PLAY - Dave & Buster's: Sales Challenges Persist In Q1 But Store Growth Continues

2024-06-13 08:47:38 ET

Summary

• Dave & Buster's Q1 results show continued comparable sales weakness, leading to a wide revenue and EPS miss.
• The long-term growth story still continues with new store openings in the quarter.
• The Main Event acquisition has been integrated well with Dave & Buster's having very healthy margins despite recent sales weakness.
• The valuation has moderate upside, but I initiate the stock at Hold due to sales uncertainties.

Dave & Buster’s Entertainment, Inc. ( PLAY ) operates entertainment and dining venues, offering arcade games and live sports watching among other entertainment. The company recently reported its Q1 results on the 13 ^th of June prior to market openings, posting a wide miss for both revenues and EPS. The stock has reacted negatively in the post-market, being at nearly -12% at the time of writing....

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