Dave & Buster's Entertainment (PLAY) 6 Jun 232023 Q1 Earnings call transcript

Good afternoon, and welcome to the Dave & Buster's First Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Cory Hatton, VP of Investor Relations and Treasurer. ahead. go Please

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

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

remarks this April for directly XXXX announcement found released quarter. measure not trailing reconciliation can our will of GAAP non-GAAP In defined earnings Pro release addition, ended financials, these our Main principles. comparable our financial should are contained to afternoon. XX, earnings the in the in review forma including today four to under include accounting measures that references quarters this Investors generally accepted measures Event the be

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

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

performance. a margin adjusted few of through resulting In In walk will EBITDA million in an record fiscal We you for adjusted to we first of revenue record $XXX record the results QX, and of of XXXX. of financial $XXX EBITDA generated report details quarter moments, the XX.X%. Mike our are pleased million

team the quarter, phenomenal the running a did In job first our business.

and opportunities to breadth team Our efficiency significant identified and operators growth our cost we've of extremely revenue business. to of center on talented in execute unlock employees strategic the support opportunities continue

operational important quarter the we're and model the strategy, satisfaction also are Our of the play service in on the brand scores role achievements our of improved we progress members ambassadors. indicative our our seeing most perfect and as team as guest optimize

offering, our enhancements with ordering team, food initiatives. and our facing efficiencies, simplify we've beverage the upgrading In guest menu, quality amongst process of food, improving are the overall to addition, including culinary and to operating the technology we to feverishly made the improving improve key other working simplifying

remain significant a store encouraged basis, XXXX back particularly on for to levels. by our returning saw growth which We comp business Special the Event opportunity sequential

full heightened we are applying future. recovery business, to We are grow ahead taking clear a of advantage to into the focus the meaningfully and path we with important the have this

level. center at has support growth the these changes And store to The driven improved alignment are local been fruit. team, structural both the bearing changes already by and

in areas all a continue of on will the reducing few Mike more we implementing cost efficiencies As be discuss and across to business. laser-focused minutes,

operating Event, have we into of result labor, locked in to least efforts combination these a have previously our target the overhead. we the base as cost synergy exceeded and sharpened we cost cost sold, million business our as While Main expenses cost reductions of store exist opportunities store goods in controls, believe corporate $XX and with parlayed still running at across significant with reduce

lower these from this combination as expect expand optimization. drive cost with labor our our initiatives, are generation. already In cash and results flow As a improved you other costs, improve benefiting can we margins base, improved input well cost efforts quarter our to see, as

is to quarter, portion market football sports the initiatives to as to and watch visit our continue we campaign, relevancy awareness Buster's even to large our to fall out-of-home experience. in drive feel confident greater ability audience of follow-on in both a America's our our Dave social we new to Watch and dedicate a The is building sports. frequency watch brand favorite Turning by marketing spend place that and

NCAA get spring, leveraged Championships to during Conference events watching word and featured and to Over in NBA we and adults. young the families college appealing sports both XX the basketball were out marquee games

in We also as awareness ran NBA nationally, those XX over spots as communities. create in playoff well to local games key

is season. also first quarter spring break The

spring the programs to we nation. well performance and on as in and for and across so the break. families during looking us and allows given channels top So adjusting and Running nimble break spring consideration ran by D&B these vary mind digital paid to out weeks targeting in parallel, families digital fun social, home based spend greatly of of several stay CRM deals for digital timing keep promotions, as

enhanced and are meet effectiveness. very our we've the our maximize to to about We media excited elevate where assembled capabilities guests that team with the ability digital they are,

long summer ahead, for allow them time things days connect. with do fun young important and both to for our to is an brands Looking to experiences look as adults families fill that

five summer limited in campaign. traffic You conjunction appealing announced time drive features we free Want Dave promotion new & a at to our To Buster's, our campaign high games Know with yesterday, highly You value As

Buster's in we Dave new quarter, and the Little one opened Arkansas, in three new Event stores Rico, store Kentucky. Arizona Main & and Tucson, Rock, Puerto In Lexington,

