It's Game Over For Dave & Buster's As Company Plunges Deeper Into Irrelevance (CEO Cuts and Runs)

Ever heard the phrase “taking your ball and going home”? Well, Chris Morris just took his Skee-Ball and peace’d out after two years as CEO of Dave & Buster’s (aka every 45 year old divorced male’s version of a good time). And honestly who could blame him? The company’s Q3 numbers were about as ugly as a crack head's last tooth. 

(Source: Giphy) 

In short, Morris is out, interim CEO Kevin Sheehan is in, and PLAY (yes, their legendary ticker symbol) is down 45% year-to-date. The company is bleeding cash at a rate that could give Intel a run for their money, posting a $32.7 million net loss for the quarter. That’s up from just $5.2 million in losses this time last year. Revenue dropped by 3%, and comparable store sales fell 7.7%. Not exactly the kind of numbers that make you want to buy a $20 Dave & Buster’s Power Card.

(Source: Yahoo Finance) 

So, what went wrong? Well, CFO Darin Harper blamed everything. No, really—bad weather, the fiscal calendar, ongoing renovations… I half-expected him to toss in “Mercury in retrograde” for good measure. The company even pointed to a 53-week fiscal 2023 (a technicality most of us couldn’t care less about) as a reason for the revenue miss. TL;DR: excuses, excuses.

To their credit though, D&B isn’t just sitting around playing Fruit Ninja. They’ve been busy opening new locations like it's 2004 Starbucks expansion mode. Three new stores opened during the quarter, and they threw in 11 remodels for good measure. Oh, and they even managed to pay down some debt and refinance a $700 million term loan. But let’s be honest, all that corporate maneuvering doesn’t mean much when your core product—“eat, drink, play”—isn’t resonating as it used to.

(Source: Giphy) 

Which is why now, the chair of the board, Kevin Sheehan, is stepping into the hot seat as interim CEO. Sheehan’s job? To play cleanup while the company searches for its next boss with executive headhunter Heidrick & Struggles. (Side note: if your company’s name includes “Struggles,” maybe rethink that branding LOL) 

But alas! Sheehan’s got a tough gig ahead of him. The market isn’t exactly bullish on the “arcade-restaurant hybrid” business model right now, and the company’s stock tanked another 20% after Morris’ resignation. Investors are clearly skeptical, and honestly, I’d be the exact same way if I were a loser a shareholder. 

(Source: Investopedia) 

The moral of the story here? Dave & Buster’s is at a crossroads. Will they find a leader who can turn things around, or will they keep sliding deeper into irrelevance like a neglected Dance Dance Revolution machine? Only time will tell, but one thing is for sure: the next CEO better be ready to play hardball—because, if not, they may just be the first victim of 2025’s CEO Swap epidemic. 

In the meantime, filter this through a brain-cell and place your bets accordingly, friends—and as always, stay safe and stay frosty! Until next time…

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Stocks.News does not hold positions in companies mentioned in the article.