Financial Data and Key Metrics Changes - In Q1 2025, same store sales decreased by 8.3% compared to the prior year, with a notable decline of 11.9% in February, but improved to a decline of 4.3% in April [18][19] - Revenue for the quarter was $568 million, with net income of $22 million or $0.62 per diluted share, and adjusted EBITDA of $136 million, resulting in an adjusted EBITDA margin of 24% [19][20] - Operating cash flow generated during the quarter was $96 million, ending with $12 million in cash and $411 million available under the revolving credit facility [20] Business Line Data and Key Metrics Changes - The company has seen improvements in food and beverage sales, particularly with the reintroduction of the eat and play combo, which has a double-digit opt-in rate [11][12] - Remodeled stores have outperformed the system by over 700 basis points over the last three months, indicating the effectiveness of the remodel strategy [12] - The introduction of new games and attractions, such as the Human Crane, is expected to enhance guest experience and drive traffic [13][55] Market Data and Key Metrics Changes - The company reported positive same store sales in 11 of the last 30 days, indicating a recovery trend [8] - The Memorial Day weekend showed particularly strong sales, contributing to the positive momentum observed in early June [8] Company Strategy and Development Direction - The company is focused on a "back to basics" strategy aimed at improving execution across marketing, operations, and menu offerings [6][7] - New store development remains a key part of the strategy, with plans for 10 to 12 new store openings in fiscal 2025 [21][80] - International franchising is seen as a driver of efficient growth, with expectations for at least seven more international openings over the next year [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery trajectory, emphasizing the importance of executing their current strategies to drive revenue growth and free cash flow [7][15] - The leadership team is optimistic about the potential for significant improvements in operating performance and shareholder value in the coming months [7][93] - Management acknowledged the challenges posed by the macroeconomic environment but believes their initiatives will help mitigate these impacts [62] Other Important Information - The company is in the process of finalizing the search for a permanent CEO, with the interim CEO committed to driving performance improvements [15] - A new store manager incentive program has been implemented to align managers' interests with same store sales growth [38] Q&A Session Summary Question: Predictability of same store sales trajectory - Management indicated that while they are optimistic about future growth, they are still in the early stages of recovery and expect to see outsized growth in the coming years [24][26] Question: Breakdown of capital expenditures - The CFO confirmed that capital expenditures were front-end loaded, with significant spending on new stores and remodels [28][30] Question: Improvement in same store sales trends - Management noted that improvements are driven by increased traffic and better food and beverage sales, particularly through the eat and play combo [34][35] Question: Need for reinvestment in the business - Management stated that they do not foresee the need for significant reinvestment but will focus on smarter spending to drive growth [47][50] Question: New game cabinets and future outlook - The company plans to roll out new game cabinets and attractions, maintaining a focus on guest experience and engagement [54][56] Question: Differences in performance between Dave and Buster's and Main Event - Overall performance is similar, but there are specific metrics showing stronger growth in certain areas for Dave and Buster's [90]

