Shares of Dave & Buster’s Entertainment (PLAY -16.12%) were taking a dive today after the “eatertainment” chain missed estimates on the top and bottom lines.

As of 10:08 a.m. ET, the stock was down 16.2% on the news.

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Dave & Buster’s falls behind

The arcade operator reported flat revenue in the quarter at $557.4 million, which missed estimates at $562.7 million. Comparable sales fell 3% in the period, showing that D&B appears to be losing customers.

On the bottom line, the results also disappointed as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell from $151.6 million to $129.8 million. Adjusted earnings per share, meanwhile, fell from $1.12 to $0.40, which was well below the consensus at $0.92.

Dave & Buster’s brought on a new CEO toward the end of the quarter. Tarun Lai comes to the company after serving as an executive at Yum! Brands for 25 years, most recently as president of KFC.

Lai said, “My immediate focus is clear: reinforce our guest-first culture, deliver memorable experiences, and drive meaningful growth in sales, cash flow, and shareholder value.”

What’s next for Dave & Buster’s

Looking ahead, Dave & Buster’s didn’t offer guidance in the earnings release, but the appointment of a new CEO should offer some hope for a turnaround.

Restaurant chains have been broadly struggling this year due in part to weak consumer sentiment, concerns about tariffs, and a softening labor market, so that may partly explain Dave & Buster’s challenges. However, the stock has struggled for years despite being the leader in its category.

If the new CEO can return the company to growth, the stock has significant upside potential, but that’s likely to take time, if it happens.