our levels guests. put have position in stabilized better serve staffing a Our to

service our May. We implemented model choose our watermark guest seeing Scores experience. new pulled already to the satisfaction hit overall in our Net from are now of satisfaction guest benefits tool The our high data allows service a Promoter guests that showed and their fully

new appeal. our to marketing recognized multi-unit program was VIBE the to revitalize beverage Our the through menu beverage launched efforts. expand late-night we our and started recently was In to new a and January Conference programming of both segments proud for program at overall in share QX, We're reach best combination efforts this operators. as designed annual

initiative night vibe segment over Our prior late includes an popular of screens were DJ with positive hour and QX reduced up were XXXX during and size as late late-night the happy bites improved night and live the enhanced and acts exclusive our airways. X% streaming walk-in sets over $X sales Night quarter. significantly our Late comp versus in-store taking visuals

digital marketing the it late team programming build this awareness. night now established, fully happy is promote to poised through our With to channels summer hour

our we introduced drive at and as of reality the paths unique Buster's ensuring proprietary virtual them marketing positions summer includes of branching XX Top campaign games, The and game our launching has across to endings, are to indoors which both player are beverage D&B. of each wanting in part lineup, Maverick, D&B, virtual again. which seven experience Our that multiple Gun: of game activations and new funnel two on Transformers exclusively titles debuting have the leaves a reality new based and again summer Dave & features. food arcade Also news, June great and our trial Transformer and to play has different

profiles. increase releases loyalty take with months. reality of of us new XX.X% combined Enrollment XXX,XXX launch are the last downloads, website the film million, new best. late late of bringing a virtual active in X.XX weapons content command QX, loyalty XX.X% advanced build upon additional programs X.XX increase lets continues jet in began QX Of Development of in profiles, in a Our downloads event of in reactivation that can guests efforts, the the QX with grow, million D&B downloads. those best fighter ride Top the a six platform we This as led Gun or increase user will programming the million to seeing blockbuster in and regular and games X.X capabilities. a in ecommerce, an of our giving new total with ties with with in a capabilities, to along new they special and

me possible bring to the Let thanking guest commitment stores. D&B be without results wrap in of life the and team. your up our to would these None the fun experience by to

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

Kevin Sheehan

the with we in We record delivered are pleased quarter. the first results

a process more model and menu price proactive enabled and We've been by chain supply marketing improvements, adjustments, pressures We’re that extension. offset another events and few a in seeing will stores, returning core special we the increase as place business better our and efforts be business we efficient is much lean and corporate more on months I'm with investments. able recovering, labor logical our inflationary guests events from labor to to our technology, in confident returns effective

though provide We're As even result, headwinds with extremely in management to add brands, team & Dave excited team. strong we've strategic all both will which Main a for our fit improved our the margins company business. experienced we've and Their opportunities benefit Buster's’ growth for stakeholders. to more even some Event

will of and all creation of of expect couple a close will investor the that weeks, compelling teed we already At the in the and transaction, shortly the up. to our value time, We initiatives merits thereafter. being transaction we an efforts update detail schedule integration

As have an strong a business before, model, we talented I've said assets exceptional team. and

in our the to more looking sports permitted. optimizing their markets, our where will on betting efficient potential. continue our to sizes we're of environment, refine and new, our stores and supported marketing average new We're our addition as relocation improvements volume, broadening up progressing open to legacy games to we and offering locations. opportunities our our evaluating more the include existing margins returns higher can be market with stores. the best-in-class store immersive and which stores viewing We're sports of We're capitalize in experience, sports and fresh entertainment program about solid optimize to summer markets return look. also the are And a rollout give are by a on option campaign. including to watch fantasy forward and significant refresh/remodel achieving potential we're And optimistic we the unit layouts some existing at level stores performance store We and

to Buster's Dave happening develop about we begin meaningful starting the Finally, our for detail international & this upside excited lot in are efforts potential and coming our quarters. a company will to efforts we and are at There's and extremely our stakeholders.

