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What changed in Dave & Buster's Entertainment, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Dave & Buster's Entertainment, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+281 added−293 removedSource: 10-K (2025-04-07) vs 10-K (2024-04-02)

Top changes in Dave & Buster's Entertainment, Inc.'s 2025 10-K

281 paragraphs added · 293 removed · 224 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

74 edited+11 added−21 removed37 unchanged
Biggest changePrior to opening a new store, our dedicated training and opening team travels to the store to deliver an intensive training program for all team members. We believe this additional investment in our new stores is important because it helps us provide our customers with a quality experience from day one.
Biggest changeWe believe this additional investment in our new venues is important because it helps us provide our customers with a quality experience from day one. After a location has been opened and is operating smoothly, the store managers supervise the training of new team members.
In addition, our salaried and hourly team members are also eligible to participate in a 401(k) plan, medical/dental/vision insurance plans and receive vacation/paid time off based on tenure. Developing Talent We motivate and develop our team members by providing them with opportunities for increased responsibilities and advancement.
In addition, our salaried and hourly team members are also eligible to participate in a 401(k) plan and medical/dental/vision insurance plans and to receive vacation/paid time off based on tenure. Developing Talent We motivate and develop our team members by providing them with opportunities for increased responsibilities and advancement.
Main Event offers food, drinks and entertainment, including state-of-the-art bowling, laser tag, arcade games and virtual reality, making it the perfect place for families to connect and make memories. Unless otherwise provided in this report, references to “Dave & Buster’s,” “we,” “us,” “our” or the “Company” refer to D&B Entertainment and its wholly owned subsidiaries and any predecessor entities.
Main Event offers food, drinks and entertainment, including state-of-the-art bowling, laser tag, arcade games and virtual reality, making it the perfect place for families to connect and make memories. Unless otherwise provided in this report, references to “Dave & Buster’s,” “D&B,” “we,” “us,” “our” or the “Company” refer to D&B Entertainment and its wholly owned subsidiaries and any predecessor entities.
Redemption games offer our customers the opportunity to win tickets that are redeemable at a retail-style space in our stores with prizes ranging from branded novelty items to high-end electronics. We believe this “opportunity to win” creates a fun and highly energized social experience that is an important aspect of the in-store experience and cannot be easily replicated at home.
Redemption games offer our customers the opportunity to win tickets that are redeemable at a retail-style space in our stores with prizes ranging from branded novelty items to high-end electronics. 2 We believe this “opportunity to win” creates a fun and highly energized social experience that is an important aspect of the in-store experience and cannot be easily replicated at home.
We also volunteer our time and talents. In addition, we invest in helping our own team members during their times of greatest need. The Buster's Legacy Fund is an independent non-profit established to create an employee assistance fund for the benefit of team members who suffer catastrophic events resulting in severe economic hardship.
We also volunteer our time and talents. 7 In addition, we invest in helping our own team members during their times of greatest need. The Buster's Legacy Fund is an independent non-profit established to create an employee assistance fund for the benefit of team members who suffer catastrophic events resulting in severe economic hardship.
We are proud of our store leadership teams’ experience and carefully monitor store management team retention rates, which for us has consistently tracked in the top quartile of the upscale casual dining industry. Attracting Talent We seek to hire experienced leaders and team members and offer competitive wage and benefit programs.
We are proud of our store leadership teams’ experience and carefully monitor store management team retention rates, which for us has consistently tracked in the top quartile of the casual dining industry. Attracting Talent We seek to hire experienced leaders and team members and offer competitive wage and benefit programs.
We believe the smaller format maintains the dynamic customer experience that is the foundation of our brand and allows us flexibility in our site selection process. Main Event Stores - Our Main Event stores vary in size from approximately 37,500 to 78,000 square feet. The target size of our future stores is between approximately 40,000 and 55,000 square feet.
We believe the smaller format maintains the dynamic customer experience that is the foundation of our brand and allows us flexibility in our site selection process. Main Event Stores - Our Main Event stores vary in size from approximately 37,500 to 78,000 square feet. The target size of our future stores is between approximately 40,000 and 50,000 square feet.
We believe that our diverse offering of games and amusement activities are the core differentiating feature of our brands. Staying current with the latest offerings promotes trial and provides an exciting environment to enjoy with friends and family, especially with the latest multiplayer games and challenges, as well as social gaming experiences.
We believe that our diverse offering of games and amusement activities is the core differentiating feature of our brands. Staying current with the latest offerings promotes trial and provides an exciting environment to enjoy with friends and family, especially with the latest multiplayer games and challenges, as well as social gaming experiences.
ITEM 1. Business Dave & Buster’s Entertainment, Inc. (“D&B Entertainment”) is the owner and operator of 220 venues in North America that offer premier entertainment and dining experiences for both adults and families under the Dave & Buster's and Main Event brands.
ITEM 1. Business Dave & Buster’s Entertainment, Inc. (“D&B Entertainment”) is the owner and operator of 232 venues in North America that offer premier entertainment and dining experiences for both adults and families under the Dave & Buster's and Main Event brands.
We strive to maintain quality and consistency in each of our stores through the careful training and supervision of our team members and the establishment of, and adherence to, high standards relating to personnel performance, food and beverage preparation, safety protocols, game playability and maintenance of our stores.
We strive to maintain quality and consistency in each of our venues through the careful training and supervision of our team members and the establishment of, and adherence to, high standards relating to personnel performance, food and beverage preparation, safety protocols, game playability and maintenance.
We believe that our combination of interactive games, attractive television viewing areas, high-quality dining, and full-service beverage offerings, delivered in a highly energized atmosphere, provides a multi-faceted customer experience that cannot be easily replicated at home or elsewhere without having to visit multiple destinations.
Multi-faceted customer experience highlights our value proposition. We believe that our combination of interactive games, attractive television viewing areas, high-quality dining, and full-service beverage offerings, delivered in a highly energized atmosphere, provides a multi-faceted customer experience that cannot be easily replicated at home or elsewhere without having to visit multiple destinations.
We also have certain trade secrets, such as our recipes, processes, proprietary information and certain software programs that we protect by requiring all of our employees to sign a code of ethics, which includes an agreement to keep trade secrets confidential. 9 Table of Contents Government Regulation We are subject to a variety of federal, state and local laws affecting our business.
We also have certain trade secrets, such as our recipes, processes, proprietary information and certain software programs that we protect by requiring all of our employees to sign a code of ethics, which includes an agreement to keep trade secrets confidential. Government Regulation We are subject to a variety of federal, state and local laws affecting our business.
We believe that we have created an energetic environment that includes a differentiated and interactive viewing experience for customers, and our goal is to build awareness of D&B as “the best place to watch sports” and the “only place to watch the games and play the games.” Food and Beverage We strive to differentiate our food with quality, flavorful offerings guided by an “Inspired American Kitchen” identity at our Dave & Buster’s locations and a “Family Kitchen” at our Main Event locations.
We believe that we have created an energetic environment that includes a differentiated and interactive viewing experience for customers, and our goal is to build awareness of Dave & Buster's brand stores as “the best place to watch sports” and the “only place to watch the games and play the games.” Food and Beverage We strive to differentiate our food with quality, flavorful offerings guided by an “Inspired American Kitchen” identity at our Dave & Buster’s locations and a “Family Kitchen” at our Main Event locations.
We aim to offer our customers a value proposition comparable or superior to many of the separately available dining and entertainment options. We are continuously working with game manufacturers and others to create new games and attractions that include content that is exclusively available at our Dave & Buster’s and Main Event stores on a permanent or temporary basis.
We aim to offer our customers a value proposition comparable or superior to many of the separately available dining and entertainment options. We continuously work with game manufacturers and others to create new games and attractions that include content that is 3 exclusively available at our Dave & Buster’s and Main Event stores on a permanent or temporary basis.
Our values bind us to a shared commitment to attract, retain, engage, and develop a team that mirrors the diversity of the customers we serve.
Our values bind us to a shared commitment to attract, retain, engage, and develop a team that mirrors the community of customers we serve.
Most of our Dave & Buster's branded stores have an enhanced viewing experience with huge cutting-edge LED “Wow Walls”, that deliver an elevated viewing experience and provide a platform for broader programming and marketing opportunities.
The majority of our Dave & Buster's branded stores have an enhanced viewing experience with huge cutting-edge LED “Wow Walls” that deliver an elevated viewing experience and provide a platform for broader programming and marketing opportunities.
Available Information Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available free of charge through our internet website, at www.daveandbusters.com, as soon as reasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission (“SEC”).
Available Information Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available free of charge through our website, at HTTPS://ir.daveandbusters.com, as soon as reasonably practicable after they are electronically filed with or 9 furnished to the Securities and Exchange Commission (“SEC”).
Newly trained managers are then assigned to their home store, where they receive additional training with their General Manager. Their last two weeks of training include a comprehensive validation of new skills. We place a high priority on our continuing management development programs to ensure that qualified managers are available for our future openings.
Newly trained managers are then assigned to their home venue, where they receive additional training with their General Manager. The last two weeks of their training includes a comprehensive validation of new skills. We place a high priority on our continuing management development programs to ensure that qualified managers are available for our future openings.
Each store is overseen by a Regional Operations Director, Senior Regional Operations Director or Vice President of Operations (collectively, “Regional Management”) who directly or indirectly report to our Chief Operating Officer.
Each store is overseen by a Regional Operations Director, 6 Senior Regional Operations Director or Vice President of Operations (collectively, “Regional Management”) who directly or indirectly reports to our Chief Operating Officer.
A customer purchases a card with game play credits or “chips” at an automated kiosk, through our mobile application, or from one of our team members. Our entertainment revenues accounted for approximately 65.1% of our total revenues during fiscal 2023.
A customer purchases a card with game play credits or “chips” at an automated kiosk, through our mobile application, or from one of our team members. Our entertainment revenues accounted for approximately 65.2% of our total revenues during fiscal 2024.
We refer to our fiscal years ended February 4, 2024, January 29, 2023 and January 30, 2022 as "fiscal 2023", "fiscal 2022", and "fiscal 2021", respectively, throughout this report. Entertainment Game play is a key aspect of the entertainment experience at each of our stores, which we believe is the core differentiating feature of our brands.
We refer to our fiscal years ended February 4, 2025, February 4, 2024 and January 29, 2023 as “fiscal 2024,” “fiscal 2023,” and “fiscal 2022,” respectively, throughout this report. Entertainment Game play is a key aspect of the entertainment experience at each of our stores, which we believe is the core differentiating feature of our brands.
The key elements that drive our total customer experience and help position us from a competitive standpoint include the following: Strong, distinctive brands with broad customer appeal . We believe that the customer experience at our stores, supported by our extensive marketing reach, has helped us create widely recognized brands.
The key elements that drive our total customer experience and help position us from a competitive standpoint include the following: High brand awareness with broad customer appeal . We believe that the customer experience at our stores, supported by our extensive marketing reach, has helped us create widely recognized brands.
We must comply with laws relating to information security, consumer credit protection and fraud, and data privacy laws and standards for the protection of personal and health information.
Additionally, and without limitation, we must comply with laws relating to information security, consumer credit protection and fraud, and data privacy laws and standards for the protection of personal and health information.
We plan to continually update our games each year through the development of innovative and proprietary games and the purchase of new games that will resonate with our customers to drive brand relevance due to a variety of factors, including their large scale, eye-catching appearance, virtual reality features, association with recognizable brands or the fact they cannot be easily replicated at home.
We plan to continually update our games each year through the development of innovative and proprietary games and the purchase of new games that will resonate with our customers to drive brand relevance due to a variety of factors, including their large scale, eye-catching appearance, association with recognizable brands, ability to be experienced by a group or the fact they cannot be easily replicated at home.
We base new site selection on an analytical evaluation of a set of drivers we believe increase the probability of successful, high-volume stores, including site visibility, accessibility and traffic volume, and trade area demographics.
We base new site selection on an analytical evaluation of a set of drivers we believe increase the probability of successful, high-volume stores, including site quality, visibility, accessibility and traffic volume, population density, competitive presence and trade area demographics.
Wage inflation and other macro-economic pressures could result in increasing expenses, as suppliers may seek to pass higher costs on to us.
Wage inflation, tariffs and other macro-economic pressures could result in increasing expenses, as suppliers may seek to pass higher costs on to us. (See Item 1A.
We strive to provide inclusive fun for all, and we believe our commitment to diversity, equity and inclusion promotes teamwork to achieve our common goals, helps our team members reach their highest potential at work, enables our team members to make better decisions to serve all our stakeholders, and fuels innovation.
We strive to provide fun for all, which we believe promotes teamwork to achieve our common goals, helps our team members reach their highest potential at work, enables our team members to make better decisions to serve all our stakeholders, and fuels innovation.
We also strive to improve efficiency by simplifying execution, allowing us to deliver dishes hotter and faster to drive an improved customer experience. We continually update and innovate our offerings based on customer research and optimize our selections to improve execution efficiency.
We also strive to improve efficiency by simplifying execution, allowing us to deliver dishes hotter and faster to drive an improved customer experience. We continually update and innovate our offerings based on customer research and optimize our selections to improve execution efficiency. 4 • Drive customer engagement through strategic marketing and loyalty offerings.
Each store offers a full menu of entrées and appetizers, a complete selection of alcoholic and non-alcoholic beverages, and an extensive assortment of entertainment attractions centered around playing games and watching live sports and other televised events. The Company has 58 Main Event stores in 20 states across the U.S.
Each store offers a full menu of entrées and appetizers, a complete selection of alcoholic and non-alcoholic beverages, and an extensive assortment of entertainment attractions centered around playing games and watching live sports and other televised events. The Company also has 61 Main Event stores in 22 states across the United States.
The target size of our future large format stores is expected to be between 30,000 and 45,000 square feet, the target size of our future medium format stores is expected to be between 25,000 and 30,000 square feet while our small format stores are below 25,000 square feet.
The target size of our future large format stores is expected to be between 30,000 and 45,000 square feet, the target size of our future medium format stores is expected to be between 25,000 and 30,000 square feet while our small format stores are below 25,000 square feet. The stores we opened in fiscal 2024 averaged 26,000 square feet.
We do not believe there is any material risk associated with the Canadian operations or any dependence by the domestic business upon the Canadian operations. Human Capital Management Our team members are the heart of our Company, and we depend on them to provide great guest service and to maintain consistently strong operations.
We do not believe there is any dependence or material risk to our domestic business or future international franchises related to the Canadian operations. Human Capital Management Our team members are the heart of our Company, and we depend on them to provide great customer service and to maintain consistently strong operations.
Our new games in combination with new food and beverage offerings and focused attention to the customer experience help us to 3 Table of Contents retain and generate customer traffic.
Our new games in combination with new food and beverage offerings and focused attention to the customer experience are intended to help us to retain and generate customer traffic.
We firmly believe we are better together, and we encourage inclusivity, teamwork, and good judgment. Finally, we encourage all team members to be committed to innovation, embracing change, and continuous learning and growth.
We firmly believe we are better together, and we encourage teamwork, empathy, and good judgment. Finally, we encourage all team members to embrace innovation, change, and continuous learning and growth.
If an existing building is identified in a target location, we could open a future store outside of this range depending on projected store economics, competition and various other factors. Invest in Foreign Operations We are expanding the Dave & Buster's brand through international franchise agreements.
The Main Event stores we opened in fiscal 2024 averaged approximately 50,000 square feet. If an existing building is identified in a target location, we could open a future store outside of this range depending on projected store economics, competition and various other factors. Invest in Foreign Operations We are expanding the Dave & Buster's brand through international franchise agreements.
As of February 4, 2024, the Company had 162 Dave & Buster’s branded stores in 42 states, Puerto Rico, and Canada and offers guests the opportunity to "Eat Drink Play and Watch," all in one location.
As of February 4, 2025, the Company had 171 Dave & Buster’s branded stores in 43 states, Puerto Rico, and Canada and offers guests the opportunity to “Eat Drink Play and Watch,” all in one location.
Our managers have daily routines focused on driving consistent execution in entertainment, food and beverage. We utilize a customized food and beverage analysis program that determines the theoretical food and beverage costs for each store and provides additional tools and reports to help us identify opportunities, including waste management.
Our managers have daily routines focused on driving consistent execution in entertainment, food and beverage. Our inventory management platform allows us to determine the theoretical food and beverage costs for each store and provides additional tools and reports to help us identify opportunities, including waste management.
We will also continue to review and optimize our media mix to drive both incremental visits from our existing customer base and increase unique visitors. • Optimize our footprint through remodeling existing locations.
We will also continue to review and optimize our media mix to both drive incremental visits from our existing customer base and increase unique visitors. • Refresh our existing sites. We continuously update our existing sites through regular maintenance.
Our "Sports Watching" areas offer an immersive viewing environment that provides customers with large, high-definition televisions, to watch community-focused sports programming and enjoy our full bar and food menu.
