This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: Topgolf has named David McKillips as its CEO, effective Feb. 23, the chain said Thursday in a press release. McKillips, former CEC Entertainment president and CEO, succeeds Arthie Starrs, whose departure in 2025 led parent company Topgolf Callaway to slow a planned spinoff of the eatertainment chain. In January, Topgolf Callaway completed a s ...

Core Insights - The deal values the high-tech driving ranges at approximately $1 billion [1] Company and Industry Summary - The transaction indicates a significant valuation for high-tech driving ranges, suggesting strong market interest and potential growth in this sector [1]

Revenue Guidance - Topgolf raised its full-year revenue guidance [1] Industry Trend - Football fans spent extra time playing golf [1]

Core Insights - PropNotes focuses on identifying high-yield investment opportunities for individual investors, leveraging a background in professional Prop Trading to simplify complex concepts and provide actionable insights [1] Group 1 - The analysis produced by PropNotes is designed to assist investors in making informed market decisions, supported by expert research that is unique [1] Group 2 - The company encourages individual investors to follow their insights to take control of their investment portfolios [1]

Core Insights - Topgolf is set to open a new venue in Avon, Ohio, on September 19, 2025, marking its fifth location in the state [1][2] - The new venue is strategically located approximately 20 miles west of downtown Cleveland, enhancing Topgolf's presence in the Northeast Ohio market [1][5] Company Overview - Topgolf is a brand under Topgolf Callaway Brands Corp. (NYSE: MODG), known for its tech-enabled modern golf experiences and entertainment [8][9] - The company operates over 100 venues globally, utilizing industry-leading Toptracer technology to enhance the golfing experience [8][9] Venue Features - Topgolf Avon will feature 64 outdoor climate-controlled hitting bays across two levels, equipped with lounge-type furniture and high-top tables [6] - The venue will employ approximately 200 staff members, referred to as "Playmakers," who will provide various services [6] - Topgolf Avon will include a full-service restaurant and bar, a private event space, and a 22-foot video wall, along with over 100 HDTVs and year-round family-friendly programming [6] Community Impact - Local officials, including Avon Mayor Bryan Jensen, express excitement about Topgolf's arrival, highlighting its potential to provide a unique experience for residents and visitors [5] - The venue is expected to contribute to the local economy and enhance the entertainment options available in the growing city of Avon [5]

Topgolf beat revenue expectations and raised its guidance after promotions like half-off days and frozen margaritas drew in more customers https://t.co/20C5Lr80je ...

Leadership Change - Harley-Davidson appoints Arthur Starrs, former head of Topgolf, as its new president and chief executive [1]

EPR Properties Conference Call Summary Company Overview - EPR Properties is a triple net REIT focused on experiential properties, primarily in the theater business, which has shown resilience and growth post-COVID [2][3][4] Industry Insights - The theater industry experienced a record-breaking Memorial Day weekend, indicating strong consumer interest in experiential entertainment [2] - The overall box office for 2025 is projected to be between $9.3 billion and $9.7 billion, with a 25% increase observed since the first quarter [5][6] - Average consumer spending at theaters has increased from approximately $4 in 2018 to over $7 currently, contributing to improved margins [7][8] Financial Performance - EPR Properties has achieved a 20-year total shareholder return ranking second among all REITs, and is currently in the top two for triple net REITs over various time frames [4] - The company has a strong coverage ratio, with box office contributions equating to an $11.3 billion box office due to increased food and beverage spending [8] Business Segments - The ski business remains stable, with the introduction of ski passes providing consistent revenue streams despite weather fluctuations [9][10] - EPR Properties aims to diversify its portfolio, currently having 37% exposure to theaters, and plans to reduce this concentration while maintaining a presence in experiential properties [18][19] Capital Recycling and Dispositions - EPR has sold 27 theaters over the past four years, with only three currently vacant, indicating effective capital recycling strategies [23][24] - The company sold assets in early childhood education for a 7.4% cap rate, aligning with its strategy to monetize non-core assets [24][28] Dividend and Cash Flow Management - The company has reset its dividend payout ratio to approximately 70%, allowing for greater cash retention and growth potential [37] - EPR generates around $130 million in free cash flow above dividend and interest payments, enabling $250 million in annual investments without accessing equity markets [37][38] Investment Pipeline - EPR Properties sees a robust investment pipeline across various verticals, including golf and wellness, with significant recent expansions in Pagosa Springs and Frankenmuth [42][44] - The company is cautious about issuing equity and focuses on ensuring that every dollar spent is accretive to shareholder value [46][49] Tenant Relationships and CapEx Management - EPR maintains strong tenant relationships, with built-in lease features requiring tenants to fund capital expenditures, ensuring properties are well-maintained [52][54] - The company collaborates with tenants on CapEx needs, providing funding with the expectation of returns [54] Conclusion - EPR Properties is well-positioned in the experiential real estate market, demonstrating resilience through strategic management of its portfolio, strong financial performance, and a focus on growth opportunities while maintaining prudent cash flow and dividend policies [4][37][46]

