Dave & Buster's Q3 Earnings Preview: Data Shows Off-Peak Traffic Up

Dave & Buster’s Entertainment, Inc. PLAY is set to report its third-quarter financial results after Tuesday's closing bell. Here's what investors will be looking for in the report. 

What To Know: Dave & Buster's reported better-than-expected second-quarter earnings in September, but missed revenue expectations after the company saw comparable sales decline 6.3%.

CEO Chris Morris pointed to progress on the company's strategic goals and freshly remodeled stores as potential catalysts for future quarters. 

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"Our fully programmed remodels continue to perform well and we are excited about the remodels that have recently opened and will open throughout the remainder of Fiscal 2024 and beyond," Morris said in the company’s most recent earnings release.

According to data from Placer.ai, off-peak foot traffic has increased after Dave & Buster's began investing heavily in mid-week promotions to drive traffic during quieter periods. Data shows that while quarterly visits remain flat or slightly lower year-over-year, the average number of Wednesday visits are up 7% and Thursday visits are up 11.3% from last year. 

What To Watch: Following the company's second-quarter report, Truist Securities analyst Jake Bartlett said that he expects Dave & Buster's sales initiatives to begin to offset macro-economic pressures in the third quarter, bolstered by football season and special events. 

Investors will be looking at the company's same-store sales figures and potential operating cost efficiencies to offset sales pressures. 

The Street estimates Dave & Buster's will report quarterly earnings of 90 cents per share and revenue of $563.957 million when it reports after Tuesday's closing bell, according to Benzinga Pro.  

PLAY Price Action: According to Benzinga Pro, Dave & Buster's Entertainment shares ended Monday's session down 3.96% at $35.39. 

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