Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q2 2019 Earnings Conference Call Transcript

Sep 10, 2019 • 05:00 pm ET

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Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q2 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] We'll take our first question from Andy Barish with Jefferies.

Analyst
Andy Barish

Hey, guys. I'm just wondering if you could give us a little bit more color on sort of the non-impacted stores and maybe an update on the percentage of the system you think is impacted. The question is; are you seeing deterioration kind of in the core that hadn't been impacted by competition which is leading to some of the other changes that you discuss today.

Executive
Brian A. Jenkins

Well, I'll answer that the first question about impacted stores. The base of stores impacted by either competition or cannibalization did grow in the quarter, Andy, from 40% in Q1 to 45% of our store-based comp base in Q2. So we did see an acceleration of impact at stores. But that's not the only factor here in the second quarter. We mentioned on the call the rollover of VR was a significant factor for us, but lapping of that platform launch last year with Jurassic World, we underestimated the impact on traffic in our view and weather was not particularly great for us in the quarter.

We estimated about 80 bps of pressure in the quarter. And we mentioned that a little bit actually on the Q1 call as we started off in May. We had some difficult weather around Memorial Day weekend and then we had some weeks in July. So there are a number of factors, but definitely competitive landscape is something that continues to accelerate in our view.

Operator
Operator

Thank you. Our next question comes from Sharon Zackfia with William Blair.

Analyst
Sharon Zackfia

Hi, good afternoon. I guess I'd be interested in hearing more about the Wow Walls and if you could quantify any kind of lifts you saw there in Dallas, whether it related to traffic or food and beverage attached. And maybe a compare contrast that initiative versus prior remodeling initiatives you did around D&B sports and so on.

Executive
Brian A. Jenkins

Well, we're very excited about the WoW Walls. We as you know began that test in late 2018 in our Dallas store. A 50-foot LED screen really re-energizes, brings a whole new energy to that space. It's a very contemporary look. It's latest and greatest technology LED panels, high resolution. So we're combining that Wow Walls kind of technology with some improvements in furniture, flooring and other elements to really revitalize the dining experience. In our view is that is one of the great pass towards further F&B penetration. Drive people into that space that is today highly underutilized. Our dining rooms today, it brings a whole new experience and we have seen outside performance. And I really want to get into the specifics of Dallas here.

But it is one of our top performing stores right in the top couple of stores in terms of performance in our system and F&B in particular is performing very well. So we like the look and we like what it does to the energy of our brand. And we like what we