Financial Performance - First quarter revenue of $567.7 million decreased 3.5% from the first quarter of 2024[78] - Net income totaled $21.7 million, or $0.62 per diluted share, compared to $41.4 million, or $0.99 per diluted share in the first quarter of 2024[78] - Adjusted EBITDA of $136.1 million decreased 14.5%, or $23.0 million, from the first quarter of 2024[78] - Total revenues for the three months ended May 6, 2025, decreased by $20.4 million, or 3.5%, to $567.7 million compared to $588.1 million for the same period in 2024[98] - Comparable store revenues decreased by $46.6 million to $513.1 million, while noncomparable store revenues increased by $15.7 million to $47.4 million[98] - Adjusted EBITDA for the three months ended May 6, 2025, was $136.1 million, representing 24.0% of total revenues, compared to $159.1 million, or 27.1%, for the same period in 2024[96] Operating Costs and Expenses - Total operating costs increased to $504.5 million, representing 88.9% of total revenues, compared to 85.5% in the previous year[95] - Operating income decreased to $63.2 million, or 11.1% of total revenues, down from 14.5% in the prior year[95] - Interest expense increased to $36.8 million, representing 6.5% of total revenues, compared to 5.6% in the previous year[95] - Operating payroll and benefits decreased to $135.0 million, representing 23.8% of total revenues, compared to $141.6 million, or 24.1%, in the previous year[102] - General and administrative expenses decreased to $24.4 million, or 4.3% of total revenues, from $28.0 million, or 4.8%, in the prior year[104] - Pre-opening costs increased to $6.1 million in the 2025 period compared to $3.3 million in the 2024 period, primarily due to the timing of costs for new stores[106] Store Operations - Comparable store sales decreased 8.3% compared to the same period in 2024, with a comparable store base of 210 stores[78][79] - Company-owned stores increased to 234 at the end of the period, up from 224 in the previous year[95] - Two new Dave & Buster's branded stores were opened during the three months ended May 6, 2025[80] Cash Flow and Capital Expenditures - Cash flow from operating activities decreased to $95.8 million for the 2025 period compared to $108.8 million for the 2024 period, primarily due to a decrease in net income[127] - Cash flow used in investing activities increased to $154.6 million for the 2025 period from $112.8 million for the 2024 period, driven by higher capital expenditures[129] - Total capital additions for the three months ended May 6, 2025, amounted to $115.2 million, up from $102 million for the same period in 2024[131] Debt and Financing - As of May 6, 2025, the company reported financing liabilities of $263.4 million in long-term outstanding liabilities and $0.5 million in current outstanding liabilities[118] - Total interest expense for the three months ended May 6, 2025, was $36.8 million, significantly up from $3 million for the same period in 2024[119] - The Net Total Leverage Ratio as of May 6, 2025, was 3, calculated with net debt of $1,578 million and Credit Adjusted EBITDA of $513 million[122] Shareholder Actions - The company repurchased 1.04 million shares for a total of $23.9 million during the fiscal 2025 period, with a remaining authorization limit of $104.1 million[123] Tax and Interest Rate Risk - The effective tax rate for the 2025 period was 17.8%, down from 21.0% in the 2024 period, influenced by a significant reduction in pre-tax book income[109] - The company is exposed to interest rate risk, with a potential impact of approximately $16.1 million on annual results from a hypothetical one percentage point interest rate change on the outstanding balance of the Credit Facility[136]

Financial Performance - First quarter revenue was $567.7 million, a decrease of 3.5% from $588.1 million in the first quarter of fiscal 2024[7] - Comparable store sales decreased 8.3% compared to the same period in fiscal 2024[8] - Net income totaled $21.7 million, or $0.62 per diluted share, down from $41.4 million, or $0.99 per diluted share in the first quarter of fiscal 2024[9] - Adjusted EBITDA was $136.1 million, representing 24.0% of revenue, down 14.5% from $159.1 million, or 27.1% of revenue in the first quarter of fiscal 2024[10] - Operating income decreased to $63.2 million (11.1% of total revenues) from $85.5 million (14.5% of total revenues) year-over-year[29] - Store operating income before depreciation and amortization was $162.2 million, accounting for 28.6% of total revenues, down from $183.2 million or 31.2%[29] - Adjusted net income for the three months ended May 6, 2025, was $26.7 million, with adjusted net income per diluted share at $0.76, compared to $46.4 million and $1.12 in the prior year[32] Liquidity and Debt - The company ended the quarter with $423.2 million of available liquidity, including cash and availability under its revolving credit facility[11] - The net total leverage ratio was 3.1x at the end of the quarter[11] - Net Total Leverage Ratio stood at 3.1 as of May 6, 2025, with total debt at $1,576.5 million[31] - Long-term debt increased to $1,569.5 million from $1,479.1 million year-over-year[24] - Cash and cash equivalents increased by $5.0 million, contrasting with a decrease of $5.2 million in the prior year[25] Operational Activities - The company opened two new stores and relocated one store during the first quarter, with two additional stores opened subsequently[7] - The company completed remodels of 13 stores in the first quarter[7] - The leadership team is focused on driving revenue growth and free cash flow generation, with a clear roadmap for operational improvements[6] Shareholder Actions - The company repurchased $23.9 million of shares, representing 1.0 million shares or 2.9% of outstanding shares as of the end of fiscal 2024[11] - Total current liabilities decreased slightly to $431.4 million from $433.9 million[24] Cash Flow - Net cash provided by operating activities was $95.8 million, down from $108.8 million year-over-year[25] - Credit Adjusted EBITDA for the trailing four quarters ended May 6, 2025, was $513.7 million[30]

