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Takeaways
- Dave & Buster's interim CEO Kevin Sheehan said the company is working to fix past mistakes.
- Sheehan said past leadership made "very dramatic and chaotic changes." Chris Morris, the CEO of the gaming restaurant franchise, resigned in December to become the CEO of European Wax Center.
- Fourth-quarter sales fell short of analysts' estimates.
Dave & Buster’s (PLAY) new leadership is looking to correct mistakes made by past executives, interim CEO Kevin Sheehan said on the company’s fourth-quarter earnings call.
In attempting "to improve the business that was already doing well, prior leadership made very dramatic and chaotic changes that, among other things, distracted, confused, and overwhelmed our customers and our operators," Sheehan said Monday, according to a transcript from AlphaSense.
Chris Morris, former CEO of the gaming franchise, resigned as the top job in the franchise’s retail waxing business, European Wax Center. Dave & Buster’s shares have fallen 75% over the past year.
Sheehan said he and other new executives have been "systematically unwinding these mistakes and pursuing a back-to-basics strategy while making high-confidence improvements to the key areas of the business."
Q4 Revenue is Below Expectations
Visible Alpha’s analysts expected $545.4 million in revenue for the fourth quarter of fiscal 2024. The company reported $534.5 million. This is down 11% over the same period last year. The company reported adjusted earnings (EPS) of $0.69 – a penny more than consensus.
Shares of Dave & Buster's were little changed in recent trading after initially surging Tuesday.
