Dave & Buster's Entertainment Inc at Jefferies Winter Restaurant, Foodservice, Gaming, Lodging & Leisure Summit (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andy Barish - Jefferies LLC - Analyst : That's good. Wow. I know you guys have some history together, which I'm sure is helpful in planning and moving forward. But Kevin, wanted to kind of start out again as you've gotten -- you've been around the business for quite some time, but obviously, more on a day in and day out basis here over the last four or five months. Just kind of what you are seeing and what your focus has been as the Interim CEO going through this period.

Question: Andy Barish - Jefferies LLC - Analyst : And Michael, I know the history with Kevin. But kind of impressions in your first few weeks or even what you found attractive about the business to come in as the CFO?

Question: Andy Barish - Jefferies LLC - Analyst : Let's dig into -- on the top line, the organic growth as you talked about, Kevin. Where do you think the biggest opportunity is for initiatives that are already -- have already been talked about or are beginning to be put in place, whether it's marketing or content or programming? How would you kind of rank the top two or three things?

Question: Andy Barish - Jefferies LLC - Analyst : The Thursday evening, Thursday night partnership has generated a few questions here over the last couple of weeks. Is there -- I guess are there economics associated with that, or is it more of a marketing tie-up that brings people into this -- into the units and keeps them there? I'm just intrigued.

Question: Andy Barish - Jefferies LLC - Analyst : Got you.

Question: Andy Barish - Jefferies LLC - Analyst : And the marketing shifted a lot in the last year, both in terms of the tag and the content, as well as the placement with a lot more digital. Are you satisfied with the results and the returns that that is generating at this point? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 25, 2022 / 4:00PM, PLAY.OQ - Dave & Buster's Entertainment Inc at Jefferies Winter Restaurant, Foodservice, Gaming, Lodging & Leisure Summit (Virtual)

Question: Andy Barish - Jefferies LLC - Analyst : Got you. Yes, I was going to ask on the loyalty rewards update, but it sounds like that's off to a good start and then you just started gathering the

Question: Andy Barish - Jefferies LLC - Analyst : Got you. And then on the sports betting side of things, it's something talked about for quite some time. Obviously both of your experiences overlap with that industry. What kind of timeframe should we be thinking about from that perspective?

Question: Andy Barish - Jefferies LLC - Analyst : Yes. And the tie-in to continuing to emphasize or reemphasize, I should say, the watch component at Dave & Buster's, how important is that in terms of these layers of sales-driving initiatives?

Question: Andy Barish - Jefferies LLC - Analyst : I was just saying the prior team had been doing the WOW Walls and focusing -- refocusing on the watch element, including sports programming and other things. How does that roll into the initiatives?

Question: Andy Barish - Jefferies LLC - Analyst : Want to just clarify and tie in one thing, Kevin. You mentioned a couple of weeks ago at ICR, lunch initiative. I'm assuming that's tied into your events in your business, kind of getting people in, in that midday for group events and things like that. Or are you actually focused on that particular day part for dining?

Question: Andy Barish - Jefferies LLC - Analyst : Maybe throw a few beers in there as well.

Question: Andy Barish - Jefferies LLC - Analyst : Well, that's true. That's true. The prior management team -- and it certainly showed up to be more than this so far transitioning to the profitability margin side of things at the store level. Kind of felt quite comfortable about a couple 200 basis points of EBITDA margin expansion from the pre-COVID kind of 2019 levels. As you dig in, Michael, how comfortable do you feel with that given the margin expansion has been well ahead of that over the last three, four quarters?

Question: Andy Barish - Jefferies LLC - Analyst : Yes. As you mentioned, I think not surprisingly, labor saves from more technology, whether it's like you say, at the table or the app or kiosks throughout the locations to save on server hours and things like that. What are you seeing in terms of guest satisfaction and usage of those tools relative to where the old experience that Dave & Buster's may have been? It might have been too long or you couldn't find a server when you wanted another drink or something like that.

Question: Andy Barish - Jefferies LLC - Analyst : And I think you mentioned something really interesting in the opening remarks that the smaller prototype is less demanding from an operational perspective. Obviously, it's never easy running a Dave & Buster's. But give us an update in terms of where you are and kind of your discussions with

Question: Andy Barish - Jefferies LLC - Analyst : Yes. No, that was perfect, Kevin. And I have to ask in the last minute or so, do we have an update on the CEO search?

Question: Andy Barish - Jefferies LLC - Analyst : Appreciate the update on that and lots of the other exciting initiatives as you and Michael bring a new set of eyes to obviously a very profitable and strong business going forward. So we look forward to following the progress closely, get a chance to sit down in person hopefully soon.

Question: Andy Barish - Jefferies LLC - Analyst : Appreciate it, guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 25, 2022 / 4:00PM, PLAY.OQ - Dave & Buster's Entertainment Inc at Jefferies Winter Restaurant, Foodservice, Gaming, Lodging & Leisure Summit (Virtual)