Dave & Buster’s Entertainment (NASDAQ:PLAY) saw its stock jump over 13% intra-day today, as investors looked past weaker-than-expected quarterly results and focused on signs of a potential turnaround in performance.
The company reported adjusted earnings of $0.76 per share for the quarter, falling short of the $1.01 consensus estimate. Revenue also missed expectations, coming in at $567.7 million, a 3.5% decline from the same period last year.
Comparable store sales dropped 8.3% year-over-year, with management attributing the slump to missteps in areas like marketing, menu offerings, and operations. However, sequential improvement in monthly comps throughout the quarter—culminating in just a 2.2% decline to date in Q2—sparked optimism.
Despite the weak top-line showing, investors reacted positively to the company’s ongoing recovery efforts and reaffirmed guidance for fiscal 2025, which includes plans for 10 to 12 new store openings and capital expenditures under $220 million.