Companies

Dave & Buster's Same-Store Sales Decline Narrows to 2.9%

The Tip Desk · September 15, 2026 · 3 min read

The entertainment and dining operator posted a $12.5 million net loss, or $0.36 a share, for the quarter ended August 4, 2026.

Dave & Buster's Entertainment, Inc. (PLAY), an owner, operator, and franchisor of entertainment and dining venues, saw comparable store sales decrease 2.9% versus the same calendar period in fiscal 2025, a sequential improvement from the 5.4% same-store sales decline in the first quarter of fiscal 2026.

Revenue of $544.1 million decreased 2.4% from the second quarter of fiscal 2025, a larger sequential decline than the 1.5% year-over-year drop in the first quarter of fiscal 2026. The company swung to a net loss of $12.5 million, or $0.36 a share, from net income of $5.7 million, or $0.16 a share, in the immediately preceding quarter. Adjusted net loss was $9.5 million, or $0.27 a share, compared with adjusted net income of $7.8 million, or $0.22 a share, in the first quarter of fiscal 2026.

Adjusted EBITDA fell to $98.9 million from $123.2 million in the first quarter of fiscal 2026 and from $111.4 million in the fourth quarter of fiscal 2025. Operating income was $19.4 million, or 3.6% of revenue, compared with $53.0 million, or 9.5% of revenue, a year earlier.

Entertainment revenues were $332.6 million, or 61.1% of sales, versus $364.5 million, or 65.4% of sales, a year earlier. Food and beverage revenues were $211.5 million, or 38.9% of sales, versus $192.9 million, or 34.6% of sales, a year earlier. Store operating income before depreciation and amortization was $127.8 million, or 23.5% of revenue.

The company opened six new domestic stores in the second quarter, after opening one new domestic store in the first quarter, bringing company-owned stores to 250 at period end. It has six international franchise stores and expects to open at least one additional international franchise store during the remainder of fiscal 2026. The company expects to complete two additional Dave & Buster's store remodels during the remainder of fiscal 2026, bringing the total number of remodels completed in fiscal 2026 to eight.

Chief Executive Officer Darin Harper said the company is experiencing ongoing growth in food and beverage sales as well as in Special Events sales, and that same-store sales of its remodels continue to outperform the system. He said overall same-store sales improved in July and continued to improve during the third quarter to date, and that the company is focused on returning to same-store sales and EBITDA growth, sharpening margin management with cost-saving initiatives, generating significant free cash flow, and delivering shareholder value.

Adjusted free cash flow was positive $19.5 million for the six months ended August 4, 2026, compared with negative $36.5 million through the end of the six months ended August 5, 2025. The company ended the quarter with $492.1 million of available liquidity. Cash and cash equivalents were $16.0 million. Long-term debt, net, was $1,500.5 million. Credit Adjusted EBITDA for the trailing four quarters ended August 4, 2026, was $435.8 million, and the Net Total Leverage Ratio was 3.5 times.

The company operates 184 Dave & Buster's branded stores in 43 states, Puerto Rico, and Canada, and 66 Main Event branded stores in 24 states. Founded in 1982 and headquartered in Coppell, Texas, it offers entertainment and dining experiences through those two brands.