PLAY - Earnings call transcript Q2 2022 | Dave & Buster's Entertainment, Inc.

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Operator

Good afternoon, and welcome to Dave and Buster's Second Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask question. [Operator Instructions] I would now like to turn the conference over to Michael Quartieri. Please go ahead.

Michael Quartieri

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

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

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

Also forma available and on including filed Investors of defined comparable financials, references is In website. pro website. the that review X-K Main the our XX, on six not current measures will and Accounting contained in the under result should year GAAP with available month prior Form available released these for reconciliation Principles. also afternoon, addition, Generally fiscal is ended our which on announcement include SEC to XXXX Event July the non-GAAP this are measures Accepted the our today remarks financial to earnings our

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

Christopher Morris

Mike. good morning Good afternoon Okay. rather. or you, Thank everyone

we results, together pleased as are Main well as Dave progress operational as solid during Event the & the organizations. quarter and financial strong Buster’s brought report We to

visitation and release, second this this brands We spending record guest quarter. our quarter we quarter across record in period. noted experienced adjusted EBITDA press both strong As reported revenue and

beginning to team of recognize service into high synergies practices company. continued adopt simultaneously to one as the process levels and our combined guest, while of combination across to brands. work our we teams of the integration capture our want Our from deliver best the efforts to our I

we during quarter inflation, we focused wage operational While flow, and aggressively and from working saw pricing driving appropriate headwinds pressures efficiencies to strong inflationary substantial the revenue mitigate commodity while remained on and cash with actions.

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

of our look We new excited the about coming to and future this forward organization sharing the are progress in quarters.

Okay, environment current share CEO near-term first priorities. my now me and My as of the days company. has so near-term focus been centered primary My impressions far of thoughts let on three the strategic a XX from of few you with priorities. our the

performing position about tour brand our hear to enabled understanding gain importantly, from more and challenges, and our who a I'm eager over stores. directly have XX and visited report over with This our First, end that Operating and our meetings getting of a field manager hands-on third, to delighted second, every tour. dedicated sales operations; manager operations team met and a general serve our propel members of I Dave Buster's leadership of guests companies driving XXX and culture. we frontlines Chief passionate category. our our our the our store completed We and Officer to us Tony just team listening combined winning opportunities. Wehner, a integration & members, an and establish deep to held and group are to with our of our up the our guest; dive into understanding within

understand our expectations & Buster’s their guest, diligently product Dave the We gain to both align working offerings for and and analytics better into Event. in our to insights desires market enhance by and position and Main are to supported our data

merger is Our to integration off a terrific start.

$XX.X We increased key from of million million annualized our of over are and one We've on schedule We've roof and team timelines. to is our target exceptional synergies the ahead offices already to-date and implemented $XX on combined $XX focused our million. under results. aligned corporate delivering

gel, scale teams come continue our synergy of leveraging initiatives the our to opportunities, implementing capturing combined As and and together we operating best-in-class operations. are

be and our the strategic Board future, in-depth senior long-term the our build we host the further we the meet more a entire hear likely year, approves months Investor plan, output plans to look based After As this our will mid-range and work. of few next team senior grow taking where our next QX leadership into late plan about in our the team have to chance plan leadership business. to to Dallas an Analyst in on Day you'll

Now recent initiatives. touch and let me operating near-term upon trends

that continue than and visit spend XXXX level guests at seen either demonstrate higher a Our in XXXX. and previously second clearly to quarter results

While business to seeing in has recover and positive the half of back improvement booking we that pre-COVID year. levels, in will meaningful the I'm are fully this turn special trends optimistic events yet to the comparisons

the We visit refresh our needed. as where offerings, footprint will that to level stores guests of are service we confident improve physical our continue increases our and

key we number other as pressures, higher work see to commodities, of we the continue few next from inflation are and these and acquisition near-term, and in offsetting the saving well In primarily initiatives. quarters, on as with While will worked labor synergies additional expect have cost on we levels still initiatives. the over of to a cost focused

in gearing season are fourth up holiday banquet quarter. strong we the for First, a

operators sales our are focused Our ready and special are to events teams execute.

