Dave & Buster's Entertainment (PLAY) 28 Mar 232022 Q4 Earnings call transcript

Good afternoon, and welcome to the Dave & Buster's Entertainment, Incorporated Fourth Quarter and Fiscal Year End 2022 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 Cory Hatton, Vice President of Investor Relations and Treasurer. ahead. go Please

and operator, everyone the on Thank welcome line. you, to

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

be to Litigation be discussion fiscal to discussed, not considered items Reform begin the to Act on fact attention year-end on of events call results, based we should relating fourth Any statements responses meaning and historical future our our Before of to XXXX. quarter fact. which are may in forward-looking like within XXXX items I'd Securities your our remarks the of Private that these the company's and certain entirely the questions,

Information actual available factors All could differ our website. from such to published are been the uncertainties, and filings anticipated. forward-looking our the are in statements with cause SEC, to results uncertainties risks have on which various on which subject those and risk

accepted addition, principles. In today references generally include financial that remarks are under defined will measures not to our accounting

ended non-GAAP measures including Main IR contained Event should the section of this XX, Also, of website. forma and of Presentations financials, the also are website. January pro the quarters reconciliation XXXX, the Investors bottom our our available comparable for GAAP is review trailing measure earnings which to these available in afternoon, Events released announcement on at X our the

call the Now Chris. to it is turn pleasure to my over

our everyone, afternoon, Cory. joining you, Good thank and you today. Thank call for

strong our driven business continuing strong growth to financial quarter pleased tailwind results its of by to report Events fiscal mark walk-in of toward recovery norms. Special the and We pre-pandemic sales our another year-end comparable are

$XXX the future authorized million. growth share repurchase well have initiatives, the of testament confidence as program a as a As Board our to we strength in our

energized on Fresh off business and look Managers goals year deliver value and to we've center Conference, the our with our XXXX the in continue beyond motivated set the to employees to exceptional Annual General our our heels to as of operators and of you potential. support are sharing for progress we the throughout forward our stakeholders. course drive full our creation realize We for

On our in to planning. merger one, term effectively our integration, areas, profitability current managing and call, last and inflationary ongoing sales we discussed our managing strategic the long-term focus the two, in pressure the three, business, three near offset

merger progress Starting report all to meaningful have areas. pleased we with three in made I'm our integration.

Our team has continued work on area. this their focus exceptional important

We annualized have cost necessary initiatives million. our now original implemented by of million achieve to target $XX $X exceeding synergies, the all

are so of pleased extremely able that to do schedule. and We ahead synergies achieve we these were

point thoughtful environment. have prior on to first continued XXXX, this teams the our the XX-basis current versus a enabled with Next, improvement margins pressures in quarter, mitigating operating work, versus XXX-basis and to phase of increased inflationary point and improvement We pricing us operating efficiencies. expand work year fourth store the out a to the inflationary XX% despite which rolled

We focus operations, are in opportunity bringing sales right our phase peak. primarily in the back our elevating It's a house now of removing through consistently of significant the experience deliver on complexity revenue to place, and hours. the given week the guest A work portion in greater right at time have hours are optimize generated paramount focused during people, the peak experience the of and on during during to these peak right we management. guest next to the busy weekend

team operating to peak tools right maximize throughput model, management approach and worked We develop during staffing with the our closely time. have to reporting

scorecards run to as business. long to operators the over hospitality needed for These server the in are unlock of are make with adjustments model reporting in-the-moment information beginning to real-time process shift. developing provide changes In making tools a real-time a the coaching the be our we new our addition, throughout will of just and and in-shift we

Our commitment focus greatest be guest our to unwavering the advantages our the we on experience this competitive supporting of business into one and will operators as grow future.