marriage up include to to the program it this our stores following existing entertainment have pleasure in stores Working comments. to a with our of before with commencing we strong final shutdowns, their open been a sheet the and offering of look, accomplished much, D&B broadening Now net refresh/remodel past will our immersive Event. path some in a all beverage sports on a locations, to we of improved our role more and I view fresh ratio. debt/leverage a my reopening our Pepsi experience, COVID a program, all fantastic new are partnership nationwide that as this WWE serve a margins have Main team, new Today, to organic give we X.X reflected both nine per questions, strong for bring and our menu, together growth, events balance pay It's months. rewards with viewing

team. my dedication accomplishments All work role the hard of forward chairman board. are the of I and our as result of these the continuing to of And look

to Chris' ultimate questions. months engage looking the we following momentum continue acquisition And to ahead. get I the take is now leader CEO new anticipate even will excited I'm continue We potential. can of towards an Chris our in leadership, as our having have He join we progress with experienced Morris shareholders an is positive and as Event. Under realizing to our it your outstanding of forward organization will better make Main and the that comp.

Operator

Instructions]. [Operator

Truist Our Bartlett is first of question from Jake Securities.

Jake Bartlett

First, can last on there, experience just helm at comments the your the Kevin, you can I'm hoping build company. in you of your

and the are your you the do greatest perspective from opportunities forward? nitty at looking that going the different You're How position company think in you as perspective has to a the than gritty on dug changed board. what

Kevin Sheehan

which quite get as person of sheet think coming had trying looked I the quarter But and the every would the possible, what and do to day that clean stores CEOs. able in latter that the these great you fresh got can were on call to hours talked me and think on say. Steve And all those opportunity, on go as probably your where you take talked enormous each not And what we to guys Monday, we And can a with of opportunities. few, to branding it, that we've opportunity date come. with heard is that say, of the enormous place but of bit always that, a across if there's any got with more we only each look there's get we've going the and with early you do at that I nights place a of the of an was of day, recover think remember to game into of then with where we taking make And to board? back on initiatives load it a how perspective, you very so the part on, huddle at in Margo put advantage got evening. on football our late opportunity. the of and spike the big if take stores. big refreshing paper Brian this opportunity that interesting you date know little date we're each about first of the to But we stores. determine a a calling you a announced re-spirit do one as hey, opportunity huge – and are those. which bored haven't to opportunities on be do running you to this we've and we're we night. on initiatives the be if these get and do do opportunity We come get and a were, a about, those And we're a demand new I emulate how comfortable there. you every it Chris stores, back still to our play and a take is someone on go the I have more a a I that think are we into and week, we expanding in not there. sometimes of in international all refocus new And and new opportunity. comfortable great the what everything. drive kind about second we art of come to Is change but and more in only about after games and coming when there We've a halftime the everybody yet you business, play But taken the

continues forward. kind the that be it's the the linear get that confident years, going our we going if on just of rates top economy, over organic businesses way, And that growth of joked comforting. line quarter will There's have other we in morning, saw we've being any of or with very going, things run see day the environment in juiced those it's operating running opportunity any today. difficulty the we some we So, in work more as results I those organic I very have erosion in continues. as because to this the an of And have him will a further, same consistent drive items just today. And Once said, way opportunity. that in this this that very growth to it the I've progression. which to the these either, offset as is feel day, a lot enormous another Mike as cured for and And I I

Comes to about seems he to don't He's baton that insult a don't. the by you business excited I'm years. financial and move got energy realm. out and I'm opportunity. some guy, turn of some this the I've off guys And same financial had level, is into way. and but him, like handing the good in as a there's shape. want CEOs, know, lot over So, get of many the let's done guys He's me. I lot it. forward great a Chris, that great it of the

to I I to turning And I'm I'm huge big And with creation wait just this so, brand. to tremendous it. going that into we excited shareholder. see value rightfully deserve. him a do can't he's think things that see

Jake Bartlett

you're what on some consumer in value There's the My that think terms a you're with and and try your more turn your So, terms really that or to quarter? something the what concept you're spending respond there to follow-up from spending as on pulling that seen eat back you is bit going to lower lever building go that, you're consumer? in the that on income the it's out consumer. that of I of then, going how seeing inserted it? could from income some that think at consumer the is – question and commentary have kind seeing play, then April on from increase lower income obviously brand. was of would What to And throughout discretionary we lower you

