PLAY - Dave and Buster's slumps after Q3 beat fails to impress
Dave and Buster’s ( NASDAQ: PLAY ) shares down 6.3% despite posting earnings beat for the fiscal third quarter.
The restaurant and arcade chain operator earned Q3 GAAP EPS of $0.04 per share on $481.2M in revenue. Those figures came in $0.01 and $10.42M above average analyst expectations. Pro forma combined comparable store sales, after completing the Main Event branded stores acquisition, increased 13.3% compared with the same period in 2021.
“Our team has been focused on three key work streams; one, effectively managing the merger integration; two, long-term strategic planning; and three, managing sales and profitability in the near term to offset the ongoing inflationary pressure in our business;” CEO Chris Morris highlighted during the third quarter earnings call .
In Q3, the company opened three new stores under the Dave & Buster’s brand and ended the quarter with $599.3 million of liquidity, which included $108.2 million in cash and $491.1 million available under its $500 million revolving credit facility.
Looking ahead, CFO Michael Quartieri said on the earnings call that he is “encouraged by the trends continuing into the fourth quarter,” even amidst considerable economic uncertainty.
PLAY stock is down 13.5% year-to-date.
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Dave and Buster’s slumps after Q3 beat fails to impress