India in to stores XX agreements five franchise Australia. We and also signed two stores in up international to up for

this be about to of excited organization. the extremely future continue We

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

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

success have $XXX shares, of million our long-term in thus we stock fiscal our shares As common business reducing nearly XX%. XXXX, the and far by see our we have value of evidenced repurchased of we in outstanding the the in conviction

share on authorization. an our additional We $XXX repurchase remaining million have

and tune highly into the have drawn you unveiling execution, Investor at with where well Day line With field flow to X:XX research extensive details work and as numerous forward and specifically conclusions by management June bottom we a XX drive team with three will AM record next you. outline We Tuesday, about levers Central strategy top cash growth, years. to virtual we more as over our we encourage next of track look successful from the to our vision

this to to not want informative You're going miss event. exciting and

turn Mike quarter first results. to review to me let that, over call our Mike? With the

to and financial We're the of $XXX.X pleased million Chris. adjusted of $XXX.X income results net Thanks, $XX.X million, revenue generated first record report of EBITDA record record strong for quarter. We million, relative quarter. X.X%, first of a respectively reflective growth -- forma quarter X.X% XXXX. reflect our the in of basis, pro our On EBITDA fiscal and quarter first adjusted first and to revenue

We of the versus XX.X% our business basis, the model continue are it. realize the forma period in to defend at prior across our levers points one margin basis have pro savings remains confident we profile deploy make drive Our adjusted cost improvement the significant to XX and our first We capital on cost we in business and the on strongest a attributes of to strides, EBITDA side high of optimizing company, an meaningful produced a margin quarter, opportunities. revenue, ROI year

as saw XXXX, investments XXXX will of our as variant. decreased business, meaningful as normalized sales strategic performance continue expand on XX% Omicron XXXX our consumer at improves. consolidated very we versus we of a prior-year store to period. the emerged April XX% and in a be March overall catalyst When that of comparable Also, outsized lower margins were versus from X.X% and up level and basis. a a robust to we cost back comp look forma country confidence the more we we Recall to XX.X% grow base Pro respectively lapped

total Events business of for ratio in We the balance over $XX.X We on quarter contributing $XXX available now generated X first million forma of million of leverage to facility, Special of total with revolving in with million credit to the to $XXX pro with credit. flow when during XXXX an flat our combined $XX.X cash Our quarter, grow operating cash levels. ending times. our net comps QX XXXX ended continued $XXX letters outstanding million, liquidity combined million of the

gives and Our the to invest our conversion in flow system, grow us shares. generation cash ability repurchase strong simultaneously stores and new

repurchased have the as of $XXX of of shares, end existing a the we the X.X totaling And total quarter, $XXX total share fiscal shares million mentioned, we the and we available previously XXXX, million additional at million, repurchased authorization. of As cost at purchases X.X cost still outstanding to bringing our to quarter representing our on million an end repurchase the of shares the $XXX.X first $XX.X remaining of total million nearly a shares subsequent XX% million million. X.X in

Turning spending. new Lexington, invested Main new Arizona to during in stores store opening Little $XX.X and We total Rock, a Arkansas, million one and capital Dave three of quarter, Puerto the Kentucky. Tucson, Event in additions Rico capital Buster's in and

Vernon Lubbock, We have the Queen during already are one track statements, prior other Texas stores Creek, Consistent to Buster's in opened two the Arizona. we and the our and total new locations, relocation second on with fiscal quarter, & Dave in & five our new XX XXXX Buster's and of the Buster's a XX comprised Hills, Illinois Event store. of during period, stores open Dave Dave of plus Main