In on execution, the very line controls and our addition work are to the operational portfolio. with top cost we throughout momentum pleased

to quarter continue healthy rates. As visit guests results, and walk-in to our spend Special and driven trending fourth by by indicated strong pre-pandemic growth Events at levels,

Titan we November, & with value, localized a World Play with in Cup offer on scores Combo. visit experience marketing Eat to followed intent, modern Our calendar during highlighting favored second Dave Travis relevant guests. sports fall sports This to returned fourth and quarter especially Busters in our the core included winning In viewed America. and & a way uniqueness watch the Super at none Kelce, season Bowl guest featuring This our most markets. key select program football high in is programming

We and from product that and are creating offering amp-up campaign well NCAA tournament the watch week $XX.XX this appeal, will our we off menu. the $XX current and basketball Dunk of spring into a further watch choice with basketball extend NBA the value awareness deal, launched of with To our Power our the entrée Slam Card tipped playoffs.

to across growing we and loyalty our addition D&B million of are with to occasions. communicate store all more members media, X.X aggressively our Rewards efficiently In above database leveraging guests

innovation and & to Dave relevancy, We tech-enabled are data with hospitality capabilities our media and the drive brand. digital efficiency Buster's building out

lagged of pandemic. Focusing Events, we Special the coming business which rebound the are of out our of encouraged on Special continued by walk-in initially business, momentum Events a

our have is executing the & generation coupled spring is lead Special significant making Dave advanced XXXX. we website, are which since already Event Events to our ahead for bookings a Special difference sales QX season, launch. in period in graduation of improvements structural This teams Buster's yielding revenue changes for made preparation that In with

continue beyond business above levels. grow to that All this of will this pre-pandemic gives us confidence and

further finalizing undeniable the company as that location-based on leader strategic focused our entertainment cement then value. in shareholder drive we meaningful Finally, our and will plan long-term

improved upside there this business Our in has through reinforced and several review significant belief strategic areas. consumer an focus ongoing key our in research is that

Now I'll on the why with focus Day, ROI, these our in of our lose hear rest opportunity XX, management efficiencies never on walk from in more around of an Today, we Investor and of sight May we near-term. directly virtual with execute you senior host time you plan. Then will through operational we will key long-term to initiatives to of a our the provide detail we give allocate maintaining elements strict you our some will plan team. where the

strategic first, drive relevancy. Buster's & held high With key is and X consumer. includes awareness, the XX% brand in brand brand by plan points, long-term the Our known Dave well regard

and grown brand more ever D&B be However, on evolved, as the than needs articulating its relevancy. the focused has to category

good Second, only and intend experience guest our to the we country. reimagine the that over create relevant technology revolutionize the guest-facing to We all we stores guest as in on through implementing the as developing deliver experience. experience. experiences one-of-a-kind we are guest We enable know the way a

Third, bleed-through innovation.

growing different ago Dave having the business differently. Corriveau entertainment we of things XX choices. years to and dining innovation with desire and consumers spirit in Our many the Today, robust Buster do a created operate and Corley this with category founders,

only to business. areas but of We category lead in throughout entertainment, this the a innovation, through will continue not in all of building culture

image] [ph] several through since [free assets design It's our brand last we years updated facilities. been remodels. Fourth, strategic of the our image through

several the remodel growth. sustainable intend Over brand to position next years, our to better we fleet our long-term for

than will Our a more involve image. just remodel new program

adjustments these this look plans new stage. the fresh make on product certain mind, Keep of a offering. to and plan guest just expanded addition and our hospitality In execution, and outside at improved engagement in our an for operational stores, are is to entertainment inside

As move ensure to opportunity return follow model this will maximizing forward, we we through are program. we on test-and-learn capital a

of our global Fifth, footprint. expansion

in anchored to the successfully will Event grow execution brand brands & heights and globally. new operational and We domestically Dave develop continue and Main strategic planning the and Buster's in business,

already in you sharing laser on points made with May forward more on our all and We this XX. meaningful look to these team of Day progress during on Investor has progress details XXXX. five is virtual focused continuing Our

about of So in the excited we are closing, extremely organization. future this

& brands by of models, operators. a strong Dave led and have group passionate Buster's have and two are These talented exceptional Event. assets Main business industry-leading brands and We in

business a have clear sight a world-class track We this team line and of management record with strategic a proven for opportunities on execution. ahead the superior of

is potential. We tremendous and to there potential continue our to believe we that and realize company working this are stakeholders, upside diligently for

over let that, year fiscal the our me a of results. review with Mike? call to Mike fourth turn and quarter So for

