Dave & Buster’s Entertainment Inc. continues to struggle despite the company’s investment in a brand overhaul that includes a new marketing firm, menu revamp, and store remodels.
The Dallas-based eatertainment company reported a 7.7% decline in same-store sales for the third quarter, as well as revenue and income declines, attributable to adverse weather, store disruptions from the remodel program, and a typical third-quarter slump.
Dave & Buster’s will also be navigating these ups and downs without a CEO, as the company just announced the resignation of CEO Chris Morris, who was largely behind the company’s post-pandemic revamp.
“The board and the whole management team worked very closely with Chris in devising the original [revamp] plan,” interim CEO Kevin Sheehan, said during Tuesday’s earnings call. “A lot of my time will be focused on… making sure we show tangible progress on each of these initiatives and driving things forward.”
Dave & Buster’s provided updates on the company rebranding initiative, which includes the onboarding of a new marketing agency, which is reviewing the company’s media strategy.
Beyond that, the company is also experimenting more with loyalty. The loyalty program now has seven million members, with loyalty members likely to visit 2.5 times more than regular customers. Dave & Buster’s also just launched a Winter Season Pass subscription, which gives members unlimited gameplay and special discounts now through the end of February. After a soft launch period, the Winter Pass will soon be rolled out systemwide.
“We believe significant opportunity exists to both continue to grow our loyalty database as well as further improve the value the customers get out of the program, and the value we get from the customers in our database,” Dave & Buster’s CFO Darin Harper said.
The final element of the company’s improvement plan is the store remodeling program, which includes a modernized dining room, sports bar, and game room, with new entertainment options that include electronic shuffleboard and darts. The stores from phase one of these remodels, Harper said, are seeing double-digit sales growth, and there are plans to do 60 more in 2025.
During the third quarter ended Nov. 5, Dave & Buster’s revenues decreased 3% to $453 million, down from $466.9 million in the third quarter of 2023. The company swung to a loss of $32.7 million or 84 cents per share, as compared to a net loss of $5.2 million, or 12 cents per share, in the third quarter of 2023.
As of Nov. 5, Dave & Buster’s had 228 stores in its portfolio, including both Dave & Buster’s and The Main Event locations.
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