Dave & Buster's Entertainment (PLAY) 6 Jun 232024 Q1 Earnings call transcript

Good afternoon, and welcome to the Dave & Buster's First Quarter 2023 Earnings Conference Call. [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. Please go ahead.

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

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

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

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

ended for can Investors this trailing of our quarter. forma measures GAAP comparable financials, the afternoon. our these Main release released contained should be in including found Event reconciliation directly to measure earnings quarters Pro XXXX, non-GAAP X announcement the April earnings review XX, this the in

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

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

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

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

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

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

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

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

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

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

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

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

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

quarter. the in initiatives market to Turning

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

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

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

The quarter a break spring season. first also is

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

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

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

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

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

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

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

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

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

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

and encourage vision strategy Tuesday, our additional an to Central, our details forward authorization. Day X to have XX, repurchase We you. at share our million with remaining a.m. where Virtual $XXX we in more tune Investor to next on June We you unveiling look about highly

well a successful execution, field growth conclusions a the team from as research we and With flow over with as X record outline top of specifically will cash to have we and numerous extensive levers drawn years. bottom management the track work by next line drive

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

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

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

revenue, across improvement the company cost model ROI high margin prior capital We savings continue basis. and the realizing meaningful to versus make basis deploy opportunities. significant XX.X% We business XX drive points year first a strides optimizing on of forma an the EBITDA our period a in quarter, adjusted to at pro produced

are remains our our levers cost improves. and our investments of a confidence Also, to consumer our will in defend we confident one of expand have Our attributes we to overall meaningful on cost the base and grow lower we continue strategic business, to as be strongest profile margin the side to it. margins catalyst

back saw comp that decreased forma a period. X.X% robust XXXX we in of outsized year very store performance of Pro consolidated respectively, up XXXX, lapped are of at XX% sales a comparable business, March a we as as Recall we April from normalized country the we XXXX and versus and more prior XX%, Omicron emerged the basis. on level XX.X% versus variant. look When

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

We of ended total the with leverage quarter Xx. ratio

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

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

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

in X opened new the quarter, second Arizona. Buster already other Creek, Queen X Lubbock, Texas have Dave the stores during in We and &

Buster's & during of and the we the store. Consistent on are with relocation Hills, a Buster's new XX Dave Main Illinois of our our & period, track Dave locations, statements, XX Event XXXX Vernon comprised of fiscal stores plus total to X prior open

our execution experience our To summarize, capturing challenging us talent macroeconomic and we're in the team synergies, the and business, pursue environment. for strong numerous drive growth extremely to to opportunities despite of the our excited about growth the progress

for in forward costs unlock next X the our deliver look of Virtual focused we'll possible week We to strategy to strategically remain these the managing maximum on midterm in Day shareholders. our discussing Investor returns closely we be We spending where again to capital growth and value our you speaking highest great ensure and at brands detail.

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

Instructions]. [Operator

first from come Barish Jefferies. with Our will question Andy

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

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

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

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

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

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

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

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

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

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

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

Our Bartlett from Jake will with question come next Truist.

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

And So of hoping this that do can the quarter question. that's I'm one well. as part you

guess the the decelerated view there's reaccelerating to X have what slowdown into I of 'XX, versus versus has a with you building Kind question. -- same-store that 'XX, pressure, would to? The on like do is But on other is quarters. sales your going the And attribute that help maybe you date looks last that? declining. quarter momentum it answer the is

This is Chris.

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

call, want everybody We providing away just to a practice respect to our a moving with that our going last figures, So we're we forward, focus keep in know that on intra-quarter more just sales that's let approach. longer-term from.

our to that weeks year-to-date so really But comps quarter comps we're material year-to-date what there's going be April, not through in. difference just you for tell of our May few to -- I X. through versus currently first will commentary on doing able provide we're is between But those no this the how we're

up just of quarter. really month wouldn't I is represents about read small business really of May a The picks too standpoint. into just sales a the But that June from month for when typically during the the seasonality us. much because July our May XX% such is and month of

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

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

Yes.

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

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

I was And the that, believe, you've My last which about lapsed, understand X relaunched Games, Great. promotion. on for free year. of quarter-to-date other Great. this appreciate point. marketing. question and was launched I of I cadence the games But the Summer the

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

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

speaking, to prior brand during going just is has outperform the of you generally we What to. we promotion I'll this a the that a Summer hold ourselves summer tell expect That's that campaign. standard is that's months. typically done campaign Games, So that fully year's

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

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

so more into offer that all by needed felt of testing, concept room. needed -- bring game lead entertainment, far, outscored some And concept interest to testing. And the bring running, that to else we in with on strongly anything we the and we we're based our our

time but So we're pretty just optimistic and just based on all the research launched that we so it did, tell. will yesterday,

last Great. Great. quick. And real then question

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

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

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

X% quarter the sharper And to comps based it down singles. XX-Q keep wanted it circle And the I disclosures. a in about quarter-to-date, a brands low perspective, to just had mean on like were basis. just April. on first and year-on-year you around both down trying ask It to in looks decline your it in I was back said implies

are just any difficult And seasonality the are there across on lapse? amounts highlighting, cards on think anything could the menu be driving you be the or you just Or there. loaded it Just low might changes incumbents? mean behavior normal more I what side that primarily worth navigating helpful F&B color how or in like is sequential on would beyond being color the consumers provide any decline? is that

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

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

that's definitely so And consideration. a

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

Yes.

