Dave & Buster’s Entertainment Inc (NASDAQ:PLAY), an owner, operator, and franchisor of entertainment and dining venues, stock rose 15.81% (As on December 10, 11:21:37 AM UTC-4, Source: Google Finance) though the company reported third-quarter results that missed analyst expectations amid declining comparable store sales. The company’s net loss widened to $42.1 million, or $1.22 per diluted share, compared to a net loss of $32.7 million, or $0.84 per share, in the third quarter of fiscal 2024. Adjusted EBITDA was $59.4 million, down from $68.3 million in the prior-year period. Despite the overall sales decline, the company reported positive same-store sales for food and beverage during the quarter. Management also noted sequential improvement in same-store sales each month of the quarter, with the final month down only approximately 1%. During the quarter, Dave & Buster’s opened one new domestic store and three new Main Event stores. The company also opened its third international franchise store in the Philippines and expects to open at least four additional international franchise stores over the next six months. The Company commenced the remodels of three Dave & Buster’s stores in the third quarter. The company generated $58.0 million in operating cash during the third quarter and ended the period with $441.9 million of available liquidity.

Meanwhile, the company has been hard at work relaunching the marketing engine, reinvigorating the food & beverage offering, improving the operations, refreshing the games platform, and revamping the store remodel program. These enhanced efforts bore fruit over the course of the third quarter as the company saw sequential improvement in same-store sales each month, with the final month of the quarter down only roughly one percent.

PLAY in the third quarter of FY26 has reported the adjusted loss per share of $1.14, missing the analysts’ estimates for the adjusted loss per share of $1.04. The company had reported the adjusted revenue decline of 1.1 percent to $448.2 million in the third quarter of FY26, missing the analysts’ estimates for revenue of $461.73 million. Comparable store sales decreased 4.0% YoY.

Consistent with its previously communicated guidance for the full year, the Company anticipates opening two additional domestic Dave & Buster’s stores in the fourth quarter for a grand total of 11 new stores and one relocation in fiscal 2025. The company also expects to open at least four additional international franchise stores over the next six months.