This is a print-friendly version of www.whitehutchinson.com/news/lenews/2022/october/article105.shtml

White Hutchinson Leisure & Learning Group, Kansas City, MO, USA

Are Dave & Buster's comparable store sales really booming?

The Dave & Buster's chain, with 142 stores (they also own 52 Main Event stores), reported that their Dave & Buster's comparable store sales increased 9.6% in the second quarter ending July 31, 2022, compared to the same 2^nd quarter in pre-pandemic 2019. Comparable store walk-in sales were up 13% and special event sales were down 23.1% compared to the same period in 2019. This sounds very impressive. But is it that great of an improvement, and does it indicate a long-term trend?

Part of the increase is due to an effective 11% increase in the Power Card purchases on a per-transaction basis that they achieved last October by raising the minimum Power Card purchase. They also increased some of the game prices. Gaming is the majority of Dave & Buster's revenues. From an inflation perspective, sales need to grow at least as fast as inflation to stay even. A 9.6% increase in comparable store sales is barely greater than the current inflation rate. So, a large part of any increase in sales is not necessarily due to better performance but instead just keeping pace with inflation. This also suggests that walk-in attendance did not increase for comparable stores versus the same period in 2019.

Regardless, can D&B's stores be expected at least to maintain this level of sales into the future? Probably not. First, a lot of the increase is being driven by pent-up demand that is only temporary. Second, in a sense, reopening their is somewhat analogous to opening a new D&B store. D&B has found that new store sales volumes in year two after opening are approximately 10% to 20% lower than in year one.

© 1999 - 2026, White Hutchinson Leisure & Learning Group, Inc.
The contents of this website and eNewsletters are protected by USA and international copyright law. Permission is granted to download and print single copites of any of the contents or articles for personal use. No other copies may be made. Educational institutions may obtain permission to make multiple copies for classroom use by e-mailing us with details. The contents of articles may be quoted provided credit is given to the "(author's name), White Hutchinson Leisure & Learning Group, Kansas City, MO, USA". All other rights for use or reproduction of the contents and articles are reserved.