Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q3 2018 Earnings Conference Call - Final Transcript

Dec 11, 2018 • 05:00 pm ET

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Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q3 2018 Earnings Conference Call - Final Transcript

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Q & A
Executive
Brian Jenkins

mid-December. So we did course correct, but it did negatively impact. So as it relates to our guide in balance of the year, we're maintaining our guide right now at low-single-digit. We're not changing that, and that's based on what we know today. It would, depending on where you pick in that range of low single-digit would imply sequential improvement on a year-to-date performance. But I just want you guys to keep in mind that we are headed towards some significantly large weeks, probably the three to four largest weeks for this brand coming up on the holidays tends to be a more volatile quarter, more subject to weather. So we're going to be careful about the guide and we're going to stick with what we discussed on the last call.

Analyst
Jake Bartlett

Great. Thanks very much. I appreciate it.

Executive
Arvind Bhatia

Thanks, Jake.

Operator
Operator

Andy Barish, Jefferies.

Analyst
Andy Barish

Hey, guys. Just wondering -- Good afternoon, wondering if you could kind of quantify the -- some of the incremental labor expenditures in terms of kind of teasing out what's going to be ongoing maybe for the next few quarters until you sort of wrap around this in the back half of next year?

Executive
Joe DeProspero

Sure, Andy. Thanks for the question. Some of the things that I referenced in the prepared remarks, and these are somewhat in descending order of magnitude, I am not going to quantify (ph) specifics, but clearly wage inflation, including mandatory minimum, in Q3 it was nearly 5%. So that is a headwind that we anticipate to continue going forward. VR labor was a factor for us. Clearly we have an attended attraction that's operating in Q3 of this year that was not operating Q3 of last year. And then so we roll over that in Q2, will remain a headwind.

Calendar shift was somewhat unique to this quarter and obviously going into next year will not be an issue. Medical claims, just looking at medical claims was somewhat higher this year than last year. Comp sales deleverage, our comp sales were negative in the quarter, is an issue. Non-comp new store was an impact given the fact that sometimes the new stores when they open, they are inefficient. That's an issue. And at the same time, we are investing in service, as Brian mentioned in his prepared remarks. So I will say we didn't mention quite a few headwinds with no offsetting tailwinds and going forward this is something that we're going to definitely focused on.

Executive
Brian Jenkins

I think the wing -- though not having All You Can Eat Wings, we were a little surprised by that in September. And you can see it in our food comps and there was probably some adjustment on labor that we could have made a little quicker, I think in the quarter in term -- really around, more around the kitchen labor.

Analyst
Andy Barish

And the new workforce management tools, are those going to take some time and are they designed to try to manage a little bit tighter