ZACKS·2025-06-11 14:46Core Insights - Dave & Buster's Entertainment, Inc. reported first-quarter fiscal 2025 results with earnings missing expectations and revenues beating them, both metrics showing a year-over-year decline [1][4]. Financial Performance - Adjusted earnings per share (EPS) for the fiscal first quarter were 76 cents, missing the Zacks Consensus Estimate of 96 cents, down from $1.12 in the prior year [4][10]. - Quarterly revenues totaled $567.7 million, exceeding the consensus mark of $564 million but declining 3.5% from $588.1 million in the previous year [4][10]. - Food and Beverage revenues, accounting for 35.4% of total revenues, decreased 0.6% year over year to $201.1 million [5]. - Entertainment revenues, making up 64.6% of total revenues, fell 5% year over year to $366.6 million [5]. Comparable Store Sales - Comparable store sales, including Main Event-branded locations, declined 8.3% year over year, but showed improvement sequentially, with a decline of 2.2% year over year through June 2, 2025 [6][10]. Operating Highlights - Operating income for the quarter was $63.2 million, down from $85.5 million in the prior year, with an operating margin contracting to 11.1% from 14.5% [7]. - Adjusted EBITDA was $136.1 million compared to $159.1 million in the year-earlier quarter, with the EBITDA margin declining to 24% from 27.1% [8]. Balance Sheet - As of May 5, 2025, cash and cash equivalents were $11.9 million, up from $6.9 million as of February 4, 2025 [9]. - Net long-term debt was approximately $1.57 billion, an increase from $1.48 billion at the end of fiscal 2024 [9]. - The company maintains available liquidity of $423.2 million, including its revolving credit facility [9]. Store Development - During the fiscal first quarter, the company opened two new stores and completed one store relocation, with two additional stores opened since quarter-end and 13 remodels completed [11].