Core Viewpoint - Dave & Buster's Entertainment, Inc. reported a decrease in financial performance for the first quarter of fiscal 2025, but the leadership is optimistic about a recovery driven by strategic changes in operations and marketing [4][5]. Financial Summary - Total revenue for the first quarter was $567.7 million, down 3.5% from $588.1 million in the same quarter of fiscal 2024 [6][7]. - Comparable store sales decreased by 8.3% compared to the first quarter of fiscal 2024 [6][7]. - Operating income was $63.2 million, representing 11.1% of revenue, compared to $85.5 million or 14.5% of revenue in the prior year [6][9]. - Net income totaled $21.7 million, or $0.62 per diluted share, down from $41.4 million, or $0.99 per diluted share in the first quarter of fiscal 2024 [7][8]. Operational Highlights - The company opened two new stores and relocated one during the first quarter, with two additional stores opened after the quarter ended [7]. - A total of 13 stores were remodeled in the first quarter [7]. - The company repurchased $23.9 million worth of shares, representing 2.9% of outstanding shares as of the end of fiscal 2024 [11]. Cash Flow and Liquidity - Operating cash generated during the first quarter was $95.8 million, with available liquidity of $423.2 million at the end of the quarter [10]. - The company ended the quarter with a Net Total Leverage Ratio of 3.1x [10][43]. Outlook - The company reiterated its outlook for fiscal 2025, including capital expenditures on new stores, remodels, and other initiatives [13].

Core Viewpoint - Dave & Buster's Entertainment, Inc. reported a decrease in financial performance for the first quarter of fiscal 2025, but the company is optimistic about a recovery driven by strategic operational changes and improvements in comparable store sales trends [4][6][7]. Financial Summary - Total revenue for the first quarter was $567.7 million, down 3.5% from $588.1 million in the same quarter of fiscal 2024 [6][7]. - Comparable store sales decreased by 8.3% compared to the first quarter of fiscal 2024 [6][7]. - Operating income was $63.2 million, representing 11.1% of revenue, compared to $85.5 million or 14.5% of revenue in the prior year [6][9]. - Net income totaled $21.7 million, or $0.62 per diluted share, down from $41.4 million, or $0.99 per diluted share in the first quarter of fiscal 2024 [7][8]. - Adjusted EBITDA was $136.1 million, a decrease of 14.5% from $159.1 million in the first quarter of fiscal 2024 [7][9]. Operational Highlights - The company opened two new stores and relocated one during the first quarter, with two additional stores opened after the quarter ended [7]. - A total of 13 stores were remodeled in the first quarter [7]. - The company repurchased $23.9 million worth of shares, representing 1.0 million shares or 2.9% of outstanding shares as of the end of fiscal 2024 [10]. Cash Flow and Liquidity - Operating cash generated during the first quarter was $95.8 million, with available liquidity of $423.2 million [10]. - The company ended the quarter with a Net Total Leverage Ratio of 3.1x [10][11]. Outlook - The company reiterated its outlook for fiscal 2025, emphasizing a focus on revenue growth and free cash flow generation [12].