Kevin Sheehan

Yeah, and it's that very, across it's comments at consistent at just looking even organization. orderly it revenue point. And seeing yesterday's not we're funny because you very at my this the say about all report,

will consumer through offset have that. And which is go going seeing come as and to any at so, I then we're new new roll through about, extra this there we in also if these it. said what not spending, expect ride And point, initiatives the as I we're these energy that this out to change programs, earlier we

like proposition in and come to hotel have comes a have been then to about, around better that's and a having their it's we accounts points return coming the top something of going their is a the And we kind the events that And bottle a to and lot And percentage got team level that see heck everybody of I things Dave and coming another as business at into than having So, having it's meeting its not don't we've And this in reason way we – X the having to corporate going buy still up look and great a out that energy normalized case. joyful to have fall. Mike the a fall line with this we fun share be that also late bucks I super get that it. where through event have smug for have our improve working as of we our talked nose that Margo you and you're little would and eight then, on the back. to in the is would even thing, the and paying event I events to any that's in think, of room and water, and lot & and Buster's food having stores. why

opportunity there So, we think too. there's huge a

one successful. be So, opportunities. it's in point the But a all go of that And seeing different. the like it's general you're of And you opportunities their – point program the that team, that's they're you the very see can the point. managers, start the you equity for we you can number tipping now area. to are from of just sudden, all be see to this we inertia And successful of to afraid which have an enormous where

operate drive that but I'm forward. is They and move the to don't I’ll extra going motion incremental not saying that step they drive we benefit the just else? the past, come it as come work Anything leave in they their in. business. they did you in that So to to with guys. And in

Margo Manning

able for been into communities into this can initiatives are GMs way specifically Yeah, where looking meaningful into add really going individual of they the school their to pretty with – in drive one things I'm efforts, staffing a that is our Margo the is back – get local and to the going opportunities just our that more we've stabilized marketing stores. that

to to pull for summer. drive well I more we're the off-peak positioned oriented going some think in guests, that think be go with to through the value I the of levers to So, ability

Operator

question The next of Miller from Piper is Nicole Sandler.

Nicole Miller Regan

why the know a box was the I talk bit There own self, people of some office. just the exact different place continued wondering anecdotally, around a all same like about could lot about improvement direction the Nonetheless, special I in to you the in be different be at tied seems and my or different if Curious at sequential Could how the why in, Meaning, hear it the little movies. to to coming how. heading that decent profile, events? good go I would is it to the a be time? a something theater improving? a who's after. before you and guest? Or is doing And

Margo Manning

in and then I'll join. let I'll jump you

alluded done that corporate we've things going that the And couple is very we invest a stronger past months done is bring sales go business. of structure the events after are Kevin of in objective. business. soliciting and specific with into One special out our to actively what we And have over individuals

starting a So, one traction things have on, sales past new uncovering re-engaging see visits. very outbound team focused business some that we're that's efforts. And and of corporate our great corporate with we to the with

to…? And seeing and corporate business at on what iceberg you Kevin, the have you like tip so, there. we social encouraged But sort terms coming, want back in coming business of of we're we're anything business. because seeing the of the about we're we're most feel we're encouraged the do

Michael Quartieri

the of the the on number located of movies, center your with theaters. movie same we season around point are I summer think in

you the that a come a a point. a into or to couple do get o'clock, and draw that people out we do? Buster's want appetizers X They few do Dave extra dinner, it's theater, it's games of at movie a guys what of late little able & early, enjoy cocktail, are of coming So to

other So other kind concert before there things become is we've where But or a point We've also there. some good like event. events, whether done pickup the that event a it's of to effect. of any things that's of business just gathering

piece, pickup which just summertime really bit are a it's are So, and is that of people about moving. we out little getting seeing back and in

