Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) Q3 2022 Earnings Call Transcript

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Sharon Zackfia: Right. And then on the EBITDA margin, I know you’ve been targeting 200 basis points over 2019, I want to confirm that that’s also a target for the fourth quarter. And then beyond kind of this current quarter, I assume we’re not going to be talking about 2019 anymore. I think things become a little bit more apples-to-apples when we get into 2023. I’m just curious on the Dave & Buster’s business, given that you guys have fresh eyes on the business, there had been a lot of volatility pre-pandemic with comps negative. I mean what do you consider a win for Dave & Buster’s? Is it slightly positive comps, mid-single? Like what’s the winning scenario here as you think about data busters and more of a kind of steady-state environment, what we’re not talking about the consumer still getting back to normal patterns.

Michael Quartieri: Well, I’ll handle the first part of your question in regards to margin. Yes, I’m getting pretty tired of talking about 2019 levels as well. But as you do look back to 2021, you still see whether it’s the Delta variant or the Omicron variant, it just makes for a noisy comparison. So that’s why we’ve been providing 2021 and 2019. The 200 basis point commitment that was given a year plus ago, we still remain committed that that’s what we’ll be able to achieve on this Q4 period.

Chris Morris: And then, Sharon, in terms of defining the win, look, we’re here to grow this business. We want to — we’re maniacal about growing our business through just a very sharp focus on the guest experience and driving revenue through the way we manage, the way we manage our business and manage the throughput and focus on guest satisfaction. And so, really, I guess, what defines winning is just the magnitude of the growth. We want to grow as much as possible in all areas of the business. So starting, we’re very focused on growing our guest counts and maximizing our revenue opportunity. So we want to grow our check and we want to do it in a way where it’s very profitable, and we flow dollars to the bottom line and maximize EBITDA and open as many stores as we can in the future.

So I don’t know exactly how to answer your question. I can tell you that we’re — we believe right now we are winning. We’re pleased with the results that we’re seeing in the fourth quarter. And as we look through the noise of this holiday mismatch and what we’re seeing on special events coming into December, we’re in a winning position right now. And so, it’s really just, in terms of — we always want more. And so, as we move forward, this is a team that is completely focused on maximizing every single growth opportunity, but doing it the right way to lead to sustainable results. Hopefully, that answers your question.

Sharon Zackfia: Yes, I suspect you’ll tell us more when you’re at the Analyst Day. So, thanks.

Chris Morris: Yes.

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

Chris Morris: All right. Thank you, operator. In closing, we’d like to again commend our team for the exceptional results they continue to produce at our stores across the country, and for all the hard work being done at our Dallas support center to integrate the Main Event business and optimize the infrastructure to support the bright future of these two phenomenal brands. Thank you for joining. We look forward to keeping you apprised of our continued progress on growth initiatives, and we look forward to hosting you at our Investor Day in the early part of the year. So happy holidays, everybody. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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