Back to top

Image: Shutterstock

Dave & Buster's (PLAY) Q2 Earnings in Line, Revenues Miss

Read MoreHide Full Article

Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported second-quarter fiscal 2023 results, with earnings came in line with the Zacks Consensus Estimate but revenues missed the same. However, both metrics increased on a year-over-year basis.

Earnings & Revenues in Detail

During the fiscal second quarter, the company reported adjusted earnings per share (EPS) of 94 cents, which came in line with the Zacks Consensus Estimate. In the year-ago quarter, it reported adjusted EPS of 85 cents.

Quarterly revenues of $542.1 million lagged the consensus mark of $558 million. Yet, the metric rose 15.7% year over year.

Food and Beverage revenues (33.4% of total revenues in the reported quarter) soared 15.5% year over year to $181.3 million. Entertainment revenues (66.6%) climbed 15.9% year over year to $360.8 million.

 

Comps Details

During the quarter under discussion, pro-forma comparable store sales (including Main Event branded stores) declined 6.3% year over year, but grew 5.8% from 2019 levels.

Operating Highlights

During the quarter under discussion, operating income amounted to $77.1 million compared with $56.5 million reported in the prior-year quarter. The operating margin was 14.3% compared with 12.2% reported in the year-ago quarter.

Adjusted EBITDA was $140.3 million compared with $115.7 million reported in the year-earlier quarter.

Balance Sheet

As of Jul 30, 2023, cash and cash equivalents were $82.6 million compared with $181.6 million as of Jan 29, 2023.

During the fiscal second quarter, the company repurchased nearly 2.1 million shares for an aggregate cost of $74.5 million.

At fiscal second-quarter end, net long-term debt totaled $1,278.7 million compared with $1,222.7 million at the end of fourth-quarter fiscal 2022.

Zacks Rank & Key Picks

Dave & Buster’s currently carries a Zacks Rank #3 (Hold).

Below we present some better-ranked stocks in the Zacks Retail-Wholesale sector.

BJ's Restaurants, Inc. (BJRI - Free Report) sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 121.2%, on average. Shares of BJRI have increased 5.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BJRI’s 2023 sales and EPS indicates 5.6% and 423.5% growth, respectively, from the year-ago period’s levels.

Arcos Dorados Holdings Inc. (ARCO - Free Report) currently carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth rate of 9.5%. The stock has gained 29.3% in the past year.

The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests rises of 19% and 11.6%, respectively, from the year-ago period’s levels.

Chuy's Holdings, Inc. holds a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 26.6%, on average. Shares of CHUY have surged 61% in the past year.

The Zacks Consensus Estimate for CHUY’s 2023 sales and EPS implies increases of 9.5% and 32.9%, respectively, from the year-ago period’s levels.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BJ's Restaurants, Inc. (BJRI) - free report >>

Arcos Dorados Holdings Inc. (ARCO) - free report >>

Dave & Buster's Entertainment, Inc. (PLAY) - free report >>

Published in