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

So the is still health of the there. customer

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

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

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

sure. Yes,

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

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

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

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

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

of we the off refinancing looking exercise Yes. debt come undervalue $XXX order of repurchase have XX. of soft extreme relation greater just In shares we to to would comfortable I does value the upside believe go that our in June the regards a the that in potential, felt shares We million that with. to call the, at XX% say, how and that through view

there a And of interest take all assuming yield market, wood so be be is able we to would accordingly debt to savings looking the advantage which we're be, there off to that and knocking reprice of on would that. market, that

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

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

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

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

pointing to Jeff, and were like each other and wants take to I'll sorry. Q that so I start. who just one,

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

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

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

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

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

So consistent. everything's been relatively staying

but sort stronger perhaps been of was this strength everyone sort versus of the sales And and asked I early of conversation sort NFL into is of was in of sort than a appreciated. the am one that curious up about. that a touched also metric us that campaign lot But already September, been popped investors October same-store thing with looking has November It's Okay. at on, XXXX. of are

this as sort theoretical. -- you off of is again, rolled that all And of

you off lost traffic that, became a that tailwind. a bit little potentially, As that rolled just you of of or headwind

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

that a the campaign. that. the side learned And is time level the What you success doing pleased tell big that that advantage watch I'll don't to And on lot had, win and we that March a was endorse of take decision that Deal have go Slam were promoted the we and It the helped was well then it I'd inform first the level, NBA we to at advantage national actually with for of Travis think I someone as finals. far. at of then level, do a as Dunk national -- like our take us. Kelce Madness

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

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

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

As us as to June when families. come well and want as adults I July, that's young mentioned, to

And for us. high interesting. does going very over so time what really to of the a And the it's consumer period volume very, be is summer

We're us control. forward we And plan. grow we business, on the to know. all enthusiastic a walking to can we've our about week, through to on available that we so number that this why got that walk going are of things And so now, levers those. and through focused of you to really everything And look we're focused we're you right next we're

considerable you upside that And when there'll no this we're there mistake be done through is in business. walking that,

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

tilt becomes, at the are best now -- another on question of just I'm follow-up, e-mails margin I is -- guys the in apologize again, can can backdrop full you we for that. comp how one of that performance impressive this, this that efficiencies here. and And hope the the And more, that or was margin getting sort drive maximizing about delivered. margin you business and it sort real-time that move to of the you forward? being of so as appreciate I these hold But sort state efficiencies long-winded the guys you this

Or continue beyond is above margin think additional lie you what levers Is guys to out drive opportunities revenue done? there margin that ahead guys you just and sort and of you above other can there that beyond there that have improvement have already growth?

Yes.

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

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

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

of in about much So always period QX this margins. average. our QX, we've has best pretty had been and historically QX

QX higher of drop QX because And go just general -- you then typically kids of then obviously, these school, when top the when have periods to and don't back and you QX. see time, line margin in low flow-through it's period our seasonally just that accordingly you that see would

point... Chris' to So

-- I clearly the the like the seasonality margin, say, that's just going think getting in the improvement I that it. It's of just investor thing aspect the say just to understands I'll was which was Correct. the attention.

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

appreciate I guys. So it,

it. You got

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

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

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

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

order. reverse in go me Let

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

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

that's plan. So our

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

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

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

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

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

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

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

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

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

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

I lot check the from higher Is the feel coming you forward? going Chris, about that. check had performance of point the still or comp check maybe question it pause with performance? can do with raise that given how that you like trying been maybe Card? thinking follow-up has are the a given about regarding little Power to forward, a a you transaction entry build especially Or pricing, raise moving a

and loud with But protect opportunity we clear value check. to something that always it's the to there's proposition. I still need just you We because that believe grow we hear to caution that want proceed

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

focused And but for value. that experience. the to on on giving business. the us still same the are for growing so check, guests overall that believe certain in room time, ways at price about smart the believe something there's return certain We there in really we're aspects be of We

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

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

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

has look bowling, construct. Main So million it at that square to over in as little it's a you a higher cost $XX costing foot a a would location. $XX million, given XX,XXX-plus Event general, With

the and the our and our full balance in at liquidity. sheet amount existing funding proceeds those actually then looking Use financing with we having free that the today, $X we're given looking sheet strength and balance of net the putting CapEx excess Where upfront of of flow it from at about investment and million amount are conversion, the into cash developer it.

our better that we'll we does balance doing inflate is effort the go from your operating having and it that overall utilize that so, in protect and CapEx asset, and But turn, spend. return it get a will makes will to it once into sale then the an on ourselves that in And store proceeds as cash is open. leaseback an from What enter sheet perspective. far the leasebacks ahead sale by time worth

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

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

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

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

of it You're correctly. thinking

Our next question UBS. come Dennis with from will Geiger

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

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

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

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

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

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

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

disconnect. now may You