City campaign Where Dave partnership designed Chiefs our CTV, College spots Watch a as Football Campaign includes platforms viewing Live, Twitter Kelce. great TikTok national GAME National Great national Kansas DAY, and ESPN's we is social featuring a and today Winners NFL Football The ESPN Second, with airing Countdown, & includes of and a launched destination. Sunday also media on Buster's like College YouTube, football more. and Travis Center Games, awareness drive and Sports This campaign NFL digital includes to

strengthen our also since members non-members. X.X its taking our a our brand now guest launch higher and example Year-to-date, X average value be Rewards for they November to would of are per XXXX. million communications steps proposition. have members We in card loyalty surpassing loyalty non-loyalty on times An Program, and grow customer accounts honing D&B which visit of identities two this to and XX% higher visit check, than visitations, members higher card, per continues

guests is up and year-to-date X% using sales loyalty are started. that just D&B rewards. love the make our Our we getting of Equally members exciting

should as see potential focus with no creation, upside we that can significant I'm on have about the potential. our come value growth you excited As and we that deliver company. continued and on It extremely surprise future innovation, of can this

to in return We state that, results. business comments. ongoing and are At forward some with coming Mike? look sharing optimistic second progress going our our of quarter I this our quarters. time, Mike's the After concluding will the about to cover

Michael Quartieri

Thanks.

despite noted, Chris economy. in record EBITDA As headwinds quarter delivered we revenue continued adjusted the the in and second

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

offset revenue. We which second in 'XX. basis sales revenue from XX% of from sequential $XXX.X and in per to an second compared comparable the XX.X% related through revenue from totaled Event of of or same XXXX or or wage million compared office of and, these increase the of quarter income Operating which was in the the record $XX XXXX. Buster's quarter $X.XX of adjusted working under XX.X% Event QX million with stores on increase & & compared to branded XXXX, compared XXXX. of comparable increased at at targets second stores XXXX 'XX second Main as EBITDA. office cash or branded store of our million on slight 'XX the second the share increase $XXX million period period income percentage thoughtful XX, cash synergy million an share the second compared and million second store and million million of the quarter points in to store during EBITDA an but end adjusted from 'XX. XX.X% Comparable Buster’s of sorry, period June increase the flow branded actions. quarter Special consolidation. Event commodity Walk-in related second of at new million, the XXXX. improved preopening of to XX.X 'XX. which as quarter totaled Main of of with quarter we sales a $XXX.X XX.X% are sales sales increased second by and to is compensation XX.X% pricing Main Dave Event the 'XX in and $X.XX EBITDA million, and compared and the sales are for add-back is of same included contributed share consisted XX.X% the million while XX% was XX%, revenue pressures income Adjusted million quarter inflation, XX% costs stock-based net Dave $XXX.X comparable revenue, sales Event second or $XXX.X in or of the in of an compared of XX.X% the $XX.X achieving stores ended emphasis X.X% Main million million an adjusted We of $XX.X $XX.X acquisition quarter. versus still We in to While $XXX.X increased same or quarter of availability liquidity, in of quarterly to second diluted $XX.X the Event, conjunction declined continued during diluted quarter comparable impairment XXXX 'XX XX.X%, the diluted impacted of $XX.X Main operational Operating increases cost operating or our of $XX.X generated income million our facility. of $XX.X per efficiencies, of Special $X.XX quarter revenue revenue credit income Net the of in second revenue 'XX, reported We period XXXX. income Comparable $XX.X the from quarter quarter of of and all Walk-in experiencing quarter pressures $XXX.X with quarter. of quarter of an per second second through the of while in quarter operating of 'XX Event to our net totaled of or closure of XXXX. of we operating million $XX.X with in quarter compared second reported a These store revolving negatively increased expenses was during second EBITDA XX% of with store charge the quarter the million X.X% transaction income of of the corporate declined with increases at store the the

the During $XXX shares repurchased $XX second our quarter total program. 'XX, under for million repurchase a authorized we XXX,XXX of million Board of

invested a and to & spending, Georgia quarter. Main the net Event in branded Buster's total Turning Texas. of plan Three, and one & Augusta, opened fiscal new during in additional New capital $XX.X allowances Event Modesto, stores of we in Dave stores four Brooklyn, Dave Brownsville, stores open new tenant We capital in of half Main two Buster's and the branded back million 'XX. additions, California to four York, and

XX stores, to & to to five Looking Buster's plan XX four XX fiscal to we and Event. 'XX, open Main including new ahead XX Dave to

XXXX. continues to saying while We comparable increased Main organic flow and Event XX.X%, first our comparable stores. stores cost highest store focused five XXXX ensure Consolidated Special at same & profitability, Buster's today, on branded Finally, sales the business. the increased about integrate to comparable store conclude watching Dave produce -- at you the XX.X% XX.X% weeks period that the of compared In Event for have macroeconomic let and still quarter. comparable with execute our the in for period increased increases update store sales XX stores, operations deliver store branded XX%, sales business. at store sorry, our we team comparable third XX.X% shareholders. period Buster's walk-in everyone our the sales Main walk-in store sales Special I'll comparable walk-in five-week possible to Event our optimistic X.X% we XXXX. factors cash summary, store we the while remain XX.X% Event comparable declined stores, compared At store sales to remain facing spending increased At drive five-week compared for for Dave recognize by branded comparable compared the to Special period improve initiatives XX.X%, Consolidated five-week sales increased declined XXXX. Event on while to our X.X% & the for on closely to sales continuous and significant me our growth, improvement philosophy, returns capital from branded

the with deliver fiscal year pleased to it of progress turn that, beyond. are We financial are back to well-positioned for our improved and remainder results I'll and With XXXX Chris.