Kevin Sheehan

a two conversation now transform that, you're with that the on There the when is companies. into are distinction events And Margo the and if And I Mike, that – comment I say this just they're corporate very I'd between thing. important go one people. can are out we thing a see big to corporate on starting people was benefit business CEO a made And business. there Norwegian fight mutual and that Lines. the for the and of order on the remember new from different Cruise takers other

we So, on a the for orders the going as difference that corporate getting receipt for think we’re that that's And type delineating of of and going the in and events. ones are person I new accounts are make us forward. events out move finding big to

Nicole Miller Regan

understand Just more a improvement. final follow-up is certainly and comp I question on continued the numbers. the message appreciate the detail around

can XQ we versus for XQ XXXX. get perspective, Just a XXXX modeling comps from

– the just out if XXXX and it's share XXXX and the food So, I same missed amusement? and if I you versus could comp bev it but again, there, for apologize, and

Michael Quartieri

XX%. Yes,

Nicole Miller Regan

was on That total. XX%. or and food bev

Michael Quartieri

Total.

Kevin Sheehan

[indiscernible].

Nicole Miller Regan

and tie. XX%, That's total. No, know big of how kind numbers. tick models they're the I [indiscernible].

Okay. All right.

Operator

next Andrew of from Jefferies. is Barish question The

Andrew Barish

just but, versus XQ weekly still right out. slightly average sales like obviously, strong now in rolling pretty do the that's – for average lot are go give the could weekly Also, one programs on it us drop modeling-wise, running Just of [Technical the level-setting seasonal a off me. and XQ feels much you Difficulty], sales kind if if because, [Technical of any what down Difficulty] historically, things

Michael Quartieri

we were give the has weeks, And far. of the a usually, we $XXX,XXX first been in little quarter, QX, look Just around bit five as the it’s to perspective, about say for you just slightly so average further into so – just that into we have because staycation, school. are its you now I'm done starting expect get kids graduated, you or summer the so up do full to with time normal, that vacation season, kids are on to pick get let's

So summer. a basis of the bit pick the of up on of rest an average little course you that do the throughout get

Andrew Barish

comp Is that Mike? or total AWS,

Michael Quartieri

That's total there.

Andrew Barish

of how of that sense the around pricing was you Secondly, relatively us? shifting strategy. or saw guests, new received something have the pricing anything Was was Because particularly give by any us the been because a that can you that game? to gameplay the with share of can there on you increases

Michael Quartieri

wasn't No, of really change. much there a

and the in at in would biggest the spending, the which play think just of price the value level, you but of same the back would being some got dollars but revenue. they they been little really entry card, incremental means then change recharging? utilized point just consumers relation because there it increase finish is not the level, of impact get a recharges, points number time The opportunity, the same when wasn't equal card bit to nature. at the game the so I of were the with a a at we pricing faster. October of are the increase And the we is the there's increased that card the that kiosk that still significant When necessarily was they uptick

Margo Manning

see not categories redemption non-redemption games, there you're asking shifting there if significant I'm a of gameplay. in between of that's your if question, about anything sure didn't and in And shift was we terms

Andrew Barish

a thinking about, was that Falls sense smaller give I latest. That's was Margo. on Sioux finally, prototype? you can what us think I the your And exactly just

you're what of and kind [Technical Just there how learning from Difficulty].

Margo Manning

little up you're breaking a Andy, bit.

with serve guests. flow see really the manage, just guests you'll how So, more well And design perspective, And performing them. it, for well. I'm easy very to format It’s But it. very you, of operational and asking about the the we're just mini give They're they're dream all from I performing. not the layout. you're because a I'll of from really sure it's of an really heard to happy and us if

Operator

is The Chris Stifel. question of next from O'Cull

Patrick Johnson

Chris. This on for is Patrick

hoping that and what a Michael, traffic between pre-COVID on performance the from up breakdown in a looking just wanted last to to First, I perspective, traffic us follow understanding levels question. can understand foot check help and this point. quarter of of the of get But relative better bit like comp to you the is at just the wider composition little sort

