Dave & Buster’s Q1 Sales Miss, Shares Jump

Dave & Buster's reported first-quarter fiscal 2025 revenue of $567.7 million, down 3.5% year-over-year, with comparable store sales declining 8.3% and adjusted EPS of $0.76 missing analyst expectations. Net income fell sharply from $41.4 million to $21.7 million, and operating margin decreased to 11.1% from 14.5%. Management highlighted sequential sales improvements, particularly during May and the Memorial Day weekend, attributing these gains to their 'back to basics' strategy focused on marketing, menu, and operational enhancements. Free cash flow improved significantly to $95.8 million from a negative $4.2 million the previous year. The company reiterated its fiscal 2025 outlook and is continuing investments in new store openings and remodels. Shares jumped after the earnings release as investors responded positively to the company's optimistic outlook and signs of recovery.