Christopher Morris

you, Okay. Mike. Thank

Q&A. initiatives. a one We teams. the this stakeholders. we apprised industry are operating to company that, company lot Dave talented and This Buster's long-term which under meaningful momentum are With have open happening look now of at and exceptional we The together our Dave leading There's We strong stakeholders. brand assets Buster's strong company about to all it and our brings with upside progress for & keeping opportunities these potential excited to our presents forward fit excited against models, umbrella. up you benefit our Main will Event combination & of strategic and exceptional two growth and business

Operator

the question Please will We from Bartlett our will Securities. And go now Instructions] Jake first [Operator Truist ahead. begin question-and-answer come of session.

Jake Bartlett

And Great. congratulations taking same-store second versus you in the quarter. and acceleration question the strong Thanks what it the first for acceleration in sales there really the on is questions. my had quarter-to-date, of

question that? my seeing that the you so brands the the or you're that doing either at you're is, anything with it Is that think is there driving of is something both is And acceleration what or driving consumer. that brands do

here? specific marketing really understand help there strong us help to a Just just dollars maybe is understand mismatch anything driving was that of acceleration or what us promotions,

Christopher Morris

period let's Yeah, thing tell that momentum first I'll question. Yep, enthusiastic and for long businesses we're seeing hey about we're the Chris. that very much strength is momentum you the is, in -- Jake, of the incredibly both This thank you really over time. of a

about thing I'll to, really optimistic that point single very acceleration is there can entire but to store that you were one what direction across from acceleration The QX lift, of sales we comp those portfolio. is that of So going the brands. QX, not seeing the tell we we're the

So centered is there one it's this brands not that, just initiative, there region no at that's simply one mismatch across time. acceleration particular at that point an is both market we're not the feeling of driving in particular really it's country,

Jake Bartlett

and assume just results quarter-to-date Great, much the frame can't? 'XX. can can you helpful. on certainly traffic confidence is your negative talk higher here. that's just the by that kind Dave And margins side, I can talk maybe I at much of pricing of check driven level quarter that or if about the this about question to-date sustained versus and the check about But uncertainty how Buster's some could talked but than defend to still you of is maybe is to actions how and intelligent you & be check think whether your it there the about and 'XX

Michael Quartieri

Yeah, it's Mike here.

really of don't very traffic. given we measure So where we are, have solid a

seen continued, I in we are the from any we've say, new that occurred seeing but check, higher-than-normal, detailed right trends refrain the because with we've a just the traffic past would of become reopening with pandemic after the that it's power of that it seen. higher-than-normal normal, kind still we card So having versus purchases discussions the between type have

be typically show that, bit forward there So we've also once Day, see up being to slowdown that, seen other we're the and and get Day business that going of past back Labor we Labor want school. but we're is across after days a kids two is it because I really in at what we seeing with street about is than to pleased cautious board just think

conjunction at make point. cost this point, this comp monitor to that in on we sure we're sales the very what with watching store seeing our we're at So closely

Jake Bartlett

just the my should folded with previous most you're bit expect importantly or obviously in you've question EBITDA margins, And year, the little than here lot maybe in given is sometimes level we Great. just of half that store it's to helpful? margins But past, quarter on Main maybe years, back to Event's factor expect provide what results lower guidance you from of then whether be, on willing terms any the being to would it's of your last margins third in. in or a of help sort in the higher, be us what

Michael Quartieri

Yeah, did previously had perspective, point EBITDA margin we'll QX obviously expect I XXX return an in 'XX. not to that we see improvement quarter, talked think this basis and from reiterate We about beyond. over in that do we but back

Jake Bartlett

much. very Great, helpful. Thank that's you

Christopher Morris

Jake. Thank you,

Operator

The Jefferies. go next Please of ahead. question comes Barish from Andy

Andrew Barish

guys. afternoon good Hey,

first drilling model, Just there that and learning potentially -- the Buster's you're an Event is implementation during at regard, environment? some in me the as a in made lot of move of some into Dave Chris, on pandemic, looking labor inflationary and with Main here from progress technology we forward & that things kind labor

Christopher Morris

great Andy. Yeah, question

you I'll tell to is spending on of spend not across a thing sharing with of both we're are lot first -- best teams brands. going The we continue time and practices time just our a lot to

across all is opportunities. So a of operating and the both of best leverage it's strategic benefit growing labor brands. of really not big both as this it able as way but that's being expenses and just only well think take merger in to meaningful We the

