Dave & Buster's Entertainment, Inc. SEC 10-Q Report

Dave & Buster's Entertainment, Inc., a leading operator of entertainment and dining venues, has released its Form 10-Q report for the first quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting the challenges and strategic initiatives undertaken during the period.

Financial Highlights

• Total Revenues: $567.7 million, decreased 3.5% from the first quarter of 2024 due to a reduction in walk-in business.
• Operating Income: $63.2 million, representing 11.1% of total revenues, down from 14.5% in the prior year period.
• Net Income: $21.7 million, or 3.8% of total revenues, compared to $41.4 million, or 7.0% of total revenues, in the first quarter of 2024.
• Diluted EPS: $0.62, compared to $0.99 in the first quarter of 2024, reflecting the decrease in net income.
• Cost of Products: $82.1 million, representing 14.5% of total revenues, a slight decrease from 14.8% in the prior year period due to sales price increases.

Business Highlights

• Revenue Segments: The company's revenue is divided into entertainment revenues and food and beverage revenues. For the three months ended May 6, 2025, entertainment revenues were $366.6 million, and food and beverage revenues were $201.1 million.
• Comparable Store Sales: Comparable store sales decreased by 8.3% compared to the same period in 2024, indicating a reduction in walk-in business relative to the prior year period.
• New Store Openings: During the three months ended May 6, 2025, the company opened two new Dave & Buster’s branded stores and relocated one additional store, expanding its footprint and reaching new customer bases.
• Store Operating Weeks: The company reported a total of 2,949 store operating weeks for the three months ended May 6, 2025, compared to 2,891 in the same period of 2024, reflecting the impact of new store openings.
• Operational Efficiency: The cost of entertainment as a percentage of entertainment revenues decreased to 8.3% from 8.6% in the previous year, primarily due to sales price increases. Similarly, the cost of food and beverage products as a percentage of food and beverage revenues decreased to 25.6% from 26.7%, driven by menu price increases and product mix changes.
• Marketing and Operational Costs: Other store operating expenses increased to $188.4 million, or 33.2% of total revenues, due to increased marketing costs, incremental occupancy costs for new stores, and essential repairs and maintenance.
• Future Outlook: The company plans to continue expanding its store base and enhancing its entertainment and dining offerings to drive growth. Management is focused on optimizing operational efficiency and leveraging new store openings to capture market share.

SEC Filing: Dave & Buster's Entertainment, Inc. [ PLAY ] - 10-Q - Jun. 10, 2025