Thanks, Chris.

guidance with million of by will in record of generally pleased We the revenue the in the the we our results for provided We're financial changed record produced of adjusted business. quarter. a fourth the EBITDA We adjusted of $XXX quarter. generated the you fourth $XXX release Aligning power million reflect believe and EBITDA SEC, should adjusted our EBITDA. normalized notice that earnings definition with

addition As earnings existing a the definition result, of historically associated of and items, base noncash not adjusted preopening expenses nonrecurring expenses because one-time preopening certain stores. excluded of to our EBITDA with in were the

our true reasons, we existing back credit that While we have power still to compliance provide the added agreement. in certain adjusted of readers expenses base it normalized expenses to note adjusted our with regulatory debt from of be EBITDA earnings with Please reflects adjusted will EBITDA our includes EBITDA. covenants. longer credit to adjusted for with our stores, the along EBITDA back preopening the the believe of exclusion as with for adding the disclosures we no measure reconciliations items Credit relevant other of preopening along add defined appropriate

XX.X% represents points of definition, Under we quarter new our XXX fourth in which EBITDA XXXX. adjusted above increase basis the produced margin an a

preopening basis margin for which a included above the EBITDA expenses, quarter, been XX.X% points add-back under For the prior our XXX comparability, of adjusted would XXXX have definition, levels.

target from combination we million mentioned, Event. synergy of our successfully annual Chris Main $XX with have As achieved the

we additional we supplemental completed this ahead Buster's. Financial you March With like and operational titled we are posted improvement Data pro section store our laser-focused in day Presentations Dave at Pro continuous regards to to schedule, of comparable forma the and of schedule & Supplemental figures, XXXX every Forma website. to excellence, driving cost sales what Events ingrained I'd direct on remain all savings, in of which do While IR our

and consolidated XX.X% I'd strong on like versus quarter sales comp to comp XXXX versus fourth a comp XXXX figures basis. of highlight the XX% in the

Special of Special total Events pro with Food revenue, versus of this in increasing our increasing the business forma toward will this Beverage XXXX, expectation on and Our XX.X% down comps QX QX levels XXXX represents business, to XXXX. revenue XXXX. in the positive a our versus continues that XX.X% pro versus mix move with pre-pandemic an combined forma with Event of its Along X.X% quarter basis recovery recovery

during the an our ending total quarter, million ended flow liquidity cash generated available for the with We operating fourth contributing over $XXX.X of $XXX combined in $XXX million of $XXX cash on balance to when of leverage profile. million $XXX million quarter Board-approved our million total the net and $XXX feel current We revolving authorization our X.Xx. very cash with leverage repurchase credit liquidity under ratio comfortable We share deploying with million facility.

spending, quarter. four Kentucky We Event new one plan million Turning Arkansas Main capital in Arizona. we stores, location and To-date, be to the Rico Puerto fiscal one of And new total & this San we'll invested Lexington, opening during and in Texas Juan, have Event of Event-branded Dave Main in Tucson, other to one the we open and in Main stores $XX.X in in the store two a week. opened opened one new Beaumont, first capital quarter Rock, 'XX. additions Little later additional Buster's-branded during

open plus plan locations Main new total X a 'XX, of Dave fiscal including year and & during the Vernon We Dave XX XX Hills Buster's relocation store. our of Event & stores to Buster's

an per the we and fiscal of year of 'XX. million XX.X% diluted $X.XX We per in income fiscal million and reported million fiscal fiscal full of share revenue increase 'XX. $XXX.X share net $X.XX For or year net billion, fiscal XX% diluted reported an increase in $XXX.X or income from from of share of $XXX.X net year 'XX or 'XX, $X in 'XX per with fiscal diluted income of of 'XX. compares $X.XX That

