Dave & Buster’s reports Q2 adjusted EPS $1.12, consensus 84c

Reports Q2 revenue $557.1M, consensus $560.65M. Comparable store sales decreased 6.3% in Q2. “We are pleased with the progress we are making on our strategic initiatives and on the strong financial results achieved during the quarter. During the quarter, we grew Revenue and Adjusted EBITDA, expanded our Adjusted EBITDA margins and generated strong operating cash flow which allowed us to invest in the business and return cash to shareholders. We have also continued to make significant progress toward our strategic goals. Our 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 2024 and beyond,” said Chris Morris, Dave & Buster’s Chief Executive Officer. “Our new menu continues to be well received by our guests, as indicated by our 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. We have also continued to test our games and F&B pricing levels which have benefited our top line and margins and which we expect to bear more fruit going forward as we optimize our pricing strategies. Additionally, we have seen material improvement in our special events business with substantial growth in same store sales in the quarter and year to date and our forward bookings for fiscal 2024 are currently significantly above the prior year. Further, we have continued to open up new domestic stores which have consistently performed in line with or above expectations. We have also managed our cost structure well which has enabled us to expand our Adjusted EBITDA margins while still delivering a high-quality experience to our customers. While we are disappointed with our same store sales performance during the quarter in this complex and challenging environment, we are laser focused on our medium-term goals and encouraged by the progress we are making on each of the initiatives. We fully expect the impact of our initiatives to lead to growth in same store sales, revenue, EBITDA and cash flow in the coming quarters.”