Afternoon, welcome to the Dave & Buster's fourth quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Cory Hatton, Head of Entertainment Finance, Investor Relations, and Treasurer. Please go ahead. Thank you, Gary, and welcome to everyone on the line. Joining me in the room on today's call are Tarun Lal, our Chief Executive Officer, and Darin Harper, our Chief Financial Officer. After our prepared remarks, we will be happy to take your questions. This call is being recorded on behalf of Dave & Buster's Entertainment, Inc. and is copyrighted. Before we begin the discussion on our company's fourth quarter and full year 2025 results, I'd like to call your attention to the fact that in our prepared remarks and responses to questions, certain items may be discussed which are not entirely based on historical fact. Any of these items should be considered forward-looking statements relating to future events within the meaning of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Information on these risks and uncertainties have been published in our filings with the SEC, which are available on our website. In addition, our remarks today will include references to financial measures that are not defined under generally accepted accounting principles. Investors should review the reconciliation of these non-GAAP measures to the comparable GAAP measure contained in our earnings released this afternoon. With that, let me turn the call over to Tarun. Thank you, Cory. Good evening, everyone, and thank you for joining our call today. I'm pleased to report that our back to basics strategy continues to gain meaningful traction. As we discussed on our Q3 call, we saw improvement in same-store sales throughout last quarter. I'm encouraged to share that excluding the three days of impact from Winter Storm Fern in January, we also saw improvement throughout the fourth quarter. We have now had six consecutive fiscal months of improving same-store sales for the Dave & Buster's brand when adjusting for the three-day storm impact and ended February roughly flat in same-store sales. We are also pleased to report that during the first fiscal month of 2026, we have experienced continued momentum with roughly flat total company same-store sales, as well as growth in revenue and adjusted EBITDA. Since joining the company about nine months ago and fully immersing myself in every facet of the business, I'm even more confident in our ability to dramatically improve operating results. During fiscal year 2026, we will continue to make meaningful improvements to the business, sharpening our marketing and promotions to drive brand consideration, traffic, and repeat visitation, refining our food and beverage pricing and menu architecture, launching a powerful lineup of culturally relevant new games, implementing our improved remodeled program, and opening up several new stores at attractive returns on investment. We've also significantly strengthened our leadership team and are prioritizing our field operations and culture because we know that exceptional execution and guest experience will lead to improved traffic and sales. We believe we have the right strategy, the right team, and the right momentum to create meaningful value for our guests and our shareholders. Our priorities for financial year 2026 are clear. One, grow same-store sales. Two, generate meaningful free cash flow. To that end, during financial year 2026, this management team is highly confident in its ability to deliver an increase in same-store sales, revenue, and adjusted EBITDA and to generate more than $100 million in free cash flow. Let me now provide an update on each pillar of our back to basics strategy. First, on marketing. As we discussed last quarter, we have reconstructed our marketing strategy with a clearer, more disciplined approach to planning and execution. We created a simplified marketing and promotional calendar which effectively communicates the attractiveness of our offerings. We continue to believe that improving and optimizing our marketing message, as well as our media mix, are one of the biggest opportunities we have to improve traffic, sales, and adjusted EBITDA. We've been laser-focused on leveraging data to balance our investment between television and digital channels and to make sure we get the right message to the right people at the right time. Looking ahead to 2026, our marketing reset will go even further. Our focus is to rebuild brand consideration via promoting culturally relevant promotions at attractive price points. We are also focused on building brand buzz, leveraging our exciting Instagram-worthy entertainments on the arcade. One recent example of this was our Valentine's Day promotion, where we gave away diamond engagement rings to five lucky customers using our Human Crane. The campaign generated over 6 billion impressions and a tremendous amount of earned media value. We are also activating our loyalty program to drive personalized messaging and increase guest traffic through frequency. We are building a scalable special events business engine that turns events into culturally relevant moments and converts our event guests into repeat walk-in customers. For example, Super Bowl, which used to be one of the worst Sundays of the year for us, ended up being a highly productive day for us this year, with ticketed advanced purchase programming where guests would enjoy our massive 40-foot screens, unlimited wings, and games for $24.99. Looking ahead, and as already highlighted, the FIFA World Cup represents another significant opportunity to establish Dave & Buster's as a destination of choice for major watch occasions and drive incremental traffic this summer. Second, during the last several quarters, our food and beverage offering has been one of the earliest success stories of our back-to-basics strategy. As we've discussed, the percentage of guests who came into our stores to play games and then also ate food had declined significantly versus historical levels. Our menu had changed quite materially in the years following COVID. Over the course of 2025, we reversed that trend decisively. Our new menu, which