We are laser-focused on executing our Back to Basics plan, strengthening our culture, elevating the guest experience and fully realizing the significant potential of our unique and iconic brand. After being here for about 5 months and fully immersing myself in the business, I am even more confident in our ability to dramatically improve operating results and drive meaningful value creation for our guests and our shareholders.Tarun Lal: Thank you, Cory. Good evening, everyone, and thank you for joining our c ...

Financial Data and Key Metrics Changes - In Q3 2025, comparable store sales decreased by 4% year-over-year, with a sequential improvement noted in October, where sales were down approximately 1% [16][17] - Revenue for the quarter was reported at $448 million, with a net loss of $42 million or $1.22 per diluted share, and an adjusted EBITDA of $59 million, resulting in an adjusted EBITDA margin of 13% [17] - Operating cash flow for the quarter was $58 million, ending with $14 million in cash and $442 million in total liquidity [17][18] 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 [8][9] - The Eat & Play Combo promotion has seen a significant increase in guest attachment, now representing a double-digit percentage of guests [9][10] - Entertainment line also showed improvement, with sequential growth noted throughout the quarter [39] Market Data and Key Metrics Changes - The company opened one domestic D&B store and three new Main Event stores in Q3, with plans for a total of 11 new domestic store openings and one relocation in fiscal 2025 [19] - International franchising is expected to drive efficient growth, with agreements for over 35 additional stores in the coming years [19] 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 more in the next five months [12][20] - The leadership team has been strengthened with the addition of key executives to enhance capabilities and drive growth [13][14] 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][5] - The company is optimistic about the upcoming game launches and the potential for increased guest engagement and traffic [10][11] - Management highlighted the importance of data-driven marketing strategies to convert brand awareness into customer visits [32] Other Important Information - The company is committed to generating free cash flow while investing in new store growth and high ROI initiatives [18] - Significant opportunities for cost optimization have been identified, with a focus on enhancing internal cost management processes [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 these messages [23] Question: How are consumers spending in the Midway? - Management reported that guests are spending more time and money in the Midway, with healthy spending trends observed [27][26] Question: Are refinements to the marketing media mix sufficient? - Management indicated that while strong brand awareness exists, a data-driven approach to media investment is crucial for converting awareness into customer visits [31][32] Question: What are the learnings from the remodel prototype? - Management confirmed that remodels are still showing a positive impact of approximately 700 basis points, emphasizing the importance of refreshing assets to enhance guest experience [34] Question: How did entertainment comps perform throughout the quarter? - Management confirmed that there was sequential improvement in the entertainment line, with expectations for continued growth [39] Question: How did the walk-in versus corporate events business perform? - Special events showed mid-single-digit growth year-over-year, with positive expectations for the holiday season [46]

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 Insights - Dave & Buster's Entertainment, Inc. (PLAY) is set to release its second-quarter fiscal 2025 results on September 15, with an expected earnings per share (EPS) of 88 cents, reflecting a 21.4% decline from $1.12 in the same quarter last year [1] - The consensus estimate for fiscal second-quarter revenues is $562 million, indicating a growth of 0.9% year-over-year [3] Earnings Estimate Trend - The EPS estimate for the current quarter has remained stable at 88 cents over the past week, but has decreased from 90 cents 30 days ago [3] - The projected EPS for the current year is $1.53, while the next year's estimate is $2.07 [3] Earnings Surprise History - Dave & Buster's has a modest earnings surprise history, having outperformed the Zacks Consensus Estimate in two of the last four quarters, with an average surprise of 2.2% [4] Revenue Drivers - The fiscal second-quarter performance is expected to benefit from improved traffic trends, promotional offerings, and new entertainment initiatives [10] - The relaunch of the Eat & Play combo and the introduction of the Summer Pass program are anticipated to enhance customer engagement and drive sales [11] - New games and attractions, along with the "Summer of Games" campaign, are likely to have contributed positively to guest activity [12] Margin Expectations - Fiscal second-quarter adjusted EBITDA is predicted to decline 18.6% year-over-year to $123.4 million, influenced by elevated pre-opening and marketing costs [14] - Total operating expenses are expected to rise 2.6% year-over-year to $484.7 million, constrained by labor inflation and macroeconomic factors [16] Stock Performance & Valuation - Over the past three months, PLAY shares have declined 13.8%, underperforming the Zacks Retail - Restaurants industry and the S&P 500 [17] - The stock is currently trading at a forward P/E multiple of 11.98, below the industry average of 24.14 [19] Investment Considerations - The company is focusing on a "back-to-basics" strategy to strengthen its position in the experiential dining and entertainment market [21] - Challenges such as inflationary pressures, competitive promotional activity, and uneven demand may limit near-term margin expansion [22]

