Before Tarun Lal accepted the job of Dave & Buster’s CEO, he spent six months researching the eatertainment space, analyzing the business, and meeting with members of the leadership team and board of directors.
His conclusion was the brand is undervalued, with plenty of room for upside. In quantified terms, Lal believes Dave & Buster’s is capable of $675 million in annual EBITDA. For comparison, the chain earned $506.2 million in adjusted EBITDA in fiscal 2024.
“I think the point is important to make, nonetheless, there is very meaningful upside in the price of our stock and the value of our business based on very achievable financial results in the near term,” Lal said during the Dave & Buster’s Q2 earnings call. “I’m personally highly motivated and aligned to drive this business forward.”
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Under a comprehensive plan unveiled in 2023 by previous leadership, Dave & Buster’s shot for $1 billion in adjusted EBITDA. But this plan led to sluggish sales and the departure of former CEO Chris Morris.
“I believe this plan had the right ideas,” Lal said. “We just attempted to implement too much at the same time. I strongly believe that focus on prioritized execution is key.”
The new chief executive criticized the chain’s decision to move marketing away from TV completely and its unfocused promotional strategy, which went from a few targeted promotions to too many. With food and beverage, the company leaned heavily on appetizers and shareables and cut most of its highest-revenue menu items.
Operationally, Dave & Buster’s moved too fast, Lal added. This created disruptions in communication between the corporate team and the field. There was also a loss of focus on training. In terms of games, the brand pulled back almost entirely on new game introductions—reducing them by nearly 80 percent—and used a complex pricing structure. The remodel program was in disorder as well with a prototype that “underperformed potential with limited marketing support,” Lal said. The CEO also mentioned “poor CapEx discipline” led to significantly lower cash flow generation.
In response, Dave & Buster’s reintroduced TV advertising, realigned promotions to be more targeted, and started to take advantage of its national sports viewing platform.
“We have a very strong value proposition,” Lal said. “I just think that we have marketed in a way that has confused our customers. And so we are currently working on simplifying the messaging and that messaging should go out as we execute our next marketing window. So I think it’s not about not having the right value. I just think that both our retail marketing and our general communication has created confusion on the value ladders, and we know how to fix this now.”
In food and beverage, the chain has used the $19.99 Eat & Play combo, a greater emphasis on entrées, and a revamped menu to improve attach rates. There is an approximate 8 to 10 percent opt-in rate for the Eat & Play combo, which is higher than in the past. CFO Darin Harper attributed the improvement to its availability on kiosks and better food options within the offer (choice of five entrées: All-American Smashed Burger, Crispy Chicken Sandwich, Fish & Chips, Boneless Wings, and Crispy Chicken Strips).
Dave & Buster’s also worked quickly to introduce 10 new gaming titles in 2025. Additionally, the brand has created a new prototype that it believes will drive better results and lower building costs. That will be paired with better marketing efforts to fuel awareness and better traffic. As for operations, the company wants to continue repairing communication between corporate and the field, refocus on training, and “reenergize the focus of the field to provide a high-quality guest experience.”
To improve cash flow, Dave & Buster’s pursued more capital-light new store financing that will lower upfront expenditure and cut wasteful expenditures.
Same-store sales declined 3 percent in Q2, which is a notable improvement from the 8.3 percent decrease in the first quarter. Revenue was $557.4 million, a 0.05% increase compared to Q2 2024. Adjusted EBITDA was $129.8 million versus $151.6 million in the year-ago period.
Those marks are still short of where Dave & Buster’s wants to be, but Lal noted the food and beverage business and special events business are “turning solidly positive.” Same-store sales special events revenue grew almost 10 percent in Q2 year-over-year and was up 20 percent compared to Q2 2023.
Also, while the brand wants to rework its remodel program, these new assets are still outperforming non-remodel stores by 700 basis points.
Dave & Buster’s hopes to continue the momentum with a new fall season pass giving customers unlimited daily game play, food and beverage discounts, and three value-based options to choose from.
“Building on the success of our summer pass, this program creates even more reasons to visit Dave & Buster’s throughout the season,” Lal said. “With everyday value and experiences that bring people together, we are reinforcing Dave & Buster’s as a go-to destination for fun this fall. We’re also putting the final touches on our winter pass that we will debut in the fourth quarter.”
Along with the new fall season pass are specials like $10 for 10 wings, enhancements to leaderboard competitions on the arcade floor, and continuing to promote the Eat & Play combo. Dave & Buster’s is also debuting a new back-to-basics menu in October and taking gaming to another level with a Human Crane attraction. The brand’s goal is to introduce 10 or more new marketable games each year.
The company opened three new Dave & Buster’s stores in Freehold, New Jersey; Wilmington, North Carolina; and Reno, Nevada. Thus far in Q3, the brand has opened one additional Dave & Buster’s store in Spokane, Washington, and two additional Main Event locations in Taylor, Michigan, and Norman, Oklahoma. Dave & Buster’s expects to open 11 venues this year, which is the midpoint of its previously guided range of 10 to 12 stores.
Dave & Buster’s opened its second international franchise location in India a month ago. It expects five more international openings over the next six months. The company has secured agreements for over 35 additional venues in the coming years.
However, Lal said the U.S. core business remains the priority.
“If you look at international, where I’ve spent a lot of my time, that offers tremendous growth opportunities,” he said. “But like for me, the real focus is the core business in the U.S. And I strongly believe that we can get the core business humming and continue to add 6 percent to 7 percent growth through net new unit addition without distracting the team. And I believe this not only because of my past experience, but because I spent a lot of time in the field, this sort of growth really excites and energizes the team.”
The company has 177 Dave & Buster’s branded stores in 43 states, Puerto Rico, and Canada, and 63 Main Event branded stores in 22 states.