XX.X% We $XXX of from of increase generated million, from XX.X% adjusted increase XXXX. an of 'XX EBITDA and an

Finally, strong. quarter a comment provide our this QX let to-date. Overall, performance on brief me remained operating performance

single is QX strong the Quarter-to-date, QX flat omicron sales to store that the roughly in year, pre-pandemic down is versus digits of 'XX. last period up you to comp As which are low our very relative occurred period. recovery still nicely up know, against the same

unlock us progress-capturing of our to our To opportunities on ensure our closely remain returns growth value strong extremely highest macroeconomic summarize, we to the and numerous about environment. to two and of we for and experience for capital are growth business, great spending possible pursue and maximum the synergies, We execution challenging despite these deliver strategically talent drive managing team costs excited brands the focused shareholders. the the in the

Now operator, for line please open questions. up the

Instructions]. [Operator you. Thank

question ahead. go comes from first Andy Our from Please Barish Jefferies.

good give just expectations some out a fourth into November Hey, X% of just us in kind calendar guys. the afternoon, shift. continuing color some Obviously, Can the And up quarter starting versus here? of you where unfolded? with sense little upside strength you then, spring will be terms your saw and the how

Andy. Yes,

made that Having business you lighter we some December. come days the be through headwind, of Special prior the Christmas the we out So when provided to given December leading and that as early the timing on knew Event at turned of a bit But seemed of comparability November start on number break winter than the holiday were shift. was the say we as the students. given And with, the holiday. up played the a in calendar we looked all to the expecting, a a for to call, Saturday Sunday, little of what expected. I perspective January on as the commentary were for we holiday you would prior noted, on calendar of Christmas would

single-digit last perspective, number And pretty in seen this results So on through of to from end low basis relatively the continued that we we've been very week. that flat quarter-to-date great that January. momentum. February we've the much saw

then, thing, way. add a the And of couple the just only to Andy, that, I'll by comments

the communicated there mismatch So is as that Mike Events. weeks relative Special to we to quarter, timing a mentioned, when we of started the the Street in

the the quarter respect out fourth out with one played to that fourth the anticipated. played out And so shift, way thing we the exactly is I'd point quarter that

started call, in we And so saw and a it had a quarter was at that the the confidence we slow, of lot off of momentum lot beginning We the tell business. of time though of even the our quarter. there to pick when those due the of momentum, And the look that towards that did through bit entire And pretty momentum a throughout up the you was steady shifts. calendar things quarter. end shift, of little could kind

QX. lapping lot in as time last of very a a this our story. noise, spring into in going of There's that early sit looking the good through and quarter great about feel coming we out omicron starting there's the very of numbers Where similar return We just feel it's confidence today, our of with a about we've have created. the about all in omicron, numbers noise noise in we're this things. and excited just business. We're of in we still But the just we breaks year, long-term that tremendous momentum we're and where strategies, just lot

[indiscernible] the cadence the for the are follow-up that How opening think we unit is about should start Thanks other quick for open too on XX And of one color, to the year rest Chris. fantastic. the just year? the

Yes.

included you of in year, QX I QX. be back about XX then in in split the We'll and think think X at apiece, have have first between QX, store. half XX being X Hills the the planned openings it, X in the the will also remaining X QX stores store half equally in with we'll QX the and relocation when Vernon of

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

and Thank good afternoon. you,

flat single little sales. Andy's So a some quarter-to-date digits to of conversation, just of low on down a but bit follow-up same-store

X% on that out understanding the bit that based are Street's and comparisons for mean where give sales? to quarter, called noise. guys what of are just balance for other QX ultimately given for little So the you looking of same-store What a of the you have you the balance the some context, low comp. Is the of comparisons for in a does seen play quarter? what already Sort

that. Well, is This I'll take Chris.

