Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q3 2018 Earnings Conference Call - Final Transcript
Dec 11, 2018 • 05:00 pm ET
(Operator Instructions) Jake Bartlett, SunTrust.
Great, thanks for taking the question. My first is really on the 2019 guidance. The revenue growing slower than your unit count. And I think there are some questioners whether -- how much of that is driven by new unit AUVs or versus an expectation that you think that same-store sales might be negative. So if you could comment on just were you positive or negative on the same-store sales? And then if it is the unit growth more exclusively, what is driving that? Can you talk about the mix of small versus large stores?
Yes, Jake, it's a good question. We're not going to provide specifics on the comp guidance on this call. We will dive into that detail on -- a little bit on our year-end call in April. But I would attribute high-single-digit sales growth more to the AUV element of our expectations. We've indicated that if you look at our model online, that our AUVs that we're modeling for new stores are lower than our current AUVs as a brand. And that's really the primary driver. We will skew, we still expect to skew slightly to large next year, but we are not planning for the stores to have the same kind of AUVs as our existing base. So I wouldn't think about it that way.
Got it. And then with your guidance or same-store sales guidance for the year here, the implied in the fourth quarter is pretty wide. I'm wondering whether you can help us out there, I guess low-single-digits can mean different things to different people. And maybe in the context of the answer, just talk about what happened with the not running the All You Can Eat Wings, you said you've course corrected and I assume that means that it would also corrected the same-store sales impact. So maybe if you could comment on those two things?
Well, I guess first on the All You Can Eat Wings question, our initial value message in September start of season really focused on our game capital, specifically Jurassic World and Halo, with play games free kind of message, and that's how we kicked off the football season and then followed it with some $5 bar bites. We really found that not to be as effective as last year's All You Can Eat Wings promo that we ran for the first six weeks of the season. It did have an unfavorable impact on our cost. And in hindsight, we underestimated the impact of All You Can Eat Wings, when we decided to remove it from our promotional flight plan (ph) at the beginning of the year. So we corrected course. We lined up available wing stock so to speak and late in the quarter introduced a more compelling $19.99 All You Can Eat Wings offer that included unlimited video games. And we did that on Thursday, Sundays, and Mondays. And we continued that really through mid -- it will be through