Dave & Buster's Entertainment (PLAY) risk factors, FY2025 10-K

Risks Related to our Growth and Operating Strategy

1. 01If we are unable to successfully design and execute our business strategy plan, including growing comparable store sales, our revenues and profitability may be adversely affected
2. 02We may fail to effectively integrate or operate our past or future acquisitions
3. 03New or improved technologies or changes in consumer behavior facilitated by these technologies could negatively affect our business
4. 04Changes in consumer preferences and buying patterns and changes in economic conditions could negatively affect our results of operations
5. 05We may not be able to compete favorably in the entertainment and restaurant markets, which could have a material adverse effect on our business, results of operations or financial condition
6. 06Unfavorable publicity or a failure to respond effectively to adverse publicity, could harm our business
7. 07We are subject to risks associated with leasing space subject to long-term, non-cancelable leases, and risks related to renewal
8. 08Our financial performance and the ability to successfully implement our strategic direction could be adversely affected if we fail to retain, or effectively respond to a loss of, key management
9. 09We face risks related to our substantial indebtedness and limitations on future sources of liquidity
10. 10Covenants in our debt agreements restrict our business and could limit our ability to implement our business plan
11. 11The success of our longer-term growth strategy depends in part on our ability to open and operate new stores profitably, and on our ability to optimize our existing stores
12. 12Our results can be adversely affected by events, such as adverse weather conditions, natural disasters, climate change, pandemics or other catastrophic events
13. 13We may be subject to impairment losses due to potential declines in the fair value of our assets

Risks Related to Information Technology and Cybersecurity

1. 14Information technology system failures or interruptions may impact our ability to effectively operate our business
2. 15Cybersecurity breaches or other privacy or data security incidents that expose confidential customer, personal employee or other material, confidential information that is stored in our information systems or by third parties may adversely impact our business
3. 16Compliance with cybersecurity, privacy and similar laws may involve significant cost and any failure to comply could adversely affect our business, reputation, and results of operations

Risks Related to the Entertainment and Restaurant Industries

1. 17Our success depends upon our ability to recruit and retain qualified store management and operating personnel while also controlling our labor costs
2. 18Our revenues and operating results may fluctuate significantly due to various risks and unforeseen circumstances, including increases in costs, seasonality, weather, acts of violence or terrorism and other factors outside our control
3. 19Our operations are susceptible to the changes in cost and availability of commodities and other products, which could negatively affect our operating results
4. 20Our procurement of new games and entertainment offerings is contingent upon availability, and in some instances, our ability to obtain licensing rights
5. 21availability of new entertainment offerings that appeal to customers could lead to decreases in revenues as customers negatively react to a lack of new game options
6. 22We may not be able to operate our stores or obtain/maintain licenses and permits necessary for such operation, in compliance with laws, regulations and other requirements, which could adversely affect our business, results of operations or financial condition
7. 23We are subject to extensive laws and regulations and failure to comply with existing or new laws and regulations could adversely affect our operational efficiencies, cost structure and talent availability
8. 24We face potential liability with our gift cards and game play cards under the property laws of some states
9. 25Litigation, including allegations of illegal, unfair, or inconsistent employment practices, may adversely affect our business, results of operations or financial condition
10. 26Failure to adequately protect our intellectual property could harm our business

Risks Related to Our Corporate Structure, Our Stock Ownership and Our Common Stock

1. 27The market price of our common stock is subject to volatility
2. 28Provisions in our certificate of incorporation and bylaws may discourage, delay or prevent a change of control of our company or changes in our management and, therefore, may depress the trading price of our stock
3. 29Our fourth amended and restated certificate of incorporation designates specific courts as the exclusive forum for certain litigation that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a judicial forum of their choice for disputes with us
4. 30Changes in tax laws and resulting regulations could result in changes to our tax provisions and subject us to additional tax liabilities that could materially adversely affect our financial performance
5. 31Failure of our internal control over financial reporting could harm our business, financial results and stock price