We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dave & Buster's (PLAY) Q4 Earnings Miss Estimates, Stock Up
Read MoreHide Full Article
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported tepid fourth-quarter fiscal 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
Following the results, the company’s shares moved up 7.2% during the after-hours trading session on Apr 2. Positive investor investments were witnessed as the company reported significant progress in organic growth initiatives, including the remodel program, ongoing store expansion, and a continued focus on cost efficiency. Despite uncertainties in the macroeconomic landscape, recent observations have strengthened the company's confidence in achieving the $1-billion adjusted EBITDA target in the near future.
Earnings & Revenues in Detail
During the fiscal fourth quarter, the company reported adjusted earnings per share (EPS) of $1.03, missing the Zacks Consensus Estimate of $1.07. In the year-ago quarter, it reported an adjusted EPS of 85 cents.
Dave & Buster's Entertainment, Inc. Price and Consensus
Quarterly revenues of $599.1 million missed the consensus mark of $603 million. The top line rose 6.3% from $563.8 million reported in the prior-year quarter.
Food and Beverage revenues (36.8% of total revenues in the reported quarter) increased 8.2% year over year to $220.2 million. Entertainment revenues (63.2%) increased 5.2% year over year to $378.9 million.
Comps Details
During the quarter under discussion, pro-forma comparable store sales (including Main Event branded stores) declined 7% year over year but increased 8% from 2019 levels. The downside was caused by unusual and adverse weather conditions, resulting in multiple complete and partial store closures within the system.
Operating Highlights
During the quarter under discussion, operating income amounted to $89.6 million compared with $77.2 million reported in the prior-year quarter. The operating margin was 15% compared with 13.7% reported in the year-ago quarter. Our estimate for the metric was 14.3%.
Adjusted EBITDA came in at $151.8 million compared with $138.4 million reported in the year-earlier quarter. Our estimate for the metric was $143.1 million.
Balance Sheet
As of Feb 4, 2024, cash and cash equivalents were $37.3 million compared with $181.6 million as of Jan 29, 2023.
At the fiscal fourth-quarter end, net long-term debt totaled $1,284 million compared with $1,222.7 million at the end of fourth-quarter fiscal 2022.
During fiscal 2023, the company repurchased nearly 8.5 million shares for an aggregate cost of $300 million. As of Feb 4, the company had $200 million available for the buyback program.
Fiscal 2023 Highlights
Total revenues in the fiscal 2023 came in at $ 2.2 billion compared with $2 billion in fiscal 2022.
Operating income in the fiscal 2023 came in at $306.6 million compared with $262.5 million in fiscal 2022.
In the fiscal 2023, adjusted EPS came in at $3.56 compared with $3.23 reported in the previous year.
Zacks Rank & Key Picks
Dave & Buster currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector include:
The Zacks Consensus Estimate for EAT’s 2024 sales and EPS indicates 4.9% and 30.7% growth, respectively, from the year-ago period’s levels.
Texas Roadhouse, Inc. (TXRH - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter negative earnings surprise of 3.9%, on average. The stock has gained 39.7% in the past year.
The Zacks Consensus Estimate for TXRH’s 2024 sales and EPS suggests rises of 14% and 25.1%, respectively, from the year-ago period’s levels.
Shake Shack Inc. (SHAK - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 92.6%, on average. SHAK’s shares have surged 84.2% in the past year.
The Zacks Consensus Estimate for SHAK’s 2024 sales and EPS indicates 14.6% and 91.9% growth, 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:
Image: Shutterstock
Dave & Buster's (PLAY) Q4 Earnings Miss Estimates, Stock Up
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported tepid fourth-quarter fiscal 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
Following the results, the company’s shares moved up 7.2% during the after-hours trading session on Apr 2. Positive investor investments were witnessed as the company reported significant progress in organic growth initiatives, including the remodel program, ongoing store expansion, and a continued focus on cost efficiency. Despite uncertainties in the macroeconomic landscape, recent observations have strengthened the company's confidence in achieving the $1-billion adjusted EBITDA target in the near future.
Earnings & Revenues in Detail
During the fiscal fourth quarter, the company reported adjusted earnings per share (EPS) of $1.03, missing the Zacks Consensus Estimate of $1.07. In the year-ago quarter, it reported an adjusted EPS of 85 cents.
Dave & Buster's Entertainment, Inc. Price and Consensus
Dave & Buster's Entertainment, Inc. price-consensus-chart | Dave & Buster's Entertainment, Inc. Quote
Quarterly revenues of $599.1 million missed the consensus mark of $603 million. The top line rose 6.3% from $563.8 million reported in the prior-year quarter.
Food and Beverage revenues (36.8% of total revenues in the reported quarter) increased 8.2% year over year to $220.2 million. Entertainment revenues (63.2%) increased 5.2% year over year to $378.9 million.
Comps Details
During the quarter under discussion, pro-forma comparable store sales (including Main Event branded stores) declined 7% year over year but increased 8% from 2019 levels. The downside was caused by unusual and adverse weather conditions, resulting in multiple complete and partial store closures within the system.
Operating Highlights
During the quarter under discussion, operating income amounted to $89.6 million compared with $77.2 million reported in the prior-year quarter. The operating margin was 15% compared with 13.7% reported in the year-ago quarter. Our estimate for the metric was 14.3%.
Adjusted EBITDA came in at $151.8 million compared with $138.4 million reported in the year-earlier quarter. Our estimate for the metric was $143.1 million.
Balance Sheet
As of Feb 4, 2024, cash and cash equivalents were $37.3 million compared with $181.6 million as of Jan 29, 2023.
At the fiscal fourth-quarter end, net long-term debt totaled $1,284 million compared with $1,222.7 million at the end of fourth-quarter fiscal 2022.
During fiscal 2023, the company repurchased nearly 8.5 million shares for an aggregate cost of $300 million. As of Feb 4, the company had $200 million available for the buyback program.
Fiscal 2023 Highlights
Total revenues in the fiscal 2023 came in at $ 2.2 billion compared with $2 billion in fiscal 2022.
Operating income in the fiscal 2023 came in at $306.6 million compared with $262.5 million in fiscal 2022.
In the fiscal 2023, adjusted EPS came in at $3.56 compared with $3.23 reported in the previous year.
Zacks Rank & Key Picks
Dave & Buster currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector include:
Brinker International, Inc. (EAT - Free Report) carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 212.7% on average. Shares of EAT have surged 33.1% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for EAT’s 2024 sales and EPS indicates 4.9% and 30.7% growth, respectively, from the year-ago period’s levels.
Texas Roadhouse, Inc. (TXRH - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter negative earnings surprise of 3.9%, on average. The stock has gained 39.7% in the past year.
The Zacks Consensus Estimate for TXRH’s 2024 sales and EPS suggests rises of 14% and 25.1%, respectively, from the year-ago period’s levels.
Shake Shack Inc. (SHAK - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 92.6%, on average. SHAK’s shares have surged 84.2% in the past year.
The Zacks Consensus Estimate for SHAK’s 2024 sales and EPS indicates 14.6% and 91.9% growth, respectively, from the year-ago period’s levels.