Dave & Buster's Entertainment Inc Q3 2023 Earnings Call Transcript

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

Question: Andy Barish - Jefferies Group, Inc. - Analyst : Good afternoon, guys. Just trying to get a sense of kind of, the underlying comparisons as we move through the fourth quarter and anything we should be aware of with calendar shifts and all that. I know there's a lot, but I guess the bottom line is, the trends versus '19, as you talked about sequentially better in the 3Q than the 2Q, is that something we should expect to continue here as we move into the holiday season and such?

Question: Andy Barish - Jefferies Group, Inc. - Analyst : Got it. Thanks, guys. And then just one quick follow up just to level set on pricing, I mean you laid out in the strategic plan that kind of three-year games pricing would be about 10%, about 3% annualized. I know that could differ. But how do we think about sort of the rollout right now on changes in in tiered pricing, by geography? And then the potential for dynamic pricing, I guess, in '24, how should we sort of think about what's in the numbers now or what you have visibility on for the next year or so?

Question: Andy Barish - Jefferies Group, Inc. - Analyst : Understood. Thank you, guys.

Question: Jeff Farmer - Gordon Haskett Capital Corp. - Analyst : Good afternoon and thank you. Few quick questions. So first would be on the loyalty membership, understanding how that will be incredibly important and sort of that digital marketing journey but can you help us understand the efforts that you guys have in place or will have in place to help drive loyalty membership ranks?

Question: Jeff Farmer - Gordon Haskett Capital Corp. - Analyst : Okay, that's helpful. Two other hopefully, quick ones. First is just on staffing, a lot of the restaurant companies. Admittedly, you guys are not a restaurant company, but this earnings season pointed to much better staffing levels, much lower much lower turnover trend, turnover numbers driving some efficiencies -- some labor efficiencies as it relates to your model, anything that you guys can add as it relates to staffing?

Question: Jeff Farmer - Gordon Haskett Capital Corp. - Analyst : Okay. And then last one from me apologize for being long-winded here, but probably three or four years ago, arguably pre-COVID, a lot of focus with the Dave & Buster's name as it relates to both cannibalization and competitive encroachment and some of the cannibalization concern, obviously disappears with the main event acquisition. But as you're opening up the 16 boxes or stores this year, and you're thinking about both of those two metrics, or drivers of potential headwinds, cannibalization, competitive encroachment, any update on how you guys are thinking about that or what you've seen?

Question: Jeff Farmer - Gordon Haskett Capital Corp. - Analyst : All right, thank you.

Question: Brian Mullan - Piper Sandler & Co. - Analyst : Thank you. Just a question on the remodel program. You showed some encouraging steps in the prepared remarks. Just clarification, the pace for next year specifically, is that accelerated versus your prior thinking? And then if so, any color on what made you decide to accelerate? It sounds like the [test] is going well, but I would also think you expected to go well so just any color would be great.

Question: Brian Mullan - Piper Sandler & Co. - Analyst : Okay, thank you. That's great color. And then just a question on G&A. If we make all the adjustments, it seems like the underlying G&A has been running in the $18 million to $20 million range per quarter for the last several quarters. Is that a good run rate to think about for 4Q and into next year? Or are there any investments or some other items you would want us to be mindful of as we think about next year?

Question: Brian Mullan - Piper Sandler & Co. - Analyst : Okay. Thanks a lot.

Question: Brian Vaccaro - Raymond James & Associates, Inc. - Analyst : Hi, thanks and good evening. My question I wanted to circle back on demand and percentages can sometimes get a little confusing, given the big seasonal swings, I think the comps versus '19 had quite a bit different between the two brands. So I guess how would you characterize what you're seeing in terms of underlying demand in the third quarter, maybe compared to the second quarter? Are there any changes in behavior worth noting? Any color on how the quarter progressed or anything else you'd be willing to highlight? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 05, 2023 / 10:00PM, PLAY.OQ - Q3 2023 Dave & Buster's Entertainment Inc Earnings Call

Question: Brian Vaccaro - Raymond James & Associates, Inc. - Analyst : Okay, and then, Mike, I think you mentioned a calendar shift on special events sort of in November or in the fourth quarter. Can you just clarify what that shift is?

Question: Brian Vaccaro - Raymond James & Associates, Inc. - Analyst : Right, that's similar dynamic last year that you highlighted compared to '19, correct?

Question: Brian Vaccaro - Raymond James & Associates, Inc. - Analyst : Understood, okay. And then shifting gears to the games pricing, could you just share some more on the tests that you run? How much have you tested in different regions? What have you learned? How has it impacted sales? And sorry if I missed it earlier, but have you made that the go decision on most of the system went -- what's the rollout look like on the strategic gamings pricing?

Question: Brian Vaccaro - Raymond James & Associates, Inc. - Analyst : Okay. Great. That's very helpful. And then last one for me. Just back to the Friendswood remodel. I'm just curious if you could share more on what elements of the remodel you think are driving the uplift? Any specifics on how the social base are performing or other new elements are worth highlighting?

Question: Brian Vaccaro - Raymond James & Associates, Inc. - Analyst : All right, I'll pass it on. Thank you very much.

Question: Sharon Zackfia - William Blair Funds - Analyst : Hi, good afternoon. I apologize if I missed it, but given the accelerated pace of remodels, is there any impact on the '24 development pipeline as results? And how should we think about CapEx in '24 relative to '23?

Question: Sharon Zackfia - William Blair Funds - Analyst : Great, and then on Phase 3 of the food and beverage plan, does that give back any of the food and beverage savings that you've achieved in Phase two?

Question: Sharon Zackfia - William Blair Funds - Analyst : Okay.

Question: Sharon Zackfia - William Blair Funds - Analyst : Okay. And then last question from me on the remodel you've done so far, have you done anything to drive traffic to the locations or is it the location is generally word of mouth? I mean, how this word getting out that something is newer, Dave & Buster's.

Question: Sharon Zackfia - William Blair Funds - Analyst : Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 05, 2023 / 10:00PM, PLAY.OQ - Q3 2023 Dave & Buster's Entertainment Inc Earnings Call