Financial Data and Key Metrics Changes - In Q1 2025, the company added over 6,000 net locations, with total locations reaching approximately 40,000, a 25% year-over-year increase [9][28] - Recurring gross profit streams grew 37% year-over-year, with adjusted EBITDA increasing to $133 million and GAAP operating income at $43 million [9][26] - Annual Recurring Revenue (ARR) grew 31%, while total FinTech and subscription gross profit increased by 37% year-over-year [26][27] - Subscription revenue rose by 38%, and gross profit grew by 45%, benefiting from improved ARR to revenue conversion [29] - Payments ARR grew 31%, with Gross Payment Volume (GPV) at $42 billion, a 22% year-over-year increase [30] Business Line Data and Key Metrics Changes - The company reported a 5% increase in SaaS Average Revenue Per User (ARPU) on an ARR basis [29] - Non-payment fintech solutions, particularly Toast Capital, contributed $47 million in gross profit, with solid growth in originations [31] - Operating expenses, excluding bad debt and credit-related expenses, increased by 12%, primarily due to a 25% rise in sales and marketing expenses [32] Market Data and Key Metrics Changes - The company is on track to cross 10,000 locations across international, food and beverage retail, and enterprise in 2025 [16] - The company continues to see strong momentum in international markets, with guest attached doubling over the past year for recent locations [19] Company Strategy and Development Direction - The company aims to scale locations and market share in the U.S. restaurant business while demonstrating that new markets can drive material growth [11][16] - The focus is on increasing customer adoption of the platform and driving differentiation through data and AI [20] - The company plans to continue investing in high-priority areas while gradually expanding margins [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the macro environment, noting stable consumer trends and strong sales productivity [49][51] - The company raised its full-year outlook based on strong Q1 performance and momentum heading into Q2 [34][28] - Management remains optimistic about the resilience of restaurants in a dynamic macro environment [27][78] Other Important Information - The company achieved a 32% adjusted EBITDA margin, exceeding medium-term margin goals [33] - Free cash flow for Q1 was $69 million, with expectations to mirror adjusted EBITDA for the full year [33] Q&A Session Summary Question: Discussion on payback periods for large enterprise wins - Management highlighted that enterprise deals, like Applebee's, have attractive payback periods due to large ARR booked [41] Question: Insights on macro trends and same-store sales - Management noted that same-store sales and consumer trends remain stable, contributing to confidence in future net adds [49][51] Question: Update on AI solutions rollout - Management indicated that AI solutions like Sous Chef and ToastIQ are still early in development but show promising early results [57][63] Question: Impact of tariffs on hardware costs - Management stated that incremental costs from tariffs are manageable and reflected in guidance, with a diversified supply chain reducing reliance on China [114][115] Question: Location growth algorithm and market share - Management confirmed that the share between new and existing locations remains balanced, with core business being the primary growth engine [118]

Financial Data and Key Metrics Changes - In Q1 2025, the company added over 6,000 net locations, with total locations reaching approximately 40,000, a 25% year-over-year increase [6][22] - Recurring gross profit streams grew 37% year-over-year, with adjusted EBITDA increasing to $133 million and GAAP operating income at $43 million [6][22] - Annual Recurring Revenue (ARR) grew 31%, with SaaS ARR increasing by 32% year-over-year [22][24] - Total gross payment volume (GPV) was $42 billion, growing 22% year-over-year, although GPV per location decreased by 3% [26] Business Line Data and Key Metrics Changes - Subscription revenue increased by 38%, and gross profit grew by 45%, benefiting from improved ARR to revenue conversion [24][25] - Payments ARR grew 31%, while fintech gross profit increased by 32% in Q1 [26] - Non-payment fintech solutions, particularly Toast Capital, contributed $47 million in gross profit, with solid growth in originations [27] Market Data and Key Metrics Changes - The company is deepening its penetration in the core U.S. market while also expanding into new geographies and verticals [7][22] - International markets are expected to cross 10,000 locations in 2025, with strong momentum in customer adoption [13][16] - Customer sentiment remains strong, with the average gross profit per location in international markets being higher than industry averages [59] Company Strategy and Development Direction - The company aims to scale locations and market share in the U.S. restaurant business while demonstrating that new markets can drive material growth [8][12] - Focus on increasing customer adoption of the platform and driving differentiation through data and AI [16][18] - The company plans to continue investing in high-priority areas while gradually expanding margins [19][30] Management's Comments on Operating Environment and Future Outlook - Management remains confident in navigating the macro environment, with stable consumer trends observed [22][43] - The company has raised its full-year outlook based on strong Q1 performance and anticipates record net adds in Q2 [8][30] - Management is prepared to manage costs effectively in the event of a recession while continuing to invest in growth [72][73] Other Important Information - The company repurchased $17 million in shares in Q1 and expects free cash flow to broadly mirror adjusted EBITDA for the full year [29][30] - The company is focused on building an AI-first culture to enhance customer impact and drive future monetization [57][92] Q&A Session Summary Question: Can you discuss the payback periods on large enterprise wins like Applebee's? - Management expressed excitement about the Applebee's deal, noting that payback periods for enterprise deals are attractive due to large ARR booked [33][36] Question: How is the macro environment affecting same-store sales and new business formation? - Management indicated that same-store sales remain stable and new business formations are also stable, contributing to confidence in future net adds [42][43] Question: What is the strategy regarding pricing in the current macro environment? - Management emphasized a balanced approach to pricing, focusing on ARR growth while being mindful of customer needs during economic fluctuations [47][48] Question: Can you provide an update on the rollout of AI solutions like Sous Chef and Toast IQ? - Management stated that it is early in the rollout process, but they are focused on driving customer impact and expect monetization to follow over time [51][57] Question: How is the company managing costs in light of potential tariff impacts? - Management noted that incremental costs from tariffs are manageable and that they have diversified their supply chain to mitigate risks [110][112] Question: What is the outlook for location growth and market share? - Management indicated that the core business continues to drive the majority of growth, with new segments expected to contribute more over time [115][102]