Our “Sports Watching” areas offer an immersive viewing environment that provides customers with large, high-definition televisions, where customers may watch national and local sports programming and enjoy our full bar and food menu.
In fiscal 2024 and beyond, the number of openings will depend on many factors, including our ability to locate appropriate sites, negotiate acceptable purchase or lease terms, generate sufficient operating cash flows or utilize available cash to finance construction of leasehold improvements and pre-opening costs, obtain necessary local governmental permits, and recruit and train team members.
In fiscal 2025 and beyond, the number of openings will depend on many factors, including our ability to locate appropriate sites, negotiate acceptable purchase or lease terms, generate sufficient operating cash flows or have sufficient financing capacity to construct new stores, obtain necessary local governmental permits, and recruit and train team members.
Our systems are designed to protect the safety and quality of our food supply throughout the procurement and preparation process. Within each store, the Kitchen Manager is primarily responsible for ensuring the timely and correct preparation of food products per the recipes we specify. We provide each of our stores with various tools and training to facilitate these activities.
We provide detailed quality and yield specifications to suppliers for our purchases. Our systems are designed to protect the safety and quality of our food supply throughout the procurement and preparation process. Within each venue, the Kitchen Manager is primarily responsible for ensuring the timely and correct preparation of food products per the recipes we specify.
Sports-viewing is another key component of the entertainment experience at Dave & Buster’s. All our stores have multiple large screen televisions and high-quality audio systems providing customers with a venue for watching live sports and other immersive programming.
All our stores have multiple large screen televisions and high-quality audio systems providing customers with a venue for watching live sports and other immersive programming.
In particular, our leaders work to develop and maintain strong communications and relationships with our team members. 6 Table of Contents Our Leadership Team We are led by a strong senior management team with a wealth of experience with national brands spanning casual dining, entertainment, and other consumer-centric industries.
Our Leadership Team We are led by a strong senior management team with a wealth of experience with national brands spanning casual dining, entertainment, and other consumer-centric industries.
These include a customizable footprint to drive box economics in each market, menu localization with high regional resonance, a proprietary, dynamic pricing model, global marketing programs that are demographically agnostic and locally executable, differentiated entertainment strategies and packages unique to each demographic, and localized entertainment and 3rd party programming. 5 Table of Contents We also own and operate two stores outside of the United States in the Canadian province of Ontario.
The initiatives include a customizable footprint to drive improved economics in each market; focused menu localization with high regional resonance; a proprietary, dynamic pricing model; global marketing programs that are demographically agnostic and locally executable; differentiated entertainment strategies and packages unique to each demographic; localized entertainment, and 3rd party programming.
When we open a new store, we provide varying levels of training to team members in each position to ensure the smooth and efficient operation of the store from the first day it opens to the public.
When we open a new venue, we provide varying levels of training to team members in each position to ensure its smooth and efficient operation from the first day it opens to the public. Prior to opening a new venue, our dedicated training and opening team travels to the location to deliver an intensive training program for all team members.
Intellectual Property We have registered the trademarks Dave & Buster’s ® , Power Card ® , Eat & Play Combo ® , Eat Drink Play ® , Eat Drink Play Watch ® , Main Event ® , Main Event Entertainment ® , and Eat.Bowl.Play ® and have registered or applied to register certain additional trademarks with the United States Patent and Trademark Office and in various foreign countries.
Risk Factors, “ Our operations are susceptible to the changes in cost and availability of commodities and other products, which could negatively affect our operating results. ”) Intellectual Property We have registered the trademarks Dave & Buster’s ® , Power Card ® , Eat & Play Combo ® , Eat Drink Play ® , Eat Drink Play Watch ® , Main Event ® , Main Event Entertainment ® , and Eat.Bowl.Play ® and have registered or applied to register certain additional trademarks with the United States Patent and Trademark Office and in various foreign countries.
Our Dave & Buster’s stores average 135 redemption and simulation games, and our Main Event locations average 115 redemption and simulation games as well as bowling, laser tag, billiards and gravity ropes. Most of our games are activated by game play credits on cards or other RFID devices.
Our Dave and Buster’s and Main Event stores average more than 80 and 100 redemption and simulation games, respectively, depending on the location footprint and activities which may include bowling, laser tag, billiards and gravity ropes. Most of our games are activated by game play credits on cards or other RFID devices.
These offerings are rooted in enhanced flavors and quality ingredients across a condensed number of menu items that enable our customers to explore new flavors while offering a balanced selection of familiar dishes. Our menus simplify execution and, along with recent kitchen enhancements, allow us to deliver dishes to customers hotter and faster to drive an improved customer experience.
These offerings are rooted in enhanced flavors and quality ingredients across a condensed number of menu items that enable our customers to explore new flavors while offering a balanced selection of familiar dishes.
Our Team As of February 4, 2024, we employed 23,258 team members across both of our brands, consisting of 384 store support, 139 dedicated special events sales force, 1,998 store management, and 20,737 store hourly team members.
Our Team As of February 4, 2025, we employed approximately 23,420 team members across both of our brands, consisting of 89.8% store hourly team members, 8.3% store management, 1.5% store support, and 0.4% dedicated special events sales force.
We have signed five international franchise partnerships, expanding the Dave & Buster's brand to locations in the Kingdom of Saudi Arabia, followed by the United Arab Emirates, Egypt, India, Australia, and the Dominican Republic. Under these partnerships, we plan to open 38 franchised Dave & Buster's locations beginning in 2024.
As of February 4, 2025, we have signed six international franchise partnerships, which will expand the Dave & Buster's brand to locations in the Kingdom of Saudi Arabia, the United Arab Emirates, Egypt, India, Australia, the Dominican Republic, the Philippines and Mexico. Under these partnerships, we plan to open 30 to 40 franchised Dave & Buster's locations.
Our fiscal year consists of 52 or 53 weeks ending on the Sunday after the Saturday closest to January 31. Each quarterly period has 13 weeks, except in a 53-week year when the fourth quarter has 14 weeks. Fiscal 2023 contained 53 weeks and fiscal 2022 and fiscal 2021 each contained 52 weeks.
Each quarterly period has 13 weeks, except in a 53-week year when the fourth quarter has 14 weeks. Fiscal 2024 contained 52 weeks, fiscal 2023 contained 53 weeks and fiscal 2022 contained 52 weeks.
We have a high degree of awareness of our brands as an entertainment and dining venue, and a broad customer appeal with an attractive target demographic. The primary target for our Dave & Buster’s locations is adults aged 21-39 and families, while our Main Event stores primarily focus on families with children. Multi-faceted customer experience highlights our value proposition.
We have an approximate 90% national brand awareness for Dave and Buster’s as an entertainment and dining venue, and a broad customer appeal across families and young adults. The primary target audience for our Dave & Buster’s locations is young adults and families, while our Main Event stores primarily focus on families with children.
These stores generated aggregate revenues of approximately $23.5 million and $24.1 million in fiscal 2023 and fiscal 2022, respectively. The foreign activities of these and future stores outside the United States are subject to various risks of doing business in a foreign country, including currency fluctuations, changes in laws and regulations and economic and political stability.
We also own and operate two stores outside of the United States in the Canadian province of Ontario. The activities of these and future stores outside the United States are subject to various risks of doing business in a foreign country, including currency fluctuations, changes in laws and regulations and economic and political stability.
The first is our long-standing partnership with Make-A-Wish, which we have proudly supported in a national partnership since April 2012. Through fiscal 2023, we have given over $17.4 million to this worthy cause, and we participate in several events throughout the year, both in our stores and at our store support center, to raise money for Make-A-Wish.
Through fiscal 2024, we have given over $18.5 million to this worthy cause, and we participate in several events throughout the year, both in our venues and at our store support center, to raise money for the Make-A-Wish Foundation.
Net development costs include equipment, building, leaseholds and site costs, net of tenant improvement allowances and other landlord payments, excluding pre-opening costs and capitalized interest. Commitment to customer satisfaction.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations”) at the store level, divided by (b) our net development costs. Net development costs include equipment, building, leaseholds and site costs, net of tenant improvement allowances and other landlord payments, sale-leaseback proceeds, excluding pre-opening costs and capitalized interest. Commitment to customer satisfaction.
We will not do business with organizations that employ or condone unfair labor practices. We partner with suppliers who share our commitment to ethical business conduct, fair labor practices, proven environmental, health, and safety practices, and environmental sustainability. We also specifically condemn human trafficking and abuse of child labor.
We partner with suppliers who share our commitment to ethical business conduct; fair labor practices; proven environmental, health, and safety practices; and environmental sustainability. We also specifically condemn human trafficking and abuse of child labor. We understand that supporting our communities includes being good environmental stewards and striving to conduct business in a sustainable and environmentally responsible manner.
Many of our non-redemption games, which include our virtual reality, video, and simulation offerings, can be played by multiple customers simultaneously and include some of the latest high-tech games that are commercially 2 Table of Contents available. Other entertainment, including billiards, laser tag and bowling, represented the remainder of our entertainment revenues in fiscal 2023.
Many of our non-redemption games, which include our virtual reality, video, and simulation offerings, can be played by multiple customers simultaneously and include some of the latest high-tech games that are commercially available. Sports-viewing is another key component of the entertainment experience at Dave & Buster’s.
In addition, we will continue to leverage our 4 Table of Contents customer relationship management program and our growing loyalty database by delivering more targeted individualized offers, creative content and exclusive offerings.
We will continue to focus on delivering personalized messaging that connects with the customer to drive incremental visitation and will focus our advertising on communicating the values behind our brand promise. In addition, we will continue to leverage our customer relationship management program and our growing loyalty database by delivering more targeted individualized offers, creative content and exclusive offerings.
Store-Level Quarterly Fluctuations and Seasonality Our revenues are influenced by seasonal shifts in consumer spending. Typically, we have higher revenues associated with the spring and year-end holidays, which will continue to be susceptible to the impact of severe or unseasonably mild weather on customer traffic and sales during that period.
Typically, we have higher revenues associated with the spring and year-end holidays, which will continue to be susceptible to the impact of severe or unseasonably mild weather on customer traffic and sales during that period. Our third quarter, which encompasses the back-to-school fall season, has historically had lower revenues as compared to other quarters.
New, elevated banquet menu offerings and dedicated service provide an exceptional guest experience. • Drive an improved guest experience and optimize operations through targeted technology investments. We continue to streamline our service model through store-level technology improvements including kiosks and other self-service technology.
We continue to focus on opportunities to grow special events sales including optimized online booking and entertainment offerings geared toward special events. New, elevated banquet menu offerings and dedicated service provide an exceptional guest experience. • Drive an improved experience and optimize operations through targeted technology investments.
We utilize a diversified media mix, including connected TV, select linear TV buys, social and digital video, programmatic display, paid social and paid search, along with several digital marketing initiatives including search engine marketing and optimization, organic social, content marketing, mobile campaigns, mobile app and website improvements.
Our media offerings are diversified, including connected television, select linear television spots, social and digital video marketing, programmatic displays, paid social, and paid search. We conduct various digital marketing initiatives including search engine marketing and optimization, organic social, content marketing, and mobile advertising campaigns.
We also continue to invest in analytics tools and technology upgrades to more efficiently measure and improve performance, drive incremental sales, and continuously monitor costs and profitability. Invest domestically in our brands. We believe the Dave & Buster’s and Main Event brands have significant domestic growth opportunities in the United States and Canada.
We continue to streamline our service model through store-level technology improvements including kiosks and other self-service technology. We also continue to invest in analytics tools and technology upgrades to more efficiently measure and improve performance, drive incremental sales, and continuously monitor costs and profitability. Invest domestically in our brands.
Central to this effort is continued investment in our mobile application and web platforms, which are used to enhance existing customer satisfaction and attract new customers by providing periodic exclusive offers and limited-time discounts, while also providing a convenient way to purchase and easily recharge gaming cards.
Additionally, we continue to invest in our mobile application and web platforms, which enhance customer satisfaction, provide exclusive offers and limited-time discounts for loyal guests, and offer a convenient way for customers to purchase and recharge gaming cards.
We understand that supporting our communities includes being good environmental stewards and striving to conduct business in a sustainable and environmentally responsible manner. We strongly encourage team members to give back to the communities we serve. Although our Company invests time and resources in many charitable causes, we have two main causes we focus our efforts to support.
We strongly encourage team members to give back to the communities we serve. Although our Company invests time and resources in many charitable causes, we have two main causes we focus our efforts to support. The first is our long-standing partnership with the Make-A-Wish Foundation, which we have proudly supported in a national partnership since April 2012.
Food Preparation, Quality Control and Purchasing We strive to maintain the highest food quality standards. To ensure our quality standards are met, we negotiate directly with independent producers of food products. We provide detailed quality and yield specifications to suppliers for our purchases.
Our customers can also engage with us through customer-facing digital experiences, such as the mobile application and in-store self-service kiosks. Food Preparation, Quality Control and Purchasing We strive to maintain the highest food quality standards. To ensure our quality standards are met, we negotiate directly with independent producers of food products.
Our amusement team uses a proprietary system that is supported by a mobile application that identifies amusement issues and needed repairs to help ensure our games are operational and meeting our ideal playing standard. Complementing this program is our routine preventative maintenance program, designed to prevent game failure and extend the functionality of our games.
Our enterprise resource planning platform allows us to manage and automate accounting and supply chain processes to improve efficiency, accuracy and decision-making across the organization. Our amusement team uses a proprietary system that is supported by a mobile application that identifies amusement issues and needed repairs to help ensure our games are operational and meeting our ideal playing standard.
Consolidated reporting tools for the key drivers of our business are provided to our Regional Management to identify and troubleshoot any systemic issues.
Consolidated reporting tools for the key drivers of our business are provided to our Regional Management to identify and troubleshoot any systemic issues. 8 Our store systems enable staff to deliver the multi-faceted customer experience including ordering food and games. We have invested in connectivity and data infrastructure to modernize and upgrade the capacity of our store systems.
We believe our store models offering entertainment, food, and beverage options provide certain benefits in comparison to traditional restaurant concepts, which are reflected in our historically higher revenue per store, higher comparable store operating income margins, and higher comparable Store Operating Income Before Depreciation and Amortization Margins (defined in Item 7.
We believe our store models offering entertainment, food, and beverage options provide the benefit of historically higher revenue per store, higher gross margins, and higher operating income margins in comparison to traditional restaurant concepts. Our entertainment offerings have low variable costs, generating a gross margin of 91.5% for fiscal 2024.
We will continue to invest in remodels of certain existing stores to modernize, attract customers, improve layouts to improve traffic and efficiency, implement technology improvements, provide new entertainment offerings and deliver a personalized experience across screens with connections to our mobile app. • Drive incremental sales volume through advertising and hosting special events.
We will invest in remodels of certain existing stores, as needed, to modernize our layouts, maintain or grow customer traffic and drive efficiency. • Drive incremental sales volume through advertising and hosting special events. Our dedicated sales team strives to drive incremental special events traffic in each of our stores.
In fiscal 2023, we opened eleven Dave & Buster's stores and five Main Event stores.
We believe the Dave & Buster’s and Main Event brands have significant domestic growth opportunities in the United States and Canada. In fiscal 2024, we opened eleven Dave & Buster's stores and three Main Event stores.
After a store has been opened and is operating smoothly, the store managers supervise the training of new team members. 7 Table of Contents Corporate Responsibility Our core values call for each of our team members to care for each other, our customers, and the communities we serve.
Corporate Responsibility Our core values call for each of our team members to care for each other, our customers, and the communities we serve. We will not do business with organizations that employ or condone unfair labor practices.
Special Event marketing programs are run in support of our special events team initiatives. Dedicated, target-specific marketing programs are executed primarily utilizing digital, customer relationship management, organic social, partnerships/co-op programs, and print marketing collateral.
Our special event marketing programs continue to support our special events team initiatives through targeted digital, customer relationship management, organic social, partnerships, co-op programs, and print marketing. We have online booking for social parties, providing added convenience and a personalized experience for our customers when booking events.
While our menus appeal to a broad spectrum of customers, we continue to evolve it to reflect the changing tastes of our customers, with options for full meals as well as grabbing an appetizer to share with friends.
In recent years, we have modified our menus to simplify execution and made kitchen enhancements to allow us to deliver dishes to customers faster and drive an improved customer experience. We will continue to evolve our menus to reflect the changing tastes of our broad customer base, with options for full meals and appetizers to share with friends.
The Buster's Legacy Fund is financed by contributions from our team members, customers, and business partners. Advertising and Marketing We use advertising and marketing to build awareness, strengthen our brands' relevance and generate and retain new customer demand. We spent approximately $67.8 million and $57.6 million on marketing efforts in fiscal years 2023 and 2022, respectively.
The Buster's Legacy Fund is financed by contributions from our team members, customers, and business partners. Advertising and Marketing We leverage advertising and marketing to drive awareness and strengthen brand relevance, in order to achieve constant customer demand. We strategically evolve our marketing strategy and media investment approach to be more data-driven, consumer-centric and experience focused.
