Dave and Buster’s 4Q16 Earnings Call Notes

Brian Jenkins

Getting a little bit of moderation in wage rate

“We do anticipate labor to move to the negative side next year. So it’s a pressure point to our P&L moving into 2017, largely on the heels of wage rate. That said, we expect wage rates to moderate a little bit, we were near 5% this year for the full year, California, New York, are the two states that we expect to have less pressure in, because we’re not seeing the same kind of minimum wage increase. New York had a 50% increase last year and California right about half as much as last year. So we’re getting a little bit of moderation on the wage rate in our view. But we still think it’s going to be a pressure point above what we’ve seen in the history of this company, so it’s going to be a pressure point.”

Any regional differences mainly from weather

“First of all, there are regional differences. Most of the regional differences tend to get driven for us at this point by. Weather, although I think we called out on our last call that the ones that were not particularly subject to weather like California and Florida were doing well for us. More specifically than that, we haven’t had a lot — Texas was very close to the average in the third quarter, it fell off quite a bit actually in the fourth quarter and was a negative for the quarter.”