PLAY - Dave & Buster's Might Need to Rethink Its Expansion Goals
Dave & Buster's Entertainment (NASDAQ: PLAY) is still reeling from the impact of COVID-19 restrictions, which threaten to keep hurting the business well into 2021. That was the main takeaway from the "eatertainment" specialist's recent second-quarter earnings report. Sales plunged 85% and net losses ballooned.
In a conference call with Wall Street analysts last week, CEO Brian Jenkins and his team highlighted a few encouraging signs regarding customer traffic in newly reopened stores. Executives also see potential in changes they're testing around the restaurant and TV viewing sides of the business. However, it's clear from the latest results that Dave & Buster's isn't likely to approach normal operating conditions until the COVID-19 threat is gone.
Let's take a closer look.