We target average one-year and five-year cash-on-cash returns of at least 35% a nd 25%, respectively.
Our favorable store economics allows us to target favorable new store returns, averaging at least 35% and 25% cash-on-cash returns on one-year and five-year periods, respectively. We define and calculate cash-on-cash returns for an individual store as (a) Adjusted EBITDA (defined in Item 7.
Removed
“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures”). Our entertainment offerings have low variable costs, generating a gross margin of 90.7% for fiscal 2023. With 65.1% of our fiscal 2023 revenues from entertainment, we have less exposure than traditional restaurant concepts to food costs.
Added
Our fiscal year consists of 52 or 53 weeks ending on the Tuesday after the Monday closest to January 31. During fiscal 2024, we adjusted the year-end day from Sunday to Tuesday to improve labor and operational efficiencies by ending the Company's periods outside of the busier weekend timeframe.
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Our business model generates strong cash flow that we can use to execute our growth strategy.
Added
Since entertainment generated 65.2% of our fiscal 2024 revenues, we have less exposure to increasing food costs and associated restaurant labor than traditional restaurant concepts. As a result, our business model generates strong operating cash flow which we can use to reinvest in the business, pay down debt or return capital to shareholders through share repurchases or dividends.
Removed
We believe the combination of our operating income margins, our Store Operating Income Before Depreciation and Amortization Margins, our refined new store formats and the fact that our stores typically open with high volumes that drive margins in year one will help us achieve one-year and five-year cash-on-cash return targets.
Added
In December 2024, we opened our first franchise location in Bengaluru, the capital and largest city in the southern Indian state of Karnataka. We plan to open at least five additional franchise locations in fiscal 2025. 5 To drive international expansion, we have developed key strategic initiatives that uniquely support global market penetration.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

61 edited+5 added−4 removed118 unchanged
Biggest changeAs part of our marketing efforts, we use a variety of digital platforms including search engines, mobile, online videos and social media platforms to attract and retain customers. We also test new technology platforms to improve our level of digital engagement with our customers and team members to help strengthen our marketing and related consumer analytics capabilities.
Biggest changeTechnology and consumer offerings continue to develop, and we expect new or enhanced technologies and consumer offerings will be available in the future. As part of our marketing efforts, we use a variety of digital platforms including search engines; mobile, online videos; and social media platforms to attract and retain customers.
We must continue to attract, retain, and motivate qualified management and operating personnel to maintain consistency in our service, hospitality, quality, and atmosphere of our stores, and to also support future growth. Adequate staffing of qualified personnel is a critical factor impacting our customers’ experience in our stores.
We must continue to attract, retain, and motivate qualified management and operating personnel to maintain consistency in our service, hospitality, quality, and atmosphere of our stores, and also to support future growth. Adequate staffing of qualified personnel is a critical factor impacting our customers’ experience in our stores.
If we fail to comply with such laws and regulations, we may be subject to various sanctions and/or penalties and fines or may be required to cease operations until we achieve compliance, which could have an adverse effect on our business and our financial results.
If we fail to comply with such laws and regulations, we may be subject to various sanctions and/or penalties or fines or may be required to cease operations until we achieve compliance, which could have an adverse effect on our business and our financial results.
Our fourth amended and restated certificate of incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will, to the fullest extent permitted by law, be the sole and exclusive forum for the following types of actions or proceedings under Delaware statutory or common law: any derivative action or proceeding brought on our behalf; any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, team members or stockholders to our company or our stockholders; any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law ("DGCL") or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware; or any action asserting a claim arising pursuant to any provision of our certificate of incorporation or bylaws (in each case, as they may be amended from time to time) or governed by the internal affairs doctrine.
Our fourth amended and restated certificate of incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will, to the fullest extent permitted by law, be the sole and exclusive forum for the following types of actions or proceedings under Delaware statutory or common law: any derivative action or proceeding brought on our behalf; any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, team members or stockholders to our company or our stockholders; any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law (“DGCL”) or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware; or any action asserting a claim arising pursuant to any provision of our certificate of incorporation or bylaws (in each case, as they may be amended from time to time) or governed by the internal affairs doctrine.
Low unemployment coupled with increases in minimum wages and minimum tip credit wages, extensions of personal and other leave policies, other governmental regulations affecting labor costs, reduced levels of legal immigration and a diminishing pool of potential team members, which has been exacerbated by potential team members choosing to exit the workforce, in general, and for hospitality industry in particular, especially in certain localities, have and may continue to significantly increase our labor costs and make it more difficult to fully staff our restaurants, any of which could materially adversely affect our financial performance.
Low unemployment coupled with increases in minimum wages and minimum tip credit wages, extensions of personal and other leave policies, other governmental regulations affecting labor costs, reduced levels of legal immigration and a diminishing pool of potential team members, which has been exacerbated by potential team members choosing to exit the workforce, in general, and for the hospitality industry in particular, especially in certain localities, have increased and may continue to significantly increase our labor costs and make it more difficult to fully staff our restaurants, any of which could materially adversely affect our financial performance.
The market price of our common stock may be significantly affected by a number of factors, including, but not limited to, actual or anticipated variations in our operating results or those of our competitors as compared to analyst expectations, changes in financial estimates by research analysts with respect to us or others in the entertainment, restaurant or other consumer discretionary industries, and announcement of significant transactions (including mergers or acquisitions, divestitures, joint ventures or other strategic initiatives) by us or others in those industries.
The market price of our common stock may be significantly affected by a number of factors, including, but not limited to, actual or anticipated variations in our operating results or those of our competitors as compared to analyst expectations, changes in financial estimates by research analysts with respect to us or others in the entertainment, restaurant or other consumer discretionary industries, announcement of significant transactions (including mergers or acquisitions, divestitures, joint ventures or other strategic initiatives) by us or others in those industries.
Our revenues and operating results may fluctuate significantly due to various risks and unforeseen circumstances, including increases in costs, seasonality, weather, acts of violence or terrorism and other factors outside our control. Certain regions in which our stores are located have been, and may in the future be, subject to natural disasters, such as earthquakes, floods, and hurricanes.
Our revenues and operating results may fluctuate significantly due to various risks and unforeseen circumstances, including increases in costs, seasonality, weather, acts of violence or terrorism and other factors outside our control. Certain regions in which our stores are located have been, and may in the future be, subject to natural disasters, such as earthquakes, floods, fires, and hurricanes.
Natural disasters such as earthquakes, hurricanes, and severe adverse weather conditions, climate change and health pandemics can keep customers in the affected area from visiting our stores, adversely affect consumer spending and confidence levels and supply availability and costs, cause damage to, or closure of, our stores and result in lost opportunities for our stores.
Natural disasters such as earthquakes, hurricanes, fires, and severe adverse weather conditions, climate change and health pandemics can keep customers in the affected area from visiting our stores, adversely affect consumer spending and confidence levels and supply availability and costs, cause damage to, or closure of, our stores and result in lost opportunities for our stores.
While we seek to offset labor cost increases through menu price increases, more efficient purchasing practices, productivity improvements, greater economies of scale and by offering a variety of health plans to our team members, including lower cost high deductible health plans, there can be no assurance that these efforts will be successful.
While we seek to offset labor cost increases through menu and game price increases, more efficient purchasing practices, productivity improvements, greater economies of scale and by offering a variety of health plans to our team members, including lower cost high deductible health plans, there can be no assurance that these efforts will be successful.
We are subject to various federal, state, and local laws and regulations that govern numerous aspects of our business, including, but not limited to, the following: • the Fair Labor Standards Act; federal, state and local laws and regulations that govern employment practices and working conditions, including minimum wage rates, wage and hour practices, gratuities, overtime, labor practices, various family leave mandates, discrimination and harassment, immigration, workplace safety and other areas; 17 Table of Contents • the Americans with Disabilities Act and similar state laws that give civil rights protections to individuals with disabilities in the context of employment, public accommodations and other areas; • the Patient Protection and Affordable Care Act as amended by the Health Care and Education Affordability Reconciliation Act of 2010 and uncertainties surrounding future changes to or replacement of our health insurance system; • preparation, sale and labeling of food, including the federal regulations of the Food and Drug Administration, which oversees the safety of the entire food system, including inspection and mandatory food recalls, menu labeling and nutritional content, and additional requirements in certain states and local jurisdictions; • environmental laws and regulations governing, among other things, discharges of pollutants into the air and water as well as the presence, handling, release and disposal of and exposure to hazardous substances; and • other environmental matters, such as climate change, the reduction of greenhouse gases, water consumption and animal health and welfare.
We are subject to various federal, state, and local laws and regulations that govern numerous aspects of our business, including, but not limited to, the following: • the Fair Labor Standards Act; federal, state and local laws and regulations that govern employment practices and working conditions, including minimum wage rates, wage and hour practices, gratuities, overtime, labor practices, various family leave mandates, discrimination and harassment, immigration, workplace safety and other areas; • the Americans with Disabilities Act and similar state laws that give civil rights protections to individuals with disabilities in the context of employment, public accommodations and other areas; • the Patient Protection and Affordable Care Act as amended by the Health Care and Education Affordability Reconciliation Act of 2010 and uncertainties surrounding future changes to or replacement of our health insurance system; 17 • laws and regulations relating to the preparation, sale and labeling of food, including the federal regulations of the Food and Drug Administration, which oversees the safety of the entire food system, including inspection and mandatory food recalls, menu labeling and nutritional content, and additional requirements in certain states and local jurisdictions; • environmental laws and regulations governing, among other things, discharges of pollutants into the air and water as well as the presence, handling, release and disposal of and exposure to hazardous substances; and • other environmental matters, such as climate change, the reduction of greenhouse gases, water consumption and animal health and welfare.
The departure of a member of senior management and/or the failure to ensure an effective transfer of knowledge and a smooth transition upon such departure may be disruptive to the business and could hinder our strategic planning and execution. We face risks related to our substantial indebtedness and limitations on future sources of liquidity.
The departure of a member of senior management and/or the failure to ensure an effective transfer of knowledge and a smooth transition upon such departure may be disruptive to the business and could hinder our strategic planning and execution. 12 We face risks related to our substantial indebtedness and limitations on future sources of liquidity.
Pursuing the wrong remodel and any delays, cost increases, disruptions or other uncertainties related to those opportunities could adversely affect our results of operations. Our results can be adversely affected by events, such as adverse weather conditions, natural disasters, climate change, pandemics or other catastrophic events.
Pursuing the wrong remodel and any delays, cost increases, disruptions or other uncertainties related to those opportunities could adversely affect our results of operations. 13 Our results can be adversely affected by events, such as adverse weather conditions, natural disasters, climate change, pandemics or other catastrophic events.
In addition, any decrease in availability of new entertainment offerings that appeal to customers could lead to decreases in revenues as customers negatively react to a lack of new game options. We have successfully developed several proprietary entertainment offerings that are not available to operations outside the Company.
In addition, any decrease in 16 availability of new entertainment offerings that appeal to customers could lead to decreases in revenues as customers negatively react to a lack of new game options. We have successfully developed several proprietary entertainment offerings that are not available to operations outside the Company.
Our certificate of incorporation and bylaws include certain provisions that could have the effect of discouraging, delaying or preventing a change of control of our Company or changes in our management, including: restrictions on the ability of our stockholders to fill a vacancy on the Board of Directors (the “Board” ); our ability to issue preferred stock with terms that the Board may determine, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquirer; the inability of our stockholders to call a special meeting of stockholders; requirement that special meetings of our stockholders be called only upon the request of a majority of our Board or our Chief Executive Officer ( “CEO” ); the absence of cumulative voting in the election of directors, which may limit the ability of minority stockholders to elect directors; and advance notice requirements for stockholder proposals and nominations, which may 19 Table of Contents discourage or deter a potential acquirer from soliciting proxies to elect a particular slate of directors or otherwise attempting to obtain control of us.
Our certificate of incorporation and bylaws include certain provisions that could have the effect of discouraging, delaying or preventing a change of control of our Company or changes in our management, including: restrictions on the ability of our stockholders to fill a vacancy on the Board of Directors (the “Board” ); our ability to issue preferred stock with terms that the Board may determine, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquirer; the inability of our stockholders to call a special meeting of stockholders; requirement that special meetings of our stockholders be called only upon the request of a majority of our Board or our Chief Executive Officer ( “CEO” ); the absence of cumulative voting in the election of directors, which may limit the ability of minority stockholders to elect directors; and advance notice requirements for stockholder proposals and nominations, which may discourage or deter a potential acquirer from soliciting proxies to elect a particular slate of directors or otherwise attempting to obtain control of us.
Because these cases often seek punitive damages, which may not be covered by insurance, such litigation could have an adverse impact on our business, results of operations or financial condition.
Because these cases often seek punitive damages, which may not be covered by insurance, such litigation could have an adverse impact on our business, results of operations or financial 18 condition.
When economic conditions negatively affect consumer spending, discretionary spending for visits to out-of-home entertainment venues will be challenged, our guest traffic may deteriorate, and the average amount guests spend in our stores may be reduced. This will negatively impact our results of operations. This could result in reductions in staff levels, asset impairment charges and potential store closures.
When economic conditions negatively affect consumer spending, discretionary spending for visits to out-of-home entertainment venues will be challenged, our guest traffic may deteriorate, and the average amount guests spend in our venues may be reduced. This will negatively impact our results of operations, and could also result in reductions in staff levels, asset impairment charges and potential store closures.
Also, although our hiring practices comply with the requirements of federal law in reviewing the citizenship of our team members or their authority to work in the United States, increased enforcement efforts with respect to existing immigration laws by governmental authorities may disrupt a portion of our workforce or our operations at one or more of our stores, thereby negatively impacting our business.
Additionally, although our hiring practices comply with the requirements of federal law in reviewing the citizenship of our team members or their authority to work in the United States, increased enforcement efforts with respect to existing immigration laws by governmental authorities may disrupt a portion of our workforce or our operations at one or more of our stores, thereby negatively impacting our business.
Because we employ a large workforce, any wage increase and/or expansion of benefits mandates will have a particularly significant impact on our labor costs. Our vendors, contractors and business partners are similarly impacted by wage and benefit cost inflation, and many have or will increase their price for goods, construction and services in order to offset their increasing labor costs.
Because we employ a large workforce, any wage increase and/or expansion of benefits mandates will have a particularly significant impact on our labor costs. Our vendors, contractors and business partners are similarly impacted by wage and benefit cost inflation, and many have or will increase their price for goods, construction and services to offset their increasing labor costs.
Many social media platforms immediately publish the content their subscribers and participants post, often without filters or checks on accuracy of the content posted. Inaccurate or adverse information concerning our Company may be posted on such platforms at any time and may spread quickly. The harm may be immediate without affording us an opportunity for redress or correction.
Many social media platforms immediately publish the content their subscribers and participants post, usually without filters or checks on accuracy of the content posted. Inaccurate or adverse information concerning our Company may be posted on such platforms at any time and may spread quickly. The harm may be immediate without affording us an opportunity for redress or correction.
Changes in our tax expense or an increase in our tax liabilities, whether due to changes in applicable laws and regulation, the interpretation or application thereof, or a final determination of tax audits or litigation, could materially adversely affect our financial performance. 20 Table of Contents Failure of our internal control over financial reporting could harm our business, financial results and stock price.
Changes in our tax expense or an increase in our tax liabilities, whether due to changes in applicable laws and regulation, the interpretation or application thereof, or a final determination of tax audits or litigation, could materially adversely affect our financial performance. 20 Failure of our internal control over financial reporting could harm our business, financial results and stock price.
Any failure to maintain an effective system of internal control over financial reporting could limit our ability to report our financial results accurately and timely or to detect and prevent fraud, could result in substantial cost to remediate, and could cause a loss of investor confidence and decline in the market price of our stock.
Any failure to maintain an effective system of internal control over financial reporting could limit our ability to report our financial results accurately and timely or to detect and prevent fraud, could result in substantial cost to remediate, and could cause a loss of investor confidence and decline in the market price of our stock. ITEM 1B.
The use of social media and similar platforms allow individuals access to a broad audience of consumers and other interested persons. Consumers value readily available information concerning goods and services that they have or plan to purchase and may act on such information without further investigation or authentication.
The use of social media and similar platforms allows individuals access to a broad audience of consumers and other interested persons. Consumers value readily available information concerning goods and services that they have or plan to purchase and may act on such information without further investigation or authentication.
Our ability to develop future offerings is dependent on, among other things, obtaining rights to compelling game content and developing new entertainment offerings that are accepted by our customers. There is no guarantee that additional licensing rights will be obtained by us or that our customers will accept the future offerings that we develop.
Our ability to develop future offerings is dependent on, among other things, obtaining rights to intellectual property and compelling game content and developing new entertainment offerings that are accepted by our customers. There is no guarantee that additional licensing rights will be obtained by us or that our customers will accept the future offerings that we develop.