is largely a return to our successful pre-COVID menu, was launched in October and delivered strong results. In late 2025, traffic in our dining rooms was up meaningfully year-over-year, which helped us grow our comparable food and beverage sales approximately 7% during the fourth quarter. Our F&B same-store sales have now been positive for the last six fiscal months through February 2026. In addition to our new menu, our improved execution around our eat and play combo offering has also been powerful driver. Guest opt-in to EPC has improved significantly to a double-digit percentage of our guests since the beginning of 2025, growing from roughly 10% in Q1 2025 to approximately 16% in Q4 2025, demonstrating the attractiveness of the offering and seamless accessibility via kiosk. All told, the percentage of people who came into our stores to play games and then also ate food also improved by roughly 700 basis points year-over-year in Q4. Third, regarding our games offering. As we have previously discussed, we moved away from introducing new games to the system over the last six years. This current management team strongly believes that was a mistake and that delivering new and relevant games and attractions as the company had done consistently before COVID is a key element to attracting new and repeat guests and drive traffic and same-store sales. To that end, we've been hard at work and are excited to be introducing at least 10 new games and attractions across our store portfolio in year 2026. This is the most new games we have introduced in a year since 2017, demonstrating that a renewed focus on our entertainment offering is a core and obvious pillar of the back-to-basic strategy. Many of the new games we will introduce this year will be associated with highly relevant cultural IPs, which will maximize awareness, engagement, and traffic. This is one of the strongest lineups we have ever assembled as a company, and it reflects our commitment to delivering experiences that are bigger, bolder, and more immersive than anything our guests have seen before. Our new lineup of innovation includes games featuring John Wick, Stranger Things, Mandalorian, and Grogu. Additionally, given the exceptional demand, we have now rolled out Human Crane across the entire system. We're equally excited about our big push to leverage our highly differentiated watch offering, which includes massive 40-foot screens to promote visitation to our stores during World Cup soccer games this summer. We've devised a comprehensive 360 activation around soccer this summer, which will experience new games, win items, and new F&B innovation all linked to soccer. This revitalized product offering represents a significant step forward in the quality, variety, and cultural relevance of our entertainment offerings. We are combining world-class IP partnerships and innovative original concepts, and we are doing it in a way that drives both per capita spend and repeat visitation. I could not be more enthusiastic about what this means for our guest experience and our business. For 2026, our ambition is to continue to evolve our play experience and position Dave & Buster's as the fun capital of America. Fourth, regarding operations. We are reinvesting in our field operations with comprehensive training programs designed to empower our teams to deliver exceptional guest experiences and drive higher customer satisfaction. By fostering a collaborative culture that receives strong support from our shared services center, we're reducing turnover, enhancing engagement, and creating an environment where our people and our brand can truly thrive. For year 2026, we are establishing what we call an obsession metric around speed of service with clear standards at critical guest moments, such as one-minute greet and four-minute drinks time, supported by coaching and performance management. We are also revamping our labor model to optimize staffing and simplify operational processes. To bring all this together and further accelerate our momentum, we are elevating our culture and people capabilities across the organization. From launching industry-leading GM incentives to investing in training programs and simplifying tasks for our team members, we are sending a message to the field that our success is closely tied to our execution and to our guest experience. For year 2026, we're implementing leadership development programs and tools across both the shared services center and the field to strengthen our bench, improve retention, and increase internal mobility. We're also establishing our employee value proposition and unifying our culture by defining and activating a shared mission across Dave & Buster's and Main Event. We want our teams to know that we are walking the talk on the fundamental truth that our guest experience can never exceed our team member experience. Finally, we have made continued progress on our revamped remodel program. As mentioned last quarter, we have high confidence. We have found the right layout to increase traffic and overall productivity and generate highly attractive ROIs at a reasonable cost. We recently opened three new remodels, and we have three new remodels under construction and plan to open an additional four remodels in the next nine months. As a reminder, remodel stores consistently outperform non-remodel stores by approximately 700 basis points. As we've discussed before, after COVID, this company moved away from many of the very clear and obvious elements that made it successful. Marketing and promotions changed significantly. The F&B menu and offerings changed significantly. The commitment to annual games and entertainment investment changed significantly. The focus on operations excellence changed significantly, and a commitment to refresh stores while maintaining the core ethos of what customers love about D&B changed significantly. We are now going back to basics piece by piece to restore those elements that made this brand and this company successful, and it's working. We have made meaningful progress over the past 9+ months and expect that progress to now even more quickly convert to financial