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