Dave & Buster’s Plans More Sale-Leaseback Deals This Year
Sale-Leaseback Strategy Fuels Growth and Returns
Dave & Buster’s is doubling down on sale-leaseback deals in 2024 after monetizing over $100 million in real estate through such transactions in 2023. These efforts are part of a broader strategy to generate capital for new store development, remodeling efforts, system upgrades, and potential acquisitions.
CEO Chris Morris confirmed that the company remains committed to evaluating further real estate monetization opportunities this year. With more than 220 locations, Dave & Buster’s is expanding its footprint while maintaining flexibility in an environment of elevated interest rates and limited access to traditional financing.
Industry Trend Amid High Interest Rates
This approach reflects a wider trend across the restaurant and retail sectors, where operators are capitalizing on real estate holdings to raise cash without incurring new debt or diluting equity. With credit markets tightening, sale-leasebacks offer a compelling alternative, converting owned assets into working capital while allowing continued operational control.
Investor Confidence and Market Reception
Analysts and investors generally support the strategy, noting that it enhances return on invested capital and improves liquidity. For companies like Dave & Buster’s, sale-leasebacks provide a nimble way to fund growth while maintaining operational momentum.