A cyber incident (generally any intentional or unintentional attack that results in unauthorized access resulting in disruption of systems, corruption of data, theft or exposure of confidential information or intellectual property) that compromises the information of our customers or team members could result in widespread negative publicity, damage to our reputation, a loss of customers, additional costs, litigation claims, legal or regulatory proceedings, fines or penalties, remediation costs, a negative impact on team member morale, or other impacts to our business.
A cybersecurity incident (generally any intentional or unintentional attack that results in unauthorized access resulting in disruption of systems, corruption of data, theft or exposure of confidential information or intellectual property) that compromises the information of our customers or team members could result in widespread negative publicity, damage to our reputation, a loss of customers, additional costs, litigation claims, legal or regulatory proceedings, fines or penalties, legal fees, remediation costs, a negative impact on team member morale, or other impacts to our business.
If we experience a security breach, we could become subject to claims, lawsuits or other proceedings for purportedly fraudulent transactions arising out of the theft of credit or debit card information, compromised security and information systems, failure of our team members to comply with applicable laws, the unauthorized acquisition or use of such information by third-parties, or other similar claims, and such claims, lawsuits or other proceedings could have a material and adverse effect on our operations, results of operations, and financial condition.
If we experience a security breach, we could become subject to ransom demands, or claims, lawsuits or other proceedings for purportedly fraudulent transactions arising out of the theft of credit or debit card information, compromised security and information systems, failure of our team members to comply with applicable laws, the unauthorized acquisition or use of such 14 information by third parties, or other similar claims, and such demands, claims, lawsuits or other proceedings could have a material and adverse effect on our operations, results of operations, and financial condition.
The success of our stores also depends on properties primarily located near high density retail areas such as regional malls, lifestyle centers, big box shopping centers and entertainment centers. We depend on a high volume of visitors at these centers to attract customers to our locations.
The success of our venues also depends on properties primarily located near high density retail areas such as regional malls, lifestyle centers, big box shopping centers and entertainment centers. We depend on a high volume of visitors at these centers to attract customers to our locations.
The credit facility and the indenture governing the senior secured notes include covenants restricting, among other things, our ability to do the following under certain circumstances: incur or guarantee additional indebtedness or issue certain disqualified or preferred stock; pay dividends or make other distributions on, or redeem or purchase any equity interests or make other restricted payments; make certain acquisitions or investments; create or incur liens; transfer or sell assets; incur restrictions on the payment of dividends or other distributions from our restricted subsidiaries; alter the business that we conduct; enter into transactions with affiliates; and consummate a merger or consolidation or sell, assign, transfer, lease or otherwise dispose of all or substantially all our assets.
The credit facility includes covenants restricting, among other things, our ability to do the following under certain circumstances: incur or guarantee additional indebtedness or issue certain disqualified or preferred stock; pay dividends or make other distributions on, or redeem or purchase any equity interests or make other restricted payments; make certain acquisitions or investments; create or incur liens; transfer or sell assets; incur restrictions on the payment of dividends or other distributions from our restricted subsidiaries; alter the business that we conduct; enter into transactions with affiliates; and consummate a merger or consolidation or sell, assign, transfer, lease or otherwise dispose of all or substantially all our assets.
We are also subject to a variety of other claims in the ordinary course of business, including personal injury, lease, and contract claims. 18 Table of Contents We are also subject to “dram shop” statutes in certain states in which our stores are located.
We are also subject to a variety of other claims in the ordinary course of business, including personal injury, lease, and contract claims. We are also subject to “dram shop” statutes in certain states in which our stores are located.
Should such increases occur, other jurisdictions that have historically mandated higher wages and greater benefits than what is required under federal law may seek to further increase wages and mandated benefits.
Should such increases occur, state and local jurisdictions that have historically mandated higher wages and greater benefits than what is required under federal law may seek to further increase wages and mandated benefits.
We maintain a separate insurance policy covering cybersecurity risks and such insurance coverage may, subject to policy terms and conditions, cover certain aspects of cyber risks, but this policy is subject to a retention amount and may not be applicable to a particular incident or 14 Table of Contents otherwise may be insufficient to cover all our losses beyond any retention.
We maintain a dedicated insurance policy covering cybersecurity risks and such insurance coverage may, subject to policy terms and conditions, cover certain aspects of cyber risks, but this policy is subject to a retention amount and may not be applicable to a particular incident or otherwise may be insufficient to cover all our losses beyond any retention.
In addition, if we fail to comply with our financial or other covenants under the credit facility or the indenture governing the senior secured notes, we may need additional financing to service or extinguish our indebtedness. We may not be able to obtain financing or refinancing on commercially reasonable terms, or at all.
In addition, if we fail to comply with our financial or other covenants under the credit facility, we may need additional financing to service or extinguish our indebtedness. We may not be able to obtain financing or refinancing on commercially reasonable terms, or at all.
Also, the unplanned loss of a major distributor could adversely affect our business by disrupting our operations as we seek out and negotiate a new distribution contract. Further, a significant percentage of our inventory is directly or indirectly sourced outside the United States and changes in trade policy and tariffs could negatively impact our costs.
Also, the unplanned loss of a major distributor could adversely affect our business by disrupting our operations as we seek out and negotiate a new distribution contract. Further, a significant percentage of our inventory is directly or indirectly sourced outside the United States, and volatility in trade policy and tariffs could significantly increase our costs.
If we fail to manage our recent or future acquisitions effectively, our results of operations could be adversely affected by any of the following: • incorrect assumptions regarding the future results of acquired operations or assets or expected cost reductions or other synergies to be realized from acquiring operations or assets; • failure to integrate the operations or management of any acquired operations or assets successfully and timely; • potential loss of key team members and customers of the acquired companies; • potential lack of experience operating in a geographic market or product line of the acquired business; • an increase in our expenses, particularly overhead expenses, and working capital requirements; • the possible inability to achieve the intended objectives of the business combination; and • the diversion of management’s attention from existing operations or other priorities. 10 Table of Contents New or improved technologies or changes in consumer behavior facilitated by these technologies could negatively affect our business.
If we fail to manage our recent or future acquisitions effectively, our results of operations could be adversely affected by any of the following: • incorrect assumptions regarding the future results of acquired operations or assets or expected cost reductions or other synergies to be realized from acquiring operations or assets; • failure to integrate the operations or management of any acquired operations or assets successfully and timely; • potential loss of key team members and customers of the acquired companies; • potential lack of experience operating in a geographic market or product line of the acquired business; • an increase in our expenses, particularly overhead expenses, and working capital requirements; • the possible inability to achieve the intended objectives of the business combination; and • the diversion of management’s attention from existing operations or other priorities.
To the extent the number of suppliers declines, we could be subject to the risk of distribution delays, pricing pressure, lack of innovation and other associated risks.
To the extent the number of suppliers declines, we could be subject to the risk of distribution delays, pricing pressure (including pressure imposed by tariffs), lack of innovation and other associated risks.
Events beyond our control may affect our ability to comply with our covenants. If we default under the credit facility or the indenture governing the senior secured notes, because of a covenant breach or otherwise, all outstanding amounts thereunder could become immediately due and payable.
Events beyond our control may affect our ability to comply with our covenants. If we default under the credit facility due to a covenant breach or otherwise, all outstanding amounts thereunder could become immediately due and payable.
We cannot assure that we will be able to comply with our covenants under the credit facility, or the indenture governing the senior secured notes or that any covenant violations will be waived in the future.
We cannot assure that we will be able to comply with our covenants under the credit facility or that any covenant violations will be waived in the future.
The leases typically provide for a base rent plus additional rent based on a percentage of the revenue generated by the stores on the leased premises once certain thresholds are met. We generally cannot cancel these leases without substantial economic penalty.
The leases typically provide for a base rent plus an annual either fixed or Consumer Price Indexed based rent escalator. Certain leases also have additional rent based on a percentage of the revenue generated by the stores on the leased premises once certain thresholds are met. We generally cannot cancel these leases without substantial economic penalty.
The federal minimum wage and tip credit wage are under constant pressure from many partisan groups to be increased or eliminated in favor of significantly more mandated benefits than what is currently required under federal law.
The federal minimum wage and tip credit wage are under constant political scrutiny and may be increased or eliminated in favor of significantly more mandated benefits than what is currently required under federal law.
If new immigration legislation is enacted, such laws may contain provisions that could increase our costs in recruiting, training and retaining team members.
Moreover, new immigration legislation may contain provisions that could increase our costs in recruiting, training and retaining team members.
If we are not able to renew the leases at rents that allow such stores to remain profitable as their terms expire, the number of such stores may decrease, resulting in lower revenue from operations, or we may relocate a store, which could subject us to construction and other costs and risks, and, in either case, could have a material adverse effect on our business, results of operations and financial condition. 12 Table of Contents Our financial performance and the ability to successfully implement our strategic direction could be adversely affected if we fail to retain, or effectively respond to a loss of, key management.
If we are not able to renew the leases at rents that allow such stores to remain profitable as their terms expire, the number of such stores may decrease, resulting in lower revenue from operations, or we may relocate a store, which could subject us to construction and other costs and risks, and, in either case, could have a material adverse effect on our business, results of operations and financial condition.
The credit facility and the indenture governing the senior secured notes contain covenants that may restrict our ability to implement our business plan, finance future operations, respond to changing business and economic conditions, secure additional financing, and engage in opportunistic transactions, such as strategic acquisitions.
Covenants in our debt agreements restrict our business and could limit our ability to implement our business plan. The credit facility contains covenants that may restrict our ability to implement our business plan, finance future operations, respond to changing business and economic conditions, secure additional financing, and engage in opportunistic transactions, such as strategic acquisitions.
Health care costs continue to rise and are especially difficult to project given that material increases in costs associated with medical claims, or an increase in the severity or frequency of such claims, may cause health care costs to vary substantially 15 Table of Contents from quarter-to-quarter and year-over-year.
Health care costs continue to rise and are especially difficult to project given that material increases in costs associated with medical claims, or an increase in the severity or frequency of such claims, may cause health care costs to vary substantially from quarter-to-quarter and year-over-year. Any significant changes to the healthcare insurance system could also impact our health care costs.
Also, our team members and others may attempt to unionize our workforce, establish boycotts or picket lines or interrupt our supply chains which could limit our ability to manage our workforce effectively and cause disruptions to our operations, which could materially adversely affect our financial performance.
If we are unable to effectively anticipate and respond to increased labor costs, our financial performance could be materially adversely affected. 15 Also, our team members and others may attempt to unionize our workforce, establish boycotts or picket lines or interrupt our supply chains, which could limit our ability to manage our workforce effectively, cause disruptions to our operations and materially adversely affect our financial performance.
Our ability to continue to procure new games and entertainment offerings, and other entertainment-related equipment is important to our business strategy. The number of suppliers from which we can purchase games and other entertainment-related equipment is limited.
Our procurement of new games and entertainment offerings is contingent upon availability, and in some instances, our ability to obtain licensing rights. Our ability to continue to procure new games and entertainment offerings, and other entertainment-related equipment is important to our business strategy. The number of suppliers from which we can purchase games and other entertainment-related equipment is limited.
Unsolicited takeover proposals, governance change proposals, proxy contests and certain proposals/actions by activist investors may create additional risks and uncertainties with respect to the Company’s financial position, operations, strategies and management, and may adversely affect our ability to attract and retain key members of our team. Any perceived uncertainties may affect the market price and volatility of our securities.
Even in the absence of a takeover attempt, the existence of these provisions may adversely affect the prevailing market price of our common stock if they are viewed as discouraging future takeover attempts. 19 Unsolicited takeover proposals, governance change proposals, proxy contests and certain proposals/actions by activist investors may create additional risks and uncertainties with respect to the Company’s financial position, operations, strategies and management, and may adversely affect our ability to attract and retain key members of our team.
If we pay higher prices for food or other product costs, our operating costs may increase, and, if we are unable to adjust our purchasing practices or pass any cost increases on to our customers, our operating results could be adversely affected. 16 Table of Contents Our procurement of new games and entertainment offerings is contingent upon availability, and in some instances, our ability to obtain licensing rights.
If we pay higher prices for food or other product costs, our operating costs may increase, and, if we are unable to adjust our purchasing practices or pass any cost increases on to our customers, our operating results could be adversely affected.
A failure to maintain appropriate organizational capacity and capability to support leadership excellence or a loss of key skill sets could jeopardize our ability to meet our business performance expectations and growth targets. Although we have employment agreements with all members of senior management, we cannot prevent members of senior management from terminating their employment with us.
Changes in senior management could expose us to significant changes in strategic direction and initiatives. A failure to maintain appropriate organizational capacity and capability to support leadership excellence or a loss of key skill sets could jeopardize our ability to meet our business performance expectations and growth targets.
Public companies including those in the restaurant industry have been the target of unsolicited takeover proposals in the past.
Any perceived uncertainties may affect the market price and volatility of our securities. Public companies including those in the restaurant industry have been the target of unsolicited takeover proposals in the past.
Even incidents at similar businesses such as restaurants, our competitors, or in the supply chain generally could result in negative publicity that could indirectly harm our brand.
Regardless of whether the allegations or complaints are valid, unfavorable publicity related to one or more of our stores could affect public perception of the entire brand. Even incidents at similar businesses such as restaurants, our competitors, or in the supply chain generally could result in negative publicity that could indirectly harm our brand.
In addition, the equity markets have experienced price and volume fluctuations that affect the stock price of companies in ways that have been unrelated to an individual company’s operating performance. The price for our common stock may continue to be volatile, based on factors specific to our company and industry, as well as factors related to the equity markets overall.
The price for our common stock may continue to be volatile, based on factors specific to our company and industry, as well as factors related to the equity markets overall.
Any significant changes to the healthcare insurance system could also impact our health care costs. Material increases in health care costs could materially adversely affect our financial performance.
Material increases in health care costs could materially adversely affect our financial performance.
We cannot assure that we would have sufficient funds to repay outstanding amounts under the credit facility or the indenture governing the senior secured notes and any acceleration of amounts due would have a material adverse effect on our liquidity and financial condition. 13 Table of Contents The success of our longer-term growth strategy depends in part on our ability to open and operate new stores profitability, and on our ability to optimize our existing stores.
We cannot assure that we would have sufficient funds to repay outstanding amounts under the credit facility and any acceleration of amounts due would have a material adverse effect on our liquidity and financial condition.
Our ability to attract and retain customers depends, in part, upon the external perception of our Company, the quality of our food service and facilities and our integrity.
Unfavorable publicity or a failure to respond effectively to adverse publicity, could harm our business. Our brands and our reputation are among our most important assets. Our ability to attract and retain customers depends, in part, upon the external perception of our Company, the quality of our food service and facilities and our integrity.
Any failure by our suppliers, or their suppliers, could cause our ingredients to be contaminated, which could be difficult to detect and put the safety of our food in jeopardy. The risk of food-borne illness also may increase whenever our menu items are served outside of our control, such as by third-party food delivery services or customer take-out.
Any failure by our suppliers, or their suppliers, could cause our ingredients to be contaminated, which could be difficult to detect and put the safety of our food in jeopardy.
Our receipt of proceeds under any insurance we maintain with respect to some of these risks may be delayed or the proceeds may be insufficient to cover our losses fully. Risks Related to Information Technology and Cybersecurity Information technology system failures or interruptions may impact our ability to effectively operate our business.
Our receipt of proceeds under any insurance we maintain with respect to some of these risks may be delayed or the proceeds may be insufficient to cover our losses fully. We may be subject to impairment losses due to potential declines in the fair value of our assets.
Our future success is substantially supported by the contributions and abilities of senior management, including key executives and other leadership team members. Changes in senior management could expose us to significant changes in strategic direction and initiatives.
Our financial performance and the ability to successfully implement our strategic direction could be adversely affected if we fail to retain, or effectively respond to a loss of, key management. Our future success is substantially supported by the contributions and abilities of senior management, including key executives and other leadership team members.
Advances in technologies or certain changes in consumer behavior driven by such technologies could have a negative effect on our business. Technology and consumer offerings continue to develop, and we expect new or enhanced technologies and consumer offerings will be available in the future.
New or improved technologies or changes in consumer behavior facilitated by these technologies could negatively affect our business. Advances in technologies or certain changes in consumer behavior driven by such technologies could have a negative effect on our business.
We also face competition from increasingly sophisticated home-based forms of entertainment, such as internet and video gaming and home movie streaming and delivery.
We also face competition from increasingly sophisticated home-based forms of entertainment, such as internet and video gaming and home movie streaming and delivery. Our failure to compete favorably in the competitive out-of-home and home-based entertainment and restaurant markets could have a material adverse effect on our business, results of operations and financial condition.
Changes in consumer preferences and buying patterns and changes in economic conditions could negatively affect our results of operations.