quarterly very can be We've what figures what to tell is, guidance. know, where in at our As store and you if with not breaks business that there's continue pleased comp anything looked this But don't would see of here's the in tremendous sales we provide I trends. more we try to to we momentum timing lapping there's seeing that change our anything understand of spring in there's We're a difficult fundamentals sales just a comparison. than suggest this business. significant you

it's we And think nicely at in choppy play we comparison this just to because sales shift it the this get continue that through in things long-term. when numbers hard beat the and tough a to get so guess point the But comparisons is really with going that on so time, going our business is, tough are near-term just the perform and over best are in is breaks. the where to to out spring the

And to what so exactly know we is there's around uncertainty good. feel just that that we see, still a be. everything and based we on little bit everything But very that of baseline going

Investor Okay. And mid-May the follow-up Day. is Virtual

are cetera? investors It get little of this we unit the sales for or what be like anything bit there's gave today. either mid-May that You So sound 'XX. development across longer-term or Day, us unit get guidance looking of when should guidance you're sort to beyond offering short-term doesn't investors more fulsome to Investor But that, expecting degree margin a level structure, et for? same-store

Yes.

the longer-term that that a with tremendous opportunities Our business really basis. and company. you able provide guys reality upside great to us kind And know lay how is point, have basis models, looking the really be against. to you we some we're we strategy be realize feel is guardrails we it highlight view we is guys. we on a view What that accomplishing Investor for to long-term Day you for that's reasonable the out longer-term have I all desperately has and of of to what executing but near-term, mid- on a there's a of a for want the And on in front to the call are specific what opportunity data we all like approach near-term company going of we are to want to

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

Good Hi. guys. afternoon,

period can the least a been as check as lap of Chris, comparisons this the has trended or kind at or normalized follow-up, how Mike maybe help understand pricing quarter-to-date you give us what Just us or traffic you the more period? for in has

Sure.

always of So the look, overall of kind we've given company. the perspective

We into the the of comp. omicron haven't versus business, and gotten overall traffic details Things moving in We strength against it's the are price. relative tandem. see in

So it's this at drop-off we're in that end consumer. just in time. the point not dramatic that seeing We're say, like not seeing at traffic, lower a

sporadic So of from weekly say, noise going is our relatively, call and and business the perspective, the to one component any and it, that I'm that, we itself. is it's across the business tied see to consistent in board specific performing not

then Okay. a had clearly I about know accelerating unit development. you development are here. And I guys question

us volumes, investment you what they've like the what unit is, So to the today like targeting XXXX, I'd what that? walk margin unit And for versus and maybe through today in maybe average can company relative are economics was something doing you XXXX? to costs XXXX, or how changed understand

business of today when at had by call What years the the see concerns would that do perspective, But build have we'll Investor to type development, landscape construction that been in are versus able the just a Yes, profile cover or don't had that market. itself we will diminishment that at Day. inflationary the I'll than be what XX 'XX return more we any on overall we pricing around offset color prior we something from I think into you what that. you've inflationary the to have in look we

Please next question Our comes go from Andrew from BMO. Strelzik ahead.

spend can here. Maybe to are out, would contributes could or you that, Hey, curious afternoon. round -- or F&B in reloads parse questions be some the on some levels be maybe comment near-term great. that of I'm if out any not just you you I'll good change may that seeing either you're of seeing maybe on that your in just confidence if and sales

highlighted the he add Events thing chime levels. we start I'll then let XXXX that anything business this and the of to are of piece Chris as and higher business to business Special component the of are I'll to become seeing Beverage if Food the to else. we and seeing it Amusement. in wants The than back return skews before, a and one Yes. side is That bigger does

percentage are seeing and in the uptick overall revenues. a we of as Food an Beverage So

than know margin Food slightly a As that and Beverage does you Amusement. gross revenue have lower

on the shift quo the margin that in just our But operational we're will and Tony little of that So the doing, team that pressure pure in mix status on put things more bit place the a overall impact are than we given have a offsetting basis. numbers.

Got it.

