Latest news with #DaveAndBusters
Yahoo
14-06-2025
- Business
- Yahoo
Dave & Buster's dials back some of its ‘confusing' experience changes
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Dave & Buster's is simplifying the guest experience as it continues to scale back overcomplicated changes, interim CEO Kevin Sheehan said on a Q1 2025 earnings call Tuesday. The restaurant is testing out a simplified rate structure for the Power Cards customers purchase to play games, according to Sheehan. The company wants to improve the customer journey from the moment they buy a card to selecting options for extra points. The company is also speaking with location operators to determine the kind of experience customers want from a trip to Dave & Buster's, according to Sheehan. This includes ensuring Dave & Buster's isn't just choosing ubiquitous games but options that are attractive for its unique customer base. While Dave & Buster's simplified operating strategy is driving some improvements, the company's overall results remain weak. The restaurant chain's revenue fell 3.5% year over year to $567.7 million in the first quarter of 2025, according to a company earnings report. Comparable store sales dropped 8.3% year over year during the period. While negative, the first quarter performance was an improvement from fourth quarter 2024 results, which saw a 10.8% year-over-year revenue drop and a 9.4% decline in comparable store sales. Dave & Buster's is focused on a back-to-basics strategy that reverses some of the changes made under former CEO Chris Morris. 'I think we all agree that last year, we kind of made it a little too confusing for the guests,' Sheehan said during the call. 'So we're trying to simplify it.' Under Morris, plans included flexible game pricing designed to attract customers during off-peak hours, but recent Dave & Buster's research and feedback found that customers want to know exactly how much play time they will get for their money. Such experiments with game pricing are no longer on the table, but a few of the changes spearheaded by Morris, such as remodels with an emphasis on appearance and efficiency, are continuing on a smaller scale.
Yahoo
11-06-2025
- Business
- Yahoo
Dave & Buster's Entertainment Inc (PLAY) Q1 2025 Earnings Call Highlights: Strategic Growth ...
Revenue: $568 million for the first quarter of fiscal 2025. Net Income: $22 million or $0.62 per diluted share. Adjusted Net Income: $27 million or $0.76 per diluted share. Adjusted EBITDA: $136 million with an adjusted EBITDA margin of 24%. Comp Store Sales: Decreased 8.3% versus the prior year period. Operating Cash Flow: $96 million generated during the first quarter. Cash and Credit Availability: $12 million in cash and $411 million available under the revolving credit facility. Capital Expenditures: $115 million in capital additions on a gross basis, $110 million on a net basis. Preopening Expenses: $2.7 million increase versus the prior year. New Store Openings: Two new stores opened in Calin, Texas, and Lansing, Michigan, with two additional openings in Freehold, New Jersey, and Wilmington, North Carolina. Store Relocation: Successful relocation of the Honolulu, Hawaii store. International Expansion: First international franchise location opened in India, with at least seven more expected over the next year. Warning! GuruFocus has detected 8 Warning Signs with PLAY. Release Date: June 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dave & Buster's Entertainment Inc (NASDAQ:PLAY) reported significant improvement in operating results over the first quarter, driven by a back-to-basics strategy. The company successfully reintroduced the Eat and Play Combo, which has shown positive early results and a double-digit opt-in rate. Remodeled stores have outperformed the system by over 700 basis points in the last three months, indicating the success of the remodel strategy. The introduction of new games and attractions, such as the Summer of Games and the human crane, is expected to enhance customer engagement and drive sales. Dave & Buster's opened new stores in strategic locations, including international expansion, which is expected to drive incremental growth with minimal investment and risk. Comp store sales decreased by 8.3% in the first quarter compared to the prior year, with a particularly soft February. The company incurred a $2.7 million increase in preopening expenses due to new store openings and relocations. There was a significant front-end loading of capital expenditures, with $115 million spent in the first quarter, impacting cash flow. The company is still in the early stages of implementing its back-to-basics strategy, indicating that full recovery may take time. Marketing and R&M expenses increased, which may continue to pressure margins if not managed effectively. Q: Can you provide some predictability on the trajectory of same-store sales and how you're looking at it on a multi-year basis? A: Kevin Sheehan, Interim CEO, explained that while they are in the early stages of recovery, they expect outsized growth over the next few years. Long-term, they aim for 3% same-store sales growth, supplemented by new stores and incremental opportunities like international expansion and catering. Q: Can you break down the capital expenditures for the first quarter and expectations for the rest of the year? A: Darin Harper, CFO, detailed that $53 million was spent on new stores, $20 million on remodels, $30 million on games, and $12.5 million on maintenance CapEx. The company remains confident in their full-year guidance and plans to manage capital spend diligently. Q: What improvements have you seen in same-store sales trends, and what are the contributing factors? A: Darin Harper noted improvements driven by increased traffic and higher food and beverage check growth, particularly from the Eat and Play Combo. The company is seeing strong weekend growth and believes they are benefiting from a trade-down effect among higher-income consumers. Q: Can you discuss the new store manager incentive program and its impact? A: Kevin Sheehan described the program as best-in-class, with competitive salaries, strong bonuses, and long-term incentives tied to same-store sales growth. The program aims to encourage managers to think like business owners and drive sales. Q: What are the key initiatives contributing to improved comp trends, and what opportunities remain? A: Darin Harper highlighted the impact of marketing and promotions like the Eat & Play Combo. The company sees further opportunities in optimizing marketing spend, enhancing game offerings, and improving operations. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
11-06-2025
- Business
- Yahoo
Dave & Buster's Entertainment Inc (PLAY) Q1 2025 Earnings Call Highlights: Strategic Growth ...