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

to week you forward next where in strategy in again our our growth look discussing mid-term speaking Day will to We Investor detail. be virtual at

up line open Now can operator, you for questions. the

We come will Barish now begin [Operator session. the Andy Our Jefferies. Instructions] question will first with from question-and-answer

ahead. may You go now

Hey, guys. evening, good

in different line -- that's towards to you specific other operating was modeling. periods. up versus that couple Mike, areas, certainly where or expense operating expense Anything a from the me. in starting Just past along one nice store show our if anything line expense other were improvement point from other that with some can us there specific

things. down to quarter of and starting couple there deflation about approximately a our hourly an a inflationary X% wage rates, our we're about on on perspective, sequential see of on from One, we're little sequential down touch bit X.X% commodities. quarter I'll we’re

that's sold line. our cost benefiting at top the of So goods

programs some are at operating store help that's the supplies, are place of benefiting we've to and we that that, types realize to in that to costs we continued costs. things expenses other utilities, continuing have been synergies affect able whether G&A operating put our Besides those the to look reduce which store of

aspects Got in you. you then remodel you. where entertainment, I'm more just follow-up. of week. kind on the new some Thank And the hear test of the of and are this think some a kind next But Are at we'll gaming sure of into or how things then about XXXX that rest this in point social of we and like stores and the XXXX? those do that? out for

I'll take Chris. This Andy, that. Yes, is And right. absolutely you're

moving Day, certainly strongly catalysts our get at Remodels items. -- to one with key we're really a of be basis. one We are topline lot plan. We've our Investor one to able to of everybody of to sustainable catalyst remodels the week those to our a the the through Next walk share as got of on details see excited you.

early now open to Right first July, be August. will late the remodel

remodel don't have we yet So in market. the a

we year. those and permitting of process expect XX through we We going to we six this XX units are -- are -- have are the done that have

And a really those we the you to so, lot forward more next looking walk week. market through and details in getting will

Okay. Very helpful. Thanks, guys.

you. Thank right. All

will Bartlett Our from Jake next question Truist. with come

ahead. go now may You

first for recent Thanks is quarter-to-date talked the trends the in some you've us on My Great. quarter-to-date, about questions. on taking quarters sales. the giving

you hoping well. I'm can do that So as this quarter

that's one the part question. So of

there's slowdown versus answer the -- building on that pressure, your going question, quarter-to-date that? versus three on sales is you re-accelerating over maybe to what into same-store but is the XXXX momentum looks decelerated and I that attribute guess view of, last like kind declining. it is have the help other to do with quarters, a would has XXXX, The you

Chris. This is

take the of part second Mike that then let take the me -- I'll part. I'll question Let first

few going to So sales practice last we to know figures, let forward our from. focus that moving in just that keep We intra-quarter with providing want our away respect call a how that's able commentary just in. everybody we're of we're weeks doing on the we're on going But currently -- we're provide just more for longer-term so first not to that this approach. be to quarter

just a too seasonality will month during June about really us. small material May comps difference through is tell our there May is, a is two. from into our standpoint. up, is month read between quarter. represents such I and when But through XX% May of that you April, our of just versus those year-to-date of business comps month the typically really the the for I much what year-to-date really But no wouldn't July sales picks The because

So looking forward do and of June into those it months. months in we're Both really very during get summer well the to typically our July. brands here

term. And focus the so on our -- longer is we're more just

Yes.

did looking about say, we progressively improved. to the in did XXXX, we of I during regards in just second we quarter, to one second regards to XXXX, see think versus of I -- thing note question every question would the part this part back your month your

So I burnt you're when being looking in economy was at more sequential, just stimulus the all that the excess the in off. relief was think quarter just pent-up with the around is that there COVID and demand system some that's about from decline although dollars

you've understand appreciate games, promotion, last question other quarter-to-date is and this great, the My on point. summer launched And which I was about lapse, of year. cadence free I that. believe Great, for the but five I re-launched games the marketing

to you're what So do a be of -- cadence to if on I'm -- compare doing terms perspective, more this expect impactful? wondering against whenever in you your summer approach a to be that and -- more reason of have of what you promotional we year a than think driver a this there a is traffic going approach. mean, is I year's more last

generally did -- year than -- to is the speaking, that, just year. we goal prior in every we intend do I'll our Well, we better

just this that standard prior That's speaking, So going to. expect we to hold we fully is that year's outperform the generally campaign campaign. ourselves

was promotion deep typically and What really over brand at months. time I'll at you tell really activities the And long is, team that performance is, done marketing dug the that's the looked our we we when And the Summer big marketing Summer of of has we and that period one we when summer campaigns year year. and and in weakest -- spend. went a really see last Games before we a the has the when our opinion Games, -- really the didn't the when at looked in time, looked back results all moving needle of during the really at of after way we looked

