Dave & Buster's Entertainment, Inc. Q1 FY2025 earnings call

Marketing: - Rebalanced media spend across channels and reintroduced the successful Eat & Play combo. - Launched the Summer Pass with encouraging early feedback. ### Operations: - Diagnosed and corrected operational issues, and rolled out a store manager incentive plan tied to same-store sales growth. ### F&B: - The Eat & Play combo performed well, pricing issues were corrected, and work is ongoing on a new menu rollout later in the year. ### Remodels: - Approached completion of 48 remodels, with remodel stores outperforming the system by over 700 basis points in the last 3 months, and refining the prototype with operator input. ### Games Investment: - Launched the 'summer of games' with new racing-themed games, leaderboard competitions, and new titles like Super Punk and Pac-Man Roller. ### New Store Development: - Opened 2 new stores in the first quarter, 2 more in the second quarter, relocated the Honolulu store, and has international expansion plans with over 35 additional stores secured.

In the first quarter of fiscal 2025, Dave & Buster's generated revenue of $568 million. Adjusted EBITDA was $136 million, resulting in an adjusted EBITDA margin of 24%. Comp store sales decreased 8.3% compared to the prior year period, but showed sequential improvement with a 2.2% decrease in the first 5 weeks of the second quarter. New store openings, remodels, and game investments were key elements of the company's performance during the quarter.

Capital Expenditures: Total capital expenditures for fiscal 2025 are expected to not exceed $220 million, including spend on net new stores, remodels, games, and maintenance. ### Preopening Expenses: Anticipated to be approximately $20 million. ### Interest Expense: Expected to be in the range of $130 million to $140 million. ### New Store Openings: Expecting 10 to 12 new store openings in fiscal 2025.

Forward-looking statements are subject to risks and uncertainties as outlined in the company's SEC filings, which could cause actual results to differ from anticipated. Factors such as economic conditions, competition, and execution of strategic initiatives may impact the company's performance.

Q: Just wondering if at this stage, you're able to kind of have some degree of predictability in terms of the trajectory of the same-store sales in the business...

A: Kevin M. Sheehan mentioned they're in the early stages of recovery, expecting 3% same-store sales growth long-term with additional growth from new stores and other initiatives.

Q: And then Darin, it looks like CapEx is very front-end loaded this year...

A: Darin E. Harper broke down CapEx as $53 million for new stores, $20 million for remodels, $30 million for games, and $12.5 million for maintenance.

Q: On the gaming floor, and the newness that's been flowed in over the course of this year...

A: Kevin M. Sheehan said they rolled out new cabinets and attractions, with 10 per location consistent with pre-COVID levels.

Q: I wanted to first ask, from here, a lot of compelling initiatives to improve the trajectory...

A: Kevin M. Sheehan stated the back-to-basic strategy is working, with improvements in same-store sales and ongoing initiatives to drive growth.