Our inability to effectively use and monitor social media could harm our marketing efforts as well as our reputation, which could negatively impact our sales and financial performance. 10 Changes in consumer preferences and buying patterns and changes in economic conditions could negatively affect our results of operations.
These initiatives may not prove to be successful and may result in expenses incurred without the benefit of higher revenues or increased engagement. Our inability to effectively use and monitor social media could harm our marketing efforts as well as our reputation, which could negatively impact our sales and financial performance.
We also test new technology platforms to improve our level of digital engagement with our customers and team members to help strengthen our marketing and related consumer analytics capabilities. These initiatives may not prove to be successful and may result in expenses incurred without the benefit of higher revenues or increased engagement.
Negative publicity may also result from criminal incidents, data privacy breaches, scandals involving our team members or operational problems at our stores. Regardless of whether the allegations or complaints are valid, unfavorable publicity related to one or more of our stores could affect public perception of the entire brand.
The risk of food-borne illness also may increase whenever our menu items are served outside of our control, such as by third-party food delivery services or customer take-out. 11 Negative publicity may also result from criminal incidents, data privacy breaches, scandals involving our team members or operational problems at our stores.
Removed
Our failure to compete favorably in the competitive out-of-home and home-based entertainment and restaurant markets could have a material adverse effect on our business, results of operations and financial condition. 11 Table of Contents Unfavorable publicity or a failure to respond effectively to adverse publicity, could harm our business. Our brands and our reputation are among our most important assets.
Added
Although we have employment agreements with all members of senior management, we cannot prevent members of senior management from terminating their employment with us.
Removed
Covenants in our debt agreements restrict our business and could limit our ability to implement our business plan.
Added
The success of our longer-term growth strategy depends in part on our ability to open and operate new stores profitably, and on our ability to optimize our existing stores.
Removed
If we are unable to effectively anticipate and respond to increased labor costs, our financial performance could be materially adversely affected.
Added
In accordance with generally accepted accounting principles, we are required to annually evaluate our long-lived assets, goodwill and intangible assets for impairment. Significant declines in our stock price, market capitalization, or consumer spending due to increased competition, macroeconomic conditions or other factors could result in an unfavorable fair value evaluation of the carrying amounts of the assets.
Removed
Even in the absence of a takeover attempt, the existence of these provisions may adversely affect the prevailing market price of our common stock if they are viewed as discouraging future takeover attempts.
Added
The resulting impairment charges related to our long-lived assets, goodwill or intangible assets could have a materially adverse effect on our results of operations. Risks Related to Information Technology and Cybersecurity Information technology system failures or interruptions may impact our ability to effectively operate our business.
Added
In addition, the equity markets have experienced price and volume fluctuations triggered by general economic uncertainty or current events that affect the stock price of companies in ways that have been unrelated to an individual company’s operating performance.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

3 edited+1 added−0 removed10 unchanged
Biggest changeThe Company’s program leverages recognized frameworks and standards, including National Institute of Standards and Technology Cyber Security Framework , the Center for Internet Security Critical Security Controls, and the Payment Card Industry Data Security Standards, to assess, organize, and improve our program.
Biggest changeThe Company’s program leverages recognized frameworks and standards, including the National Institute of Standards and Technology, Cyber Security Framework, the Center for Internet Security Critical Security Controls, and the Payment Card Industry Data Security Standards, to assess, organize, and improve our program.
During the period of this Annual Report, the business strategy, results of operations and financial condition of the Company have not been materially affected by risks from cybersecurity threats, including as a result of previously identified cybersecurity incidents, but we cannot provide assurance that they will not be materially affected in the future by such risks or any future material incidents.
During the period of this Annual Report, the business strategy, results of operations and financial condition of the Company have not been materially affected by risks from any known cybersecurity threats, including as a result of previously identified cybersecurity incidents, but we cannot provide assurance that they will not be materially affected in the future by such risks or any future material incidents.
The Audit Committee also receives information about cybersecurity risks as part of the Company’s ERM program and reporting. In addition, any cybersecurity incident assessed as being, or potentially becoming, material is escalated for further assessment and then reported to designated members of our senior management and, if necessary, the Audit Committee. 22 Table of Contents
The Audit Committee also receives information about cybersecurity risks as part of the Company’s ERM program and reporting. In addition, any cybersecurity incident assessed as being, or potentially becoming, material is escalated for further assessment and then reported to designated members of our senior management and, if necessary, the Audit Committee. 22
Added
This does not imply that we meet any particular technical standards, specifications, or requirements, only that we leverage various security standards, guidelines and best practices to identify, assess, and manage cybersecurity risks relevant to our business.

Item 2. Properties

Properties — owned and leased real estate

3 edited+1 added−1 removed0 unchanged
Biggest changeOur leases typically have initial terms ranging from ten to twenty years and most include options to extend the term for one or more 5-year periods. 23 Table of Contents We had the following locations as of the end of fiscal 2023: Location Dave & Buster's Main Event Total Alabama 2 1 3 Alaska 1 — 1 Arizona 5 4 9 Arkansas 2 1 3 California 21 — 21 Colorado 3 4 7 Connecticut 2 — 2 Delaware — 1 1 Florida 9 3 12 Georgia 6 3 9 Hawaii 1 — 1 Idaho 1 — 1 Illinois 4 2 6 Indiana 2 — 2 Iowa 1 — 1 Kansas 3 1 4 Kentucky 2 2 4 Louisiana 2 1 3 Maryland 5 1 6 Massachusetts 3 — 3 Michigan 3 — 3 Minnesota 2 — 2 Missouri 1 3 4 Nebraska 1 — 1 Nevada 2 — 2 New Hampshire 1 — 1 New Jersey 4 — 4 New Mexico 1 1 2 New York 13 — 13 North Carolina 4 1 5 Ohio 6 2 8 Oklahoma 2 2 4 Oregon 1 — 1 Pennsylvania 7 — 7 Rhode Island 1 — 1 South Carolina 3 1 4 South Dakota 1 — 1 Tennessee 4 2 6 Texas 15 22 37 Utah 1 — 1 Virginia 4 — 4 Washington 3 — 3 Wisconsin 3 — 3 Puerto Rico 2 — 2 Ontario, Canada 2 — 2 Total 162 58 220
Biggest changeOur operating stores were in the following locations as of the end of fiscal 2024: Location Dave & Buster's Main Event Total Alabama 3 1 4 Alaska 1 — 1 Arizona 5 4 9 Arkansas 2 1 3 California 22 1 23 Colorado 3 4 7 Connecticut 2 — 2 Delaware — 1 1 Florida 10 3 13 Georgia 6 3 9 Hawaii 1 — 1 Idaho 1 — 1 Illinois 5 2 7 Indiana 3 — 3 Iowa 1 — 1 Kansas 3 1 4 Kentucky 2 2 4 Louisiana 2 1 3 Maryland 5 1 6 Massachusetts 3 — 3 Michigan 3 1 4 Minnesota 2 — 2 Missouri 1 3 4 Nebraska 1 — 1 Nevada 2 — 2 New Hampshire 1 — 1 New Jersey 4 — 4 New Mexico 1 1 2 New York 13 — 13 North Carolina 4 1 5 Ohio 7 2 9 Oklahoma 2 2 4 Oregon 1 — 1 Pennsylvania 8 — 8 Rhode Island 1 — 1 South Carolina 3 1 4 South Dakota 1 — 1 Tennessee 5 3 8 Texas 15 22 37 Utah 1 — 1 Virginia 4 — 4 Washington 3 — 3 West Virginia 1 — 1 Wisconsin 3 — 3 Puerto Rico 2 — 2 Ontario, Canada 2 — 2 Total 171 61 232 23
ITEM 2. Properties We lease a 67,000 square foot office building in Coppell, Texas for use as our store support center. This lease expires during the second quarter of fiscal 2032, with options to renew through the second quarter of fiscal 2042. We also lease a 43,000 square foot warehouse facility in Dallas, Texas.
ITEM 2. Properties We lease an office building in Coppell, Texas for use as our store support center. This lease expires during the second quarter of fiscal 2032, with options to renew through the second quarter of fiscal 2042. We also lease a 43,000 square foot warehouse facility in Dallas, Texas.
As of the end of fiscal 2023, we owned the building or site for four of our 220 operating stores and leased the remainder. We own land related to two future sites, which are expected to open in fiscal 2024.
We have a lease for an office building in Plano, Texas, which expires in April 2029. As of the end of fiscal 2024, we owned the sites for eight future stores in our pipeline and lease all of our 232 operating stores.
Removed
Further, we remain obligated on the lease for the former Main Event corporate office in Plano, Texas, which is no longer being used. The lease for this property expires in April 2029, and the Company is working to sublease the property.
Added
Our leases typically have initial terms ranging from ten to twenty years and most include options to extend the term for one or more 5-year periods.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeRefer to Note 12 of Notes to Consolidated Financial Statements for additional details. 24 Table of Contents ITEM 4. Mine Safety Disclosures Not applicable. PART II
Biggest changeITEM 4. Mine Safety Disclosures Not applicable. PART II
ITEM 3. Legal Proceedings We are subject to certain legal proceedings and claims that arise in the ordinary course of our business, including intellectual property disputes, miscellaneous premises liability, employment-related claims, and dram shop claims.
ITEM 3. Legal Proceedings We are subject to certain legal proceedings and claims that arise in the ordinary course of our business, including intellectual property disputes, miscellaneous premises liability, employment-related claims, vendor disputes, and dram shop claims.
In the opinion of management, based upon consultation with legal counsel, the amount of ultimate liability with respect to, or an adverse outcome in any such legal proceedings or claims will not materially affect our business, the consolidated results of our operations or our financial condition.
In the opinion of management, based upon consultation with legal counsel, the anticipated amount of ultimate liability with respect to, or an adverse outcome in any such legal proceedings or claims, will not materially affect our business, the consolidated results of our operations or our financial condition. Refer to Note 10 of the consolidated financial statements for additional details.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

10 edited+1 added−2 removed1 unchanged
Biggest changeIssuer Purchases of Equity Securities Information regarding repurchases of our common stock during the fourth quarter of fiscal 2023: Period (1) Total Number of Shares Repurchased (2) (in thousands of shares) Average Price Paid per Share (2) Total Number of Shares Repurchased as Part of Publicly Announced Plans (2) (3) (in thousands of shares) Approximate Dollar Value of Shares That May Yet Be Repurchased Under the Plans (4) ($ in millions) October 30 to November 26, 2023 — $ — — $ 100.0 November 27 to December 31, 2023 — $ — — $ 100.0 January 1 to February 4, 2024 0.83 $ 48.64 — $ 100.0 (1) The Company uses a "4-5-4" calendar to determine the months in each quarter.
Biggest changeIssuer Purchases of Equity Securities Information regarding repurchases of our common stock during the fourth quarter of fiscal 2024: Period (1) Total Number of Shares Repurchased (2) (in millions) Average Price Paid per Share (2) Total Number of Shares Repurchased as Part of Publicly Announced Plans (2) (3) (in millions) Approximate Dollar Value of Shares That May Yet Be Repurchased Under the Plans (4) (in millions) November 6 to December 3, 2024 — $ — — $ 212.0 December 4, 2024 to January 7, 2025 1.97 $ 28.59 — $ 155.7 January 8 to February 4, 2025 0.98 $ 28.21 — $ 128.0 (1) The Company uses a “4-5-4” calendar to determine the months in each quarter.
The periods presented represent the 4 week and 5 week periods making up the fourth quarter of fiscal 2023. (2) Represents shares withheld for tax purposes on behalf of our employees in connection with the vesting of time-based and performance restricted stock units. There were no purchases under repurchase program(s) during the fourth quarter of fiscal 2023.
The periods presented represent the 4-week and 5-week periods making up the fourth quarter of fiscal 2024. (2) Represents shares withheld for tax purposes on behalf of our employees in connection with the vesting of time-based and performance restricted stock units. There were no purchases under repurchase program(s) during the fourth quarter of fiscal 2024.
(4) Represents total cumulative share repurchase authorizations in effect, less cumulative purchases, at the end of each period presented. 25 Table of Contents Performance Graph The following performance graph depicts the total returns to shareholders of our stock for the past five fiscal years, relative to the performance of the NASDAQ Composite Index, Standard & Poor’s (“S&P”) 600 Small Cap Index and S&P 600 Hotels Restaurants and Leisure Index.
(4) Represents total cumulative share repurchase authorizations in effect, less cumulative purchases, at the end of each period presented. 24 Performance Graph The following performance graph depicts the total returns to shareholders of our stock for the past five fiscal years, relative to the performance of the NASDAQ Composite Index, Standard & Poor’s (“S&P”) 600 Small Cap Index and S&P 600 Hotels Restaurants and Leisure Index.
All returns assume a base investment of $100 at the beginning of the five fiscal years (February 3, 2019 — the end of our fiscal year 2018) and the reinvestment of dividends paid, if applicable, since that date.
All returns assume a base investment of $100 at the beginning of the five fiscal years (February 2, 2020 — the end of our fiscal year 2019) and the reinvestment of dividends paid, if applicable, since that date.
ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information The Company’s common stock trades under the symbol PLAY and is listed on the NASDAQ Global Market (“NASDAQ”). The number of shareholders of record of the Company’s common stock as of March 22, 2024 was 292.
ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information The Company’s common stock trades under the symbol PLAY and is listed on the NASDAQ Global Market (“NASDAQ”). The number of shareholders of record of the Company’s common stock as of April 4, 2025 was 267.
In lieu of a peer group, we selected the S&P 600 Hotels Restaurants and Leisure index, of which our stock was a member during fiscal 2023.
In lieu of a peer group, we selected the S&P 600 Hotels Restaurants and Leisure index, of which our stock was a member during fiscal 2024. ITEM 6. Reserved Not applicable. 25
During fiscal 2023, the Company repurchased 8.49 million shares at an average of $35.35 per share. The remaining dollar value of shares that may be repurchased under the program is $100.0 million as of February 4, 2024.
During fiscal 2024, the Company repurchased 4.99 million shares at an average of $34.50 per share. The remaining dollar value of shares that may be repurchased under the program is $128.0 million as of February 4, 2025.
This does not include persons whose stock is in nominee or “street name” accounts through brokers. Dividends and Share Repurchases There were no dividends declared or paid in fiscal years 2023, 2022 or 2021. On March 27, 2023, our Board approved a share repurchase program with an authorization limit of $100.0 million.
This does not include persons whose stock is in nominee or “street name” accounts through brokers. Dividends and Share Repurchases There were no dividends declared or paid in fiscal years 2024, 2023 or 2022. Our Board has approved a share repurchase program and periodically approved increases to the authorized purchase limit under the program.
Under the program, the Company may repurchase shares on the open market, through privately negotiated transactions, and through trading plans designed to comply with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The share repurchase program(s) may be modified, suspended or discontinued at any time.
(3) Our Board approved a share repurchase program in March of 2023, with approved subsequent increases. Under the program, the Company may repurchase shares on the open market, through privately negotiated transactions, and through trading plans designed to comply with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.
The performance shown in the graph is not necessarily indicative of future price performance. 2/3/2019 2/2/2020 1/31/2021 1/30/2022 1/29/2023 2/4/2024 Dave & Buster's Entertainment, Inc. $ 100.00 $ 87.71 $ 67.80 $ 70.37 $ 82.91 $ 109.99 S&P 600 Small Cap $ 100.00 $ 103.71 $ 125.81 $ 134.62 $ 132.15 $ 134.80 S&P 600 Hotels Restaurants & Leisure (1) $ 100.00 $ 110.53 $ 161.20 $ 116.43 $ 116.36 $ 117.39 NASDAQ Composite $ 100.00 $ 124.54 $ 177.89 $ 187.42 $ 158.17 $ 212.71 (1) Due to the limited number of publicly traded companies in our industry, we were unable to identify a suitable peer group for comparison to our market performance.
The performance shown in the graph is not necessarily indicative of future price performance. 2/2/2020 1/31/2021 1/30/2022 1/29/2023 2/4/2024 2/4/2025 Dave & Buster's Entertainment, Inc. $ 100.00 $ 77.31 $ 80.24 $ 94.53 $ 125.41 $ 62.22 S&P 600 Small Cap $ 100.00 $ 121.32 $ 129.80 $ 127.43 $ 129.98 $ 147.40 S&P 600 Hotels Restaurants & Leisure (1) $ 100.00 $ 145.84 $ 105.33 $ 105.27 $ 106.20 $ 118.90 NASDAQ Composite $ 100.00 $ 142.83 $ 150.48 $ 127.00 $ 170.79 $ 214.78 (1) Due to the limited number of publicly traded companies in our industry, we were unable to identify a suitable peer group for comparison to our market performance.
Removed
On April 19, 2023, our Board approved an increase to the authorization limit of $200.0 million for a total of $300.0 million authorized under the program. On September 4, 2023 our Board approved an increase to the authorization limit of $100.0 million for a total of $400.0 million authorized under the program.