the and XXXX Park. Other when with didn't we attraction it and from that, entertainment the Summer But that it aside than in really of did that the launch our of VR during very our know are know the new -- tied for year guests we needle. But period are looking this Games do value of with to time. We come take advantage eager our offering. Jurassic move we guests and in

felt lead some into more entertainment to we interest we and bring strongly game -- so And bring with room. that needed to the needed we

on based testing. concept outscored the our testing, we're of running our anything far And else by that all concept in offer

just So that we're pretty it yesterday. based on did. the launched we all optimistic, But just research

So time tell. will

cash order your down sheet. to you approach back shares? approach cash looks sure is I Great. last thing see take likely And the I to is an about balance it debt know -- balance share buybacks, would just It I the to where buy end free real then on want since quarter. your your been generating make repurchased at understand But question then. generating quick, to you've and what flow the quarter-to-date -- aggressive the of like like that. you've nice are to was in you --

flow just conversations would the on using forth a are have either That a given piece on of what liquidity to Board. cash the free do we're out comfortable cash and generation balance cash and sheet take EBITDA, approach, taking the and very flow be to revolver we back that conversion from or so. on done our the either debt rest assured, the we to produce able with historically But we've future

Great. I it. appreciate

Our next question come with James. Vaccaro Raymond from Brian will

ahead. go now may You

comps could disclosures. Hi, any your down cards decline? sharper based or thanks, just a primarily behavior XX-Q in be seasonality quarter-to-date evening. think and it beyond on around lap in helpful down to perspective, might color I highlighting, mean, quarter more just circle like first menu how difficult just would was you loaded the I'm any said is sequential are wanted the low F&B changes ask like provide looks is there. that on it had mean, X% worth were year-on-year low basis. And anything to or color in I good trying on incumbents, on about singles, and navigating the I back or both there what driving it to April. a it that decline keep being you just implies in just the the across amounts consumers side normal the you are on be brands

I'll short Brian. was April. April. and I wrap considerably answer no. is and happened higher that's mean, start it up. a the compare let March There's in noticeable There Sure, that between nothing you

lapping in year. we're a prior much So the number stronger

definitely consideration. And a so that's

anything And a our that nothing we April. But our we in time saw earlier year, any to be see there. looking behavior pre-pandemic Mike was a if XXXX trends results changes the actually consumer when year, noteworthy As numbers March of, going at the along we've from compare lines. or sequential of there what to mentioned should there improvement lot aware is those we spent to

Yes.

to thing that in dollar loads, add Power haven't value. seen other Card only on point we regarding decline I to of think any the your

health of there. the So, still customer the is

comp period -- it's lapping which really had combined over you're around the think tough when March XX% it's is than basis. higher very of So on what we a a XX% X% more growth in I

trying margin I comments but helpful. the you to X%. just down I'm X% cost on year-on-year saw, being And math how down I looks you're I guess on back of wanted comps bps is Okay, front, by think, -- then about that. that's deleverage frame the running the it to just was X% and my XX it labor specifically, like to week go achieving and per to

in us the deploying inflation labor how just could provide quarter? optimizing wage you was year-on-year what the more give In you're you the If also you're could Mike, color units? that And on

Yes, sure.

So, out beginning. the is driving Thursday Monday really when getting our guest right of you're the controlling improve sales, that I'll analyzing start staffing that the per and operating we testament with the the we diligent we're now but at team overall day to weekly for labor our really forecast order Tony on to where right is are basis staffing right labor get the at view and the looking overall guests of satisfaction. the peaking in in it How that to labor much the scores have. a our us through Very allows to weekend a place, peak, right right the also having with down and honed on a time

weekly daily for really us. on paying off on and that basis that that I is really So basis, do driving a from perspective, and a type think discipline per-shift about it's a basis, rigor of on it

one and couple $XX.XX inflation, give perspective, QX pennies seeing me that. an in and from In we're over the roughly closer $XX wages second. to a above now just with QX was wage of to Overall regards hourly

had discipline on to and little we able employees have the as turnover rate, the a based practices. people our employees focus we getting We're at left, see that continued in on the bring we're new who that and hiring so around on slightly controls So lower just or learned replace ratio.