Revenue: $568 million for the first quarter of fiscal 2025. Net Income: $22 million or $0.62 per diluted share. Adjusted Net Income: $27 million or $0.76 per diluted share. Adjusted EBITDA: $136 million with an adjusted EBITDA margin of 24%. Comp Store Sales: Decreased 8.3% versus the prior year period. Operating Cash Flow: $96 million generated during the first quarter. Cash and Credit Availability: $12 million in cash and $411 million available under the revolving credit facility. Capital Expenditures: $115 million in capital additions on a gross basis, $110 million on a net basis. Preopening Expenses: $2.7 million increase versus the prior year. New Store Openings: Two new stores opened in Calin, Texas, and Lansing, Michigan, with two additional openings in Freehold, New Jersey, and Wilmington, North Carolina. Store Relocation: Successful relocation of the Honolulu, Hawaii store. International Expansion: First international franchise location opened in India, with at least seven more expected over the next year. Warning! GuruFocus has detected 8 Warning Signs with PLAY. Release Date: June 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dave & Buster's Entertainment Inc (NASDAQ:PLAY) reported significant improvement in operating results over the first quarter, driven by a back-to-basics strategy. The company successfully reintroduced the Eat and Play Combo, which has shown positive early results and a double-digit opt-in rate. Remodeled stores have outperformed the system by over 700 basis points in the last three months, indicating the success of the remodel strategy. The introduction of new games and attractions, such as the Summer of Games and the human crane, is expected to enhance customer engagement and drive sales. Dave & Buster's opened new stores in strategic locations, including international expansion, which is expected to drive incremental growth with minimal investment and risk. Comp store sales decreased by 8.3% in the first quarter compared to the prior year, with a particularly soft February. The company incurred a $2.7 million increase in preopening expenses due to new store openings and relocations. There was a significant front-end loading of capital expenditures, with $115 million spent in the first quarter, impacting cash flow. The company is still in the early stages of implementing its back-to-basics strategy, indicating that full recovery may take time. Marketing and R&M expenses increased, which may continue to pressure margins if not managed effectively. Q: Can you provide some predictability on the trajectory of same-store sales and how you're looking at it on a multi-year basis? A: Kevin Sheehan, Interim CEO, explained that while they are in the early stages of recovery, they expect outsized growth over the next few years. Long-term, they aim for 3% same-store sales growth, supplemented by new stores and incremental opportunities like international expansion and catering. Q: Can you break down the capital expenditures for the first quarter and expectations for the rest of the year? A: Darin Harper, CFO, detailed that $53 million was spent on new stores, $20 million on remodels, $30 million on games, and $12.5 million on maintenance CapEx. The company remains confident in their full-year guidance and plans to manage capital spend diligently. Q: What improvements have you seen in same-store sales trends, and what are the contributing factors? A: Darin Harper noted improvements driven by increased traffic and higher food and beverage check growth, particularly from the Eat and Play Combo. The company is seeing strong weekend growth and believes they are benefiting from a trade-down effect among higher-income consumers. Q: Can you discuss the new store manager incentive program and its impact? A: Kevin Sheehan described the program as best-in-class, with competitive salaries, strong bonuses, and long-term incentives tied to same-store sales growth. The program aims to encourage managers to think like business owners and drive sales. Q: What are the key initiatives contributing to improved comp trends, and what opportunities remain? A: Darin Harper highlighted the impact of marketing and promotions like the Eat & Play Combo. The company sees further opportunities in optimizing marketing spend, enhancing game offerings, and improving operations. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
10-06-2025
- Business
- Yahoo
Dave & Buster's (PLAY) Q1 Earnings Lag Estimates
Dave & Buster's (PLAY) came out with quarterly earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $1.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -20.83%. A quarter ago, it was expected that this owner of Dave & Buster's, a chain of restaurants and arcades would post earnings of $0.64 per share when it actually produced earnings of $0.69, delivering a surprise of 7.81%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Dave & Buster's , which belongs to the Zacks Retail - Restaurants industry, posted revenues of $567.7 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.74%. This compares to year-ago revenues of $588.1 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Dave & Buster's shares have lost about 12.4% since the beginning of the year versus the S&P 500's gain of 2.1%. While Dave & Buster's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Dave & Buster's: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.81 on $549.08 million in revenues for the coming quarter and $1.69 on $2.14 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Darden Restaurants (DRI), is yet to report results for the quarter ended May 2025. The results are expected to be released on June 20. This owner of Olive Garden and other chain restaurants is expected to post quarterly earnings of $2.92 per share in its upcoming report, which represents a year-over-year change of +10.2%. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. Darden Restaurants' revenues are expected to be $3.25 billion, up 10% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
Here's What Key Metrics Tell Us About Dave & Buster's (PLAY) Q1 Earnings
For the quarter ended April 2025, Dave & Buster's (PLAY) reported revenue of $567.7 million, down 3.5% over the same period last year. EPS came in at $0.76, compared to $1.12 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $563.52 million, representing a surprise of +0.74%. The company delivered an EPS surprise of -20.83%, with the consensus EPS estimate being $0.96. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Dave & Buster's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Comparable Store Sales - Total: -8.3% versus -7.4% estimated by six analysts on average. Stores Count - End of Period: 236 versus the six-analyst average estimate of 235. Company-owned stores at end of period - Dave & Buster's: 175 versus the four-analyst average estimate of 173. Company-owned stores at end of period - Main Event: 61 versus 61 estimated by four analysts on average. Entertainment revenues: $366.60 million versus the six-analyst average estimate of $370.27 million. The reported number represents a year-over-year change of -5%. Food and beverage revenues: $201.10 million versus $193.21 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -0.6% change. View all Key Company Metrics for Dave & Buster's here>>>Shares of Dave & Buster's have returned +15.6% over the past month versus the Zacks S&P 500 composite's +6.3% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
