Q1 2024 Dave & Buster's Entertainment Inc Earnings Call Transcript
Key Points
- Dave & Buster's Entertainment Inc (PLAY) reported first quarter revenue of $588 million and adjusted EBITDA of $159 million.
- The company saw a 200 basis point margin expansion versus 2019, achieving an adjusted EBITDA margin of 27.1%.
- Significant progress was made in growing the loyalty database, enhancing food and beverage offerings, and refining game pricing strategies.
- The company opened new stores with highly attractive returns and continued to return capital to shareholders via a share repurchase program.
- The remodel initiative showed clear outperformance, with fully programmed remodels delivering double-digit growth in sales and traffic.
- Comparable store sales decreased by 5.6% on a same-week basis in the first quarter versus the prior year period.
- The company incurred $11 million of incremental costs related to labor and marketing, which negatively impacted adjusted EBITDA.
- Lower income consumers showed more weakness, impacting overall traffic and sales trends.
- The spring break promotional campaign was unsuccessful, resulting in a $6 million spend with minimal returns.
- The macroeconomic environment remains complex and challenging, creating headwinds for the business.
Good day and welcome to the Dave & Buster's First Quarter 2024 earnings conference call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Corey Hayden, Vice President, Investor Relations and Treasurer. Please go ahead.
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Thank you, operator, and welcome to everyone on the line. Leading today's call will be Chris Morris, our Chief Executive Officer, and Michael Terry, our Chief Financial Officer. After our prepared remarks, we will be happy to take your questions.
This call is being recorded on behalf of Dave
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