Dave & Buster's(PLAY)2021-09-10 05:52Financial Data and Key Metrics Changes - The second quarter revenue reached 33 million [9][16] - EBITDA for the quarter was 36 million or 44% from Q2 of 2019, with an EBITDA margin of 30.2%, exceeding 2019's Q2 by over 700 basis points [9][17] - Net income increased 63% from 2019 to 1.07 per diluted share [18] Business Line Data and Key Metrics Changes - Comparable store sales increased by 3.6% compared to Q2 2019, with Amusements up 17% and Food & Beverage down 17% compared to 2019 [16][18] - Average weekly sales were 206,000 for Q2 2019 [16] Market Data and Key Metrics Changes - Strong demand was observed in California stores, contributing to rapid sales growth during the quarter [15] - The company reported a significant improvement in traffic trends, with comp sales showing acceleration during the quarter [16] Company Strategy and Development Direction - The company aims to emerge as a stronger, more competitive entity post-COVID, with a focus on enhancing the guest experience through new menu items and entertainment offerings [7][11] - Plans to open four new stores in 2021 and between six to eight stores in 2022, indicating a meaningful acceleration in growth [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's recovery and resilience, despite challenges such as labor market pressures and COVID resurgence [51][66] - The company expects third quarter comparable store sales to be approximately in line with trends observed in Q2 2019, with EBITDA significantly higher than Q3 2019 [22][85] Other Important Information - The company plans to redeem 4.2 million in annualized interest [18] - A new D&B rewards program is set to launch in early Q4, aimed at increasing guest frequency and spend [35][36] Q&A Session Summary Question: Expectations for Food and Beverage sales shift with new menu rollout - Management noted that while Amusement traffic improved, Food traffic was slightly down, indicating a gradual recovery process [43] Question: Impact of rewards program on customer frequency and spend - The rewards program is designed to drive both frequency and spend, with an estimated cost of about 8% on total loyalty spend [45] Question: Drivers of same-store sales trends and recent deceleration - Management attributed recent deceleration to factors such as school calendar shifts and regional COVID impacts, but remains optimistic about recovery [50][51] Question: Updates on sports betting partnerships - The company is actively pursuing a sports betting partnership to enhance its appeal as a sports-watching destination [55] Question: Menu pricing actions and wage rate inflation - A mid-single-digit price increase was implemented for the Food segment, while Amusement pricing benefited from reduced discounting [60][66]