Dave & Buster's Entertainment (NASDAQ:PLAY) shares slid 15% to about $20 in early trading on Tuesday after the restaurant and arcade chain’s second quarter 2025 financial results fell short of Wall Street expectations.
Dave & Buster's adjusted earnings for the quarter of $0.40 per share was down from $1.12 a year ago, and below the analyst consensus estimate of $0.92.
Its revenue for the period, meanwhile, rose to $557.4 million from $557.1 million a year earlier, reversing three straight quarters of declines but missing the $562.8 million consensus forecast.
“We were negatively impacted in the second half of the quarter by the July 4 holiday falling on a Friday this year versus a Thursday in the prior year,” Dave & Buster's chief financial officer CFO Darin Harper said in the analyst call.
Comparable store sales in Q2 decreased 3%.
The company opened three new Dave & Buster's stores in the quarter and one new store subsequent to the quarter’s end.
Dave & Buster's also noted that it expects to open at least five additional international franchise stores over the next six months.
Dave & Buster's shares have fallen 32% year to date.