of great. helpful. the -- Can stock and back just I share process I paying down loan, on now am are rate some to to your one Okay, go I just about refinancing of allocation. the or all potentially touch you versus your curious think debt decision back the debt. That's on XX%. Thank capital also with And for in on where just term buy last wanted you. the to the you just me, repurchases And

Yes. we greater that of I undervalue to say, of debt. value XX% we have that go the relation the, believe would exercise repurchase our that at how And through upside of view million in felt order looking the $XXX to just in the shares a that comfortable When extreme with. shares

and advantage -- so regards accordingly to to we're does that market take the looking all reprice come there interest yield which assuming be that knocking we a savings there wood be, on refinancing XX In would be the would that. soft and call potential, of desk market, debt off of to is able to that June off

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

you. Thank

from with Jeff Farmer Haskett. next Our question come Gordon will

You may now go ahead.

you. Great, thank

looking a of a follow-up couple Just for questions. earlier to

the one color be, on additional guest would Specifically, in general. your trends first

terms curious slice anything you've more You in consumers little in anything under touched on as is to a pressure? months way there's notable more I'm recent of it, that any young bit adults, if changes come there you want but family, across noticed demographics, the it, shift income, weekday, weekend, but

take sorry. [indiscernible] other just I like one. Yes, who to pointing that wants was each and

And so, I'll start.

throughout behavior I'll has trends. the So no short is the quarter shift is, been answer no -- consumer material you, again, there in there tell

was it months pretty consistent So the quarter. throughout all of three

don't items that we the that of level our get just you of Some into granularity in disclosures. look, mentioned,

you. something consistent. the throughout in if with is that But so, we'll was it really that was that And -- time, material, it three throughout point periods, share pretty at there's quarter all pops up

the all else. And demographics income than particular that's across And more and top only just look falling that in. is from level DMAs at on add of it's of perspective we we're any to that, not the an guests, at off geographies there the the anything Yes. spectrum for also our area not

consistent. So everything relatively been staying has

same-store lot and you investors September, sales sort strength popped sort headwind that everyone conversation above. there am And a of but touched a off has or looking been up of metric of already of also that the as one But is you sort with you Okay. a curious is versus of campaign lost thing asked It's that that, perhaps at that, this sort of on, us November are that, I was that been sort potentially XXXX. traffic And appreciated. this was the in early off bit tailwind. into of of all rolled rolled as just NFL October, again, little stronger of than became theoretical, of a

so subscribe did all? resonance it or you to traffic saw that trends. So you normalization, strength is downshift just won't there this? at call think much but that that you relates you that, once sort around off Do with of a the NFL campaign rolled as to I of it a

a that had big is go I'd Watch you for we that of it level. think It we the that. like that, promoted lot -- tell What win was doing Kelce a Travis the endorsed us. were learned we to And national first pleased the a on someone don't have success time far. the was and we're with campaign, I level side that then at I'd

And decision our the the level, Madness of of that then helped and NBA as Deal advantage -- Finals. at national take as to March do Slam take well actually advantage Dunk inform

But pleased far sales. very the would our difference results think maker I attribute as in very, don't to I with as that go there. the So as

last other the within the we're throughout time, yeah, aspects didn't has in I lapping going those of point granular certainly this or period at -- more made the materials we there it the We see seeing challenging material and summer we're is quarter. year more think know a shifts really just one to shift -- months. We a think, not the lot business. difficult during way -- I

us. summer we're are think Yes, very months what the important I to --

young to it's time come for want mentioned, us the And and when consumer very, us. as is what as to volume I so the going As families, high very well July, does interesting. of be period June, really summer to over adults that's a

week know so, going everything we're about really to are that is those. focused upside a grow that mistake And business number that you on next walking in so through enthusiastic things we've and And that control. when this business. through we're to on plan done we're we of now levers our walk right considerable to us we why the focused and we're that, forward We're of no there'll all look this available can and through walking to there got you be we you

now, we're the more the end trying still really the plan. topline. environment figure our and consumer know and right excited at We'll to exactly out of about So summer lot we're

I appreciate that.

