The third quarter financial results for Dave & Buster’s were "severely impacted" by Covid-19, says the company.
The 139-venue games and dining group reported that it began the quarter with 84 stores open and as of November 1 had 104 operating, all with reduced hours and capacity limits.
Revenues were $109.1m compared with $299.4m for the same quarter last year; sales were down 66 per cent and there was a net loss of $48m compared with a net income of $0.5m.
CEO Brian Jenkins said: “During the third quarter we made significant progress safely reopening stores while refining and implementing numerous initiatives that are accelerating our business recovery and positioning us for long-term success.
"Our sales recovery at reopened stores peaked in late October at a 68 per cent index compared to last year, with the top quartile of stores reaching a 91 per cent index. Combined with the team’s continued discipline around our lean operating model, we achieved positive store-level EBITDA at 68 stores in the third quarter and 80 stores in the month of October."
Jenkins concluded: “We believe our strong sales recovery through late October and return to store-level profitability at the majority of our reopened stores clearly illustrates the resilience of the Dave & Buster’s brand and validates our plan for navigating through this unique environment.
"However, we expect our fourth quarter sales and profitability will be significantly impacted by the recent resurgence of Covid cases and resulting operating limitations imposed by local jurisdictions. Despite this temporary setback, our resilient and committed team, our focused plan, enhanced liquidity, and our strong brand put us in position to bounce back quickly when the threat of Covid begins to subside.”
