ZACKS·2025-12-10 17:51Core Insights - Dave & Buster's Entertainment, Inc. (PLAY) reported mixed third-quarter fiscal 2025 results, with earnings surpassing the Zacks Consensus Estimate but revenues missing the same [1][9]. Financial Performance - The company incurred an adjusted loss per share of $1.14, which was narrower than the Zacks Consensus Estimate of a loss of $1.16, compared to an adjusted loss per share of 45 cents in the year-ago quarter [4]. - Quarterly revenues totaled $448.2 million, missing the consensus mark of $460 million by 2.6%, and decreased 1.1% from $453 million reported in the prior-year quarter [4]. - Food and Beverage revenues, accounting for 37.7% of total revenues, increased 6.6% year over year to $168.8 million, while Entertainment revenues, making up 62.3%, fell 5.2% year over year to $279.4 million [5]. - Comparable store sales declined 4% year over year, but management noted steady monthly improvement, with October comps down only about 1% from the prior year [6]. Operational Highlights - The operating loss for the fiscal third quarter amounted to $16.2 million, compared to operating income of $6.3 million in the year-ago quarter [7]. - Adjusted EBITDA was $59.4 million, down from $68.3 million in the year-earlier quarter, with EBITDA margin declining to 13.3% from 15.1% [7]. Strategic Initiatives - The company remains confident in its Back-to-Basics strategy and targeted initiatives across marketing, games innovation, operations, and remodels, which are beginning to show early signs of progress [2][3]. - Sequential improvements in same-store sales and strong early results from the new menu launch supported better trends through the quarter and into November [3][9]. Balance Sheet and Liquidity - As of November 4, 2025, cash and cash equivalents were $13.6 million, up from $6.9 million as of February 4, 2025 [8]. - Net long-term debt was approximately $1.55 billion, compared to $1.48 billion at the end of fiscal 2024, with available liquidity of $441.9 million [10]. Growth Initiatives - The company opened one domestic Dave & Buster's store and three new Main Event locations during the fiscal third quarter [11]. - Internationally, the company opened its third franchise location in Manila, Philippines, and expects four additional international openings within six months [12].