Dave & Buster’s Reports Q3 Financial Results, CEO Transition

Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY) recently disclosed its financial performance for the third quarter ending November 5, 2024, and announced a key leadership transition. Despite challenges, the company continues to focus on its long-term strategic objectives.

In the reported financial summary, Dave & Buster’s noted a 3.0% decline in revenue, totaling $453.0 million for the quarter, compared to the same period last fiscal year. Comparable store sales saw a 7.7% decrease. The company reported a net loss of $32.7 million, or $(0.84) per diluted share, contrasting with a net loss of $5.2 million, or $(0.12) per diluted share, in the prior year’s third quarter.

Adjusted EBITDA stood at $68.3 million, reflecting a 16.3% decline year-over-year. The company attributed the financial challenges to various factors, including a calendar shift, adverse weather conditions impacting regions, and disruptions in certain stores during the remodel. To navigate these challenges, the company successfully refinanced a portion of its debt, raising new funds and enhancing liquidity.

A notable development during the quarter was the resignation of Chris Morris, the CEO. The Board, in collaboration with an executive search firm, is actively seeking a permanent CEO. In the interim, Kevin Sheehan, currently serving as the Chair of the Board, will also be the interim CEO. Moreover, the Board has reshuffled roles and responsibilities, appointing James Chambers as Vice Chair and Michael Griffith as the Lead Independent Director during this transition phase.

Dave & Buster’s reported the opening of new venues, unveiling two Dave & Buster’s stores and one Main Event store during the quarter. Additionally, the company engaged in strategic initiatives including a sale leaseback transaction and share repurchases amounting to $28.0 million, with $112.0 million remaining under its share repurchase authorization.

The company’s Quarterly Report on Form 10-Q for the third quarter is available for review on the SEC’s website and the company’s investor relations portal. Management will host a conference call on December 10, 2024, to discuss these results.

Dave & Buster’s Entertainment, Inc., known for its entertainment and dining venues under the Dave & Buster’s and Main Event brands, is focused on overcoming challenges and driving growth for its shareholders. Despite the financial headwinds, the company remains committed to its long-term strategic vision.

Please note that all financial figures and statements mentioned above are sourced directly from the official SEC filing by Dave & Buster’s Entertainment, Inc.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Dave & Buster’s Entertainment’s 8K filing here.

About Dave & Buster’s Entertainment

Dave & Buster's Entertainment, Inc owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events.