Loading...
01/11 03:11
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presented mixed signals: strong revenue and EBITDA margins, positive special events revenue, and strategic store expansions. However, the lack of specific guidance for Q3, concerns over value perception, and margin misses due to increased costs and one-off expenses create uncertainty. Additionally, management's unclear response to the EBITDA target timeline raises concerns. Given the company's market cap of approximately $1.57 billion, these mixed factors suggest a neutral stock price movement in the short term.
Comparable Store Sales Decreased 3% year-over-year. The decline was attributed to the July 4 holiday falling on a Friday this year versus a Thursday in the prior year.
Revenue Generated $557 million in the second quarter of fiscal 2025. No specific year-over-year change or reasons mentioned.
Net Income $11 million or $0.32 per diluted share. No specific year-over-year change or reasons mentioned.
Adjusted Net Income $14 million or $0.40 per diluted share. No specific year-over-year change or reasons mentioned.
Adjusted EBITDA $130 million, resulting in an adjusted EBITDA margin of 23%. No specific year-over-year change or reasons mentioned.
Operating Cash Flow Generated $34 million in the second quarter and $130 million year-to-date in 2025. No specific year-over-year change or reasons mentioned.
Liquidity Ended the quarter with $12 million in cash and $443 million in total liquidity. No specific year-over-year change or reasons mentioned.
Capital Additions Invested $193 million in capital additions year-to-date on a gross basis or approximately $110 million on a net basis when factoring in payments from landlords. No specific year-over-year change or reasons mentioned.
Special Events Revenue Dave & Buster's brand comparable special events revenue was up nearly 10% year-over-year and 20% over 2023 in the second quarter. The increase was driven by winning promotions, menu revamp, and investment in field sales managers.
New Store Openings Opened 3 new Dave & Buster's stores in the second quarter and 8 year-to-date in 2025. No specific year-over-year change or reasons mentioned.
New Menu Launch: The company is launching a 'Back to Basics' menu nationwide in October, focusing on improving food and beverage offerings.
New Games Introduction: Dave & Buster's plans to introduce over 10 new marketable games each year, with a focus on exclusive titles and culturally relevant IP.
Seasonal Pass Programs: The company launched a fall season pass and plans to debut a winter pass in Q4, offering unlimited gameplay and discounts.
International Expansion: Opened the second international franchise location in India in August and expects 5 more international openings in the next 6 months. Agreements for over 35 additional stores globally have been secured.
New Store Openings: Opened 8 new stores year-to-date in 2025, with a total of 11 new store openings expected for the year. Recent openings include locations in New Jersey, North Carolina, Nevada, Washington, Michigan, and Oklahoma.
Operational Improvements: Focused on improving communication between corporate and field teams, reemphasizing training, and enhancing guest experiences.
Cost Management: Implemented stricter capital expenditure management, eliminated inefficient spending, and pursued capital-light financing for new stores.
Marketing Strategy: Reintroduced TV advertising, optimized promotional strategies, and launched campaigns like the fall season pass to drive traffic.
Remodel Program: Revamped the remodel program with a new prototype and better marketing support to improve store performance.
Focus on Cash Flow: Prioritized generating and growing free cash flow through disciplined spending and high ROI initiatives.
Executional Failures: The company has faced clear executional failures in implementing its strategic plan, leading to inconsistent operational performance and missed opportunities for growth.
Marketing Missteps: The company moved away from TV advertising and adopted an unfocused promotional strategy, which reduced brand awareness and traffic.
Food and Beverage Strategy: The focus on appetizers and shareables led to a decline in revenue from higher-margin menu items, impacting overall profitability.
Operational Disruptions: Rapid changes caused breakdowns in communication between corporate and field teams, as well as a loss of focus on training, leading to inconsistent customer experiences.
Games Offering: The company reduced new game introductions by 80%, which limited its ability to attract and retain customers.
Remodel Program: Overspending on remodels with underperforming prototypes and limited marketing support led to inefficiencies and lower-than-expected returns.
Capital Expenditure Discipline: Poor management of capital expenditures resulted in lower cash flow generation, impacting the company's financial flexibility.
Comparable Store Sales Decline: A 3% decrease in comparable store sales in Q2 2025, partly due to external factors like the July 4 holiday timing, highlights challenges in maintaining consistent revenue growth.
New Store Openings: The company expects a total of 11 new store openings in fiscal 2025, including 5 more international franchise locations over the next 6 months. Agreements for over 35 additional stores have been secured for the coming years.
International Expansion: The company plans to open 5 more international franchise locations over the next 6 months, with agreements for over 35 additional stores in the coming years.
Remodel Program: The company will launch a revised remodel program in the coming weeks, featuring a new prototype aimed at improving results at a lower cost, coupled with better marketing support.
Games Offering: The company plans to introduce over 10 new marketable games each year, including exclusive titles and culturally relevant intellectual property.
Marketing Strategy: The company is relaunching its marketing engine with an integrated strategy, including TV advertising, simplified value messages, and leveraging its national sports viewing platform.
Food and Beverage: The company will launch a 'Back to Basics' menu nationwide in October 2025, focusing on improving menu offerings and increasing customer spend per visit.
Seasonal Campaigns: The company has launched a fall season pass and plans to debut a winter pass in Q4 2025, aimed at driving repeat visits and customer engagement.
Financial Goals: The company aims to grow same-store sales and free cash flow in the near term, supported by focused improvements in marketing, food and beverage, operations, games, and remodels.
The selected topic was not discussed during the call.
The earnings call reveals mixed signals: new store openings and international expansion plans are positive, but financial performance is weak with a net loss and declining comparable store sales. The Q&A section highlights consumer engagement with new games and marketing strategies, yet concerns about food and beverage challenges persist. The market cap suggests moderate volatility, and while there are growth initiatives, the financial struggles and uncertainties balance the sentiment, resulting in a neutral stock price prediction.
The earnings call presented mixed signals: strong revenue and EBITDA margins, positive special events revenue, and strategic store expansions. However, the lack of specific guidance for Q3, concerns over value perception, and margin misses due to increased costs and one-off expenses create uncertainty. Additionally, management's unclear response to the EBITDA target timeline raises concerns. Given the company's market cap of approximately $1.57 billion, these mixed factors suggest a neutral stock price movement in the short term.
The earnings call presents a mixed picture: weak financial performance with declining revenue and same-store sales, but optimistic long-term growth and strategic initiatives like new game investments and franchise development. Share repurchases and strong operating cash flow are positives, but economic and leadership risks persist. The Q&A reveals management's cautious optimism but lacks clear guidance, especially on same-store sales. Given the market cap, the stock's reaction is likely muted, resulting in a neutral outlook.
The earnings call presents mixed signals: while there are positive elements like share repurchases and improved cash flow, challenges such as declining revenue, leadership transition risks, and economic factors affecting sales are concerning. The Q&A highlights some strategic improvements but also indicates ongoing operational and competitive challenges. The market cap suggests moderate sensitivity to these factors, leading to a neutral outlook.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
