Dave & Buster’s Entertainment Inc (NASDAQ:PLAY) stock fell 13.78% (As on December 11, 11:22:25 AM UTC-4, Source: Google Finance) after the company reported a wider-than-expected loss and missed revenue estimates for its third quarter. Comparable store sales decreased 7.7% compared to the same period last year. The company cited an unfavorable calendar shift, changes in deferred entertainment revenues, and tough comparisons to favorable adjustments in the prior year period as factors impacting results. The company also announced CEO Chris Morris has resigned to pursue other interests. Board Chair Kevin Sheehan will serve as interim CEO while a search for a permanent replacement is conducted. Dave & Buster’s opened three new locations during the quarter and completed 11 remodels. The company repurchased $28 million of shares in Q3, bringing year-to-date buybacks to $88 million. Adjusted Net loss totaled $17.5 million compared with an Adjusted Net income of $0.4 million in the third quarter of fiscal 2023. Adjusted EBITDA of $68.3 million decreased 16.3%, or $13.3 million, from the third quarter of fiscal 2023.

Moreover, the Company opened two new Dave & Buster’s stores – one in Barboursville, WV and another in Lombard, IL – and one new Main Event store in Grand Rapids, MI in the third quarter. Subsequent to the end of the quarter, the Company opened one new Dave & Buster’s store in Clarksville, TN. During the third quarter, the Company opportunistically refinanced a portion of its debt to extend maturities, minimize interest costs and increase liquidity. It raised a new $700.0 million term loan due in 2031, redeemed the remaining outstanding $440.0 million principal amount of its senior notes due in 2025, paid down $200.0 million of existing term loan principal due in 2029, upsized the capacity of its revolving credit facility to $650.0 million, and extended the maturity of its revolving credit facility to 2029. The Company closed on an additional sale leaseback transaction for the real estate of one Dave & Buster’s store with an institutional real estate investor and generated $28.5 million in proceeds.

PLAY in the third quarter of FY 24 has reported the adjusted loss per share of 45 cents, missing the analysts’ estimates for the adjusted loss per share of 33 cents. The company had reported the adjusted revenue declines 3 percent to $453 million in the third quarter of FY 24, missing the analysts’ estimates for revenue of $469.93 million.