Added
The share repurchase program(s) may be modified, suspended or discontinued at any time.
Removed
(3) Our Board approved a share repurchase program in March of 2023, with approved increases in April and September of 2023 (see further discussion at Note 10 to our consolidated financial statements).

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

68 edited+37 added−41 removed27 unchanged
Biggest changeFiscal Year Ended February 4, 2024 January 29, 2023 Entertainment revenues $ 1,434.8 65.1 % $ 1,286.1 65.5 % Food and beverage revenues 770.5 34.9 % 678.3 34.5 % Total revenues 2,205.3 100.0 % 1,964.4 100.0 % Cost of entertainment (1) 134.1 9.3 % 115.1 8.9 % Cost of food and beverage (1) 202.9 26.3 % 193.8 28.6 % Total cost of products 337.0 15.3 % 308.9 15.7 % Operating payroll and benefits 526.0 23.9 % 470.7 24.0 % Other store operating expenses 686.2 31.1 % 600.6 30.6 % General and administrative expenses 122.6 5.6 % 137.8 7.0 % Depreciation and amortization expense 208.5 9.5 % 169.3 8.6 % Pre-opening costs 18.4 0.8 % 14.6 0.7 % Total operating costs 1,898.7 86.1 % 1,701.9 86.6 % Operating income 306.6 13.9 % 262.5 13.4 % Interest expense, net 127.4 5.8 % 87.4 4.5 % Loss on debt refinancing 16.1 0.7 % 1.5 0.1 % Income before provision for income taxes 163.1 7.4 % 173.6 8.8 % Provision for income taxes 36.2 1.6 % 36.5 1.9 % Net income $ 126.9 5.8 % $ 137.1 7.0 % Company-owned stores at end of period 220 204 Comparable stores at end of period 141 113 (1) All revenues and costs are expressed as a percentage of total revenues for the respective period presented, except cost of entertainment, which is expressed as a percentage of entertainment revenues, and cost of food and beverage, which is expressed as a percentage of food and beverage revenues. 30 Table of Contents Reconciliations of Non-GAAP Financial Measures Adjusted EBITDA The following table reconciles Net income to EBITDA and Adjusted EBITDA (in millions of dollars and as a percent of total revenues) for the periods indicated: Fiscal Year Ended February 4, 2024 January 29, 2023 Net income $ 126.9 5.8 % $ 137.1 7.0 % Add back: Interest expense, net 127.4 87.4 Loss on debt refinancing 16.1 1.5 Provision for income tax 36.2 36.5 Depreciation and amortization expense 208.5 169.3 EBITDA 515.1 23.4 % 431.8 22.0 % Add back: Share-based compensation (1) 16.0 20.0 Transaction and integration costs (2) 11.1 25.3 System implementation costs (3) 9.4 — Other costs, net (4) 4.0 3.3 Adjusted EBITDA, a non-GAAP measure $ 555.6 25.2 % $ 480.4 24.5 % (1) Non-cash share-based compensation expense, net of forfeitures, recorded in general and administrative expenses on the consolidated comprehensive income statement.
Biggest changeFiscal Year Ended February 4, 2025 February 4, 2024 Entertainment revenues $ 1,391.0 65.2 % $ 1,434.8 65.1 % Food and beverage revenues 741.7 34.8 % 770.5 34.9 % Total revenues 2,132.7 100.0 % 2,205.3 100.0 % Cost of entertainment (1) 118.6 8.5 % 138.5 9.7 % Cost of food and beverage (1) 195.8 26.4 % 214.5 27.8 % Total cost of products 314.4 14.7 % 353.0 16.0 % Operating payroll and benefits 523.5 24.5 % 525.9 23.8 % Other store operating expenses 690.4 32.4 % 669.5 30.4 % General and administrative expenses 99.5 4.7 % 113.8 5.2 % Depreciation and amortization expense 238.2 11.2 % 208.5 9.5 % Pre-opening costs 18.7 0.9 % 18.4 0.8 % Other charges and gains 27.6 1.3 % 9.6 0.4 % Total operating costs 1,912.3 89.7 % 1,898.7 86.1 % Operating income 220.4 10.3 % 306.6 13.9 % Interest expense, net 135.3 6.3 % 127.4 5.8 % Loss on debt refinancing 15.2 0.7 % 16.1 0.7 % Income before provision for income taxes 69.9 3.3 % 163.1 7.4 % Provision for income taxes 11.6 0.5 % 36.2 1.6 % Net income $ 58.3 2.7 % $ 126.9 5.8 % Company-owned stores at end of period 232 220 Comparable stores at end of period 195 141 (1) All revenues and costs are expressed as a percentage of total revenues for the respective period presented, except cost of entertainment, which is expressed as a percentage of entertainment revenues, and cost of food and beverage, which is expressed as a percentage of food and beverage revenues. 29 Reconciliations of Non-GAAP Financial Measures Adjusted EBITDA The following table reconciles Net income to Adjusted EBITDA (in millions of dollars and as a percent of total revenues) for the periods indicated: Fiscal Year Ended February 4, 2025 February 4, 2024 Net income (1) $ 58.3 2.7 % $ 126.9 5.8 % Interest expense, net 135.3 127.4 Loss on debt refinancing 15.2 16.1 Provision for income tax 11.6 36.2 Depreciation and amortization expense 238.2 208.5 Share-based compensation (2) 4.6 16.0 Transaction and integration costs (3) 3.4 11.1 System implementation costs (4) 11.1 9.4 Other costs, net (5) 28.5 4.0 Adjusted EBITDA, a non-GAAP measure (1) $ 506.2 23.7 % $ 555.6 25.2 % (1) All percentages are expressed as a percentage of total revenues for the respective period presented.
Nevertheless, because of the limitations described above, management does not view Adjusted EBITDA, Adjusted EBITDA Margin, Credit Adjusted EBITDA, Store Operating Income Before Depreciation and Amortization or Store Operating Income Before Depreciation and Amortization Margin in isolation and also uses other measures, such as revenues, gross margin, operating income and net income to measure operating performance.
Nevertheless, because of the limitations described above, management does not view Adjusted EBITDA, Credit Adjusted EBITDA or Store Operating Income Before Depreciation and Amortization in isolation and also uses other measures, such as revenues, gross margin, operating income and net income to measure operating performance.
Adjusted EBITDA and Adjusted EBITDA Margin . We define “Adjusted EBITDA” as net income (loss), plus interest expense, net, loss on debt refinancing, provision for (benefit from) income taxes, depreciation and amortization expense, (gain) loss on property and equipment transactions, impairment of long-lived assets, share-based compensation, currency transaction (gains) losses and other costs.
Adjusted EBITDA We define “Adjusted EBITDA” as net income, plus interest expense, net, loss on debt refinancing, provision for (benefit from) income taxes, depreciation and amortization expense, (gain) loss on property and equipment transactions, impairment of long-lived assets, share-based compensation, currency transaction (gains) losses and other costs.
We also believe Store Operating Income Before Depreciation and Amortization is a useful measure in evaluating our operating performance within the entertainment and dining industry because it permits the evaluation of store-level productivity, efficiency, and performance, and we use Store Operating Income Before Depreciation and Amortization as a means of evaluating store financial performance compared with our competitors.
We also believe that Store Operating Income Before Depreciation and Amortization is a useful measure in evaluating our operating performance within the entertainment and dining industry because it permits the evaluation of store-level productivity, efficiency, and performance, and we use Store Operating Income Before Depreciation and Amortization as a means of evaluating store financial performance compared with our competitors.
We believe the presentation of Credit Adjusted EBITDA is appropriate as it provides additional information to investors about the calculation of, and compliance with, certain financial covenants in the Credit Facility. Store Operating Income Before Depreciation and Amortization and Store Operating Income Before Depreciation and Amortization Margin.
We believe the presentation of Credit Adjusted EBITDA is appropriate as it provides additional information to investors about the calculation of, and compliance with, certain financial covenants in the Credit Facility. 27 Store Operating Income Before Depreciation and Amortization and Store Operating Income Before Depreciation and Amortization Margin.
Other adjustments include (i) entertainment revenue deferrals, (ii) the cost of new projects, including store pre-opening costs, (iii) business optimization expenses and other restructuring costs, and (iv) other costs and adjustments as permitted by the debt agreements.
Additional adjustments include (i) entertainment revenue deferrals, (ii) the cost of new projects, including store pre-opening costs, (iii) business optimization expenses and other restructuring costs, and (iv) additional costs and adjustments as permitted by the debt agreements.
In addition, Adjusted EBITDA excludes certain other costs which may be important in analyzing our GAAP results. Because Adjusted EBITDA does not account for these expenses, its utility as a measure of our operating performance has material limitations.
In addition, Adjusted EBITDA excludes certain other costs that may be important in analyzing our GAAP results. Because Adjusted EBITDA does not account for these expenses, its utility as a measure of our operating performance has material limitations.
However, because this measure excludes significant items such as general and administrative expenses and pre-opening costs, as well as our interest expense, net, loss on debt refinancing and depreciation and amortization expense, which are important in evaluating our consolidated financial performance from period to period, the value of this measure is limited as a measure of our consolidated financial performance.
However, because this measure excludes significant items such as general and administrative expenses, pre-opening costs and other charges and gains, as well as our interest expense, net, loss on debt refinancing and depreciation and amortization expense, which are important in evaluating our consolidated financial performance from period to period, the value of this measure is limited as a measure of our consolidated financial performance.
Operating Activities — Cash flow from operations typically provides us with a significant source of liquidity. Our operating cash flows result primarily from cash received from our customers, offset by cash payments we make for products and services, team member compensation, operations, occupancy, and other operating costs. Cash from operating activities is also subject to changes in working capital.
Operating Activities — Cash flow provided by operations typically supplies us with a significant source of liquidity. Our operating cash flows result primarily from cash received from our customers, offset by cash payments we make for products and services, team member compensation, operations, occupancy, and other operating costs. Cash from operating activities is also subject to changes in working capital.
There is no assurance that our cost of products will remain stable or that federal, state, or local minimum wage rates will not increase beyond amounts currently legislated, however, the effects of any supplier price increase or wage rate increases might be partially offset by selective price increases if competitively appropriate. 29 Table of Contents Fiscal 2023 Compared to Fiscal 2022 Results of operations.
There is no assurance that our cost of products will remain stable or that federal, state, or local minimum wage rates will not increase beyond amounts currently legislated, however, the effects of any supplier price increase or wage rate increases might be partially offset by selective price increases if competitively appropriate. 28 Fiscal 2024 Compared to Fiscal 2023 Results of operations.
The 2024 Term B Loans bear interest at Term SOFR or ABR (each, as defined in the amended Credit Facility) plus (i) in the case of Term SOFR loans, 3.25% per annum and (ii) in the case of ABR loans, 2.25% per annum.
Both the Existing Term B Loans and the Incremental Term B Loans bear interest at Term SOFR or ABR (each, as defined in the amended Credit Facility) plus (i) in the case of Term SOFR loans, 3.25% per annum and (ii) in the case of ABR loans, 2.25% per annum.
(3) System implementation costs represent expenses incurred related to the development and launch of new enterprise resource planning, human capital management and inventory software for our stores and store support teams and staff augmentation for the implementation team at the store support center. These charges are primarily recorded in general and administrative expenses on the consolidated comprehensive income statement.
(4) System implementation costs represent expenses incurred related to the development of new enterprise resource planning, human capital management and inventory software for our stores and store support teams and staff augmentation for the implementation team at the store support center. These charges are primarily recorded in “Other charges and gains” on the Consolidated Statement of Comprehensive Income.
The more significant inputs used in determining our estimate of the projected undiscounted cash flows include future revenue growth and projected margins as well as the estimate of the remaining useful life of the assets.
The more significant inputs used in determining our estimate of the projected undiscounted cash flows include projected sales and projected margins as well as the estimate of the remaining useful life of the assets.
For purposes of recognizing revenue, the total amount collected from each customer is then allocated between the two performance obligations based on the relative standalone selling price of each obligation. Accounting for acquisitions.
For purposes of recognizing revenue, the total amount collected from each customer is then allocated between the two performance obligations based on the relative standalone selling price of each obligation. Accounting for impairment of goodwill and tradenames.
In the event that these assumptions change in the future, we may be required to record impairment charges related to goodwill. We consider our Dave & Buster's and Main Event brands to be both our operating segments and reporting units.
In the event that these assumptions change in the future, we may be required to record impairment charges related to goodwill. We consider our Dave & Buster's and Main Event brands to be two reporting units within one operating segment.
We performed our annual impairment test in the fourth quarter of fiscal 2023 by utilizing the qualitative approach and determined that there were no events or circumstances to indicate that it was more likely than not that the fair value of our reporting units, or the Dave & Buster's and Main Event tradenames, was less than their carrying values. 38 Table of Contents Accounting for impairment of long-lived assets.
We performed our annual impairment test in the fourth quarter of fiscal 2024 by utilizing the qualitative approach and determined that there were no events or circumstances to indicate that it was more likely than not that the fair value of our reporting units, or the Dave & Buster's and Main Event tradenames, was less than their carrying values.
Strategy Our strategy is built on the following key initiatives: • Offer the latest entertainment at competitive prices • Offer novel food & drink to bring people together • Drive customer engagement through strategic marketing and loyalty offerings • Optimize our footprint through opening new stores and remodeling existing locations • Drive incremental sales volume through advertising and hosting special events • Drive an improved guest experience and optimize operations through targeted technology investments For further information about our strategy, refer to “Item 1.
Strategy Our strategy is built on the following key initiatives: • Offer the latest entertainment at competitive prices. • Offer novel food & drink to bring people together. • Drive customer engagement through strategic marketing and loyalty offerings. • Optimize our footprint with new venues and refreshed existing locations. • Drive incremental sales volume through advertising and hosting special events. • Drive an improved customer experience and optimize operations through targeted technology investments.
The Credit Facility may be increased through incremental facilities, by an amount equal to the greater of (i) $400.0 million and (ii) 0.75 times trailing twelve-month Adjusted EBITDA, as defined in the Credit Facility, plus additional amounts subject to compliance with applicable leverage ratio and/or interest coverage ratio requirements.
The Credit Facility may be increased through incremental facilities, by an amount equal to the greater of (i) $400.0 million and (ii) 0.75 times trailing twelve-month Adjusted EBITDA, as defined in the Credit Facility, plus additional amounts subject to compliance with applicable leverage ratio and/or interest coverage ratio requirements. 7.625% Senior Secured Notes During fiscal 2020, the Company issued $550.0 million aggregate principal amount of 7.625% senior secured notes (the “Notes”).
Store Operating Income Before Depreciation and Amortization Margin allows us to evaluate operating performance of each store across stores of varying size and volume. 28 Table of Contents We believe Store Operating Income Before Depreciation and Amortization is another useful measure in evaluating our operating performance because it removes the impact of general and administrative expenses, which are not incurred at the store level, and the costs of opening new stores, which are non-recurring at the store level, and thereby enables the comparability of the operating performance of our stores for the periods presented.
We believe that Store Operating Income Before Depreciation and Amortization is another useful measure in evaluating our operating performance because it removes the impact of general and administrative expenses, which are not incurred at the store level, and the costs of opening new stores, which are non-recurring at the store level, and thereby enables the comparability of the operating performance of our stores for the periods presented.
Strategy”. Key Measures of Our Performance We monitor and analyze several key performance measures to manage our business and evaluate financial and operating performance, including: Comparable store sales. Comparable store sales are a comparison of sales to the same period of prior years for the comparable store base.
For further information about our strategy, refer to “Item 1. Strategy.” 26 Key Measures of Our Performance We monitor and analyze several key performance measures to manage our business and evaluate financial and operating performance, including: Comparable store sales. Comparable store sales are a comparison of sales to the same period of prior years for the comparable store base.
We historically define the comparable store base to include those stores owned and open for a full 27 Table of Contents 18 months before the beginning of the fiscal year and excluding stores permanently closed during the period. For fiscal 2023, our comparable store base consists of 141 Dave & Buster's branded stores.
We historically define the comparable store base to include those stores owned and open for a full 18 months before the beginning of the fiscal year and excluding stores permanently closed during the period. For fiscal 2024, our comparable store base consists of 146 Dave & Buster's branded stores and 49 Main Event branded stores. New store openings.
By reporting Adjusted EBITDA, we provide a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance.
Adjusted EBITDA is presented because we believe that it provides useful information to investors and analysts regarding our operating performance. By reporting Adjusted EBITDA, we provide a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance.
See further discussion of the Company's debt activity at Note 7 to the consolidated financial statements. See further discussion of the sale-leaseback transaction at Note 9 to the consolidated financial statements. Loss on debt refinancing - Loss on debt refinancing was $16.1 million in fiscal 2023 and $1.5 million in fiscal 2022.