Michael Quartieri

seen steadily perspective, traffic than it's is pre-COVID. lower But we've a From it improving. what

basically company, ever closed the almost right, and that has store like If employer, since. been every rebuilding business every you remember,

got business for finally hours. touched at place. little which point of bit staffing late we've piece up to great happy on night full our hour, in a today operating is full the We're us. a where we're So, model Margo

we measure lower is the the than from number items seen more we've sold, of is of the but that traffic check perspective, that. so, that the it price fact and when And what offsetting than pre-COVID,

Patrick Johnson

implemented. were But Obviously, which driven also you labor quarter, if a or faster indicative labor that's portion I picked of line this expecting. the is there's curious up just driven you looks improved even And guys maybe than of that the have the I'm know that by that sales model great. have partly stellar wholly may fact

and curious if so, forward, And as line hours the just labor the we look. of how we rest as should going underlying year I'm there's about how think as an to that potentially need we about think should

Michael Quartieri

mix Yeah, we into are shift benefiting from amusement. definitely the

little to very on the and the machine and techs you've bartenders, floor about attending food its a the runners, the amusement is and good staff. and sure opposed having few there. labor a around think whole It's the to games margin, got kitchen as walking So, food servers, where in profit everyone's making time beverage folks if you

other able to be more introduce tablets, the with between that. labor dine the the model opportunity continue But which the F&B customers are two to labor we to helped from definitely us that we a benefiting take the at same initiatives of And pieces serve efficiency versus those model. is time, to labor XX%, shift side on has different ex business. and efficient did given So, dramatically XX% those

So, benefiting well. as that we are from

Operator

Jeff is Gordon of question next Haskett. from Farmer The

Jeff Farmer

on call, March at you you that hours. to closer late pre-COVID of XX% had said earnings roughly And were the operating that were question levels you operating you answered, front. you full the just On hour said a

of happen full – operating I'm when you “full level just So, that how curious you full get and you when define did hours.” to what for did that guys,

Margo Manning

is Margo. This

of to it getting back the terms we fashion. operating In hours, in full a phased did

the getting hours staffing back. levels stores were we we push the needed, into As would back that the

all to from take had date phased so to So, the But to that it going was We hours. memory, early like And through I'd we I'm by quarter. to I'm it's weeks. give not of a fashion a say, hours. back when operating the doing every in full couple the store May, and mid did there's back stores one pre-COVID

Michael Quartieri

knows Just place make other sure an to late to You're for be that remember, everybody on And taking example, is that's going the this as time traffic to lags sure right make a night that, right? we're that those as well. parts hours. extended but open the initiatives now we're

Jeff Farmer

members loyalty, in your active be a including of to membership changes was, customers loyalty can has on you help topic, I on have there, represent Anything really gauge frequency? I you of greater there? guess looking color was some your these the would to sales Do of impactful what separate nature specifically helpful loyalty for on visit ranks, that a business. But shared ranks. percent that your – how program us loyalty what this loyalty been Moving you're renewing provide as to terms

Margo Manning

with that as tell now, program, excited I of about that forward. right percentage opportunity I building me. it's don't information will going smaller it leverage but a have you, to we're sales the the we're

maximize see our the months marketing that upcoming So, us in we have you'll as opportunity. more department from

Michael Quartieri

Yeah.

I to Just up out the recently in of launched. back the it there. it end we perspective, it just being give cleaned and got back it, door, juiced when of was We kind walked

X.XX thing have. the clientele remarkable less and that that out got about pretty million six we rolling fact months, this we've users that the are type of for than it's has So, been the for and probably company we

to is to stages, for for asset, customers And to is as times And this drive be more slow, the gets in to team to Kevin pull a to able innings. does very if arrow organic organic we in of be bring this pocket marketing more alluded, one economy talking come to utilize, have more use start growth. – another opportunity to growth, it us about there'll us this early very in as that. which, when in the early back our our to lot just offset So, is

Jeff Farmer

one Just more.

think roughly you to the call it I else Can you to hold betting to don't since forward – of partner. to that firm? goes sports been the a the it's moving betting we it were me September partnership with back us a reported, hurdles help should partnership months company sports guys be first earnings – anything or So, just potential understand with XXXX relates a in thinking as with but discussions XX about