As that. we're have to is Buster's Event implemented, implemented have the lot them Event has of tables slightly the then Dave room, dining tools, the the to able which same get more in and Main efficiency through cover different server tablet that it technology server server relates labor more approach Main but a a tablets, & labor to now just every allows

opportunity say that not And productivity share. also technology of and deep way better guest facing but both job a doing in we of in brands to can so, guest do a would experience. kind elevate seeing just to the the an improve labor have digging to only embracing process I we're what

able of we're to improve productivity, And we able improve believe to our servers that, be as course, both as to where is we'll a we're able our of a sales which tips straddling firmly focus we're then, sides the to do to [indiscernible]. going elevate experience, on I win-win-win, labor more so team have growth. guest be that able across And leads really to

Andrew Barish

obviously then initiatives. foremost there's of a of first sort the events of a like know into what to lot And holidays underway more and you. variety from Got come your on the forefront one - just, be the is that is would and us, driving sales early sounds work the your football or Christopher going and with in It Yep. Chris? Morris two certainly team of season A upon thinking special working I consultants,

-- digging to strategic now, we're in So our deep long-term right we're build plan.

say heard time lot on following. with are a getting workstreams is, out the And hearing spending there are. our two so, you operators, from me One that our of directly that teams opportunities where we're

we'll of core of more environment, the then what grounds-up consumer our And is, approach. approach. deep work opportunity will environment, the those over two here understanding then we're that the only and that's from say is doing into next have converge We're days greatest five brand now we a years. grow a about but top-down which So secondly, the business, attributes up away is wrapping more team not do competitive XX workstreams okay we dive where and to a the

time. core anchored thoughtful, very long will brand we period going over reinforce of be and approach that deliberate very strategic So it's positioning to a

managing of that guest very we think our areas, been can the has In the time, in is average putting than such be as you our and -- important presenting velocity sales points, I when operators greatest just Investor period done peak peaks get so times we've business near-term, host manage and short reliving focus and manage check. exactly we labor our well Day. on typically what a that of spending where traction and both on much to is we Analyst first on the that's likely quarter to the as in those bottlenecks pinch work growth addressing with and the so, is And the in more time right really where improving will

operator got operating reinforce with plan that to of will conference, immediately in number we is year. that And at that address February, drive near-term things so that to then we and getting those a really the operator is, doing those we've we're then were teams is trying that we're FXX in to -- opportunities our behaviors which home really can conference it our that and so what

levels you So near-term said, big like that's going to feel where the driver have the we fourth priority. banquets That's that we're already focused we're we're right sales now. a in that that chance is there as is already -- above be we're quarter, Banquets, seeing season. strong to going to a we're there or pre-pandemic at is -- signs -- banquets going very this

time capitalize spending on we're so that And to opportunity.

got our in focused out those So banner a booking entire Most this completely October. year. early of occur sales making we've start on team to

it's so, staffed start able important so dialed the execute those bookings really teams in operating be time in And to quarter. can at ready point that our and fourth we this we then those to to our into getting teams go bookings and signing get that up

Andrew Barish

Thank you very much. Excellent.

Christopher Morris

You bet.

Operator

The Gordon next Farmer Haskett. Jeff from Please ahead. go question comes of

Jeff Farmer

Really it. of just appreciate here. you, of a follow-ups sort collection Thank

question worse inflation commodity get inflation think before in the guys a the moved sort of is, QX, wage what peak did Do is little or through to this level you it expectations bit inflation on of year? for the over your rate gets both the So we've balance better? of are touch and going you the

Michael Quartieri

I case. hit seems the that this would we Well, the hope point, at it peak be

when couple points. versus was we additional of only QX at QX, inflation look the percentage a However, impact

able things coming of we going good and QX. within into we're back we'll are our to in purchasing QX purchase the aspects as on we're what and to offset that peak. So power like one with we with of supply the combination some where that go have go a slowed the the power Main of us chain Event quarter, is, be the it opportunities the for and that seems it's to seeing point to But suppliers, maybe especially combining at combined the feel we

Jeff Farmer

Okay.

to are just the So we've of saw terms of absolute rest level that, hearing the provide inflation you context for the the I but to level able segment of what the relative appreciate you from QX? of been inflation in in

Michael Quartieri

was Yeah, between two XX% that And perspective only QX rate you commodity a time. at XX% still point a both XX% seeing about and in basis inflation blended the about to brands. inflationary on versus within between from 'XX XX% perspective, X% just perspective, that to labor was of our give we're that a QX From percentage brands. being around a

Jeff Farmer

And food sort something touched pricing, your your Okay. question, then of but little color obviously, again your pricing really a way beverage unique in on, amusement, last some a us some more terms related adjust just the a bit you you to use model, to it. of of the can that of offset as inflation? it to But side give as efforts of and ability there's to

