Dave & Buster’s Entertainment, Inc. reported mixed results for the second quarter ended Aug. 6, 2024, with a 65% increase in earnings but 6.3% same-store sales decline, with the company attributing the latter to a continued challenging consumer environment.
Despite the fact that the eatertainment brand had a rough summer, according to CEO Chris Morris, Dave & Buster’s has a potential bright future on the horizon, with the continued rollout of store remodels (18 so far with 26 more stores scheduled), new openings, menu innovation, and a reinvigorated focus on digital engagement.
“Our initial fully programmed remodels continue to perform well, and we are excited about the remodels that have recently opened and will open throughout the remainder of fiscal '24 and beyond,” Morris said during Tuesday’s earnings call. “Our new menu continues to be well received by our guests, as indicated by improving F&B performance and guest satisfaction scores. We continue to refine our menu and are excited about the next phase of our menu rollout that just occurred in August.”
Moving forward, Dave & Buster’s wants to grow more digital engagement with customers through online marketing initiatives and a loyalty push. Currently, the company has seven million loyalty members — a number that has grown 25% year-over-year. By focusing on digital engagement, Dave & Buster’s will be able to reach customers where they’re at in a more modern way.
“We believe there is a huge opportunity to improve both conversion and guest frequency with the right marketing approach,” Morris said. “We've made a material shift to digital marketing and away from linear TV over the past few years… The data we glean from this digital approach are immense and constantly fueling our marketing engine to progress forward with more actionable insights. These digital channels also allow us to be particularly nimble with our spend and enable us to quickly pivot when we are not achieving the desired results.”
Dave & Buster’s hopes that between the store remodels, menu overhauls, and loyalty push, the company will be able to reverse the slower sales trend it has seen over the past couple of quarters and encourage money-conscious consumers to choose to spend at Dave & Buster’s.
During the second quarter ended Aug. 6, Dave & Buster’s revenues increased 2.8% to $557.1 million, as compared with the second quarter of 2023. The company’s net income grew to $40.3 million or $.99 cents per share, compared with net income of $25.9 million, or $0.60 per share in the second quarter of 2023.
As of Aug. 6, Dave & Buster’s has 226 stores in its portfolio, with four net new stores opening during the quarter.
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