Michael Quartieri

this bit has know, changed some the space reactions that, the results. betting a names some Having the whole in the you sports runs also that and states fantasy for sports said been with has that that betting to the broken with how down landscape and the quite betting know of of As we've sports are lottery in it’s aspect. you sports and their market

the coming of And of stores. very just we're going or process for sports this I preseason. think that, done on having spending close. got making dollars be got different we're path all it drive correct an of very, in that'll sure opportunity all we're the a We're the So, the and millions with not company. of before I together, agreements we've rush now of we've it. to But sections And – fantastic all four really in three announcement think audio

that for drive people as betting, the appetizer. quite they're longer. systems, of environment, these on, real they'll opportunity traffic have on stay a And the bit that's stay we two, the sound side, then drink right economics, and will have once I have longer, to another or you get hopefully we'll So, is they'll And the early an have in right another we'll going have they'll said sports should this opportunity traffic.

hoping behavior will spending the for. so, we're And be exactly what

order. would this And see I short so, stay you tuned. will in say And

So, at sports bit, we've Event landscape betting coming. just weeks little we've probably a away, the few Main got got a looking

So, very got down this lot a positive announcements we've company coming path. of for the

Operator

is next Andrew from of Strelzik question The BMO.

Andrew Strelzik

it's that first big asked, angle and profiles My follow on to of those maybe active, the on the are wanted one, question not I up loyalty like it just a percentage. that just seems from was the

it's it's you people I'm prior you are months. of anything to obviously there a that to actively So, are function to folks frequency. motivate function said, who curious, And back? specifically a anything those it's maybe the been you're that But customers is there bring is return? doing only those – guys doing six Maybe

Michael Quartieri

now have we're the you Look, to opportunity our they for. it They up the that's is have gearing starting great have allows tool, thing one-on-one And app the about to the is gain what team communication. marketing now, data. the

X.X said, million active Margo X.X of that users. As million are

six on the months. last the So they're within app

of so Buster's. a to back And into get to Dave got them a target now, people we've group & now specifically

Andrew Strelzik

adults, that evened historically, on the point. demographic think is kind the another maybe kind I the together versus it kind mostly it then question. at was know of term Maybe out children. some families early in And used with recovery, of young play the the companies I the of

the looking in update through term the obviously, recovery? younger you thoughts, the the longer stores customers, to lag amusement mean could towards I'm that are I'm an announcement that Main with trying which broader So, that. obviously, or and, for Event your for are on just think driving mix. with cohorts what And skewing seeing now, just

Kevin Sheehan

it we closing us transaction. and have kids But Mike in Main more families, the families, adults. differentiate over. take then for diamond the move found the will little date start the have whole and customer to bit, this whereas We can base young as of past teens, the a I’ll rough little more the and adults we'll of the actually and and Event enables basis Margo that's that

definition, those to drive be which move in to each of able a get each powerful way a on guests brand. we So, should little forward, clearer populations of as that we'll

Margo Manning

say, I And to into the come seasonality in. you'll moving as you're months, was some going see summer

typically of influx do. we an see as families you'll So,

face stores our in guest lot see of stores We're that families seeing stores looks You adults in that a break And But our seeing our the did skew months. a blend. during that pre-COVID. then, come in families, stores, coming it's spring are adults. for most we're the that skew it like

how in more Kevin’s surgical the on and be family. excited to we more Main for and to ability leveraging prescriptive Event to the market are, we us capitalize so, opportunity the And to adults about point,

now, But, Buster's. return Dave the that. face So, we're in its about you're fullness guest excited right seeing to &

Operator

from is James. question of next Raymond The Brian Vaccaro

Brian Vaccaro

on average circle the to sales. weekly back I just quarter-to-date wanted

think And to compared was average weekly Sorry, us the you May? weeks? sales broke what you $XXX,XXX? say remind July seasonality the Mike, my in normal last could eight Q&A. phone the June also then, I like looks up and for earlier that Did historical

Michael Quartieri

then, as increased for the $XXX,XXX. about weeks of into $XXX,XXX. so to transition quarter you were the first numbers numbers, And weeks, Look, XXXX eight five last those the

