It wasn’t good news found within Dave & Buster’s second-quarter financials released on Sept. 10 – total revenues were down 85% compared to a year ago – but leadership remained encouraged by trends in their overall recovery.
CEO Brian Jenkins said, “I am extremely pleased with the agility, resilience and commitment demonstrated by our team members. We have made steady progress reopening our stores while rapidly implementing numerous initiatives that are accelerating our business recovery and positioning us for long-term success.”
All of the chain’s locations were temporarily closed on March 20 due to the coronavirus. Reopenings began on April 30 with a single location, and by the end of May, D&B had reopened 26. Fast forward to Sept. 9, and 89 stores have been able to open their doors, but all under reduced hours, capacity limitations, new seating and game configurations for physical distancing, a streamlined food and beverage menu, and the addition of new cleaning/sanitation protocols for guest safety as mandated by government and internal operating procedures. So, it should come as no surprise that comparable store sales decreased 87% from a year ago (115 stores vs. 99 in Q2 of 2020).
“By continuing to refine our lean operating model, we believe we have lowered our near-term enterprise EBITDA breakeven sales index benchmark to approximately 50% to 55% of prior year sales, compared with the 60% sales index we initially estimated in June,” Jenkins continued. “We remain confident in our brand, our people, and our plan, and optimistic about our ability to emerge in an even stronger competitive position to deliver fun to our guests and value to our shareholders.”
In reviewing some analyst reports on the Q2 results, some saw the reopening of the stores and improving sales through the first week of September as signs that the company might just have gotten through the worst of it.
To read the investor relations statement, visit ir.daveandbusters.com/node/13506/pdf.