See further discussion of the Company's debt activity at Note 6 of the consolidated financial statements. See further discussion of the sale-leaseback transaction at Note 8 of the consolidated financial statements. Loss on debt refinancing - Loss on debt refinancing was $15.2 million in fiscal 2024 and $16.1 million in fiscal 2023.
The Revolving Loans bear interest subject to a pricing grid based on net total leverage, at Term SOFR plus a spread ranging from 2.50% to 3.00% per annum or ABR plus a spread ranging from 1.50% to 2.00% per annum.
Loans under the Revolving Credit Facility bear interest subject to a pricing grid based on net total leverage, at Term SOFR plus a spread ranging from 2.50% to 3.00% per annum or ABR plus a spread ranging from 1.50% to 2.00% per annum. Unused commitments under the Revolving Credit Facility incur initial commitment fees of 0.30% to 0.50%.
Presentation of Operating Results The Company’s fiscal year consists of 52 or 53 weeks ending on the Sunday after the Saturday closest to January 31. Fiscal year 2023, which ended on February 4, 2024, contained 53 weeks. Fiscal years 2022 and 2021, which ended on January 29, 2023 and January 30, 2022, respectively, each contained 52 weeks.
Presentation of Operating Results The Company’s fiscal year consists of 52 or 53 weeks ending on the Tuesday after the Monday closest to January 31. Fiscal year 2024, which ended on February 4, 2025, contained 52 weeks. Fiscal year 2023, which ended on February 4, 2024, contained 53 weeks.
Generally, our stores are open seven days a week, with normal hours of operation generally from between 10:00 to 11:30 a.m. until midnight, with stores typically open for extended hours on weekends.
Our Main Event stores average 53,000 square feet and range in size between 37,500 and 78,000 square feet. Generally, our stores are open seven days a week, with normal hours of operation generally from between 10:00 to 11:30 a.m. until midnight, with stores typically open for extended hours on weekends.
These are supplemental measures of performance that are not required by or presented in accordance with GAAP and include Adjusted EBITDA, Adjusted EBITDA Margin, Credit Adjusted EBITDA, Store Operating Income Before Depreciation and Amortization and Store Operating Income Before Depreciation and Amortization Margin (defined below).
Non-GAAP Financial Measures In addition to the results provided in accordance with GAAP, we provide non-GAAP measures which present operating results on an adjusted basis. These are supplemental measures of performance that are not required by or presented in accordance with GAAP and include Adjusted EBITDA, Credit Adjusted EBITDA and Store Operating Income Before Depreciation and Amortization (defined below).
The preparation of financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosures of contingent assets and liabilities. Our significant accounting policies are described in Note 1 of Notes to Consolidated Financial Statements.
Critical accounting policies and estimates The above discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements. The preparation of financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosures of contingent assets and liabilities.
Interest expense The following table sets forth our recorded interest expense, net for the periods presented: February 4, 2024 January 29, 2023 January 30, 2022 Interest expense on debt $ 121.8 $ 77.7 $ 43.5 Interest associated with swap agreements — 4.1 7.5 Amortization of issue discount and issuance cost 11.8 8.5 4.2 Interest expense on sale-leaseback (1) 1.4 — — Interest income (4.7) (0.6) — Capitalized interest (2.9) (2.3) (1.3) Total interest expense, net $ 127.4 $ 87.4 $ 53.9 (1) See discussion of sale-leaseback transaction at Note 9 to the consolidated financial statements. 35 Table of Contents Credit Adjusted EBITDA and Net Total Leverage Ratio Credit Adjusted EBITDA, a non-GAAP measure, represents Adjusted EBITDA plus certain other items as defined in our Credit Facility.
Interest expense The following table sets forth our recorded interest expense, net for the periods presented: February 4, 2025 February 4, 2024 January 29, 2023 Interest expense on debt $ 120.6 $ 121.8 $ 77.7 Interest associated with swap agreements — — 4.1 Amortization of issue discount and issuance cost 10.6 11.8 8.5 Interest expense on sale-leaseback transactions (1) 8.1 1.4 — Interest income (0.4) (4.7) (0.6) Capitalized interest (3.6) (2.9) (2.3) Total interest expense, net $ 135.3 $ 127.4 $ 87.4 (1) See discussion of sale-leaseback transactions at Note 8 of the consolidated financial statements.
We believe we appeal to a diverse customer base by providing a highly customizable experience in a dynamic and fun setting. Our Dave & Buster’s stores average 40,000 square feet and range in size between 16,000 and 70,000 square feet. Our Main Event stores average 54,000 square feet and range in size between 37,500 and 78,000 square feet.
Our brands appeal to a relatively balanced mix of male and female adults, as well as families and teenagers. We believe we appeal to a diverse customer base by providing a highly customizable experience in a dynamic and fun setting. Our Dave & Buster’s stores average 37,000 square feet and range in size between 16,000 and 70,000 square feet.
The following table sets forth selected data, in millions of dollars and as a percentage of total revenues (unless otherwise noted) for the periods indicated. All information is derived from the accompanying Consolidated Statements of Comprehensive Income.
The following table sets forth selected data, in millions of dollars and as a percentage of total revenues (unless otherwise noted) for the periods indicated. All information is derived from the accompanying Consolidated Statements of Comprehensive Income. Note that the Company’s fiscal year consists of 52 or 53 weeks ending on the Tuesday after the Monday closest to January 31.
Our Main Event branded stores are not included in comparable store sales for fiscal 2023. New store openings. Our ability to reach new customers is influenced by the opening of additional stores in new and existing markets. The success of our new stores is indicative of our brand appeal and the efficacy of our site selection and operating models.
Our ability to reach new customers is influenced by the opening of additional stores in new and existing markets. The success of our new stores is indicative of our brand appeal and the efficacy of our site selection and operating models. During fiscal 2024, we opened eleven new Dave & Buster's stores and three Main Event stores.
The 2024 Term B Loans reduced the interest rate margin applicable to term loans and Revolving Loans outstanding under the Credit Facility by 0.50%, removed the previously existing 0.10% credit spread adjustment, provided for an additional 0.25% step-down if a rating of B1/B+ or higher from Moody’s and S&P is achieved (which will step back up if such rating 34 Table of Contents is subsequently not maintained), and otherwise have terms substantially the same as the terms of the existing 2023 Term B Loans under the First Amendment.
Additionally, the interest rate margin applicable to the Existing Term B Loans and loans outstanding under the Revolving Credit Facility are subject to an additional 0.25% step-down if a rating of B1/B+ or higher from Moody’s and S&P is achieved (which will step-up if such rating is subsequently not maintained).
(2) Transaction and integration costs related to the acquisition and integration of Main Event recorded in general and administrative expenses on the consolidated comprehensive income statement.
(2) Non-cash share-based compensation expense, net of forfeitures, recorded in “General and administrative expenses” on the Consolidated Statement of Comprehensive Income. (3) Transaction and integration costs related to the acquisition and integration of Main Event recorded in “General and administrative expenses” on the Consolidated Statement of Comprehensive Income.
Operating payroll and benefits - Total operating payroll and benefits increased to $526.0 million in fiscal 2023 compared to $470.7 million in fiscal 2022. The total cost of operating payroll and benefits as a percentage of total revenues was 23.9% in fiscal 2023 compared to 24.0% in fiscal 2022.
The total cost of operating payroll and benefits as a percentage of total revenues was 24.5% in fiscal 2024 compared to 23.8% in fiscal 2023. Other store operating expenses - Other store operating expenses increased to $690.4 million in fiscal 2024 compared to $669.5 million in fiscal 2023.
The following table provides a calculation of Net Total Leverage Ratio, as defined in our Credit Facility, for the period shown: As of and for the Trailing Four Quarters Ended February 4, 2024 Credit Adjusted EBITDA (a) $ 577.1 Total debt (1) $ 1,293.0 Less: Cash and cash equivalents (37.3) Add: Outstanding letters of credit 9.7 Net debt (b) $ 1,265.4 Net Total Leverage Ratio (b / a) 2.2 x (1) Amount represents the face amount of debt outstanding, net of unamortized debt issuance costs and debt discount. 36 Table of Contents Dividends and Share Repurchases There were no dividends declared in fiscal 2023 or fiscal 2022.
The following table provides a calculation of Net Total Leverage Ratio, as defined in our Credit Facility, for the latest test period shown: Fiscal Year Ended February 4, 2025 Credit Adjusted EBITDA (a) $ 533.4 Total debt (1) $ 1,486.1 Less: Cash and cash equivalents (6.9) Add: Outstanding letters of credit 11.5 Net debt (b) $ 1,490.7 Net Total Leverage Ratio (b / a) 2.8 x (1) Amount represents the face amount of debt outstanding, net of unamortized debt issuance costs and debt discount.
The amount for fiscal 2023 is related to the debt refinancings in January 2024 and June 2023. The amount for fiscal 2022 is related to the debt refinancing in June 2022. See further discussion of the Company's debt refinancing activity at Note 7 to the consolidated financial statements.
The amount for fiscal 2024 is related to the January and November debt refinancings. See further discussion of the Company's debt refinancing activity at Note 6 of the consolidated financial statements. Provision for income taxes - The effective tax rate for fiscal 2024 was 16.5%, compared to 22.2% for fiscal 2023.
Cash flow from operating activities decreased to $364.2 million in fiscal 2023 compared to $444.4 million in fiscal 2022 primarily due to cash income tax refunds received in fiscal 2022 and changes in working capital due to timing of accruals and payments of expenses. Investing Activities — Cash flow from investing activities primarily reflects capital expenditures.
Cash flow used in operating activities decreased to $312.3 million in fiscal 2024 compared to $364.2 million in fiscal 2023 primarily due to a decrease in net income and the timing of changes in working capital. Investing Activities — Cash flow used in investing activities primarily reflects capital expenditures.
Credit Adjusted EBITDA We define “Credit Adjusted EBITDA” as Adjusted EBITDA plus certain other items as defined in our Credit Facility (see Liquidity and Capital Resources below). Other adjustments include (i) entertainment revenue deferrals, (ii) the cost of new projects, including store pre-opening costs, and (iii) other costs and adjustments as permitted by the debt agreements.
These other adjustments include (i) increases in entertainment revenue deferrals, (ii) the cost of new projects, including store pre-opening costs, and (iii) other costs and adjustments as permitted by the debt agreements.
The total cost of products as a percentage of total revenues decreased to 15.3% for fiscal 2023 compared to 15.7% for fiscal 2022. Cost of entertainment increased to $134.1 million in fiscal 2023 compared to $115.1 million in fiscal 2022.
The total cost of products as a percentage of total revenues decreased to 14.7% for fiscal 2024 compared to 16.0% for fiscal 2023. Cost of entertainment decreased to $118.6 million in fiscal 2024 compared to $138.5 million in fiscal 2023.
Store Operating Income Before Depreciation and Amortization The following table reconciles Operating income to Store Operating Income Before Depreciation and Amortization (in millions of dollars and as a percent of total revenues) for the periods indicated: Fiscal Year Ended February 4, 2024 January 29, 2023 Operating income $ 306.6 13.9 % $ 262.5 13.4 % Add back: General and administrative expenses 122.6 137.8 Depreciation and amortization expense 208.5 169.3 Pre-opening costs 18.4 14.6 Store Operating Income Before Depreciation and Amortization, a non-GAAP measure 656.1 29.8 % 584.2 29.7 % 31 Table of Contents Capital Additions The following table reflects accrual-based capital additions.
Store Operating Income Before Depreciation and Amortization The following table reconciles Operating income to Store Operating Income Before Depreciation and Amortization for the periods indicated: Fiscal Year Ended February 4, 2025 February 4, 2024 Operating income (1) $ 220.4 10.3 % $ 306.6 13.9 % General and administrative expenses (2) 99.5 113.8 Depreciation and amortization expense 238.2 208.5 Pre-opening costs 18.7 18.4 Other charges and gains (2) 27.6 9.6 Store Operating Income Before Depreciation and Amortization, a non-GAAP measure (1)(2) $ 604.4 28.3 % $ 656.9 29.8 % (1) All percentages are expressed as a percentage of total revenues for the respective period presented.
Interest expense, net - Interest expense, net increased to $127.4 million in fiscal 2023 compared to $87.4 million in fiscal 2022 due primarily to an increase in average outstanding debt and interest expense recorded as a result of a sale-leaseback transaction, partially offset by lower interest rates on the outstanding credit facility balances and an increase in interest income.
Interest expense, net - Interest expense, net increased to $135.3 million in fiscal 2024 compared to $127.4 million in fiscal 2023 due primarily due to incremental interest expense associated with sale-leaseback transactions and borrowings outstanding under our Credit Agreement, partially offset by an increase in interest income and a decrease in interest rates on our Credit Facility.
Cash Flow Summary The Company ended the year with $527.6 million of liquidity, which included $37.3 million in cash and cash equivalents and $490.3 million available under its $500.0 million revolving credit facility. The Company can operate with a working capital deficit because cash from sales is usually received before related liabilities for product supplies, labor and services become due.
The Company can operate with a working capital deficit because cash from sales is usually received before related liabilities for product supplies, labor and services become due.
The remaining dollar value of shares that may be repurchased under the program is $100.0 million as of February 4, 2024. Future decisions to pay cash dividends or repurchase shares continue to be at the discretion of the Board and will be dependent on our operating performance, financial condition, capital expenditure requirements and other factors that the Board considers relevant.
Future decisions to pay cash dividends or repurchase shares continue to be at the discretion of the Board and will be dependent on our operating performance, financial condition, capital expenditure requirements and other factors that the Board considers relevant. 35 Cash Flow Summary The Company ended the year with $510.4 million of liquidity, which included $6.9 million in cash and cash equivalents and $503.5 million available under the $650.0 million revolving credit facility.
The increase in revenue is primarily attributable to increased revenue from our Main Event stores, which were acquired on June 29, 2022, incremental revenue from new, noncomparable, Dave & Buster's stores, and incremental revenues as a result of the 53rd week in fiscal 2023, partially offset by a decrease in comparable store sales.
The decrease in revenue is primarily attributable to the 53rd week of fiscal 2023, a 7.2% decrease in comparable store sales on a like-for-like calendar basis and a decrease in other noncomparable revenues, partially offset by incremental sales from new stores, and changes in deferred entertainment revenue.
The decrease in general and administrative expenses was driven primarily by lower transaction and integration costs, lower incentive compensation in the current year, and lower stock based compensation expense, partially offset by system implementation and consulting costs.
General and administrative expenses - General and administrative expenses decreased to $99.5 million in fiscal 2024 compared to $113.8 million in fiscal 2023. The decrease in general and administrative expenses was primarily driven by lower share-based and incentive compensation and lower transaction and integration costs in the current year.
Fiscal Year Ended February 4, 2024 January 29, 2023 Entertainment revenues $ 1,434.8 65.1 % $ 1,286.1 65.5 % Food revenues 517.1 23.4 % 459.9 23.4 % Beverage revenues 253.4 11.5 % 218.4 11.1 % Total revenues $ 2,205.3 100.0 % $ 1,964.4 100.0 % Total revenues increased $240.9 million, or 12.3%, to $2,205.3 million in fiscal 2023 compared to $1,964.4 million in fiscal 2022.
The table below represents our revenue mix for the fiscal periods indicated: Fiscal Year Ended February 4, 2025 February 4, 2024 Entertainment revenues $ 1,391.0 65.2 % $ 1,434.8 65.1 % Food revenues 506.3 23.7 % 517.1 23.4 % Beverage revenues 235.4 11.1 % 253.4 11.5 % Total revenues $ 2,132.7 100.0 % $ 2,205.3 100.0 % Total revenues decreased $72.6 million, or 3.3%, to $2,132.7 million in fiscal 2024 compared to $2,205.3 million in fiscal 2023.
We define “Store Operating Income Before Depreciation and Amortization” as operating income (loss), plus depreciation and amortization expense, general and administrative expenses and pre-opening costs. “Store Operating Income Before Depreciation and Amortization Margin” is defined as Store Operating Income Before Depreciation and Amortization divided by total revenues.
We define “Store Operating Income Before Depreciation and Amortization” as operating income, plus depreciation and amortization expense, general and administrative expenses and pre-opening costs. Store Operating Income Before Depreciation and Amortization allows us to evaluate operating performance of each store across stores of varying size and volume.
The cost of entertainment, as a percentage of entertainment revenues, increased to 9.3% for fiscal 2023 from 8.9% in the fiscal 2022. The increase was primarily due to a shift in mix toward more redemption games. Cost of food and beverage products increased to $202.9 million for fiscal 2023 compared to $193.8 million for fiscal 2022.
The cost of entertainment, as a percentage of entertainment revenues, decreased to 8.5% for fiscal 2024 from 9.7% in the fiscal 2023. The decrease was primarily attributable to sales price increases. Cost of food and beverage products decreased to $195.8 million for fiscal 2024 compared to $214.5 million for fiscal 2023.
