Financial Data and Key Metrics Changes - In Q4 of fiscal 2024, comparable store sales decreased by 9.4% year-over-year on a like-for-like basis [32] - Revenue for the quarter was $535 million, with a net income of $9 million, or $0.25 per diluted share, and adjusted net income of $27 million, or $0.69 per diluted share [32] - Adjusted EBITDA was $127 million, resulting in an adjusted EBITDA margin of 23.8% [32] - Operating cash flow for the quarter was $108.9 million, ending with $6.9 million in cash and $503.5 million available under a $650 million revolving credit facility [33] Business Line Data and Key Metrics Changes - The company is focusing on a "back to basics" strategy, unwinding previous leadership's changes in marketing, operations, and menu offerings [11][15] - The reintroduction of TV advertising and the classic eat and play combo promotion has shown positive results in increasing check sizes [17][18] - The company completed 44 remodels under its program, with a more measured approach planned for the first half of 2025 [21][22] Market Data and Key Metrics Changes - The company opened five new stores in Q4, totaling 14 new stores for fiscal 2024, including its first international franchise location in India [28][29] - The company has entered into 35 franchise partnership agreements, anticipating at least six additional franchise units to open in the next 12 months [29] Company Strategy and Development Direction - The current leadership is focused on improving revenue, adjusted EBITDA, and free cash flow through strategic changes and operational improvements [12][13] - The company plans to open 10 to 12 new stores in fiscal 2025, with a renewed focus on high ROI initiatives and a more disciplined remodel program [39][40] - The leadership acknowledges the need to enhance competitive differentiation while correcting past mistakes [82] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving trends in March and April, indicating a recovery from the fourth quarter's performance [12][44] - The leadership is aware of macroeconomic challenges but believes that strengthening the business will mitigate these effects [78][114] - The company is committed to converting operating cash flow into free cash flow while maintaining a strong balance sheet [114] Other Important Information - The company repurchased nearly 3 million shares for approximately $85 million in Q4, totaling 5 million shares for fiscal 2024 [34] - The company completed sale-leaseback transactions generating $111 million in proceeds, totaling approximately $185 million for fiscal 2024 [35] Q&A Session Summary Question: Improvements seen in March and April - Management noted that March and April showed marked improvements in traffic and ticket sales, indicating a positive trend [44] Question: CapEx and leaseback cash against CapEx - Management confirmed that the $220 million CapEx guidance assumes typical tenant improvements and sale-leasebacks [50][53] Question: Back-to-basics strategy and cost structure implications - The strategy involves smarter spending on marketing and a focus on core offerings without significantly increasing costs [57][59] Question: Value proposition for the brand - Management is re-evaluating the gaming value proposition and testing ways to enhance guest experience while maintaining value [67] Question: Recent traffic and sales pressures breakdown - Management indicated that recent pressures were a mix of macroeconomic factors and self-inflicted issues, with a focus on correcting past mistakes [76] Question: Competitive environment and top-line struggles - Management believes that execution issues were the primary cause of struggles, rather than competitive pressures [98] Question: Lower-income consumer trends - Management noted that while trends were unfavorable for lower-income consumers, recent marketing efforts may help drive visitation from this demographic [88] Question: CapEx outlook and breakdown - Management provided flexibility in capital spending and indicated that they would tighten up the breakdown of CapEx categories in the coming weeks [92] Question: Remodel hurdle rates and TV advertising mix - The remodel hurdle rate is expected to be lowered to mid to high single digits, with a return to a 50% mix of TV advertising [110][108]