Financial Data and Key Metrics Changes - In Q3 2025, the company reported revenue of $448 million, a net loss of $42 million, or $1.22 per diluted share, and an adjusted net loss of $39 million, or $1.14 per diluted share [16] - Adjusted EBITDA was $59 million, resulting in an adjusted EBITDA margin of 13% [16] - Comparable store sales decreased by 4% year-over-year, with a sequential improvement noted in October, where sales were down approximately 1% [15][16] Business Line Data and Key Metrics Changes - The company saw positive same-store sales for food and beverage during the quarter, with October being the best month of the year for same-store food sales [8][16] - The Eat & Play Combo promotion has shown significant traction, with guest attachment improving to a double-digit percentage since the beginning of the year [9] Market Data and Key Metrics Changes - The company opened one domestic D&B store and three new domestic Main Event stores in Q3, bringing the total new store openings year-to-date to nine [18] - The company expects to open four more international franchise locations over the next six months, with agreements secured for over 35 additional stores in the coming years [18] Company Strategy and Development Direction - The company is focused on a "back-to-basics" plan, which includes enhancing marketing strategies, improving food and beverage offerings, and revamping game offerings [4][5] - A new remodel program is underway, with three remodels under construction and plans for six new remodels in the next five months [12][19] - The leadership team has been strengthened with the addition of key executives to enhance capabilities and drive growth [13] 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] - The company is optimistic about the upcoming 2026 game lineup, which is expected to resonate well with customers [10][11] - Management noted that they are seeing healthy spending and increased time spent by guests in the Midway [25] Other Important Information - The company generated $58 million in operating cash flow during Q3 and ended the quarter with $14 million in cash and $442 million in total liquidity [16][17] - The company is committed to generating free cash flow while investing in new store growth and high ROI initiatives [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 their value messaging [21] Question: How are consumers spending in the Midway? - Management indicated that guests are spending more and spending more time in the Midway, reflecting healthy consumer engagement [25] Question: Are refinements to the marketing media mix sufficient to change consumer perception? - Management acknowledged strong brand awareness and emphasized the need for data-driven media planning to convert reach into real customers [30] Question: What are the learnings from the remodel prototype? - Management confirmed that remodels are still showing a positive impact of approximately 700 basis points and emphasized the importance of investing in areas that directly enhance guest experience [32] Question: How did entertainment comps perform throughout the quarter? - Management reported sequential improvement in entertainment comps, indicating a positive trend moving forward [36]

Financial Data and Key Metrics Changes - In Q3 2025, comparable store sales decreased by 4% year-over-year, with a notable improvement in the final month of October, where sales were down only approximately 1% [14][15] - Revenue for the third quarter was reported at $448 million, with a net loss of $42 million, translating to a loss of $1.22 per diluted share, and an adjusted EBITDA of $59 million, resulting in an adjusted EBITDA margin of 13% [15][16] - Operating cash flow for the quarter was $58 million, ending with $14 million in cash and $442 million in total liquidity [15][16] 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 [7][8] - The Eat & Play Combo promotion has seen a significant increase in guest attachment, now representing a double-digit percentage of guests since the beginning of the year [8][9] - The entertainment segment also showed improvement, with sequential growth noted throughout the quarter [33] Market Data and Key Metrics Changes - The company opened one domestic D&B store and three new domestic Main Event stores in Q3, bringing the total new store openings year-to-date to nine [17] - The company expects to open four more international franchise locations over the next six months, with agreements secured for over 35 additional stores in the coming years [17] 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 new remodels in the next five months [11][18] - The leadership team has been strengthened with the addition of key executives, enhancing the company's capabilities for growth [12] 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 [5][14] - The company anticipates continued improvement in same-store sales and cash flow, positioning itself for sustained growth [44] Other Important Information - The company is committed to generating free cash flow while investing in new store growth and high ROI initiatives [16] - A comprehensive initiative to identify efficiencies across the business is underway, aimed at optimizing the cost structure [15] Q&A Session Summary Question: What marketing messages have resonated with consumers? - Management noted that smart value offers, rather than discounts, have been effective, with combo offers appealing to guests [20][21] Question: How are consumers spending in the Midway? - There has been an increase in both spending and time spent in the Midway, with positive trends observed [24][23] Question: Are refinements to the marketing media mix sufficient? - Management emphasized the importance of data-driven media planning and the need for investment in converting reach into real customers [26][27] Question: What are the learnings from the remodel prototype? - The company continues to see a positive impact from remodels, with a focus on capital investment that directly enhances guest experience [28][29] Question: How did the special events business perform in Q3? - Special events experienced mid-single-digit growth year-over-year, with expectations for continued growth in Q4 [40][41]