Contractual and Other Commitments The Company had the following obligations as of February 4, 2024: • Long-term debt obligations, including scheduled interest payments (Refer to Note 7 of the Notes to the Consolidated Financial Statements) • Future minimum lease obligations under non-cancelable leases (Refer to Note 9 of the Notes to the Consolidated Financial Statements) • Software as a service subscription commitments of approximately $8.0 million to be paid in annual installments of approximately $2.0 million through fiscal 2028. • Approximately $9.0 million of minimum food purchase commitments through the end of fiscal 2024. 37 Table of Contents Critical accounting policies and estimates The above discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements.
Cash used in financing activities in fiscal 2023 was $179.4 million primarily attributable to transactions under the share repurchase program and debt issuance and discount costs incurred, partially offset by net debt proceeds and proceeds from a sale-leaseback transaction. 36 Contractual and Other Commitments The Company had the following obligations as of February 4, 2025: • Long-term debt obligations, including scheduled interest payments (See Note 6 of the consolidated financial statements) • Future minimum lease obligations under non-cancelable leases (Refer to Note 8 of the Notes to the consolidated financial statements) • Software as a service subscription commitments of approximately $5.8 million to be paid in annual installments of approximately $1.9 million through fiscal 2028. • Approximately $35.4 million of minimum food purchase commitments through the end of fiscal 2025.
General and administrative expenses as a percentage of total revenues decreased to 5.6% in fiscal 2023 compared to 7.0% in fiscal 2022 due primarily to the reasons noted above.
General and administrative expenses as a percentage of total revenues decreased to 4.7% in fiscal 2024 compared to 5.2% in fiscal 2023. Depreciation and amortization expense - Depreciation and amortization expense increased to $238.2 million in fiscal 2024 compared to $208.5 million in fiscal 2023, primarily due to new store openings and store remodels.
As of February 4, 2024, we had letters of credit outstanding of $9.7 million and an unused commitment balance of $490.3 million under the revolving facility.
A portion of the Revolving Credit Facility not to exceed $35.0 million is available for the issuance of letters of credit. As of February 4, 2025, we had letters of credit outstanding of $11.5 million and an unused commitment balance of $503.4 million under the Revolving Credit Facility.
General We are a leading owner and operator of high-volume venues in North America that combine entertainment and dining for both adults and families under the “Dave & Buster’s” and “Main Event” brands. The core of our concept is to offer our customers various forms of entertainment along with quality dining all in one location.
Fiscal 2024 contained 52 weeks, while Fiscal 2023 contained 53 weeks. The 53rd week of Fiscal 2023 contributed approximately $39.5 million in revenue. General We are a leading owner and operator of high-volume venues primarily in North America that combine entertainment and dining for both adults and families under the “Dave & Buster’s” and “Main Event” brands.
The increase is primarily due to the additional store operating hours related to our Main Event stores, the impact of the 53rd week in fiscal 2023, the impact of newly opened stores, and higher occupancy and marketing costs. Other store operating expense as a percentage of total revenues increased to 31.1% in fiscal 2023 compared to 30.6% in fiscal 2022.
Other store operating expense as a percentage of total revenues increased to 32.4% in fiscal 2024 compared to 30.4% in fiscal 2023. This increase in expense as a percentage of total revenues was primarily due to higher occupancy costs for new stores and repairs & maintenance costs.
Financial Highlights • Revenue of $2,205.3 million increased 12.3% compared with $1,964.4 million in fiscal 2022. • Net income totaled $126.9 million, or $2.88 per diluted share, compared with net income of $137.1 million, or $2.79 per diluted share in fiscal 2022. • Adjusted EBITDA increased $75.2 million to $555.6 million, or 25.2% of revenues, compared with Adjusted EBITDA of $480.4, or 24.5% of revenues, in fiscal 2022.
See further discussion of comparable store sales below at Revenues. • Net income totaled $58.3 million, or $1.46 per diluted share, compared with net income of $126.9 million, or $2.88 per diluted share in fiscal 2023. • Adjusted EBITDA decreased $49.4 million to $506.2 million, or 23.7% of revenues, compared with Adjusted EBITDA of $555.6 million, or 25.2% of revenues, in fiscal 2023.
The Notes mature on November 1, 2025, unless earlier redeemed, and are subject to the terms and conditions set forth in the related indenture. The Notes were issued by D&B Inc and are unconditionally guaranteed by D&B Holdings and certain of D&B Inc’s existing and future wholly owned material domestic subsidiaries.
Interest on the Notes is payable in arrears on November 1 and May 1 of each year. The Notes mature on November 1, 2025, unless earlier redeemed, and are subject to the terms and conditions set forth in the related indenture.
On March 27, 2023, our Board approved a share repurchase program with an authorization limit of $100.0 million. On April 19, 2023, our Board approved an increase to the authorization limit of $200.0 million for a total of $300.0 million authorized under the program.
Dividends and Share Repurchases There were no dividends declared or paid in fiscal 2024 or fiscal 2023. On March 27, 2023, our Board approved a share repurchase program with an authorization limit of $100.0 million. Our Board has approved various increases to the repurchase program up to a total authorization limit of $600.0 million.
The following table sets forth a reconciliation of Net income to Credit Adjusted EBITDA for the periods shown: Trailing Four Quarters Ended February 4, 2024 Net income $ 126.9 Add back: Interest expense, net 127.4 Loss on debt refinancing 16.1 Provision for income taxes 36.2 Depreciation and amortization expense 208.5 EBITDA 515.1 Add back: Share-based compensation (1) 16.0 Transaction and integration costs (2) 11.1 System implementation costs (3) 9.4 Pre-opening costs (4) 18.4 Entertainment revenue deferrals (5) 3.1 Other items, net (6) 4.0 Credit Adjusted EBITDA, a non-GAAP measure $ 577.1 (1) Non-cash share-based compensation expense, net of forfeitures, recorded in general and administrative expenses on the consolidated comprehensive income statement.
We believe the presentation of Credit Adjusted EBITDA is appropriate as it provides additional information to investors about the calculation of, and compliance with, certain financial covenants in the Credit Facility. 34 The following table sets forth a reconciliation of Net income to Credit Adjusted EBITDA for the period shown: Fiscal Year Ended February 4, 2025 Net income $ 58.3 Add back: Interest expense, net 135.3 Loss on debt refinancing 15.2 Provision for income taxes 11.6 Depreciation and amortization expense 238.2 Share-based compensation (1) 4.6 Transaction and integration costs (2) 3.4 System implementation costs (3) 11.1 Other items, net (4) 28.5 Pre-opening costs (5) 18.7 Credit Facility specific items, net (6) 8.5 Credit Adjusted EBITDA, a non-GAAP measure $ 533.4 (1) See discussion of share-based compensation at Adjusted EBITDA above.
Cost of food and beverage products, as a percentage of food and beverage revenues, decreased to 26.3% for fiscal 2023 from 28.6% for fiscal 2022. The decrease was primarily attributable to food and beverage menu price increases, continued supply chain and ingredient optimization, and the mix of products sold with our new menu.
The slight decrease was due to food and beverage menu price increases, and the mix of products sold with our new menu, offset by continued supply chain and ingredient optimization. 31 Operating payroll and benefits - Total operating payroll and benefits decreased to $523.5 million in fiscal 2024 compared to $525.9 million in fiscal 2023.
Cash flow from financing activities in fiscal 2022 was $762.9 million primarily attributable to proceeds from debt refinancing and borrowings, net of debt repayments, partially offset by share repurchases, and debt issuance costs incurred.
Financing Activities — Cash flow provided by financing activities in fiscal 2024 was $187.1 million primarily consisting of net debt proceeds and proceeds from sale-leaseback transactions, partially offset by transactions under the share repurchase program.
Each quarterly period has 13 weeks, except in a 53-week year when the fourth quarter has 14 weeks. All dollar amounts are presented in millions, unless otherwise noted, except share and per share amounts.
Fiscal year 2022, which ended on January 29, 2023, contained 52 weeks. Each quarterly period has 13 weeks, except in a 53-week year, when the fourth quarter has 14 weeks.
Our entertainment offerings provide an extensive assortment of attractions centered around playing games, bowling, and watching live sports and other televised events. Our brands appeal to a relatively balanced mix of male and female adults, as well as families and teenagers.
The core of our concept is to offer our customers various forms of entertainment along with quality dining all in one location. Our entertainment offerings provide an extensive assortment of attractions centered around playing games, bowling, and watching live sports and other televised events.
See further discussion of Adjusted EBITDA, a non-GAAP measure, at Non-GAAP Financial Measures below as well as a reconciliation to net income at Reconciliations of Non-GAAP Financial Measures below. • The 53rd week of fiscal 2023 contributed $39.5 million in revenue.
See further discussion of Adjusted EBITDA, a non-GAAP measure, at Non-GAAP Financial Measures below along with a reconciliation to net income, the most comparable GAAP measure, at Reconciliations of Non-GAAP Financial Measures below. • The Company’s fiscal year consists of 52 or 53 weeks ending on the Tuesday after the Monday closest to January 31.
Pre-opening costs - Pre-opening costs increased to $18.4 million in fiscal 2023 compared to $14.6 million in fiscal 2022 primarily related to sixteen new store openings in fiscal 2023 compared to eight new store openings in fiscal 2022.
Pre-opening costs - Pre-opening costs increased to $18.7 million in fiscal 2024 compared to $18.4 million in fiscal 2023 primarily due to the timing of costs in our pipeline of new stores for each period.
All dollar amounts are presented in millions, unless otherwise noted, except per share amounts. Discussion regarding our financial condition and results of operations for fiscal 2022 compared with fiscal 2021 is included in Item 7 of our fiscal 2022 Annual Report on Form 10-K filed March 28, 2023.
All dollar amounts are presented in millions, unless otherwise noted, except per share amounts. Financial Highlights • Revenue of $2,132.7 million decreased 3.3% compared with $2,205.3 million in fiscal 2023. • Comparable store sales decreased 7.2% on a like-for-like calendar basis compared to fiscal 2023.
The decrease in comparable store revenue is due primarily to a reduction in walk-in transaction counts relative to the robust consumer environment of the prior year period, partially offset by increases in food and beverage prices and increases in special event bookings.
The decrease in comparable store revenues is due primarily to a reduction in demand relative to a more robust consumer environment in the prior year period. The changes in entertainment revenue deferrals reflect breakage on unredeemed game play credits and tickets corresponding to guest redemption patterns over time.
Fiscal Year Ended February 4, 2024 January 29, 2023 New store and operating initiatives $ 271.5 $ 165.5 Games 20.8 28.7 Maintenance capital 73.1 40.9 Total capital additions $ 365.4 $ 235.1 Payments from landlords $ 20.2 $ 11.6 Results of Operations Revenues - Selected revenue data (in millions except for store operating weeks) and store data for the periods indicated are as follows: Fiscal Year Ended February 4, 2024 January 29, 2023 Change Total revenues $ 2,205.3 $ 1,964.4 $ 240.9 Total store operating weeks (1) 11,241 9,304 1,937 Comparable store revenues $ 1,524.8 $ 1,599.5 $ (74.7) Comparable store operating weeks (1) 7,473 7,332 141 Noncomparable store revenues (2) $ 683.7 $ 376.2 $ 307.5 Noncomparable store operating weeks (1)(2) 3,768 1,972 1,796 Other revenues and deferrals $ (3.2) $ (11.3) $ 8.1 (1) Total store operating weeks, comparable store operating weeks and noncomparable store operating weeks included an additional 220, 141 and 79 operating weeks, respectively, due to the 53rd week included in fiscal 2023.
See Note 1 to the consolidated financial statements for further discussion. 30 Results of Operations Revenues - Selected revenue data (in millions except for store operating weeks) and store data for the periods indicated are as follows: Fiscal Year Ended February 4, 2025 February 4, 2024 Change Comparable store revenues (1)(2) $ 1,845.1 $ 2,025.1 $ (180.0) Noncomparable store revenues (1)(2) 261.3 181.8 79.5 Other noncomparable revenues (3) 26.3 (1.6) 27.9 Total revenues $ 2,132.7 $ 2,205.3 $ (72.6) Comparable store operating weeks (1)(2) 10,196 10,335 (139) Noncomparable store operating weeks (1)(2) 1,574 906 668 Total store operating weeks (1)(2) 11,770 11,241 529 (1) During fiscal 2024 we adjusted our period close from Sunday to Tuesday of each week (see further discussion at Note 1 of the consolidated financial statements).
A portion of the revolving facility not to exceed $35.0 million is available for the issuance of letters of credit. The Credit Facility is unconditionally guaranteed by Dave & Buster’s Holdings, Inc. (“D&B Holdings”), and certain of Dave & Buster’s, Inc.’s (“D&B Inc.”) existing and future wholly owned material domestic subsidiaries serve as guarantors and/or co-borrowers.
The Notes were issued by D&B Inc. and are unconditionally guaranteed by D&B Holdings and certain of D&B Inc.’s existing and future wholly owned material domestic subsidiaries. During fiscal 2021, the Company redeemed a total of $110.0 million outstanding principal amount of the Notes.
Removed
During fiscal 2023, we opened eleven new Dave & Buster's stores and five Main Event stores. We currently plan to open 15 stores in fiscal 2024. Non-GAAP Financial Measures In addition to the results provided in accordance with generally accepted accounting principles (“GAAP”), we provide non-GAAP measures which present operating results on an adjusted basis.
Added
Credit Adjusted EBITDA We define “Credit Adjusted EBITDA” as net income plus certain items as defined at Adjusted EBITDA above, as well as certain other adjustments as defined in our Credit Facility (see Liquidity and Capital Resources below for additional discussion and reconciliation).
Removed
“Adjusted EBITDA Margin” is defined as Adjusted EBITDA divided by total revenues. Adjusted EBITDA and Adjusted EBITDA Margin are presented because we believe they provide useful information to investors and analysts regarding our operating performance.
Added
On May 6, 2024, the first day of the 2nd quarter of fiscal 2024, the Company changed its fiscal year to end on the Tuesday after the Monday closest to January 31st. The change was made to improve labor and operational efficiencies by ending the Company's periods outside of the busier weekend timeframe.
Removed
(4) Includes one-time, third-party consulting fees that are not part of our ongoing operations, impairment expenses and (gain) loss on property and equipment transactions.
Added
As a result of this change, the second quarter and fiscal 2024 have two additional days added to its normal 13-week quarter and 52-week year. All dollar amounts are presented in millions, unless otherwise noted, except share and per share amounts.
Removed
Capital additions do not include any reductions for accrual-based leasehold improvement incentives (“Payments from landlords”).
Added
Fiscal year 2024 contained 52 weeks while Fiscal year 2023 contained 53 weeks.
Removed
(2) Noncomparable store revenues and operating weeks includes all of the acquired Main Event stores as they were owned less than 18 months at the beginning of fiscal 2023. See further discussion of the definition of comparable and noncomparable stores at Key Measures of Our Performance above. The table below represents our revenue mix for the fiscal periods indicated.
Added
(5) The amount related to fiscal 2024 primarily consisted of $10.6 million of one-time, third-party consulting fees, $3.9 million of impairment of long-lived assets, and a $12.8 million loss on property and equipment transactions. The amount for the 2023 primarily consisted of one-time, third-party consulting fees.
Removed
Comparable entertainment revenues in fiscal 2023 decreased by $67.8 million, or 6.5%, to $973.8 million from $1,041.6 million in fiscal 2022. Food sales at comparable stores decreased by $11.9 million, or 3.1%, to $366.8 million in fiscal 2023 from $378.7 million in fiscal 2022.
Added
The third-party consulting fees for each period, which are recorded in “Other charges and gains” on the Consolidated Statements of Comprehensive Income, are not part of our ongoing operations and were incurred to execute, discrete, and project-based strategic initiatives aimed at transforming our marketing strategy and transform our supply chain operational efficiency.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe impact on our annual results of operations of a hypothetical one-point interest rate change on the outstanding balance of credit facility as of February 4, 2024 would be approximately $9.0 million. Inflation Severe increases in inflation could affect the United States or global economies and have an adverse impact on our business, financial condition and results of operation.
Biggest changeThe impact on our annual results of operations of a hypothetical one percentage point interest rate change on the outstanding balance of the credit facility as of February 4, 2025 would be approximately $13.9 million.
Interest Rate Risk The Company has elected SOFR as the alternative base rate for outstanding borrowings on the Credit Facility, which is based on variable rates. As of February 4, 2024, there was no balance outstanding on our revolving credit facility and $897.8 million was outstanding under the term loan facility.
Interest Rate Risk The Credit Facility, discussed further in Item 7 at Liquidity and Capital Recourses - Debt is based on variable interest rates. As of February 4, 2025, the Company had $135.0 million outstanding on its revolving facility and $1,389.3 million outstanding under the term loan facility.
Added
Inflation Increases in inflation could affect the United States or global economies and have an adverse impact on our business, financial condition and results of operation.

Other PLAY 10-K year-over-year comparisons