Michael Quartieri

additionally from really anything haven't amusement done the side. We

about their but that, the going you we coming did point. -- and card you one game. of say, any really it's at impact do any on quickly, last D&B more As see hold and know, is it and the number in of What that We that period allowed at to cost and last increase at the year, did or, the the translate in the which October low of into a people order in utilize seen beverage how looked back August. get people into buy-in to coins weeks didn't per basically recharges Kiosk, We on meaningful us gain, of allowed for price increased the to mid-July really which we we've that in take card some the perspective, just real in basis. July of from operate of up didn't a on on much power food throughout side buy-in purchase take the we've the XX% for number the transaction X% of few end

Jeff Farmer

you. Thank it. appreciate Okay,

Michael Quartieri

it. got You

Operator

BMO Strelzik Markets. Andrew next Capital The ahead. comes of go question Please from

Andrew Strelzik

on night, color the couple you data about put I any Hey, is think in date questions. but I late last put of initiatives you've points that could Late kind you you good cetera. said. quarters? afternoon. provided Trivia, night can to or Thanks have some plus over things night, other for the there maybe if of around last X% the talked reflect place et mean, guys you start like wanted I quarter, you that taking some of

updates curious of any Just those to any initiatives?

Christopher Morris

from a that's the the of meaningful one those Yeah, late-night of perspective, that's all most initiatives. probably

As QX, X.X%, of to a sales. it's our overall improved in percentage overall late night of X.X% was sales about

opportunity typing additional are people. that Table found to directly in up traffic impact about that both we're Open Buster's, At the so this a people through to out but figure little hasn't of another point that's overall in that. Table XX,XXX an the total. just really without we in have booked type bit have it's to seeing not & us that else, we night the see just in trying as improvement, visitation So From of launch gives an time, that Open on reach us. on we date Dave maybe but anything that so XX,XXX we pleased & are operations Buster's, perspective, think incremental of with had come that Dave more we to did material app like items for pleased The such in rest the growth had considered because visitors of a on

Andrew Strelzik

it. Got

X% the XX% and believe -- XX you to to then Okay, to is over Main you I for call, piece have at below side on on growth update guess X% And business said that's months. 'XX, touch helpful. a the the like the Event XX% had unit what something the I XX next talked about

beyond a rate just and that that you're run XX% medium-term the function is XX% around I 'XX? is -- way openings of the about of thinking unit So kind to a timing

Christopher Morris

five Yeah, we 'XX. on sense would stores the out really versus is Dave & seems XX% of a year-over-year basis further when we to to execute near-term The beyond of make Main say would XX% openings. look as to Buster Event I we to to four timing as want -- those what on on around a have

Andrew Strelzik

I of guess other expectations what or Thank maybe of you. And on then marketing over year balance any commentary the with some and the talked Okay. about talked the ESPN initiatives just last directional you piece you the be spend the have helpful? about would going on, that

Christopher Morris

is consistent Travis would which favorite of really the the anticipate marketing of spend half to big he the Kelce But looking players to most be in that, from with eat that. being were we are be in around Kansas to another November, two which QX, in happens [indiscernible] we was who an play first [indiscernible] fairly around year. and be we fan. We campaigns, going successful would the we've had that centered what since campaign one looking to watch It's have advertising and do combo, again the football City beyond also at around with promotion it very the

Andrew Strelzik

it, Thank perfect. Got you very much.

Christopher Morris

welcome. You're

Operator

question next ahead. Please The comes Stifel. O'Cull from Chris go of

Chris O'Cull

third trying could this last period the quarter year how seasonality. be by you I’m third? see and impact your we comments do to how what pronounced? -- be Michael, Good expected average weekly should impact a trend indicating that the year I'm you to in -- about guys. understand expect or just you see you to more for the expect How wanted similar were to do did Thanks. clarify may afternoon of if I you sales --

Michael Quartieri

it of always from to think has way. QX of QX about QX, of at been you overall kind this I'll XX% look QX sales. When Well, history

Event. went that's -- we consistent Buster's And Dave with & but not and Main also with only pretty so

change. So I materially to wouldn't expect that

probably forward, would same look you results, that basis. on stay QX going the think at that the percentage a As go-forward from we

Chris O'Cull

Okay. not I know than would integration expected out transaction margin this have then the of store been related factors talked we one-time to may and but cost that you inflation the indicative was called quarter consolidated factors, pressure seeing? was of underlying there And kind lower that you -- any the have or was you're

Michael Quartieri

store thing I up was will prepared anything to in QX the would EBITDA, is said the running of we But say we to add-back X.X%. treated were remember is on you most five about quarter we an in as at the transaction at which a that, XX% really, been Not one have finished I've about remarks. and related the first weeks what back as that of talked basis comp the

corrective our what we're These support then those have associated combined weeks was lower a five. at store a the store seven seen course campaign, sales heavier on we on to-date margin than we've impact slightly conscious basis costs little increased seeing. in comp did with spend from that and that lean the same the quarter. indoors, previously. to reasonably At taken discussed labor we've but and to back this we bit action decision first we factors on back for the the we've a had seen comp in the track great you August But which ad that over QX XXXX well, marketing results perspective XXX-plus where to since launched that were negative point on time, improvement So have a our our the we've made summer level did when performed were which our

Chris O'Cull

Great. Thanks guys.