XX% So XXX%. say, an about should it's roughly up. I increase Or

Brian Vaccaro

XX% average weeks can XX% sales the tell up quarter-to-date five in versus or the you is? us the what current are $XXX,XXX, weekly quarter-to-date Current

Michael Quartieri

we've XX.X%. is Well, communicated what are, up the comps

Brian Vaccaro

efficiencies On if the was margin you've labor could to maybe provide on Margo, front, I you about maybe I more the COVID and that wanted wondering think realized during any just server how you ask average some specifics be worth hours average other sizes the be number and it managers new service model pre-COVID, compares whether to or store, highlighting. salaried per of labor. might metrics station

Margo Manning

an do terms management staffed don't that a staffing of – keep hourly have In want we of were levels, that yet. slightly pre-COVID. some I were have our And let's say in do reduced stores, completely XX% in perspective, what part about concrete, markets aren't in I parts And pockets they're the pre-COVID. mind we of we from to management

holistically. So, I'm talking about it

It be come So to the we’re on, results Every indicated, experience. also through really a relates as the we want it guest the at stores store early excited model. new as was results, was the service have I pulled May. promising The about of been about live or rollout mindful – just to have that officially phased end on I QX.

the it us about more in hear in we you'll as fully months. seated upcoming So get

Brian Vaccaro

food average of the on guests the turns guess table sales is just digital terms bit the elaborating of getting and that guest window do have on out ordering occurring of you or that mobile or system? any SMB maybe experience, a percentage in over I also stats on on the

Margo Manning

mobile ordering, right the have information now. don't digital of terms In that I

the working we were model, I automate saw to we're in the that. the process the have to new that. number and in manual you, down we track We It's terms change the of moved that option. guests goes to ex-dine in that. that ability tell selecting will when to fairly mid-teens service a tests, have don't of I

guests had towards on you more full So, gravitate that. the experience, have reporting although the current don't I

I'm So, you it test. information from giving when was in

Brian Vaccaro

million been the spend that you range to specifically that's quarterly it to one help last to spend one the drove the me. spend marketing increase last to cost a operating million to wanted line. quarter other expect and also for ask in was below the And just what about speak mid the bridge I several the $XXX think Just compared quarters? Can you I there? then, could XXXs, progress us the how $XXX you into low in through year?

Michael Quartieri

marketing I’ll kind the of of it. aspect speak on

advertisement within eat did combo remember, So, play month and of the April. we the

That So, there $X million with going that total marketing about was in to I'm roughly, was of say, that. a spend. nationwide went campaign along

And the of Then our normalized of so, get more the throughout of to marketing year. was one level campaigns. you largest that rest a

Margo Manning

you're clarify And me? part more about have because increase It's what asking you're Can for the stores. you of sure not that Can asking you I'm your for? about. an we second question. not I'm sure rephrase what

Brian Vaccaro

whether like $X seem it about were part appreciate step it business per But and as operating side, a at a exit Mike, you'd sequentially and we I repair look or that of out. did the like. be other stood noticeable and but million, it back, on thinking was on even could curious normalization – cost came structure You costs the marketing anything basis, in cost the if operating costs, Omicron. the maintenance any just other just if of the that there week up it pretty

Michael Quartieri

other services. linings to aspect have a enough call mind only of be on The individual an cover that that on outside would impact an basis would comes to

that if your So, things crews, think to that, you cleaning about effect.

then back one labor it market type so, people be Security trying an you're cleaning from a people for aspects. of important where and to and serve us for to outsource stuff. that hire And tight frontline was in customers, you're more office those back, another of hire when to the operation some would standpoint

probably So get is margins contributor the to levels to that an been way would opportunity us to staffing in for we that as that as bringing we've opportunity at go more an by in-sourcing as to have environment, and back look normal be then forward biggest at Which that. this point. improve also to progressed the able

Margo Manning

Which started to do. we've actually already

Operator

today's conference. concludes and session attending This Thank today's and for answer presentation. our you question

You disconnect. now may

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