Dave & Buster’s tanks as same-store sales keep falling and profit plunges

Dave & Buster’s fell more than 18% in premarket trading on Tuesday, following the arcade and restaurant chain’s second-quarter earnings report after the bell on Monday.

The chain, which has struggled through a discretionary spending cutback by consumers and an industry-wide tariff hit on prizes, posted a 3% drop in same-store sales on the quarter. That’s D&B’s 10th straight quarter of declining same-store sales.

Dave & Buster’s posted adjusted earnings of $0.40 per share, well below analyst estimates of $0.92 per share. The company’s adjusted profit, $14.1 million, was down 69% from last year.

CEO Tarun Lal blamed too many promotions, a decline in TV ad spend, and an almost 80% pullback in new games for the poor performance. In the food division, Lal said the company “leaned too heavily on appetizers and shareables.”