results. We cannot have more confidence in our back-to-basics plan and our ability to grow this business meaningfully in the near term and over the long term. Before I pass the call over to Darin, I'd like to spend a minute addressing a topic we have gotten from many shareholders, our plans around capital expenditures, including our investment in new stores. I wanna be clear that we are highly focused on strict capital expenditure discipline, minimum ROI thresholds, and generating significant free cash flow. We are consistently evaluating our capital investment plans, including our new store plans, and will make adjustments as we weigh the best returns for each dollar of capital. If and as we make material adjustments, we will communicate them to you. We currently plan to spend no more than $200 million in CapEx during 2026 and to deliver over $100 million in free cash flow this year. To talk about this more and review our financial results, let me hand the call over to Darin Harper, our Chief Financial Officer. Thank you, Tarun, and good afternoon, everyone. As Tarun touched on in his comments, there are several areas where we have made very solid progress over the past several months. While our comparable store sales decreased 3.3% versus the prior year in the fourth quarter of fiscal 2025, excluding the impact from the extreme winter weather, we estimate our comparable store sales would have decreased 1.5%. Excluding the impact of the winter storm, we saw sequential improvements in our comps during Q4 with period 12, the month of January, up 90 basis points at the Dave & Buster's brand year-over-year. Also during the quarter, F&B same-store sales increased approximately 7%. Special events grew nearly 7%. As Tarun mentioned, our remodel locations continue to outperform the balance of the system by approximately 700 basis points. Additionally, we drove sales improvement throughout our half-price games test on Sunday through Thursday. As Tarun mentioned, we experienced roughly flat comp sales performance to start the first period of FY 2026. While early days, we also saw year-over-year total revenue and EBITDA growth in the first period of FY 2026 versus the corresponding period in the prior year. This year, we also have seen a spring break calendar shift from March into the month of April, so we need a few more weeks before we have a good read on performance during our spring break period. During the fourth quarter, we generated total revenue of $530 million, a net loss of $40 million or $1.15 per diluted share, adjusted net loss of $12 million or $0.35 per diluted share, and adjusted EBITDA of $111 million, resulting in an adjusted EBITDA margin of 21%. We estimate that the negative impact of the winter storm in January was approximately $1 million in adjusted EBITDA, and there was further EBITDA headwind of $9 million related to higher deferred revenue from the prior year. We expect this deferred revenue headwind to decrease in magnitude for the next couple of quarters and to be approximately $10 million in total for FY 2026. Our fourth quarter EBITDA margin decline year-over-year was impacted by 110 basis points related to this deferred revenue headwind, 100 basis points of higher marketing costs, and the balance of the margin impact due to net deleverage coming from the 3.3% same-store sales decline, which as previously noted, was impacted 180 basis points by the winter storm in January. As Tarun mentioned, we expect positive comps in FY 2026, leading to EBITDA growth and steady improvement of our margin profile over the course of FY 2026. Our adjusted net loss of $12 million for the quarter was impacted by $24 million of incremental depreciation expense year-over-year. We anticipate a more normalized depreciation and amortization expense in FY 2026 of approximately $75 million per quarter. As a reminder, reconciliations of all non-GAAP financial measures can be found in today's press release. On the expense side, we believe that we have an opportunity to drive even more cost optimization. Over recent weeks, we have put significant effort into further improving our internal processes and controls and costs and have in parallel kicked off a comprehensive initiative to identify material cost savings across all aspects of our business, including bringing on a new senior resource who spends 100% of his time focused on cost savings initiatives. As a result, we believe we can meaningfully improve our margins over time. Our new store development continues to deliver strong returns, and we have had a solid pipeline of upcoming store openings. In the fourth quarter, we opened two new domestic Dave & Buster's stores, which, as expected, took our new domestic store openings for the year to 11 + 1 relocation. We anticipate opening 11 new stores in FY 2026, comprised of eight new Dave & Buster's and three Main Event, and we expect them to contribute approximately 280 incremental operating weeks in FY 2026. On the international front, with the opening of our fourth international franchise location in the Dominican Republic, we expect three more international openings in the next few months in Delhi, India, Perth, Australia, and Mexico City, Mexico. As a reminder, we have secured agreements for over 35 additional international franchise stores in the coming years, and we see international franchising as a driver of highly efficient incremental growth, monetizing our brand around the world with minimal investment and risk. We have a massive opportunity internationally. We generated $103 million in operating cash flow during the fourth quarter, ending the quarter with $17 million in cash and $483 million in total liquidity, combined with the availability under our $650 million revolving credit facility, net of $14 million in outstanding letters of credit. In 2025, we invested approximately $270 million of CapEx on a net basis when factoring in payments from our landlords. We are making increasing progress converting our strong operating cash flow to free cash flow through more strict management on capital spending by eliminating inefficient capital spend. As a reminder, we are committed