Dave and Buster’s 4Q15 Earnings Call Notes

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Steve King

There is a lot of real estate our size coming on line

“There is a lot of sites available right now especially for our size. And I think that they changes, there are things like kind of sears coming online and saying they are going dispose a 100 stores and while we may not want to go every sears, there is probably of handful sears that would make chance for us to take a portion of and subdivide, you know they are huge spaces so we won’t be able to take the whole thing but us in conjunction with few other retailers or entertainment facilities might be willing to take down some of that, some Macy’s have come online, sports authority declared bankruptcy, so there is a lot of real estate coming online in our size.”

Malls are not dead, just pivoting towards entertainment

“The only other thing I will say malls are not dead. Actually our mall stores are performing well. And we get that question periodically but the mall stores are performing well. So I think that mall developers are pivoting towards a bit more entertainment as they are going after trying to replace these folks and so we are an attractive alternative for them.”

Brian Jenkins

Expecting 3-4% wage inflation

“We experienced wage inflation of approximately 3% during the fourth quarter, primarily due to the higher minimum wage rates in both California and New York. As we look ahead we are projecting wage inflation of approximately 3% to 4% in 2016 which is higher than the 2.5% experienced in 2015.”

Wouldn’t say that Texas has improved

“Yes. Just on the Texas question. We don’t typically make a practice to talking about states and geographies that much there has been so many questions around the state of Texas and impact of oil and gas in that part of the country. And we felt like we wanted to talk about it little bit here today and reality was in our fourth quarter we were positive. It was not 6% positive, it was a trail the overall change but it was still nose let’s say. I would not say that trend has improved. Part of the situation in Texas for us that make a little hard to read whether its oil or something else. We opened three stores in our 2015 class in three of our markets in the state of Texas. One in St. Antonio, one in Houston and one in Dallas. So we know we are impacting our sales a little bit as well as oil and gas but I would not say we’ve seen it improved.”