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NEW YORK - Dave & Buster’s Entertainment Inc. (NASDAQ:PLAY) reported first quarter results that fell short of analyst estimates, sending shares down 4.7% in after-hours trading on Tuesday.
The entertainment and dining venue operator posted adjusted earnings per share of $0.76 for the quarter ended May 6, missing the consensus estimate of $1.01. Revenue came in at $567.7 million, below expectations of $573.25 million and down 3.5% from $588.1 million in the same period last year.
Comparable store sales decreased 8.3% compared to the first quarter of 2024. The company attributed the decline to "clear mistakes" in marketing, menu, operations and other areas that it is now working to address.
"While performance in the first quarter was nowhere close to where we want and expect to be, our back to basics strategy is working and is driving a material recovery in our top-line trajectory," said Kevin Sheehan, Board Chair and Interim Chief Executive Officer.
Dave & Buster’s said it has seen sequential improvement in comparable store sales since February, with the trend improving to a 2.2% decline so far in the second quarter.
The company opened two new Dave & Buster’s stores and relocated one store during Q1. It also completed remodels of 13 existing locations.
For fiscal 2025, Dave & Buster’s reiterated its outlook for pre-opening expenses of approximately $20 million and cash interest expense of $130 million to $140 million.
While expressing confidence in its turnaround strategy, management acknowledged the Q1 performance fell short of expectations as it works to improve execution and drive growth in the coming months.
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