Dave & Buster's reported a loss of $12.5 million in its most recent quarter, as the entertainment chain continues to struggle with declining sales.

The company has been working to regain relevancy with customers, but its efforts have yet to reverse the downward trend in entertainment sales.

The loss underscores the challenges facing the casual dining and entertainment sector as consumers tighten discretionary spending.

Dave & Buster's has not yet announced a clear turnaround strategy, and analysts remain cautious about its near-term prospects.