to generating meaningful free cash flow while continuing to invest in double-digit new store growth, new games, other high ROI initiatives, and a more diligent remodel program. As Tarun mentioned, in FY 2026, we fully expect the net CapEx figure to be no greater than $200 million. We are constantly evaluating our capital investment program, and if we identify better uses of our capital that makes sense for the business, we will be sure to provide an update. We completed three re-remodels of our latest remodel prototype at three Dave & Buster's already this year in FY 2026, and are under construction at an additional three D&B stores. We believe this new prototype will maximize the impact elements of our successful store remodels while eliminating previously ineffective spend for a high return outcome. We look forward to updating you on the progress in this area. As Tarun also mentioned, given our plans, management is highly confident in its ability to grow comparable store sales, total revenue, and adjusted EBITDA during FY 2026. Additionally, given our improved discipline around capital expenditures, we expect to generate more than $100 million in free cash flow during FY 2026, which we believe positions us well to continue investing in the business, reduce leverage, and return capital to shareholders at ours and the board's discretion. Our financial foundation remains strong, supported by a business model that consistently generates high returns, healthy unit level performance, disciplined cost management, and very straightforward potential to generate meaningful free cash flow. Both leadership and the board remain sharply focused on executing our priorities to drive same-store sales growth and generate significant free cash flow. With that, operator, please open the line for questions. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Andy Barish with Jefferies. Please go ahead. Hey, good afternoon, guys. I was just making sure on the opening comments you were just referring to February because of the March spring break shift. Anything else just obviously the world's changed a lot in March. You know, anything else you'd care to comment on just in terms of consumer behavior, just too tough to read with everything shifting around in the business. Hey, Andy, it's Darin. Yeah, look, it's obviously there's a lot going on from a macro perspective, from gas prices, from consumer sentiment, you know, and the like. It's just hard for us to parse through, you know, what's impacted by the macro versus some of these holiday shifts, you know, with spring break and Easter. You know, as typical for our business, we kind of like to get through this spring break period of time, and try to get a better read on things. It's mindful. We certainly know it's out there, but it's too early for us to really parse through what impact that's having. Okay. Helpful. I guess just kind of philosophically, Tarun, you know, more value, you know, seems to be helping to stabilize the business, whether that's half-price games now more than just Wednesday or, you know, kind of eat and play and the season pass and things like that. Are we seeing the impact of that on margins, you know, sort of as we came through the back half of last year? Or do you think like the, you know, the promotional stuff can be offset by more traffic? Just trying to get a sense of kind of like, you know, what the trade-off is, you know, to kind of continue to improve margins as you guys have talked about for 2026. Andy, that's a great question. You know, I must say kudos to, you know, our product design and our marketing teams. You know, they've designed the product in such a way that actually there is minimal, you know, margin erosion on either half of games or on the seasons pass. In fact, what we are seeing is that, you know, our consumers are spending the same amount of money on the games, but because they're spending more time on the games floor, they're actually consuming more food and beverage. You know, it's working really well and we don't see any risk of margin dilution as a result of these value promotions. Yeah. I'll add too, Andy, you know, with because we've driven more attach on the F&B side, you know, we're seeing more sales mix sort of weighting to F&B. Again, that's not a product of less entertainment or anything happening on the entertainment side. It's us driving more revenue on the F&B side. That inherently, you know, every percentage point of sales mix into F&B, you know, will have about 16 basis points of sort of inherent pressure on gross margins. That's something that obviously we'll live with. It's incremental penny profit. Yeah, as Tarun said, we've really done a nice job designing these to be very margin neutral. Gotcha. Just finally, Darin, on the net CapEx, you know, kind of finished up about $50 million more than you kind of originally had targeted. What can you give us a little sense of the variance? Was it real estate proceeds or TIs or just kind of spending a little bit more? You know, as we look at the weighting or the timing of 2026 openings. Yeah. You know, most of it, Andy, is coming from there was $33 million of FY 2024 CapEx that bled into FY 2025 that was a cash outflow this year. So that was a big factor. If you net that out, you know, it's about a 233 number versus the 220 guide, and that $13 million incremental increase, you know, some of that came from rolling out Human Cranes faster than we wanted and a few other areas that we anticipated. So really most of it is just due to timing really from the prior year, FY 2024 that bled into FY 2025. Okay. Thanks, guys. The next question is from Andrew Strelzik with BMO. Please go ahead. Hey, good afternoon. Thanks for taking the question. I wanted to ask about the amusement business. With the momentum you're seeing in F&B, you know, obviously that means with the overall comp amusement was down pretty solidly. I guess to me that kind of feels like a truer sense of incremental traffic. Correct me if you think I'm wrong on that, but I guess I just wanna ask then, you know, in your confidence that the initiatives that you have in store for 2026 can, you