Financial Data and Key Metrics Changes - In Q3 2025, comparable store sales decreased by 4% year-over-year, with a sequential improvement noted in October, where sales were down approximately 1% [16][17] - Revenue for the quarter was reported at $448 million, with a net loss of $42 million or $1.22 per diluted share, and an adjusted EBITDA of $59 million, resulting in an adjusted EBITDA margin of 13% [17] - Operating cash flow for the quarter was $58 million, ending with $14 million in cash and $442 million in total liquidity [17][18] Business Line Data and Key Metrics Changes - The new food and beverage menu launched in October contributed to positive same-store sales, with October being the best month of the year for food sales [8][9] - The Eat & Play Combo promotion has seen a significant increase in guest attachment, now representing a double-digit percentage of guests [9][10] - Entertainment line also showed improvement, with sequential growth noted throughout the quarter [39] Market Data and Key Metrics Changes - The company opened one domestic D&B store and three new Main Event stores in Q3, with plans for a total of 11 new domestic store openings and one relocation in fiscal 2025 [19] - International franchising is expected to drive efficient growth, with agreements for over 35 additional stores in the coming years [19] Company Strategy and Development Direction - The company is focused on executing its Back-to-Basics plan, which includes enhancing marketing strategies, improving food and beverage offerings, and revamping game selections [4][5] - A new remodel program is underway, with three remodels under construction and plans for six more in the next five months [12][20] - The leadership team has been strengthened with the addition of key executives to enhance capabilities and drive growth [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to improve operating results and drive value creation for guests and shareholders [4][5] - The company is optimistic about the upcoming game launches and the potential for increased guest engagement and traffic [10][11] - Management highlighted the importance of data-driven marketing strategies to convert brand awareness into customer visits [32] Other Important Information - The company is committed to generating free cash flow while investing in new store growth and high ROI initiatives [18] - Significant opportunities for cost optimization have been identified, with a focus on enhancing internal cost management processes [17] Q&A Session Summary Question: What marketing messages are resonating with consumers? - Management noted that smart value offers, rather than discounts, are resonating well with consumers, leading to increased traction for these messages [23] Question: How are consumers spending in the Midway? - Management reported that guests are spending more time and money in the Midway, with healthy spending trends observed [27][26] Question: Are refinements to the marketing media mix sufficient? - Management indicated that while strong brand awareness exists, a data-driven approach to media investment is crucial for converting awareness into customer visits [31][32] Question: What are the learnings from the remodel prototype? - Management confirmed that remodels are still showing a positive impact of approximately 700 basis points, emphasizing the importance of refreshing assets to enhance guest experience [34] Question: How did entertainment comps perform throughout the quarter? - Management confirmed that there was sequential improvement in the entertainment line, with expectations for continued growth [39] Question: How did the walk-in versus corporate events business perform? - Special events showed mid-single-digit growth year-over-year, with positive expectations for the holiday season [46]