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Factors Likely to Shape Dave & Buster's (PLAY) Q2 Earnings
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Dave & Buster’s Entertainment, Inc. (PLAY - Free Report) is scheduled to report second-quarter fiscal 2023 results on Sep 6, 2023, after market close. In the last reported quarter, the company delivered an earnings surprise of 23.9%.
Q2 Expectations
The Zacks Consensus Estimate for fiscal second-quarter earnings per share (EPS) is pegged at 94 cents, indicating an improvement of 54.1% from 61 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $558.4 million. The metric suggests an increase of 19.2% from the year-ago quarter’s figure.
Dave & Buster's Entertainment, Inc. Price and EPS Surprise
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors at Play
Dave & Buster's fiscal second-quarter top line is likely to have benefited from strong Special Events business, enhancements in culinary offerings and unit-expansion efforts. This and improved labor optimization and sharpened cost controls are likely to have paved a path for margin improvements in the to-be-reported quarter.
Solid performance of food and beverage and amusement and other is likely to be reflected in the company’s quarterly numbers. Our model predicts fiscal second-quarter food and beverage revenues to rise 14.3% year over year to $179.4 million. We expect Entertainment revenues to rise 19.9% year over year to $373.3 million.
Emphasis on guest-facing technology upgradation (to simplify the ordering process) and summer campaign promotions (to drive traffic) are likely to have aided the company’s performance in the fiscal second quarter.
A challenging macro environment, including inflationary pressures on labor and commodities, is likely to have impacted the company’s bottom line in the to-be-reported quarter. Our model predicts total operating expenses to rise 11.8% year over year to $460.7 million in the fiscal second quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Dave & Buster’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Dave & Buster’s has an Earnings ESP of +0.99%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Restaurant Brands International, Inc. (QSR - Free Report) reported impressive second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily driven by strong global comparable sales, unit growth and a healthy balance of traffic and check.
During the quarter, QSR reported adjusted EPS of 85 cents, surpassing the Zacks Consensus Estimate of 76 cents. The bottom line increased 3.7% from an adjusted EPS of 82 cents reported in the prior-year quarter. Quarterly net revenues of $1,775 million surpassed the consensus mark of $1,746 million. The top line increased 8.3% on a year-over-year basis. The upside was driven by a rise in system-wide sales at Tim Hortons, Burger King, Popeyes and Firehouse Subs. However, this was partially offset by unfavorable FX movements.
The Cheesecake Factory Incorporated (CAKE - Free Report) reported second-quarter fiscal 2023 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same. The bottom and the top lines increased year over year. An increase in comparable restaurant sales backed by improving consumer demand and new restaurant openings drove the company’s performance.
During the quarter, CAKE reported adjusted EPS of 88 cents, beating the Zacks Consensus Estimate of 81 cents by 8.6%. The reported figure suggested a 69.2% year-over-year increase. Total revenues of $866.2 million missed the consensus estimate of $881 million by 1.7%. However, the top line increased by 4% on a year-over-year basis.
Chipotle Mexican Grill, Inc. (CMG - Free Report) released mixed second-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, Chipotle reported adjusted EPS of $12.65, beating the Zacks Consensus Estimate of $12.25. The bottom line increased 36% from the $9.30 reported in the year-ago quarter. Quarterly revenues of $2,514.8 million missed the consensus mark of $2,524 million. The top line increased 13.6% on a year-over-year basis. The upside can primarily be attributed to strong comparable restaurant sales growth and new restaurant openings.
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Factors Likely to Shape Dave & Buster's (PLAY) Q2 Earnings
Dave & Buster’s Entertainment, Inc. (PLAY - Free Report) is scheduled to report second-quarter fiscal 2023 results on Sep 6, 2023, after market close. In the last reported quarter, the company delivered an earnings surprise of 23.9%.
Q2 Expectations
The Zacks Consensus Estimate for fiscal second-quarter earnings per share (EPS) is pegged at 94 cents, indicating an improvement of 54.1% from 61 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $558.4 million. The metric suggests an increase of 19.2% from the year-ago quarter’s figure.
Dave & Buster's Entertainment, Inc. Price and EPS Surprise
Dave & Buster's Entertainment, Inc. price-eps-surprise | Dave & Buster's Entertainment, Inc. Quote
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors at Play
Dave & Buster's fiscal second-quarter top line is likely to have benefited from strong Special Events business, enhancements in culinary offerings and unit-expansion efforts. This and improved labor optimization and sharpened cost controls are likely to have paved a path for margin improvements in the to-be-reported quarter.
Solid performance of food and beverage and amusement and other is likely to be reflected in the company’s quarterly numbers. Our model predicts fiscal second-quarter food and beverage revenues to rise 14.3% year over year to $179.4 million. We expect Entertainment revenues to rise 19.9% year over year to $373.3 million.
Emphasis on guest-facing technology upgradation (to simplify the ordering process) and summer campaign promotions (to drive traffic) are likely to have aided the company’s performance in the fiscal second quarter.
A challenging macro environment, including inflationary pressures on labor and commodities, is likely to have impacted the company’s bottom line in the to-be-reported quarter. Our model predicts total operating expenses to rise 11.8% year over year to $460.7 million in the fiscal second quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Dave & Buster’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Dave & Buster’s has an Earnings ESP of +0.99%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Restaurant Brands International, Inc. (QSR - Free Report) reported impressive second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily driven by strong global comparable sales, unit growth and a healthy balance of traffic and check.
During the quarter, QSR reported adjusted EPS of 85 cents, surpassing the Zacks Consensus Estimate of 76 cents. The bottom line increased 3.7% from an adjusted EPS of 82 cents reported in the prior-year quarter. Quarterly net revenues of $1,775 million surpassed the consensus mark of $1,746 million. The top line increased 8.3% on a year-over-year basis. The upside was driven by a rise in system-wide sales at Tim Hortons, Burger King, Popeyes and Firehouse Subs. However, this was partially offset by unfavorable FX movements.
The Cheesecake Factory Incorporated (CAKE - Free Report) reported second-quarter fiscal 2023 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same. The bottom and the top lines increased year over year. An increase in comparable restaurant sales backed by improving consumer demand and new restaurant openings drove the company’s performance.
During the quarter, CAKE reported adjusted EPS of 88 cents, beating the Zacks Consensus Estimate of 81 cents by 8.6%. The reported figure suggested a 69.2% year-over-year increase. Total revenues of $866.2 million missed the consensus estimate of $881 million by 1.7%. However, the top line increased by 4% on a year-over-year basis.
Chipotle Mexican Grill, Inc. (CMG - Free Report) released mixed second-quarter fiscal 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, Chipotle reported adjusted EPS of $12.65, beating the Zacks Consensus Estimate of $12.25. The bottom line increased 36% from the $9.30 reported in the year-ago quarter. Quarterly revenues of $2,514.8 million missed the consensus mark of $2,524 million. The top line increased 13.6% on a year-over-year basis. The upside can primarily be attributed to strong comparable restaurant sales growth and new restaurant openings.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.