know, change the trajectory of that business, which, you know, still seems like it's under a decent amount of pressure. Yeah. Andrew, thanks for the question. You know, as you know, we have acknowledged that I think one of the mistakes we've made as a business is that over the past six years, we've not invested in amusements at all. You know, the number of new games in our arcade or in general, the total number of games in the arcade or partnerships with relevant IPs, you know, that's been missing for a long time. You know, consumers have told us that when we've spoken to them. You know, as we've done our research and as we've heard from our customers and responded to what they have said, we actually feel extremely confident that our strategy of bringing new games and bringing not only new games, but different kind of games with immersive experiences, with culturally relevant IPs, will attract a lot more foot traffic. You know, that's what we're looking for. We're looking for same-store sales growth driven by traffic. You know, it's early days to share all the plans for 2026. But we are in, you know... I mean, in addition to the, you know, what we have already shared with you about these 10 games that are being launched, you know, shortly, we actually in discussions, you know, with with the big brands and partnerships again, that are very, very exciting, and gives us tremendous confidence that, you know, this is gonna drive, consumer interest, it'll lead to brand consideration, and that'll drive traffic and same-store sales growth. Okay. That's helpful. Maybe just following up on that, as you think about communicating that to guests, I mean, the first point you brought up was the marketing. I guess for 2026, I wanted to better understand exactly kinda how to think about what's changing from a marketing perspective. Is it mostly visibility or messaging and that type of thing, or is the spend or media mix shifting in 2026 versus kind of since you came in? How should we think about that? Thank you. Andrew, I think it's a combination of several things. I think you know my very strong view is one that you need to have the right product. If you have the right product, you know, it just gives you know marketing you know that ammunition to fire effectively. We believe that by investing in products, in new games, in culturally relevant IPs, we're giving marketing you know the right ammunition. That's kind of one piece. The second piece really is that we've now you know driven you know every execution on the back of compelling customer insights. These are not just kind of you know marketing activation that are happening because of our gut or something that someone likes. It's actually based on the foundation of what consumers are telling us. That gives us confidence. Then finally, to your point that I think that we had really kind of leaned on two extreme ends on media mixes, and now because we are using data and, you know, we're using MMM, we feel a lot more confident that we are reaching the right target audience through our campaigns, both using television as well as social and digital. Great. Thank you very much. Thank you. The next question is from Dennis Geiger with UBS. Please go ahead. Great. Thanks, guys. The first question I wanted to ask a little bit more on the free cash flow guide for the year. Anything else that you could share sort of on thinking about margins as we go through the year or for the year or sort of, you know, EBITDA at a high level? And then within the context of the CapEx, the net CapEx guide, I forget if you've given gross or anything on kind of sale leaseback assumptions for 2026 that you could share maybe. Yeah. On the first part of your question, we're not providing any incremental EBITDA guidance for FY 2026. I think you know, one thing that might be helpful is to point you to the sort of mini deck that we had back in September, that there's a slide in there with a cash flow waterfall. I think that may give you some perspective on sort of how to think about modeling this free cash flow guide a bit. You know, when it comes to the margins for the year, you know, overall, you know, we feel like you know, obviously growing comps is what's gonna drive the margin growth. We feel like we are managing the rest of our lines pretty well between what we're doing from a cost optimization standpoint. You know, we talked about how we're designing these promos to be, you know, as margin neutral as possible. You know, we feel like how we're designing these any inflationary pressures that we're able to manage through, you know, through our cost initiatives. Again, if, as we've communicated, you know, getting into positive comp territory, you know, all that is gonna lead and drive to, you know, to margin accretion. Hopefully that's a little bit helpful. Remind me, Dennis, the second part of your question. What was your question? Oh, that's great, Darin. I think just the part, and maybe you touched on it with the slide. I have to double-check that. Just on the growth CapEx and the sale-leaseback assumption. Yeah. Yeah. Yeah. As far as the gross up. Yeah, look, we haven't sort of historically you know broken that out too much. However, look, I think you could look even in our 10-K that was filed as well. There's a table in MD&A which breaks out the gross versus net in terms of some of the sale leaseback proceeds. Look, I'd say that's a pretty good proxy if you take our sale leaseback proceeds there, divide it by the number of new units. Yeah, I think that'll kind of give you a sense for sort of how to think about gross CapEx and sort of how we're thinking about it in FY 2026 as well because we're opening about the same number of units. Got it. Very helpful. Then just a follow-up question. Just as it relates to the positive comps target for the year, really helpful to get a good sense of the key initiatives and sort of where progress is there. Anything else as you guys look into your crystal ball and you think about benefits from tax rebates over the coming, you know, couple of months, you think about maybe where gas prices might be, World Cup. Just kind of, you know, factors