Dave & Buster's Entertainment (NASDAQ: PLAY) stock soared 14.45% in Tuesday's pre-market trading session following the company's Q4 2024 earnings call, where management outlined a comprehensive turnaround strategy and reported improving business trends. The entertainment and dining chain's shares rallied as investors responded positively to the company's plans to address recent missteps and return to growth.

During the earnings call, Interim CEO Kevin Sheehan emphasized a "back to basics" approach, which includes reintroducing TV advertising, bringing back popular promotions like the "Eat & Play Combo," and rolling out new games to drive traffic. The company reported "markedly better" results in March and April 2025, with improvements in both traffic and food and beverage sales. While Q4 comparable store sales declined 9.4% year-over-year, the company's adjusted earnings per share of $0.69 met analyst expectations.

Management's focus on unwinding past mistakes and implementing high-confidence, low-risk improvements appears to have resonated with investors. The company also announced a more disciplined capital expenditure plan for fiscal 2025, limiting spending to $220 million and focusing on high-return investments in new stores, game refreshes, and targeted remodels. This renewed emphasis on generating free cash flow while maintaining growth initiatives has contributed to the stock's pre-market rally.