![]() In addition to those enhanced activities, Dave and Buster’s will launch 10 new arcade games and two virtual reality titles based on Transformers and Top Gun: Maverick and roll out new food and beverage items this summer. The initiatives proved worthwhile in Q1, with late-night walk-in comp sales growing 9 percent versus 2019. With record-breaking sales in the background, Dave & Buster’s is keeping innovation at the forefront to ensure its recovery remains intact.įor the late-night daypart, which has lagged during COVID, the company is leveraging a value menu and an “enhanced late-night vibe” with live streaming DJ sets and exclusive visuals broadcasted throughout stores. Because of the promotion, same-store sales rose 21.5 percent in April, much higher than February (flat) and March (12.5 percent). Manning said it allowed the brand to capitalize on “pent-up demand” from value-oriented guests. During April, Dave & Buster’s brought back its limited-time Eat and Play Combo. The data pulled from our guest satisfaction tool showed our overall guest satisfaction and Net Promoter Scores hit a new high watermark in May,” COO Margo Manning said. “We are already seeing the benefits of our now fully implemented service model that allows our guests to choose their service experience. ![]() It allows servers to handle more tables, meaning a smaller headcount in the front of house. That performance was attributed to a higher amusement mix (66 percent compared to 59 percent in 2019) and a more efficient labor model.ĭine-in customers are now able to order and pay through xDine, an online ordering platform. So we think there's a huge opportunity there, too.”ĭave & Buster’s posted an adjusted EBITDA margin of 31.8 percent, 480 basis points higher than 2019. “And it's a heck of a lot better than going to a smug hotel where you're paying up the nose to have their event room and you buy a bottle of water, it's $8 kind of thing, to coming in and having a joyful event and coming to Dave & Buster's and having the meeting and having food and then having everybody share in having a lot of fun in our case. “We have this great proposition that would be super for corporate accounts to come and have their events in our stores,” Sheehan said. Special events business declined 34.6 percent against three years ago, but that’s still a sequential improvement from Q4. READ MORE: Dave & Buster's Pulls Multiple Operational Levers to Bring Back Guests ![]() That gives the chain 3.65 million user profiles of that number, 1.9 million have been active in the past six months. Dave & Buster’s loyalty program saw 800,000 additional downloads in the first quarter, a 23.9 percent increase year-over-year. The company also set new highs for net income ($67 million versus $19.6 million in 2021 and $42.2 million in 2019) and adjusted EBITDA ($143.2 million compared to $76.7 million in 2021 and $98.2 million in 2019).Ĭomp sales grew 10.9 percent compared to Q1 2019, and walk-in sales increased 14.7 percent versus the same period. Revenue increased 24.1 percent to a record $451.1 million, compared to $265.3 million last year and $363.6 million in 2019. In Q1, Dave & Buster’s set multiple financial marks. “There's a lot happening at Dave & Buster's, and we are extremely excited about the meaningful upside potential for this company and our stakeholders,” said interim CEO Kevin Sheehan on the company’s Q1 earnings call. The open economy, combined with an eagerness to socialize from consumers, have fueled a strong comeback for Dave & Buster’s. The chain warned of laying off 1,300 workers across seven states and foreshadowed a potential bankruptcy.įlash forward two years, vaccinations have widely been implemented and restrictions have lifted almost everywhere. With dining rooms closed and no one heading out to play games, brands like Dave & Buster’s were put in dire straits. ![]() “Main Event targets a different demographic, families with younger children, while Dave & Buster’s has primarily targeted young adults.”Įach brand will continue to operate independently after the deal closes, Sheehan added.ĭave & Buster’s stock has risen 20.8% so far this year.In the summer of 2020, it seemed as if the eatertainment industry was headed for disaster. “From a strategic fit perspective, Main Event’s business model, footprint and asset quality aligns well with Dave & Buster’s,” Sheehan said. including three recently acquired locations in Colorado, providing art bowling, laser tag and hundreds of arcade games. Main Event operates 50 locations across the U.S. (ticker: ALG.AU) stockholders and regulatory review.ĭave & Buster’s expects the acquisition to add to both earnings and growth, and achieve cost savings of $20 million within the first two years from consolidating store support centers and supply-chain efficiencies. The all-cash deal is expected to close later this year, subject to approval by
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