Michael Quartieri

welcome. You're

Christopher Morris

you. Thank

Operator

comes Brian question of ahead. Mullan go next Deutsche The Please from Bank.

Brian Mullan

Okay, thank you.

& in it how touch per factors brand, the stores what want on Just what core the just And or the there? at are the on refresh/remodel cost anything size remodel Anything question over older to store stores stores of terms or the the related, then Buster's the timeframe? fleet remind that? the simply us other are just of of what touching in plans first, characteristics terms are like is a could many Dave you plans to you of there

Christopher Morris

Yeah.

probably about to want million So of general, in so very how do about stores two because the the part X.X it years level of anywhere us could better From do we're between be about we to touch cautious we take to looking will about in and refresh, and XX go to a on $X it million depending the to cost perspective, these. at total. $X be

prototype we change. the we we this of the stores got XX like out what stores don't the what of year, to opportunity type to of want what gives we've us and that agreed represents the are stores store to there construction walk see think I a and planned XX each we what like different those that one of for

over truly we're do At about deep to diving work of able make we're for, can what of next we that next years. refresh that into so looking they're same launch program and our time, prototypes customer the of really course and base couple adjustments then couple And years. in into build that over the we the as before doing the series on of that additional

Brian Mullan

follow-up. it's that on restaurant on a your loyalty, it what you stats And the some thanks. in question prepared pure in still concepts, just pretty it D&B we program gave of growing thoughts then Okay, a the size new pretty that the when category, some some to the play small. means -- to is remarks Chris, compare

So then would at the how do and anything were driver evolving it you you brand? some Main that be Event be helpful point actual an for transaction or think at D&B? at you doing see counts just that how of core And could of about informative

Christopher Morris

sure. Yeah,

our effective we of that loyalty believe sign. a just an entertainment-driven that many this ways. set is November it program own absolutely and I engagement way of launched -- a about fact and loyalty very an we its in that different think building driver challenges good platform more it has be this engagement our think of that an X% Building So represents just already us not as is with platform, a opportunity in gives and our able and behaviors, engaged stay over pattern maintain check get of stay is their frequency insights low particular grow to occasion, behaviors and them extent an our into ideally the just to But the increase frequency with times gather guests different retarget average time process. we're ways and us segment we're messages dialog to brand engaged their enormous the them more to and less two a because and a sales and effective businesses year. the The we that frequency program for to in sales, the could than

see a average frequency as growing both guest of it So we check. and way

a think forward. and going as that the I very big, So spending big encouraging see will and and driver time more are more it be we signs on early

On lagging is this particular D&B Event the platform. on Main side, Event Main

Event I you be will early, retarget both strategically integration. brands. platform as a think be so it's this can to merger we having result this but and to there And -- an believe where guest be I still I that across we where of what is power a could Main faster get also also want area where loyalty to able think that

there a here. strategic think is of I quite upside bit So

Brian Mullan

Thank you.

Operator

of The next question Miller comes from go ahead. Sandler. Nicole Please Piper

Nicole Miller

Thank the comp? -- you, versus good the afternoon. comps and translate Could D&B on you year prior quarter-to-date to please Event Main a

Michael Quartieri

that's release Yeah, me, that I'd excuse well, the information say app is the -- in itself. the in --

Nicole Miller

is. it Oh,

missed numbers it, trying versus to the XX XXXX so Okay, I -- then the I wrote are get down very XXXX, but I'm there? think in and XX, still versus are I

Michael Quartieri

with omicron. corona 'XX have of we we The No, entering I'd place potential versus versus were little, a virus coming of were items still that we period misleading the is it dealing the of and into 'XX only because then taking in some had were as numbers. XXXX unusual say you that recovery the out

So to everything we're comparing only back now. perspective, XXXX for publicly from our

Nicole Miller

what of we I where we guess right built do XX% I comp the average convention do code, or and was, zip a is to take this higher that Can are guess XQ average is sales, now, if of can't XX% models way, off weekly is ask math I is are the the is can -- sales do, prior weekly we but so that then you translate I'll year, it the that it that what Speakers] that's [Multiple that take that well, it's guess quarter-to-date,

Michael Quartieri

over period is the board. XXXX versus comp It's period the all because XXXX the

Nicole Miller

that with comp. the that in are sales weekly average So go

You seasonally would XQ. sequentially just adjusted XX% be that in XQ said about right of like had

So that? right that higher with line now are than or or trend lower right are the in they current

Michael Quartieri

They're pretty much in line with that.

