Sep 14, 2026 earnings call — Back-to-Basics to restore traffic and sales
Q2 revenue was $544.1 million, and management expects near-term growth in same-store sales, revenue and EBITDA.
Revenue $0.5B (est $0.6B) · EPS $-0.36 (est $0.18)
Key quotes
"You'll hear more from us in the coming months with regard to how we're optimizing our media to more effectively capture consumer demand through better targeting, discoverability, media, flighting, and messaging."
"So far this year, we launched 10 new games and attractions, including Mandalorian and Grogu, John Wick, Stranger Things, Hot Wheels, Speedway, ICEE Slush Rush, Perfect Pump, and Odin's Hammer."
"F&B has now been positive for 5 straight quarters, driven primarily by a return to the proven menu and better execution of the Eat & Play Combo."
Analyst Q&A 8
New management style and value moves
Q (Andrew Barish · Jefferies): The analyst asked how the new management style will change the company over the next quarters. He also asked about rate card and game pricing changes, timing, and expected impact on basket or check.
A: Management said the core Back-to-Basics strategy stays the same but will be more clearly executed. They will focus marketing on occasions and make messaging and media more relevant. They simplified the rate card and adjusted game pricing, which increased gameplay and dwell time while keeping basket and margins.
"Most of that has already occurred, Andy, with changes that we've made over the last few months." — Darin Harper (CEO)
CapEx outlook and World Cup impact
Q (Jordan Bender · Citizens): The analyst asked how capital spending will evolve into 2027 and beyond, given renovations and new store plans. He also asked if the World Cup promotions affected June performance into the third quarter.
A: Management said new store openings will be pulled back and net CapEx could be $150 million or south of $150 million next year, depending on capital allocation. They noted a core recurring CapEx need of about $95 million to $100 million for maintenance and games. On the World Cup, the activation performed well, was incremental, and produced double-digit growth in the final.
"I think we can conservatively look at a net CapEx number that could be $150 million or south of $150 million next year." — Darin Harper (CEO)
Operational metrics and store margins
Q (Brian Vaccaro · Raymond James): The analyst asked which internal operations metrics have trended most importantly and where the clearest improvement opportunities are. He then asked why store margins fell in Q2 and whether any reinvestment or P&L items explain it and what to expect for H2.
A: Management said speed of service and game uptime are primary focus areas, plus staffing and quicker Midway issue resolution. They said those metrics are improving but still need more work to protect repeat visits. On margins, they said Q2 is noisy because of a $10 million deferred revenue headwind and they do not see a need for material reinvestment; recent cost actions will help margins in coming quarters.
"Speed of service, game uptime and then a few other metrics." — Darin Harper (CEO)
Game pricing, dwell time, and F&B mix
Q (Eric Wold · Texas Capital): The analyst asked if longer dwell time means guests spend the same on games but more on food and beverage, and how that could change mix and margins. He also asked about results from the 10 new games and whether they lift the rest of the Midway.
A: Management said guests are spending the same amount but getting more gameplay and dwell time, which should create more opportunities for F&B attach. They pointed to the Eat & Play Combo and kiosk offerings as ways to convert game-only guests to F&B spend. New games are performing well on gameplay, penetration, and reach, and management sees opportunities from merchandise and WIN! store improvements to drive incremental spend.
"They're spending the same amount but getting greater game play and thus, greater dwell time in the box." — Darin Harper (CEO)
Macro pressures and game model health
Q (Michael Hickey · StoneX): The analyst asked how energy prices, inflation, and sentiment are affecting the business now and how management plans to combat those pressures. He also asked what evidence shows the game-centric model is not broken after long entertainment declines.
A: Management said lower-end consumers are more impacted, but the company believes there is latent opportunity if they execute well. They plan a consistent value message like the Eat & Play Combo and half-price games to avoid confusing guests. Consumer research shows the product still appeals, but they need more innovation and relevancy on the game floor and better use of brand partnerships and IP to drive traffic.
"I think we feel like despite the difficult environment, we can still execute and grow sales in it." — Darin Harper (CEO)
Demographics and cost savings details
Q (Andrew Strelzik · BMO): The analyst asked how guest demographics are shifting as F&B grows and amusement declines and how that shapes amusement initiatives. He also asked where the $15 million cost saves come from and how they can balance savings with reinvestment.
A: Management said occasions without kids have declined more, so they will focus on adult-first occasions while not alienating families, using activations like daytime family events and adult ticketed evenings. They identified $15 million in selective savings largely from G&A, IT rationalization, insurance, janitorial, and better national sourcing. Management said these are strategic cuts that should not affect guests and that there is clear line of sight to at least double that amount with contracts and negotiations.
"With regards to the $15 million that we've identified and have already executed on, so it's just a matter of kind of rolling over the quarters to come and letting them season into our P&L." — Cory Hatton (CFO)
Quarter-to-date trends and remodel performance
Q (Dennis Geiger · UBS): The analyst asked what drove quarter-to-date improvement beyond World Cup promotions or comparisons and what drives confidence for continued improvement. He also asked for specifics on remodel sales uplift and current return profiles.
A: Management said they are pleased with recent QTD results but cautious and not relying on the last 5 weeks to guide. They credit sharper marketing, better media line of sight, and improved discoverability under the new CMO. On remodels, they said remodels still outperform the system, the gap has narrowed as the system improved, and the reduced-capital remodel model can still yield strong results while they prioritize near-term returns.
"We're pleased with our quarter-to-date performance, but we don't want to let these last 5 weeks be indicative of where we're trying to guide." — Darin Harper (CEO)
New stores and weekly sales spread
Q (Jeffrey Farmer · Gordon Haskett): The analyst asked how to model the spread between same-store sales down 2.9% and average weekly sales down more than 6%, and whether that spread reflects new store productivity. He then asked if a 3-point spread for the 26 non-comp stores is a reasonable benchmark going forward.
A: Management said on a per operating week basis the comp aligns with reported comp, but the non-comp bucket is noisy from newly opened stores and their honeymoon effects. They noted 6 stores opened this quarter and about 26 non-comp stores facing normal post-opening declines. Management expects the spread to improve as new stores mature, marketing support increases, and they open fewer stores next year.
"And then I think the other big noisy thing in that bucket, which is important is you have stores that opened last year that then this year are going through kind of their honeymoon effect." — Cory Hatton (CFO)