Core Viewpoint - Dave & Buster's Entertainment reported disappointing third-quarter earnings, with losses and revenue falling short of analyst expectations, indicating challenges in the company's recovery efforts [2][4]. Financial Performance - The company reported a quarterly loss of $1.14 per share, missing the analyst estimate of a loss of $1.01 per share [2]. - Quarterly revenue was $448.21 million, which was below the consensus estimate of $461.32 million and down from $453 million in the same period last year [2]. Operational Updates - Comparable store sales decreased by 4% compared to the same calendar period in fiscal 2024 [4]. - The company opened one new domestic Dave & Buster's store and three new Main Event stores during the third quarter [4]. - Plans are in place to open two additional domestic Dave & Buster's stores in the fourth quarter, aiming for a total of 11 new stores and one relocation in fiscal 2025 [4]. Strategic Initiatives - The CEO highlighted progress on a "back-to-basics" plan, which includes relaunching marketing efforts, enhancing food and beverage offerings, improving operations, refreshing the games platform, and revamping the store remodel program [3].

Financial Performance - Third quarter revenue was $448.2 million, a slight decrease compared to the third quarter of 2024[82] - Net loss totaled $42.1 million, or $1.22 per diluted share, an increase of 28.7% from a net loss of $32.7 million, or $0.84 per diluted share in the third quarter of 2024[82] - Adjusted EBITDA was $59.4 million, a decrease of 13.0%, or $8.9 million, from the third quarter of 2024[82] - Total revenues for the third quarter of 2025 decreased by $4.8 million to $448.2 million compared to $453.0 million for the third quarter of 2024, primarily due to a $16.4 million decrease in comparable store sales[107] - Comparable store revenues were $389.6 million, down from $406.0 million, reflecting a reduction in walk-in business relative to the prior year[107] - Entertainment revenues accounted for 62.3% of total revenues in the third quarter of 2025, down from 65.0% in the same period of 2024[107] - Adjusted EBITDA for the third quarter of 2025 was $59.4 million, or 13.3% of total revenues, compared to $68.3 million, or 15.1%, in the same period of 2024[104] - The net loss for the third quarter of 2025 was $42.1 million, or 9.4% of total revenues, compared to a net loss of $32.7 million, or 7.2%, in the third quarter of 2024[104] Store Operations - For fiscal 2025, the comparable store base consists of 210 stores, including 153 Dave & Buster's and 57 Main Event stores[85] - Six new Dave & Buster's branded stores and three new Main Event locations were opened in the nine months ended November 4, 2025[86] - The company operates stores averaging 36,800 square feet for Dave & Buster's and 53,300 square feet for Main Event[84] - Company-owned stores increased to 241 at the end of the third quarter of 2025, up from 227 in the prior year[104] Revenue Trends - Seasonal factors historically lead to higher revenues in spring and year-end holidays, with lower revenues typically in the third quarter[99] - Comparable store sales decreased by 4.0% compared to the same period in 2024[82] - Total revenues for the nine months ended November 4, 2025, decreased by $25.0 million, or 1.6%, to $1,573.2 million compared to $1,598.2 million for the same period in 2024[124] - Comparable store revenues decreased by $81.5 million to $1,397.2 million, while noncomparable store revenues increased by $54.6 million to $149.3 million[124] - Entertainment revenues accounted for 64.2% of total revenues in the 2025 period, down from 66.1% in the 2024 period[124] Cost and Expenses - Total cost of products decreased to $63.5 million, representing 14.2% of total revenues, down from 15.0% in the prior year[108] - Operating payroll and benefits increased to $124.9 million, accounting