Nicole Miller

or one Main numbers what would the one a have My margin been are through the of would there of is, reconciliation, go month level three and off for months informed going been total. information be the Main store again, materially then Event months month been have think versus is And folded if second bottom all top question there? we in and one line Event three of of kind can for and month different from this had I

Michael Quartieri

Main Event results. our in difference be I periods think out the we informed a there. up month between significant can to versus one third post-acquisition go There first the the from the period for not you and picked of two is that quarter

Nicole Miller

on demographic maybe be seeming are go for demographic then previously? you the the Can picture different could and that or today similar example, really -- example, then is but big And it by then, little profile? just aspects important you are a Buster's was for different? different deeper to they're talk same, And Dave it the important know Event age, a aspects that maybe most for versus & how I important question. what what about what profile Main And discussed, you've

Christopher Morris

Yeah, is Nicole Chris. this

as you will where think in Analyst our in because strategic brands attend able ask what wide see a where big to that do I'm both Investor very going but the in question to think we on time I it that only be said, time. period that is Day to over the long With we're context put I just opportunities cast a forward answer of and all point the for question hit net. we that both of move pause QX not brands

I to Main it's of have is, gets we Main Event adult personality the wide different of little occasions. place of personality males, Event, the & but and Buster's family-friendly & Event plenty is Dave more Buster's think more experiences adult that's as family a gets audience, Main the will appeal little a young and place friendly viewed think both And both brands brands plenty typically for sell viewed ways, personality. a occasions a Dave a of very in that's but I

them of the opportunities have in for and in brands many Both see been we sure. for both same have markets years thrived So these those markets. of

research. our And from Investor so and through you the a of growth for brands. walk when at findings all see the lot these opportunity both Analyst we'll -- Day, of we But

Nicole Miller

then then things plan. the inform to mean, you're That's be forward there's to with there it super things can that. move by longer-term Is understand I informed fair. I -- work fair strategic that say you a and doing is that'll that

over the right, really we're fully bigger absent and that perspective, it's think suppose development, and that? just but period something kind and the the next and maybe guess months we certain formed place driver then taking then six I taking strategy one, on what page that three -- certainly about comps same should like course from strategies So I of there are coming five-year

Christopher Morris

I'll of we're business reported you both brands Dave & there's a near-term look focus and at both We what Event of on momentum brands. incredible a the just brands. is, for our just record-breaking quarter lot performance having executing for and sales success Main you plan tell these D&B the Well, both is when at in individually, comp store Buster's,

currently And improved sitting so the here in. business quarter the momentum plan is is working and we're the that and

to continue execute our just immediate so, And priority plan. is to the

more fine each in think I focused do shareholder able to over over businesses they're position need I through little a we reach where to a where of on a a more way time. that's as a a period value bit that's to to time, do these But perfect businesses. in just period of we both so we're created in other, how And upon their where think time effectively maximizing strategies. we build five-year And the in point already five-year been of grow complement to both way of momentum where tune potential these the we're our

Nicole Miller

Thank you much. very

Christopher Morris

bet. You

Operator

comes from of Please question ahead. go Raymond The next Vaccaro James. Brian

Brian Vaccaro

and evening. thanks good Hi,

tell sure I'm same the what make quarter-to-date, for the in to dollars each Mike, brand still clarify to little the us page? are you we're weeks just confused. first all AWS a can on five Just

Michael Quartieri

call, on is just sales us this Yeah. Unfortunately, would the we don't of have you to guys us we store do data front increase. what point that comp piece so with of in back

to commented, also We should help looking what be what if that constitutes so XX-Q to give read you getting in both brands sales able you're for the non-comp about some you for.

Brian Vaccaro

guess and mix few months what degree sales the last few see the customer to are more quarter-to-date positively the to to months. evolve in attachment more note? changes families last you or come into stable over holding and more The perhaps curious to F&B is back continues starting even Okay. Any move normalize. you are the that seeing there I and I'm

Michael Quartieri

really board. it -- that to the very it be No, happens it's stable across

any really across that driving before, As much have is that's Chris in board. the it's one particular ratably we mentioned increase initiative not pretty sales. It the

increase real attachment in We size. seen any haven't or check

So from that perspective, it's the lift just overall in an business.

