Dave & Buster’s Entertainment, Inc. (PLAY) reported third‑quarter 2025 results on December 9, 2025, with total revenue of $448.2 million, a 1.1% decline from $453.0 million in the same quarter last year. The adjusted net loss of $1.14 per diluted share beat the Zacks consensus estimate of $-1.16, but fell short of other estimates such as $-1.04 and $-1.01. The revenue miss was driven by a 5.2% decline in entertainment revenue to $279.4 million, offset by a 6.6% year‑over‑year increase in food and beverage sales to $168.8 million, which helped narrow the overall loss.
The decline in entertainment revenue reflects weaker foot traffic and lower average spend per guest, while the food and beverage lift—largely from the new menu launch and higher‑margin entrée offerings—illustrates the impact of the back‑to‑basics strategy. Adjusted EBITDA fell to $59.4 million from $68.3 million year‑over‑year, a 13.5% contraction, largely due to the entertainment revenue shortfall and higher operating costs associated with remodeling and new game installations.
Management highlighted that the back‑to‑basics plan—focused on marketing engine relaunch, game platform refreshes, and disciplined remodels—has begun to generate incremental guest spend. CEO Tarun Lal noted that sequential same‑store sales improved each month, with the final month down only about 1%, and that the new menu and value‑add packages are driving higher check averages. CFO Darin Harper emphasized disciplined cost management and the expectation that margin expansion will resume as the remodel program matures.
Looking ahead, PLAY guided for continued store openings, adding two domestic locations in the fourth quarter and one relocation, bringing the total to 11 new stores for the fiscal year. The company maintained its full‑year revenue guidance of $4.396 billion to $4.400 billion, unchanged from the prior guidance, and reiterated confidence in its ability to improve profitability through cost discipline and operational leverage.
Investors reacted negatively to the revenue miss and the wider adjusted loss, underscoring concerns about the pace of recovery in the entertainment segment and the impact of ongoing remodeling costs. The company’s liquidity remains strong, with $441.9 million in available cash, positioning it to sustain its turnaround initiatives while monitoring headwinds such as consumer discretionary spending and competitive pressure.
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