Just follow-up, being again, another for one more long-winded here. I apologize

above margin best can comp you the backdrop the in hope guys is becomes, impressive I'm how can business sort this emails in out the these are drive of, margin there you full or of margin there improvement additional of continue revenue beyond was to real-time or you and levers you what we move guys think there efficiencies maximizing there drive So getting sort the already that margin beyond -- delivered. and inefficiencies to that of have about lie opportunities ahead of is can are this other it you the that margin that performance, the at just done? hold guys And you forward question now sort tilt you on as have that growth. this state that Is that, sort above guys

Yes.

week. So the items improvement. further through that next will walk And that's one we you see of

could you pleased. ton going week, of and off to we're I information be hold to So very if you're believe you give a a just on it, going

when when through our Jeff, nature add, top a to through. seasonality is it I'll that thing just one the especially -- there it your flows line, comes Yes, business and how then

when have see average of topline we've don't pretty period and Chris' just typically would drop to higher point and much been of you the go flows time back about it's always you historically margin see just our that had low period QX So QX, Speakers] because in best QX in QX, general seasonally periods when these this then of our QX, to you through has then kids margins. [Multiple school, and and obviously that accordingly, QX so

understands that's attention. improvement clearly investors is the thing it. think was the I say, of to going seasonality just which margin, the the was It getting I in just aspect

So loud more Investor the clear I at and Day. hear you and to come

it, Thank appreciate I So you. guys.

You got it.

Thank you.

will come Sharon with Blair. Zackfia William from question next Our

You ahead. go may now

good Hi, afternoon.

So on the last of earnings choppy about call environment. you talked kind sales a

related tough trends? the of to kind part are more in in now like breaks think feel it's spring I Do to always in things sales there's March to of that know of predictability lie. mid kind your going to movement late was you where and

of how more I'm whether curious seeing you're would pandemic. incremental like, opening, hear new the before used competitors Buster's back this any kind And & point, as also pressure kind to viewing the you're to about at of, from Dave we environment competitive

go me order. Let reverse in

with respect hear from with we're that's that maximizing on We're We're the it. not mean, I the you super to to week. through competition, something excited this Dave we to going us So have team. opportunities walk of focused front is in and going plans next our you're about -- & there Buster's

to As we to going I get levers able to this so we're ago, pull moving. we're that -- that be have effectively said a minute many believe business we

plan to outcompete. is Our

plan. that's our So

confusing spring last in of referenced, the relative of With it time are just respect period to there because so in understand we call, time that last because that mismatches the answer very time the had is trend the yes, break. to many quarter, our sales, was that period predictability business you of underlying the to

wreaking just havoc that was with numbers. so And our kind of

that have in don't level we at mismatch this obviously, same so, happening time. of And point

chatter fall. at the around speaking, predict in on environment better stuff and spending to relatively in with for the the effectively sales. consumer feel the happening tell that of to we're all that a a summer and environment same get happen All -- so, also it's kind going you time, the to during I'll sales. But in the ability to ways our consumer macro what's And

And I and really efficient down so, as minute that things and we've to we that. in can strategic ago, the to identified. not as we try of get that a mentioned focused try initiatives execute control the can sort as We on be just stay aggressively bogged we

traffic the for per would that Is proxy side you seen on lower on that. one Amusement of have of period? than in for Thanks or kind And Amusement you then card year-ago the are seeing down question loads comp the a the X.X%-ish. kind

that. -- of in increase loads. card I'll an seeing take Actually some Yes, actually we're the

value, the nuance as buying value two cards. is to up kids of, a individual trade get and the card in of splitting that you do there this So their parent higher to customers buying opposed opportunity the give concept as between you that it

the for one there value ability So little bit that other, always kind how traffic indicators is and to to that, for campaigns is a it to also call is of of we're we marketing opportunities measure, but offer customers. watching of that other our it, measure we our and any have as the that

Thank Okay. you.