Brian Vaccaro

to margins, could. And back I if Okay. store

but down guess points know if it's And missed OpEx sequentially. other a could marketing just what also basis XXX drill further nearly not that you your it, I spend sorry was little then I And in in second apples-to-apples, was I line, quarter? but up

that understand clearly? to trying Just more

Michael Quartieri

the or plus total know as hours as security at you of as into other security require expense far night marketing late and point. get say you that would more And will alike, will local biggest because the goes, components that spend XX during operating probably cities around as further would I for quarter. happy probably authorities include the was Yeah, million

officers that off-duty outside of services police are it as we in aspects included as and cleaning went. number as some janitorial number So have that a well as do to we relates

in difficult at we perspective, because hiring As pandemic from those key the that point primarily drivers item. services was two line business within back are to we other used outside the a in reopen of that handle portion that but that time, it individuals

Brian Vaccaro

synergy raising million. one Okay, target thank you about you. for me, And $X by I think the last talked

Thank little color incremental that savings you. identified? on more the a Just you've

Michael Quartieri

have extra than To-date regards two more pleased help on own. our companies the been the on able it. coming really so cost what I through the to purchasing or $X comments whether that aspect million power of to food in in see we piece in able combined offset that inflation, about would increase in the having to most that think is of being the the that's sold That's or our beverage ability we're side, earlier achieve that my goods we to with combined

Brian Vaccaro

pass I'll great. Thank along. All right, you.

Michael Quartieri

you. Thank

Operator

Please Sharon The Blair. comes go next ahead. William Zackfia from of question

Sharon Zackfia

afternoon. underlying G&A sure we what which how hoping I'm had read the the the a and could in bucket. Event costs you like. release Hi, of good I detailed looks know was Main much in was you I G&A get on not but that actually acquisition integration

So half give and the a the it could core you what of good us second lack for why second run year? of of phrasing the might in would better for an be rate a quarter been idea way of have G&A

Michael Quartieri

charge -- look EBITDA of about you the cost entity, in combined million the if cost was included our G&A in in Yeah, been $X.X of $XX million overall, included which transaction G&A combined as would at the could we that impairment which G&A. were reconciliation have well roughly for see as was you

other items line called comp separate like out and The are items. stock-based preopening

so that a would look something around the we stock-based And that for also basis, like say I'd would which mark number $XX include amount. quarterly at in somewhere compensation G&A fair is million million be probably on a $XX go-forward also that

Sharon Zackfia

so a lot questions the not very Thanks about of for good your prior that. are quarter unit price very, comps And then and it sounds on seeing elasticity a level you're on. margins, far of in third follow-up like obviously giving just some

plus figure a rather your equation? targeting just around the quarter you volume quarter and margin high but the of know level prices the guess we out you back by go dynamic seasonally the I I'm philosophy to trying would quarter holiday low XX% or knock pricing unit as for I a margins, So think about level to and the third are is getting

Michael Quartieri

to, the XX% a quarter really being you that through, tremendous you low, due around at amount is When the speak about high to seasonal spring has flow seasonally if period. we it you place that think regular margin that October, get I'll period in to takes it QX, Well, QX look experienced when in timeframe. break especially the of your November

that in won't is XX% those type -- see periods. there plus we So EBITDA margin

you'll periods. what during for rate something been historically closer think to I mid-XX% more those EBITDA see run has around a is the normalized

Sharon Zackfia

level level EBITDA? store unit talking Sorry, was about not I

Michael Quartieri

between see level two we the about, consolidated store between is a maybe X% call mark those EBITDA it at level. what versus about probably Typically, the

you XX%, typically if mark. would that what So store the your going assume you the to would that XX% XX% be overall level versus mark is be around margins see closer to

Sharon Zackfia

appreciate so points this to that question the EBITDA and for been for XXX quite really is basis a color wanted during to you The that of improvement the last year? back me were, year. Okay. to while, margin earning" basis function about that the XXXX in points that half you you're company to get not just the it ahead mentioning, a back Last just was the be, a I have staffing relative bit "over running being guess where on XXX of of expecting up

Michael Quartieri

when over little look as of There bit that, a earlier, commodity QX, I same the now but it's a at inflation you ago our time, said X% at is year XX%. was and

the had pandemic, after out team the management prior basis right XXX it back the put points. although the, call So relaunch the after

higher all all been it's XXX commodity that whether to inflation the effort rest within of So just increasing triggers higher that as basis part as labor services, real costs, we that's a despite improvement on our that that keep and increase continue have point P&L all have fact of face. well cost the the to through utility you to inflation outside overall

fantastic it structure without to level start pricing in a job price we've health making only afterwards going Main Event and item of acquisition we prior best before sure point at digging do possible the company on hurting every we where that of increasing the you and the company. got into can line we're can of done so growth you that because to has cost to the and And up the the margins at continue the take overall top we're just order the realize keep a over certain this to

Sharon Zackfia

you. Thank Okay.

Operator

concludes conference has disconnect. This today's session. you now you attending question-and-answer also Thank and now concluded. The presentation for our may

Dave & Buster's Entertainment (PLAY) 8 Sep 222022 Q2 Earnings call transcript