PLAY - Dave & Buster's: Perhaps The Next Meme Stock As The Shorts Are Trapped

• Dave & Buster's reported a strong Q1 FY 2021 report with a strong sequential improvement in comps from February to April 2021.
• Q1 FY 2021 Adj. EBITDA was $72 million (vs. $98.2 million in Q2 2019), so Adj. EBITDA margins were stronger than in Q2 FY 2019.
• Q2 FY 2021 guidance is really strong with revenue in-line with Q2 FY 2019 and absolute Adj. EBITDA dollars forecasted to also be in-line with Q2 FY 2019.
• Based on Friday's closing price of $43 per share, PLAY shares trade at only 8.75X EV/ my normalized EBITDA estimates of $300 million. The short thesis is no longer valid and it is possible PLAY could get swept up in the meme excitement given its customer facing brand and turnaround story.

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