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DALLAS - Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) saw its shares plummet 15% after reporting second quarter fiscal 2025 results that fell significantly short of analyst expectations, as the entertainment and dining venue operator continues to face challenges with declining comparable store sales.
The company reported adjusted earnings of $0.40 per share for the quarter ended August 5, 2025, missing the analyst consensus of $0.95 by a substantial margin. Revenue came in at $557.4 million, barely increasing by 0.05% YoY and falling short of the $565.02 million analysts had expected. Comparable store sales decreased 3.0% compared to the same period last year, signaling ongoing difficulties in attracting customers to its venues.
"We operate strong brands, with an exceptional business model across a unique national footprint," said Tarun Lal, who was appointed as Chief Executive Officer in July. "My immediate focus is clear: reinforce our guest-first culture, deliver memorable experiences, and drive meaningful growth in sales, cash flow and shareholder value."
Net income for the quarter plunged to $11.4 million, or $0.32 per diluted share, compared with $40.3 million, or $0.99 per diluted share in the second quarter of fiscal 2024. Adjusted EBITDA fell to $129.8 million from $151.6 million in the same period last year.
The company continued its expansion efforts, opening three new domestic Dave & Buster’s stores in the second quarter and its second international franchise store in India. It also completed remodels of three existing locations and realized approximately $77 million in cash from sale-leaseback and real estate financing transactions.
Dave & Buster’s ended the quarter with $443.3 million in available liquidity and a net total leverage ratio of 3.2x. The company noted that its same-store sales trends in the early part of the third quarter are consistent with where they were exiting the second quarter, suggesting the challenges may continue in the near term.
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