beyond the strategic plans, how you're thinking about some of those factors and how important they may or may not be within the context of a full year comp expectations. Thank you. Yeah. You know, Dennis, as far as the external environment is concerned, you know, we cannot really predict what's gonna happen tomorrow. Our focus is really on internal plans. You know, as we've shared before, you know, today, that, you know, we are very confident that by just going back to our, you know, back to basic strategy of things that we used to do really well, you know, until you know, COVID hit and, you know, we kind of stopped doing it. We feel very confident that that's gonna drive, you know, same store sales growth, and we're already seeing that. We're already seeing, you know, in the last, you know, four periods that, you know, we've stemmed the decline, we're getting increased traffic. You know, the business has stabilized now. You know, now the big investment we are making is in new games, which again, is like not something that is just a mere hope. We have spoken to our customers, we have spoken to our teams to understand what our guests are saying, and one of the things that they've been craving for is more games, more experiences and more immersive experiences. We're gonna give it to them, you know, not only through like the typical arcade game, but through, you know, culturally relevant IPs. That's kind of the second piece of the puzzle. The third piece of the puzzle that gives us confidence is that, you know, as we shared earlier that, you know, a micro event like a Super Bowl became like a big day for us in our business. We are now latching on to several such micro events, including the World Cup Soccer, which is like honestly in our mind is gonna be a catalyst for us to truly show, you know, our guests how compelling our watch program is. Like, there's nobody in this country who has 40-foot televisions across the entire estate. Like, this is. You know, you know, again, you know, we are guilty of not promoting this enough, but now we have a really strong catalyst that gives us this opportunity. Finally, as I said to you that, you know, we are in conversations with, you know, big IP holders. You know, on partnerships that, you know, we should be in a position to share when we kind of, you know, come back in three months' time to speak to you guys. All that in combination gives us confidence that you know, the trend we are seeing will continue and in fact improve. Thank you both. Appreciate it. Thank you, Dennis. The next question is from Mike Hickey with StoneX. Please go ahead. Hey Tarun, Darin, Cory. Thanks for taking our questions, guys. Just curious, double-clicking here again on 1Q. February flat same-store sales. Seems like we should be very excited. March, I'm just not getting a good feel for it. Obviously we're last day of March here, you're 2/3 through your 1Q period. You've guided to an inflection in same-store sales. Is this a 1Q possibility or should we set expectations here, which obviously are important to maybe 2Q? 2Q, I'm guessing, you get some new games in, you've got the World Cup, you kick in marketing, you got tax refunds, you got no tax on tips. Is it really Q2 that we should be looking for your business to inflect? The February that we saw being flat, should that be a signpost for us here that your business has turned? Hey, Mike. Yeah, certainly, we're not prepared to sort of say what we think Q1 is going to print at and where, you know, that ultimate inflection point is. You know, as mentioned, I mean, the spring break period of time is honestly our high water mark during the year in terms of sales volumes. You know, when you have these shifts, you know, it's pretty meaningful to our business and we always like to get through this, you know, four to five-week period of time and have a good sort of postmortem view of kind of where we were heading into it. What does it look like blended, and kind of what's our exit velocity coming out of there? Look, we'll be very excited to share results, you know, in Q1. You know, at the moment, you know, it's just too early for us to say. You know, as Tarun mentioned, I mean, all the areas that we're focused on, we have a lot of confidence in. I mean, I guess kind of drafting, you know, a bit off of even, you know, Dennis' questions of, you know, the income tax refunds and things like that. You know, none of that, we sort of factored into, "Hey, these are gonna be tailwinds that we're anticipating." The other thing I'll say is, look, if there is, you know, some consumer pullback and consumers aren't traveling as much, you know, having been in this space for a long time, you know, sort of that staycation concept. You know, D&B and Main Event are well-placed to, you know, sort of take advantage of that as we get into the out of school and into the summer months as well. You know, that combined with, you know, what we're doing with our 10 new games, you know, we're really optimistic about. But I'll stop shy of, you know, sort of predicting when we think sort of that trend inflection point is gonna occur. All right, I get it. You did say very excited, hopefully you'll be excited when you do your report. It's nice to see the attach on the F&B. I think, you know, you highlighted a lot of that was the promo activity, the Sunday through Thursday half-price games. That seemed like it was a real driver for you. You pulled back on that. I'm guessing you're gonna maybe start it again when you get some new games. That's sort of a question, a lead-in question to the question. When, you know, 10 games is great. Is there anything. You know, Human Crane was phenomenal. Putting IP onto boring games is not great. I mean, when you think about the. Not to say that they are, we just don't know. When you look at the 10 games, you know, is there anything to get excited about or are you just sort of installing, you know, and sort of hope and pray here? I mean, besides the IP, like the games themselves, like is there anything compelling? I didn't hear a World Cup game. I would have to imagine that you'd have a World Cup game. Any more color, please, on