Brian Mullan : Okay. 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’d want us to be mindful of as we think about next year?
Michael Quartieri: That’s about — $20 million is a fair pacing for where we would expect core G&A to be after you take out those adjustments.
Operator: Our next question comes from Brian Vaccaro with Raymond James.
Brian Vaccaro : My question, I wanted to circle back on demand. And the percentages can sometimes get a little confusing given the big seasonal swings. I think the comps versus ’19 are quite a bit different between the 2 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?
Chris Morris : No. I think I’ll kind of refer back to an earlier question. I would just go, Q2 to Q3 haven’t seen much in the change in demand. Though when we look at Q3, what we have seen starting in October is improved results versus ’22 and versus ’19, and those improved results have continued into November. But as I said earlier, from a Q4 perspective, given the side of the business that’s still to come, with the Christmas holiday, winter break, New Year’s, MLK holiday in January, those are all big events for us. And so the vast majority of business from a revenue perspective will take place in the December and January period. So it’s a little hard to take into account what we’ve seen for November to project that out over the rest of the quarter.
Brian Vaccaro : Okay. And then, Mike, I think you mentioned the calendar shift on special events sort of in November or in the fourth quarter. Can you just clarify what that shift is?
Michael Quartieri: A lot of events start taking place after the Halloween, call it, holiday or event. And so what happens is versus 2019, our special event calendar is 1 week lagging versus what you had in ’19. All of that goes away by the time you get to the Christmas holiday, and all of that has been caught up. So a little bit of a mismatch today versus ’19, but that’s only on a week-to-week trend basis. For the whole quarter, it’s not relevant.
Brian Vaccaro : Right. And you had that similar dynamic last year that you highlighted compared to ’19, correct?
Michael Quartieri: Correct. There was about 3 days in prior year during that, call it, 15 business days of peak period that we were lapping over which, by the way, is one of the reasons why we don’t give this up to date, where we are in the quarter view anymore.
Brian Vaccaro : Understood. Okay. And then shifting gears to the games pricing. Could you just share some more on the tests that you’ve 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 the go decision on most of the system? What’s the rollout look like on the strategic gains pricing?
Michael Quartieri: Yes. Look, our test right now is not to get too much in the weeds on an earnings call, but it’s roughly about, it’s 12 stores. We’ve looked at various price points within that 12 stores. And we’re just continuing to evaluate those results and the impact that would have. And we’re looking at it holistically. So it’s not only an impact on what your initial card load is, but it’s also on the overall revenues, what kind of recharge rate do you have, we’ll also look at what the impact on dwell time because we kind of look at all that in its totality to understand the real value that we’re driving to the customer as part of that value proposition. So we’ve got a few more weeks to go in our test, and we would probably look to make some type of pricing adjustment either late into Q1 or into early — or sorry, late into Q4 or early into Q1.
Brian Vaccaro : 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 bays are performing or other new elements worth highlighting?
Chris Morris : Sure. No, we’re very pleased with social base, both in terms of the entertainment revenue as well as the food and beverage attach that we’re able to drive through participants in the base. So very pleased with that. We just rolled out a brand-new attraction in Friendswood, just a couple of weeks ago, and so we’ll be interested to see how that performs as well. But in terms of the other items that are driving the performance, it’s everything that I just walked through just a minute ago. So we’re very pleased with the performance in all areas. So the strategic objectives that I just walked everyone through in every one of those areas, we’re making an impact on the business. And so that just gives us a lot of confidence as we move forward that these are results that we fully expect to continue to drive.
Operator: Our next question comes from Sharon Zackfia with William Blair.
Sharon Zackfia: I apologize if I missed this, but given the accelerated pace of remodels, is there any impact on the ’24 development pipeline as a result? And how should we think about CapEx in ’24 relative to ’23?
Michael Quartieri: Yes. I’ll answer that. A, there will be no adjustment to our new store opening pipeline. We’re looking at 15 new locations and one remodel which is consistent with the 16 that we’ve always discussed back at Investor Day and which will be kind of the, I’ll call it, the rounded number plus 1, minus 1 as you go through from a year-to-year basis. When we look at the overall CapEx, we laid out in the Investor Day what our CapEx would be, which was roughly about $340 million, that number, I think, would be relatively consistent on a net basis going forward. Obviously, as the remodels adjust from a timing perspective, we feel very confident with our leverage profile right now and the vast amount of liquidity we have, that we’re willing to put that to work to yield the returns on an overall basis for the company accordingly.
Sharon Zackfia: 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 achieved in Phase 2?
Michael Quartieri: No, it actually expands it. The numbers that Chris had alluded to would all be incremental to the savings and improvement that we’ve seen in Phase 2. So it’s just — basically Phase 1 is one block. Phase 3 is the next building block, and then we continue to innovate beyond that.
Sharon Zackfia: Okay. And then last question for me. On the remodel you’ve done so far, have you done anything to drive traffic to the locations? Or is it the location? Or it’s just generally just word of mouth? I mean how is word getting out, that something is new at Dave & Buster’s?
Chris Morris : So it started with the launch. So on — as we reopened Friendswood, and keep in mind that the unit was never closed. So we did all of the remodel activity, keeping the unit open. But when we were ready to when the remodel was 100% done, we treated it like a brand-new opening. So we had a VIP party, we invited a lot of very important people in the market in to — invited a bunch of influencers in to experience their tractions. We did a big community event. And then we’ve done quite a bit of local store marketing since opening. But I’ll tell you, we’re not I don’t want to leave anyone with the impression that part of the reason we’re getting these results is because we’ve allocated significant incremental marketing dollars to the store because that’s not the case.