Financial Data and Key Metrics Changes - In Q4 of fiscal 2024, comparable store sales decreased by 9.4% year-over-year on a like-for-like basis [32] - Revenue for the quarter was $535 million, with a net income of $9 million, or $0.25 per diluted share, and adjusted net income of $27 million, or $0.69 per diluted share [32] - Adjusted EBITDA was $127 million, resulting in an adjusted EBITDA margin of 23.8% [32] - Operating cash flow for the quarter was $108.9 million, ending with $6.9 million in cash and $503.5 million available under a $650 million revolving credit facility [33] Business Line Data and Key Metrics Changes - The company is focusing on a "back to basics" strategy, unwinding previous leadership's changes in marketing, operations, and menu offerings [11][15] - The reintroduction of TV advertising and the classic eat and play combo promotion has shown positive results in increasing check sizes [17][18] - The company completed 44 remodels under its program, with a more measured approach planned for the first half of 2025 [21][22] Market Data and Key Metrics Changes - The company opened five new stores in Q4, totaling 14 new stores for fiscal 2024, including its first international franchise location in India [28][29] - The company has entered into 35 franchise partnership agreements, anticipating at least six additional franchise units to open in the next 12 months [29] Company Strategy and Development Direction - The current leadership is focused on improving revenue, adjusted EBITDA, and free cash flow through strategic changes and operational improvements [12][13] - The company plans to open 10 to 12 new stores in fiscal 2025, with a renewed focus on high ROI initiatives and a more disciplined remodel program [39][40] - The leadership acknowledges the need to enhance competitive differentiation while correcting past mistakes [82] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving trends in March and April, indicating a recovery from the fourth quarter's performance [12][44] - The leadership is aware of macroeconomic challenges but believes that strengthening the business will mitigate these effects [78][114] - The company is committed to converting operating cash flow into free cash flow while maintaining a strong balance sheet [114] Other Important Information - The company repurchased nearly 3 million shares for approximately $85 million in Q4, totaling 5 million shares for fiscal 2024 [34] - The company completed sale-leaseback transactions generating $111 million in proceeds, totaling approximately $185 million for fiscal 2024 [35] Q&A Session Summary Question: Improvements seen in March and April - Management noted that March and April showed marked improvements in traffic and ticket sales, indicating a positive trend [44] Question: CapEx and leaseback cash against CapEx - Management confirmed that the $220 million CapEx guidance assumes typical tenant improvements and sale-leasebacks [50][53] Question: Back-to-basics strategy and cost structure implications - The strategy involves smarter spending on marketing and a focus on core offerings without significantly increasing costs [57][59] Question: Value proposition for the brand - Management is re-evaluating the gaming value proposition and testing ways to enhance guest experience while maintaining value [67] Question: Recent traffic and sales pressures breakdown - Management indicated that recent pressures were a mix of macroeconomic factors and self-inflicted issues, with a focus on correcting past mistakes [76] Question: Competitive environment and top-line struggles - Management believes that execution issues were the primary cause of struggles, rather than competitive pressures [98] Question: Lower-income consumer trends - Management noted that while trends were unfavorable for lower-income consumers, recent marketing efforts may help drive visitation from this demographic [88] Question: CapEx outlook and breakdown - Management provided flexibility in capital spending and indicated that they would tighten up the breakdown of CapEx categories in the coming weeks [92] Question: Remodel hurdle rates and TV advertising mix - The remodel hurdle rate is expected to be lowered to mid to high single digits, with a return to a 50% mix of TV advertising [110][108]