for 27.9% of total revenues, compared to 26.7% in the third quarter of 2024[111] - General and administrative expenses rose to $32.9 million, representing 7.3% of total revenues, up from 5.4% in the prior year[113] - Total operating payroll and benefits increased to $398.6 million, representing 25.3% of total revenues, compared to 24.6% in 2024[128] - Other store operating expenses increased to $550.1 million, or 35.0% of total revenues, compared to 32.4% in 2024[129] - Cost of food and beverage products decreased to $140.7 million, with a percentage of 25.0% of food and beverage revenues, down from 26.9% in the 2024 period[127] - General and administrative expenses increased to $89.2 million in 2025 from $80.6 million in 2024, representing an increase of 8.0%[130] - Depreciation and amortization expense rose to $191.4 million in 2025, up from $174.2 million in 2024, primarily due to new store openings and remodels[131] - Pre-opening costs increased to $14.8 million in 2025 compared to $12.6 million in 2024, reflecting the timing of costs for new stores[132] Financial Position - Interest expense, net increased to $40.2 million in the third quarter of 2025, compared to $32.9 million in the prior year[116] - Interest expense, net increased to $115.7 million in 2025 from $99.9 million in 2024, primarily due to incremental interest from sale-leaseback transactions[134] - The effective tax rate for 2025 was 42.7%, significantly higher than 19.9% in 2024, influenced by a shift from pre-tax income to a pre-tax loss[136] - The Net Total Leverage Ratio as of November 4, 2025, was 3.3x, calculated using net debt of $1,593.1 million and Credit Adjusted EBITDA[150] Cash Flow and Capital Expenditures - Cash flow from operating activities decreased to $187.8 million for the 2025 period compared to $203.4 million for the 2024 period, primarily due to a decrease in net income and changes in working capital timing[155] - Total capital additions for the nine months ended November 4, 2025, were $268.3 million, down from $364.0 million for the same period in 2024, reflecting a decrease in new store and remodel expenditures[157] - Cash flow provided by financing activities was $136.8 million in the 2025 period, primarily from net debt proceeds and sale-leaseback transactions, partially offset by share repurchases[157] - Cash flow used in investing activities decreased to $317.9 million for the 2025 period from $359.9 million for the 2024 period, mainly due to reduced expenditures on new stores and remodels[155] - New store expenditures were $142.6 million for the nine months ended November 4, 2025, compared to $155.6 million for the same period in 2024[157] - The company reported maintenance capital expenditures of $30.8 million for the nine months ended November 4, 2025, down from $44.3 million in the prior year[157] Market Conditions - Economic conditions may impact supplier pricing and consumer spending, with potential for selective price increases to offset costs[100] - The company is exposed to commodity price fluctuations, which can materially impact food costs, and there is no assurance that these costs can be passed on to customers[161] - Severe inflation increases could adversely affect the company's business and financial condition, particularly if multiple cost factors rise simultaneously[163] - A hypothetical one percentage point interest rate change on the outstanding balance of the Credit Facility would impact annual results by approximately $15.9 million[162] Shareholder Actions - The company repurchased 1.04 million shares at an average price of $23.03 per share, with a remaining authorized limit of $104.1 million for future repurchases[151] - As of November 4, 2025, the company had cash and cash equivalents of $13.6 million, sufficient to meet operating requirements and capital allocation strategy for the next twelve months[153]

