Shares of Dave & Buster's Entertainment (NASDAQ: PLAY) fell 5.70% in pre-market trading following disappointing quarterly results and leadership changes.

Shares of Dave & Buster's Entertainment (NASDAQ: PLAY) fell 5.7025% in pre-market trading on Dec. 23, 2025, as the "eatertainment" chain reported disappointing quarterly results and leadership changes.

The decline followed a revenue miss of $557.4 million against an estimated $562.7 million, with comparable sales dropping 3% year-over-year. Adjusted EBITDA also slid to $129.8 million from $151.6 million, while adjusted earnings per share plummeted to $0.40, far below the $0.92 consensus. The results highlight weakening discretionary spending and competitive pressures in the leisure sector.

Leadership transition added uncertainty, with Tarun Lai, the former KFC executive, assuming the CEO role in July. Lai emphasized cultural revitalization and operational improvements in his early remarks, but the stock has historically lagged despite the company's market leadership. Broader challenges for restaurant chains—including consumer sentiment shifts and labor market softness—further cloud near-term prospects.

While the new CEO’s strategy could drive long-term growth, investors appear skeptical about immediate turnaround potential. The absence of forward guidance in the earnings release underscored lingering risks, particularly as the sector navigates macroeconomic headwinds.