Dave & Buster’s Stock Slides on Larger Loss Than Expected, CEO Departure | Global News Avenue

Dave and Buster’s (Play) shares opened lower Wednesday morning after the company reported a larger-than-expected third-quarter loss. CEO Announced resignation.

After the close on Tuesday, the restaurant and arcade brand reported revenue of $453 million incomeand $32.7 million net loss third quarter. Analysts had expected revenue of $462.9 million and a net loss of $16.3 million, according to estimates compiled by Visible Alpha.

After adjusting for one-time charges such as $15 million in debt refinancing charges, Dave and Buster’s adjusted net loss of $17.5 million was also higher than analysts’ forecasts of an adjusted loss of $14.6 million.

Announcement of CEO transition

Chief Financial Officer (CFO) Darin Harper said the chain’s third quarter, typically the weakest part of the calendar, was “negatively impacted” by: adverse weather effects Sales and remodeling projects in some parts of the U.S. are causing sales to slow in other areas.

Along with the earnings report, Dave & Buster’s also announced Tuesday that CEO Chris Morris has resigned to “pursue other interests.” The company said it has been working with an executive search firm “for the past several months” to find a successor and said Chairman Kevin Sheehan will serve as interim CEO until a succession decision is made.

Shares of Dave & Buster’s fell 14.7% to $31.39 on Wednesday morning, down a little more than 40% from where they started the year.