the games, if there's anything innovation and if you're gonna reengage that promo activity that Sunday through Thursday. We're all excited. It seemed like it was really moving traffic, and you mentioned traffic was maybe what you need, that incremental traffic to flip positive same-store sales. It seems like the combination of those two will lead us to the inflection. Darin, I'll take that. First of all, I think we are far more excited than you know you highlighted on the new games. You know, as you know that in the last call we mentioned that we brought in our Chief Games and Entertainment Officer, Putnam Shin. He'd had experience with several entertainment companies in the past, including Disney, and he's worked on our games innovation calendar. It is true that in the past, you know, we've kind of almost brought in games that are more reskin than anything truly innovative. We feel actually strongly that some of the games that we're launching now are different experiences and provide a far more social experience than the regular games that, you know, arcades have. You know, whether you talk about Stranger Things or John Wick, you know, these are games that'll be exciting to our guests. We've actually tested these out, by the way. You know, these are tested with guests and, you know, we've got a lot of good feedback. You know, we have a game called The Perfect Pump, actually, which is, you know, on the face of it, you know, it may sound not exciting, but it's the most popular game, you know, in the lineup. It could be because of the gas prices. You know, you can. It's funny how much time our guests are spending on some of these games. Now, as far as World Cup is concerned, we have two games that we are bringing in that are associated with soccer. We also have the arena that we are reskinning, and we are bringing in five games within the arena that's associated with the World Cup. That's not included in the list of 10 games that we're talking about. You know, honestly, once again, I wanna reiterate that these are very exciting games. These are very exciting IPs. As we move into the rest of the year, the quality of IPs, the quality of the games will only improve from here. Thanks, guys. The next question is from Jeff Farmer with Gordon Haskett. Please go ahead. Thanks. Just a few follow-up questions to some of the stuff that's already been discussed. From a same-store sales perspective in 2026, can you offer anything as it relates to what type of comp you might need to hold store level margins flat in 2026? Yeah. In terms of, you know, holding flat comps, you know, and flat margins, I think you're looking at a 1.5% sales lift and that could keep us at flat margins. Okay. As it relates to the Sunday, I think Sunday through Thursday LTO in terms of the half-price games. When that ran, what was the consumer response? Did you get the traffic sort of bump you wanted to in those sort of early weekday day parts or week parts rather? Yeah. It was a really good learning for us 'cause it was the first time that we'd done it for an extended period of time. We had tested half-price Sundays for a while as well in sort of the latter half of Q4 last year. Yes, we saw traffic lift. We saw spend lift. There was some really good learnings for us to really understand you know the experience from some of our more loyal consumers versus the consumers that you know don't have as high a frequency level, how it impacted their spend, how it impacted their dwell time, and how was their win experience impacted as well. Some really good learnings, and I would anticipate that you'll see more of that in the days ahead. Yeah. Okay. Final question. You've been asked this in prior quarters over the last year or so. What is the strategic upside to pursuing another year of double-digit store growth on the heels of a multi-year run of same-store sales declines? Do you feel like that's what the investor community is sort of expecting of you, or do you think that's the best way to run the model? What is the strategy in terms of maintaining that high level of unit growth as opposed to slowing down a little bit until you get the comps up? Yeah. Yeah, great question. It's certainly the right question to ask. You know, overall historically, you know, and here as of late, you know, it's really been pinned on A, we continue to get, you know, good returns on these locations. You know, the competition has not been slowing down, so it helps us, you know, to continue to fill out markets and take competitive advantage along the way. You know, I will say one more comment. Obviously, the timetable for these is very lengthy in terms of, you know, turning the spigot, you know, slower or faster on it. You know, when we look at FY 2026, you know, we're under construction to some degree for every one of those locations. FY 2027 and beyond, there's obviously more flexibility. We are as we always have been, you know, hyper-diligent on just making sure that we're investing these dollars correctly. You know, I think we are, you know, even more focused on absolutely making sure that we're gonna get the right return and that deploying capital there does not keep us from, you know, investing in something that can drive comps. Up to this point, we've been able to do both. We are very mindful of whether separate capital allocation approach in terms of new stores can be accretive to us from a same store sales perspective. We're very mindful. This is a very important, you know, consideration as we move forward on that end. Yeah. All right. Hey, Jeff, I just wanna add to what Darin said. You know, first of all, let me assure you that we've heard your feedback and the investment community feedback. Two, again, internally, we are committed to, you know, making sure that our core business delivers. Anything that distracts us from the core business, we will not do. Okay, it brings me to the fact that I don't believe that, you know, opening new stores that deliver very high cash and cash returns is a distraction. Now, if somebody asks me, "Hey, Tarun, is there a growth target? Are you gonna open 15 stores, 18 stores, 20 stores?" My answer is gonna be