Okay. That's helpful. And longer-term a then, Thank bigger maybe picture, one. you.

which to what some you're over achieve? envision the new your is more just hospitality longer-term just time, said you look you trying opportunity. describe I mind model, you Can like is operational what about improvements are unlocking how the mean of guess, a talked that potentially model out? in you phase, implementing I that this You hospitality like in playing this next

an you color where Investor spend to What Yes. do how on you it. just area that. do we're general sense, Sure, I'll we'll time certainly, happy a May Day, be on. I'll on considerable give Andrew. some this But I'll thinking I'd is during about is give the more XX,

in hear again -- some time. of amount short XX,XXX XX, a so very in a it feet, you'll able Chief feet, to we and large volume XX,XXX XX,XXX Information we Officer, cases, May essentially, of Chief have considerable our very and to so from And Officer. Operating do assets, you'll square square be our period directly But hear on from you'll I'll touch

have about to a have business, think And think you I differently restaurant than when to. what our about certainly so hospitality we would the model, in it think

really where that and able how we're traffic challenged different as flow, ourselves as efficiently all we needs every we're an venues our the the center to we've way that through create sure guest to environment of a where manage make all we catering in our and so of guest way. do step And possible

closely able engaged to intend we be the our tools so throughout stay to our entire with proprietary to operators guest And with journey. work with on of head guest technology and the developing

And details. so that again, we'll in that the Main the technology were lot work on walk already over a we've enabling model & of more this focused on you This Event carried and that into Dave hospitality is through side we're starting we the model it's service intersection Busters. where maniacally human experience. But the

And engaged tremendous just a advantage so gives their more the the that this. specific to throughout tailorize approach every we to us meet that step we're we upside And of able think particular being that service able needs. able of stay guests develop be journey, on guests collect tremendous of data there's as our to to amount to with just then those

guests, us will growing more it help So overall will us more with throughput should enhanced experience. us that frequency building on average lead help our better, will and on engagement managing help more to on loyalty, It which an check. guest

of an going So plan all that's on staged to have year-by-year unfold. how entire this kind we is

Instructions]. [Operator

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

good and Thanks evening. Hi.

'XX stable. relatively versus does March that the comps mean quarter-to-date. on quick seen Correct heard or your incorrectly. change me a clarification you But sounds like if qualitatively; were that I similar that each a underlying don't that It is at brand? you've in believe and in February Just the behavior

that continues overall results, dramatically of to the trend any the there X The that that would we in anything, we saw overperforming versus X note, and underperforming of out of if overall would the was 'XX driving guys. say, brands, call business or was specifically I you

April shifts. Okay. you other hurt mentioned does and how shifts do around? help in March And your sales April, then maybe or those that way the In March impact spring it's view, break and

Yes, I can take that.

of couple a things. So

now. on And out tough combination timing a it's sales beat the get omicron a it's last lapping So of business to mismatches calendar mentioned the coming of I year. as right as that to well of return really

result, week. a as in spring all different are There to are lot a so volatilities And of country. over certain numbers just created week it's breaks the the that

are there was going markets March where to and so is April benefit, some negative. And

in And so of feel time, is underlying the business. going better to we're through once we get what have period that for much the trend a

It's So that's little right time. get a over the now. period at And it's short on just it. to of a tough read of choppy disadvantage very business a looking our

our We on we'd pulled so And like very feel longer-term strong We've the very aspect. business. our trends just keep quarters. two feel good together focus underlying We to good more the in the about performance. still very about

if mismatch Day coming business, a that's grow can use over should there's material then going we We'll continue Investor out be think we'll to of the We on you. of because period this to that will but an period our opportunity we're as to And that time that mismatch. something tell. be of that in be XX reporting, in we better May position update

this as back its mismatch been. that business against of get to and We to a the to continue we comfort going the way through right plan But really we XXXX. our business way work take the is to well that going do lot we're of have growing that now, believe we

And a this still measure business. of health so we that's of think

confidence as gives that us well. And so

I'll to the just add Plus, upside.

