Tarun Lal, in his first full quarter as CEO, expressed optimism about the Back-to-Basics plan, with new menu launch improving traffic

Dave & Buster’s executive leadership team is optimistic about the path forward for the eatertainment company, despite ongoing same-store sales and revenue declines. Tarun Lal, in his first full quarter as CEO, provided updates on the company’s Back-to-Basics plan, which was first unveiled this past April.

Dave & Buster’s reported 4% same-store sales declines for the third quarter ended Nov. 4, with Lal stating that the company “saw sequential improvement in same-store sales each month,” and that October same-store sales were only down by 1% year-over-year. This pattern coincides with the full launch of the brand’s new simpler menu, which led to positive same-store sales on the food and beverage side for the month of October.

“The percentage of people who came into our stores to play games and then also eat food was significantly lower than in the past, and it has been our goal to return that number to historical levels,” Lal said. “This new menu, as well as a number of other food initiatives, is driving higher average checks through an improved product mix and stronger volumes in its first month, creating additional momentum in Q4.”

Besides the new menu, other aspects of the turnaround plan include a clearer marketing and media strategy, field operations and training improvements, store remodels, and game offerings, with an as-of-yet unannounced new games lineup slated for 2026.

Moving forward, Dave & Buster’s is planning to focus on growth through international franchising, with four international store openings planned over the next six months, and another 35 in the pipeline, in addition to planned domestic growth.

Currently in the first month of the fourth quarter, Dave & Buster’s is seeing similar traffic to October, and expects margins to grow, while same-store sales will likely remain flat.

For the third quarter ended Nov. 4, Dave & Buster’s reported revenues of $448.2 million, down by 11% from the third quarter of 2024. The company swung to a loss of $42.1 million or $1.22 per diluted share, compared with a loss of $17.5 million, or $0.45 per diluted share in the same quarter the year prior.

Dave & Buster’s ended the quarter with five new store openings across both the Main Event and Dave & Buster’s brands for a total of 241 company-owned stores portfolio-wide.

Contact Joanna at joanna.fantozzi@informa.com

Source https://www.nrn.com/eatertainment/dave-buster-s-makes-progress-on-turnaround-plan-as-same-store-sales-decline-4-