COPPELL, Texas — Read this story and more North Texas business news from our partners at the Dallas Business Journal
Dave & Buster's Entertainment Inc. is emphasizing a new avenue for growth, and it's one that has resonated on Wall Street.
The Coppell-based company said April 1 it has struck a franchise partnership to develop two new locations of the food and arcade chain in the Dominican Republic. The agreement is with Grupo Pais, which is based in Santo Domingo, the capital of the Caribbean country.
That boosts the pipeline of international Dave & Buster’s locations planned through franchise agreements to 33 across six countries. They are expected to open in the next 12 to 18 months.
Antonio Bautista, chief international development officer for Dave & Buster’s, called the deal "a noteworthy milestone in our global growth strategy" and said the Dominican Republic's "vibrant market ... presents a fantastic opportunity for us to bring the unique Dave & Buster's experience to new guests."
Almost all of the company's current 160-plus locations are in the United States, according to Restaurant Business Online. It's been working to change that and has struck additional deals to expand to the Middle East, India and Australia. The company could open 200 locations in about 25 international markets, Restaurant Business Online reported.
Dave & Buster's noted in the announcement that its taking steps to cater to International audiences, including with customizable store footprints and localized menus "with high regional resonance to cater to local preferences and tastes."
Also this week, Dave & Buster's (Nasdaq: PLAY) reported April 2 that it brought in revenue of $599.1 million in the fourth quarter, a 6.3% increase from the same period a year prior. Overall, the company had revenue of $2.2 billion in 2023, a 12.3% increase from 2022.
The market has responded favorably to the company's plans: shares closed April 3 at $68.29, up about 9% this week. In the past year, its share price has roughly doubled.
Meanwhile, comparable-store sales fell 6.2% year-over-year in 2023, including Main Event locations, but were 8% higher than 2019, Dave & Buster's said.
Dave & Buster’s net income in 2023 totaled $126.9 million, a drop from the $137.1 million in 2022.
The company has also grown closer to home. It opened a location in South Austin in November, one of 16 new stores Dave & Buster's debuted in the fourth quarter of 2023.