no, because that could become distracting. I think that if we had sites that were very carefully chosen for their ability to deliver access to our guests to provide D&B in a way that's more convenient to our customers to ensure that the competition doesn't take the right side. We are still very, very excited and committed about these opportunities. If we feel that opportunity is not gonna deliver, if there's a risk associated with that, we will rather conserve the CapEx and invest that into the core business. Once again, our assurance that we hear you guys and we are committed to really focusing and prioritizing our core business and making sure that it delivers positive same store sales growth. All right. Appreciate the thoughtful response. Thank you. Thank you. The next question is from Brian Vaccaro with Raymond James. Please go ahead. Hi, thanks and good evening. My question was just on the fourth quarter comps and the monthly cadence. I just wanna make sure my notes were right. I think you had previously said that your November comps were down one, and today I believe you said January was up 90 basis points, which would imply December was down pretty significantly. Is that correct? And if so, maybe just some color on what might have driven that in December. Yeah. No, Brian, our same store sales cadence sequentially actually improved throughout the quarter. You know, P10 was the softer of the three. Again, this is adjusting for the weather impact. Yeah, there's actually a sequential improvement throughout the quarter. Okay. Okay, got it. Keep in mind too, the 90 basis points was the Dave & Buster's brand specifically as well. I guess I do wanna highlight that. Just we felt like that was worth calling out. Okay. That's good to note as well. Thank you. And just so we're on the same page, just in terms of cadence of new unit openings there in 280 weeks implies pretty back-end weighted. Is there any way to just high-level expectations kind of on the pace of openings? But if I heard the 280 weeks correctly. Yeah, that's right. Yeah. No, you heard the 280 weeks correctly. Yeah. I guess as some high level for you, we've got three locations expected to open in May, location in June, location in July, a couple in August, one in September, and then three in November. If that's sort of helpful from a top line sort of cadence. Yeah, that's great. Thank you. Just last one. I wanted to just ask about the marketing spend. I believe that was about $93 million in fiscal 2025. Can you elaborate a little bit on your marketing plans for 2026, either as it relates to the spend level or the mix you might deploy between sort of traditional TV versus digital? Thanks very much. Yeah, sure. From a spend level, overall, we anticipate sort of traditional media spend to be very similar year- over- year. Some non-traditional type of spend may go down a little bit. Some non-working we expect it to go down a little bit, as well. But overall, sort of that core media we expect to be similar-ish, currently. You know, as in terms of mix, like we're gonna continue to optimize this. I think what you'll find, you know, as in FY 2025 is we leaned more into TV, linear CTV, etc. You know, that mix may weigh a little bit more into digital as we've gotten better with our modeling and targeting our consumers. Certainly not, you know, where it was two, three years ago. I think a good blend, you know, as we work through our right mix analysis and just continue to iterate with the consumer on the right message and the right channel. I hope that's helpful. All right. Thank you. This concludes our question and answer session. I would like to turn the conference back over to Tarun Lal for any closing remarks. Thank you, operator, and thank you to everyone for your time this evening. Let me leave you with this. Dave & Buster's is at an inflection point. We are executing against a clear differentiated strategy rooted in innovation, operational rigor, and an unwavering commitment to the guest experience. Across every dimension of the business, brand marketing, culinary quality, in-store execution, and next-generation game content, we are raising the bar, and the early returns are validating the thesis. Our strategic framework is straightforward and disciplined, building enduring brand equity over time, drive top-line performance with urgency, deliver a world-class guest experience at every touch point, protect and expand industry-leading unit economics, and underpin all of it with the right talent, the right culture, and the right technology infrastructure. At the end of the day, the financial model is elegantly simple. Same-store sales growth driven EBITDA expansion and EBITDA expansion drives long-term shareholder value creation. We are operating from a position of growing momentum, and frankly, we are still in the very early innings of unlocking the full potential of this platform. Nonetheless, in these early innings, we have made significant and tangible progress, including one, six months of sequentially improving Dave & Buster's brand same-store sales. Two, roughly flat total company same-store sales and positive revenue and adjusted EBITDA growth in February. Three, securing an exciting lineup of 10 new exciting games. Four, successfully turning F&B same-store sales consistently positive. Five, returning to and executing on the EPC, the Eat and Play Combo, a highly successful promotion with continually increasing opt-in rates. Six, other successful promotions, including half-off games. Seven, successful remodels which outperform the system consistently by 700 basis points. Lastly, eight, continued international expansion, reaching four total international locations with an additional three more to open in the next 60 days. We see a clear path to sustain same-store sales growth, expanding free cash flow, and durable value creation for our shareholders. I want to thank our teams across the globe for their extraordinary effort and dedication. They are the ones making this happen. I look forward to updating you on our continued progress. Have a wonderful evening. Thank you. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.