Financial Performance - Third quarter revenue was $448.2 million, a 1.1% decrease compared to the third quarter of fiscal 2024[8] - Third quarter comparable store sales decreased 4.0% compared to the same calendar period in fiscal 2024[8] - Net loss totaled $42.1 million, or $1.22 per diluted share, compared to a net loss of $32.7 million, or $0.84 per diluted share in the third quarter of fiscal 2024[8] - Adjusted EBITDA was $59.4 million compared to $68.3 million in the third quarter of fiscal 2024[8] - Adjusted net income for the three months ended November 4, 2025, was $(39.4) million, resulting in an adjusted net income per diluted share of $(1.14) [28] - For the nine months ended November 4, 2025, adjusted net income was $74.7 million, with an adjusted net income per diluted share of $1.84 [28] - The net income (loss) for the three months ended November 4, 2025, was $(42.1) million, or $(1.22) per diluted share [28] - The adjusted net income (loss) per diluted share for the three months ended November 5, 2024, was $(0.45) [28] - The adjusted net income (loss) for the three months ended November 5, 2024, was $(17.5) million [28] Store Operations - The Company opened one new domestic Dave & Buster's store and three new Main Event stores in the third quarter[8] - The Company expects to open at least four additional international franchise stores over the next six months[8] - The Company commenced remodels of three Dave & Buster's stores in the third quarter[8] - The Company has 241 stores in North America, including 177 Dave & Buster's stores and 64 Main Event stores[11] Cash Flow and Liquidity - Operating cash generated during the third quarter was $58.0 million, ending with $441.9 million of available liquidity[9] - Net cash provided by operating activities for the three months ended November 4, 2025, was $58.0 million, a significant recovery from a cash outflow of $7.2 million in the same period last year[20] - Cash and cash equivalents rose to $13.6 million as of November 4, 2025, up from $6.9 million on February 4, 2025, indicating improved liquidity[19] Assets and Liabilities - Total assets increased to $4,130.7 million as of November 4, 2025, up from $4,015.8 million on February 4, 2025, representing a growth of 2.9%[19] - Total current liabilities decreased to $377.6 million as of November 4, 2025, from $433.9 million on February 4, 2025, indicating improved short-term financial stability[19] - Long-term debt increased to $1,552.8 million as of November 4, 2025, compared to $1,479.1 million on February 4, 2025, reflecting ongoing financing activities[19] Financial Ratios and Metrics - Adjusted EBITDA for the three months ended November 4, 2025, was $59.4 million, accounting for 13.3% of total revenues, compared to $68.3 million or 15.1% in the prior year[23] - Store Operating Income Before Depreciation and Amortization for the three months ended November 4, 2025, was $85.0 million, representing 19.0% of total revenues, down from $93.3 million or 20.6% in the same period last year[25] - Credit Adjusted EBITDA for the trailing four quarters ended November 4, 2025, was $483.1 million, providing insight into the company's financial health and compliance with credit agreements[26] - The Net Total Leverage Ratio as of November 4, 2025, was 3.0, calculated using net debt of $1,593 million against Credit Adjusted EBITDA of $483 million[27] Special Items and Adjustments - Loss on debt refinancing for the nine months ended November 4, 2025, was $15.2 million, contributing $0.37 to the adjusted net income per diluted share [28] - System implementation costs for the three months ended November 4, 2025, amounted to $0.6 million, with a per diluted share impact of $0.02 [28] - Transaction and integration costs for the nine months ended November 4, 2025, totaled $1.4 million, impacting adjusted net income per diluted share by $0.03 [28] - The tax impact of special items for the nine months ended November 4, 2025, was $(8.9) million, or $(0.22) per diluted share [28] - Other items, net, contributed $10.4 million to adjusted net income for the nine months ended November 4, 2025, with a per diluted share impact of $0.30 [28]

Core Insights - Dave & Buster's Entertainment, Inc. reported its financial results for the third quarter of fiscal 2025, showing a revenue of $448.2 million, which is a 1.1% decrease compared to the same quarter in fiscal 2024 [8] - The company experienced a net loss of $42.1 million, or $1.22 per diluted share, compared to a net loss of $32.7 million, or $0.84 per diluted share in the same period last year [8] - Adjusted EBITDA for the quarter was $59.4 million, down from $68.3 million in the third quarter of fiscal 2024 [8] Financial Performance - Total revenues for the third quarter were $448.2 million, with entertainment revenues at $279.4 million and food and beverage revenues at $168.8 million [8][19] - Comparable store sales decreased by 4.0% compared to the same period in fiscal 2024, with a sequential improvement noted in same-store sales each month [5][8] - The company generated $58.0 million in operating cash during the third quarter, ending with $441.9 million in available liquidity [7][12] Operational Highlights - The company opened one new domestic Dave & Buster's store and three new Main Event stores during the third quarter, with plans to open two additional domestic stores in the fourth quarter [8] - The third quarter saw the launch of a new menu, contributing to positive same-store sales for food and beverage [5] - The company is focused on executing its back-to-basics plan, which includes enhancing marketing, food and beverage offerings, and store remodels [4][6] Balance Sheet and Cash Flow - As of November 4, 2025, total assets were reported at $4.13 billion, with total liabilities at $4.00 billion [19] - The company’s cash and cash equivalents increased to $13.6 million from $6.9 million at the beginning of the fiscal year [19] - The net total leverage ratio was calculated at 3.3x as of November 4, 2025, indicating the company's debt levels in relation to its adjusted EBITDA [28]