from walk-in if business not, protection As see downturn provides and would there's say, our just any further I Event to for type drive, further. fuel, a if fuel even we a there's continue Special that expand perspective, it for, just of more provides business to the

Bartlett comes Securities. from Truist go question from ahead. Jake Please next Our

one very was another I'm are to at But with start looking Great. Thanks and think of apologize trends going investors for strong. quarter is that. questions. for taking that thing year my one Unfortunately, last the about April first I I

think I comp. it XX% was

was flat. up I XX%. March February was think

looks it like So is difficult. April

kind we where was of here, I back Eat really April is it with is, by plan Play that the advertising. My peaking by boosted kind wonder peak question the of So marketing the & So similar? think from goes typical compare. coming

for year of as Slam what Now otherwise? planned see that shouldn't you -- not Should you last have and think did the have a we it's meal. so might what think about we April similar you difficult Dunk one as is speak to kind compare

The the is Yes, same very of fair. I think structure. the deal that's essentially structure

for we've Play Eddie know you've I Play So over has if is Eat not you research, time, been as only that message message of and What in but amount is correctly. the value-driven company period going over fatigue this, that Combo, steady the & time learned, how there's that, the used back my Eat and comes long over brand over again. following company it's Combo that promotion and -- already can uses of at that said in when remarks, certain years prepared for that & performed the a worked a looking own well our when

& of value. structure when take a that message is entertainment the of of so we do better advantage for it it's a combining to And we Combo wanted the Play still great food served better served Eat and believe whenever But once we year.

know, But the our the of And that continue the have same. and of just research to at watch more assets with around build we to so essentially of deal the do that fresh awareness is simply awareness that you're message. the a of side that this big opportunity of on leveraging the the structure season which around introduce us seasonal-driven there's business. great time, the a all same seeing the build business, all what strength And our side quarter is from we basketball again,

that don't The that, in better business November. and in in much we actually April, that performed Eat Play a When versus coming we difference pent-up business. really period when overall big last the a but we results looked was was we of performed of when did at results a last that in it also how Combo, time of the our we believe year between April omicron, how were looked April fueled of see there out lot it demand, of quarter, & at

week-to-week, our and of we But give have But eye we're it. the an of don't next And more we that's update. right we so ability as good last promotion driver again, as to know And an We you think was always plan. keeping now, feel necessary. if it a about big pivot, the time we'll on year.

margins. Great. That's on switch wanted some helpful. questions to I to And

You us inflation, 'XX? Could was you And Food talked food 'XX? your much how labor about and tell in for inflation? much expectations Beverage was pressures. How just what are inflationary then, inflation

take I'll one. that Yes.

labor when So at the I'm you're looking to with start inflation. going --

We are seeing relief there. some

wages stayed when at hourly flat. sequential, look think you I the relatively quarter they've

seen actually same that got decline. we we've a stabilized. we've commodities, So the feel nice that And with

So come X%. when down we XX% quarter saw at, versus went that And roughly in about we X% down sequential it, looking from inflation, QX, QX. to in QX, you're call XX% in to XX% came

proteins, it, on as we we've So this with the call of both work in combination is commodity inflation as were team done that which down. chicken the relief really, to around the been well procurement to component biggest really synergies seen commodity wings. breast that achieve, we've has chicken that is inflation and The able able the get

concludes for would to Morris, question-and-answer turn I conference This closing Chris Chief Officer any back to Executive like our remarks. over the session.

you our progress produce brands. details bright apprised Dallas keeping All much. integrate We of in we to infrastructure the to the Day center on support revealing hard at Thank you of right. May. like to our our to for these Thank look the for the you, to our plan initiatives Thank they future In long-term support Investor all closing, and you continued continue team and strategic that very and the results about commend joining. more phenomenal two growth at would was forward all across the stores for business Event country Main work the exceptional optimize our at operator. our again done

The conference has now attending you concluded. for presentation. Thank today's

may You disconnect. now