Core Insights - PLAY experienced a 14.0% reduction in passenger numbers in May 2025, carrying 117,199 passengers compared to 146,692 in May 2024, due to a strategic shift towards leasing aircraft and focusing on the leisure market [1] - The load factor decreased to 80.9% in May 2025 from 86.4% in May 2024, reflecting the company's emphasis on leisure destinations, which typically have lower load factors but higher yields [2] - On-time performance improved significantly to 92.3% in May 2025 from 86.8% in May 2024, indicating operational excellence [3][8] Capacity and Strategy - The company increased seat capacity to leisure destinations by 26% year-over-year in May 2025, aligning with its strategic focus [3] - PLAY launched new direct flights to Agadir and Marrakesh, expanding its leisure destination offerings to 16 locations, including eight in Spain and four in Portugal [4][5] Financial Performance - Forward bookings and unit revenue for the summer are outperforming last year, suggesting a positive financial outlook [6] - The ACMI partnership with SkyUp began in May, with two aircraft operating under a Maltese AOC, contributing to predictable revenue streams [7]

Core Viewpoint - Wall Street analysts anticipate a decline in quarterly earnings and revenues for Dave & Buster's, reflecting a downward trend in performance compared to the previous year [1][4]. Earnings Estimates - Analysts expect Dave & Buster's to report earnings of $1.05 per share, representing a year-over-year decline of 6.3% [1]. - Revenue projections stand at $569.26 million, down 3.2% from the same quarter last year [1]. - The consensus EPS estimate has been revised upward by 2.4% over the past 30 days, indicating a reappraisal of initial projections by analysts [1]. Revenue Breakdown - 'Entertainment revenues' are forecasted to reach $374.14 million, reflecting a decrease of 3% from the prior-year quarter [4]. - 'Food and beverage revenues' are expected to total $195.08 million, indicating a decline of 3.6% from the previous year [4]. - The 'Stores Count - End of Period' is projected to be 234, an increase from 224 in the prior year [4]. Stock Performance - Over the past month, Dave & Buster's shares have increased by 12.9%, outperforming the Zacks S&P 500 composite, which saw a 5.2% change [5]. - The company holds a Zacks Rank of 3 (Hold), suggesting that its performance is likely to align with the overall market in the near future [5].

Group 1 - Dave & Buster's Entertainment, Inc. is expected to report its fiscal Q1 results around June 10, which is likely to continue the company's weak performance trend [1] - The company is analyzed with a focus on identifying mispriced securities by understanding the drivers behind its financials, often revealed through a DCF model valuation [1]

Core Viewpoint - Dave & Buster's Entertainment, Inc. will report its financial results for the first quarter ended May 6, 2025, on June 10, 2025, after market close [1] Group 1: Financial Reporting - The financial results announcement is scheduled for June 10, 2025, after market close [1] - A conference call to discuss the results will take place on the same day at 4:00 p.m. Central Time [2] - Participants can access the conference call via a toll-free number or through the company's website [2] Group 2: Company Overview - Dave & Buster's operates 236 venues across North America, including 175 Dave & Buster's stores and 61 Main Event stores [3] - The company provides a combination of dining and entertainment experiences, allowing guests to "Eat Drink Play and Watch" [3] - Main Event stores offer activities such as bowling, laser tag, and arcade games, catering to families [3]

Core Viewpoint - Dave & Buster's Entertainment, Inc. will report its financial results for the first quarter ended May 6, 2025, on June 10, 2025, after market close [1] Group 1: Financial Reporting - The financial results announcement is scheduled for June 10, 2025, after market close [1] - A conference call to discuss the results will take place on the same day at 4:00 p.m. Central Time [2] - Participants can access the conference call via a toll-free number or through the company's website [2] Group 2: Company Overview - Dave & Buster's operates 236 venues across North America, including 175 Dave & Buster's stores and 61 Main Event stores [3] - The company provides a combination of dining and entertainment experiences, allowing guests to "Eat Drink Play and Watch" [3] - Main Event stores offer activities such as bowling, laser tag, and arcade games, catering to families [3]