you. Thank

with Chris will Stifel. next O'Cull Our from come question

You go ahead. may now

afternoon, guys. Thanks, good a I had that. question regarding follow-up

build Power raise the entry like the going has comp coming a are higher especially still to of a been feel because a it given thinking lot performance, about, be the you moving given Just raise Check about performance or maybe little point from the Check with transaction forward. how Check pricing, do pause may Card you forward, that that you can or with trying

proceed that believe protect caution, need loud and is to always is want hear we value something to to opportunity I still grow just we with there because but We the Check, that proposition. clear, that you

experiential guest chain. about think value they than types think these is the -- low on of about looking I in businesses, these value think might for businesses, they differently a frequency, restaurant high

overall so, And on focused really we're experience. the

business. of certain same aspects is that to guests that for and We time value. ways about return giving at there Check, but believe believe the growing there the smart us in something for price certain on We still be are room the

going all and that through think -- what I -- that next you'll be hear. walk all will of with And of week we'll be you're again, to so, you pleased

And is you Event these those of give things cash that Great. Can Main stores I'm the investment Michael, business. curious you how a of opened and of question spending then, open because Events? outlay idea the some of to us much haven't just just costs openings. you're regarding for I see many to some had the what recent terms and in building these that cost just Main an

of financing capital entered the and site. give they then time closing, into to would those developer when outlay. offset the Main proceeds just the leaseback Would Event mean, your historically at selected sale I use use Yeah, have that to perspective,

and Main would foot net into from about at a off given a million, proceeds with those that plus look those investment $X a general, million square it's a financing of $XX in it. over location you Event higher have costing Use is XX,XXX little $XX then has the a -- million So it bowling, to developer cost construct.

the as sheet looking the and is at cash then asset, sale existing it conversion, so doing ourselves spend, on will amount a time sheet that CapEx proceeds leaseback and sheet worth and excess balance that overall an return actually having What given but looking strength will inflate protect get an it our and the ahead CapEx liquidity. free stores our does we from Where that, go makes of open and in we leasebacks funding cash enter are at our utilize your the putting into that balance once turn, balance we're sale by we it operating the in far amount and the with of the upfront will perspective. flow that today and full effort in it better to from

right with all transaction. is stands the as So of time the place pipeline it in at opened Event was the what's of -- now, Main

Murfreesboro our will to utilize be but yet, So sheet balance we had one. our first haven't

you CapEx sale far doing two you we when return on better So a in and the merely get combine store companies. leaseback probably increase is timing $XX see But million is our again, a about an the once asset. historical operating uptick from levels that that will

sales-to-investment will higher the margin you'll are with cash the below returns, have economics thinking you that in about expectation XX% how margin on kind your of the that Is for result high one a plus unit business? -- ratio the maybe or cash

correctly. You're thinking it of

great. Thanks, Okay, guys.

you. Thank

will with question from UBS. Geiger next Our come Dennis

ahead. go now may You

of of of Great, sort and on a the behavior, in here. on follow-up the thoughts changes on One you. resiliency it But any updated lack consumer the bit coming and brands you've of thank quick or you touched the tougher prior, kind any of quarters ahead those into as the of macro what changes notable look just lack over so? relative the of kind given to you seen

get Yes. XXXX, Day, this into but I little that's look crisis, bit market, mean, on I will a go at Investor more when and think, prior XXXX extremely we company the back performed we well. uncertainty the in the whether

sales was comp the Although decline but are. than what the have sales down, adjusted of EBITDA store far comp amount store would less been

much perspective, situations down protective have. a the that Buster's very that from & from of protect type a we staycation into the as environment in these expensive into trip, environments, that of So we there's more yields Dave the into which us then get vacation or of these further And types that's trade an that environment. when helps

good. sounds That

Looking guys. forward week. next Thanks to

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

week. and our you you. apprised revealing for you Thank commend to continued stores Investor our In forward growth to strategic operator. at they right. keeping of Day all look we'd country. like Thank long-term for more progress again next at All the Thank joining. to our our We produce you plan across closing, results about our on team our continue exceptional details the initiatives

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

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