Dave & Buster's Q3 2022 results

Extracts from Dave & Buster's Q3 2022 earnings call

Chris Morris - Chief Executive Officer:

"Based on a thorough strategic review of the business, anchored and deep consumer research, and spending considerable time learning directly from our operators, our core brand position for our Dave & Buster's brand going forward will bring greater focus to executing adult occasions aged 21 to 39 who are visiting our locations to have a great time with their squad. These crew connectors, as we like to call them, are energized by social situations and in-the-know on culture and social trends happening at the time. Over the months and years to come, this refined brand positioning will guide our marketing strategy, entertainment innovation pipeline, food and beverage offering, store design and layout, and tech-enabled hospitality model."

Mike Quartieri -- Chief Financial Officer:

"Additionally, our Special Events business continues to provide tremendous upside as it continues to normalize the pre-pandemic levels with the pro forma combined comps down only 6.7% this quarter versus 2019 in comparison to last quarter when it was comping down 13.4% versus 2019 [this is for the combination of Dave & Buster's and Main Event, which is now 20% of the business]."

A few highlights from Q3 2022 financial results

  • Q3 2022 comparable store sales (includes D&B and Main Event):
    • Up 13.3% versus 2021 and up 17.5% versus 2019
  • Q3 2022 Special Event comparable store sales (including Main Event stores):
    • Increased 110.3% compared with Q3 2021 and declined 6.7% compared with Q3 2019.
  • Q3 2022 walk-in comparable store sales (including Main Event stores):
    • Increased 8.0% comparable with Q3 2021 store sales and increased 20.3% compared Q3 2019.
  • Food and beverage revenues:
    • In Q3 2019, it was 41.6% of revenues. In Q3 2022, it declined to 34.5%.
  • Operating payroll & benefits + general & administrative expenses:
    • In Q3 2019, it was 30.5% of revenues. In Q3 2022, it increased to 33.0%.