Financial Summary - Third quarter revenue was $448.2 million, a 1.1% decrease compared to the third quarter of fiscal 2024 [9] - Comparable store sales decreased by 4.0% compared to the same period in fiscal 2024 [9] - Net loss totaled $42.1 million, or $1.22 per diluted share, compared to a net loss of $32.7 million, or $0.84 per diluted share in the third quarter of fiscal 2024 [9] - Adjusted net loss was $39.4 million, or $1.14 per diluted share, compared to an adjusted net loss of $17.5 million, or $0.45 per diluted share in the third quarter of fiscal 2024 [9] - Adjusted EBITDA was $59.4 million, down from $68.3 million in the third quarter of fiscal 2024 [9] Operational Highlights - The company generated $58.0 million in operating cash during the third quarter, ending with $441.9 million of available liquidity [7] - One new domestic Dave & Buster's store and three new Main Event stores were opened in the third quarter [9] - The company anticipates opening two additional domestic Dave & Buster's stores in the fourth quarter, totaling 11 new stores and one relocation for fiscal 2025 [9] - The company opened its third international franchise store in the Philippines and expects to open at least four additional international franchise stores in the next six months [9] Strategic Initiatives - The CEO reported progress on a back-to-basics plan, focusing on marketing, food and beverage offerings, operations, games platform, and store remodels [4] - There was a sequential improvement in same-store sales each month during the third quarter, with the final month down only roughly one percent [5] - The new menu launch contributed positively to same-store sales for food and beverage during the quarter [5] Company Overview - Dave & Buster's operates 241 stores in North America, offering entertainment and dining experiences through its brands [11] - The company has 177 Dave & Buster's stores in 43 states, Puerto Rico, and Canada, and operates 64 Main Event stores in 22 states [11]

Core Insights - Wall Street analysts anticipate that Dave & Buster's (PLAY) will report a quarterly loss of -$1.19 per share, reflecting a significant year-over-year decline of 164.4% [1] - Revenue projections for the upcoming quarter are estimated at $460.15 million, which represents a modest increase of 1.6% compared to the same quarter last year [1] Earnings Projections - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating that analysts have not revised their initial projections during this period [1][2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [2] Key Metrics Analysis - Analysts predict that 'Entertainment revenues' will reach $291.82 million, indicating a year-over-year decline of 1% [4] - 'Food and beverage revenues' are expected to be $168.24 million, suggesting a year-over-year increase of 6.2% [4] - The forecast for 'Stores Count - End of Period' is 241, an increase from 227 reported in the same quarter of the previous year [4] Stock Performance - Over the past month, shares of Dave & Buster's have increased by 22.6%, significantly outperforming the Zacks S&P 500 composite, which saw a change of only 0.1% [5] - Despite recent gains, Dave & Buster's holds a Zacks Rank of 4 (Sell), indicating expectations of underperformance relative to the overall market in the near future [5]

Core Insights - Dave & Buster's Entertainment, Inc. will report its financial results for the third quarter ended November 4, 2025, after market close on December 9, 2025 [1] - A conference call to discuss these results is scheduled for December 9, 2025, at 4:00 p.m. Central Time [2] Company Overview - Founded in 1982 and headquartered in Coppell, Texas, Dave & Buster's operates 241 stores in North America under two brands: Dave & Buster's and Main Event [3] - The company has 177 Dave & Buster's stores across 43 states, Puerto Rico, and Canada, offering a combination of dining and entertainment experiences [3] - Main Event, with 64 stores in 22 states, provides activities such as bowling, laser tag, and arcade games, catering to family entertainment [3] - The company is also in early-stage growth internationally, with three franchise stores currently open [3]

Core Insights - Dave & Buster's Entertainment, Inc. will report its financial results for the third quarter ended November 4, 2025, after market close on December 9, 2025 [1] - A conference call to discuss these results is scheduled for December 9, 2025, at 4:00 p.m. Central Time [2] Company Overview - Founded in 1982 and headquartered in Coppell, Texas, Dave & Buster's operates 241 stores in North America under two brands: Dave & Buster's and Main Event [3] - The company has 177 Dave & Buster's stores across 43 states, Puerto Rico, and Canada, offering a combination of dining and entertainment experiences [3] - Main Event operates 64 stores in 22 states, providing activities such as bowling, laser tag, and arcade games [3] - The company is in early-stage growth internationally as a franchisor, with three Dave & Buster's franchise stores currently open [3]