PLAY - Why Dave & Buster's Stock Popped on Wednesday
2024-04-03 16:12:08 ET
Shares of entertainment restaurant company Dave & Buster's (NASDAQ: PLAY) popped on Wednesday after the company released financial results for the fourth quarter of 2023. As of 2:30 p.m. ET, Dave & Buster's stock was up 11% and hitting 52-week highs.
The fiscal year for Dave & Buster's ended on Feb. 4. And it was largely a good year. Revenue was up 12% year over year to $2.2 billion, and it had net income of $127 million. While net income did take a step back from net income of $137 million in fiscal 2023, fiscal 2024 results still represent a respectable 5.8% profit margin .
Dave & Buster's also made critical headway with its outstanding share count. For context, this company was one of the worst-hit restaurant companies during the COVID-19 pandemic because its locations are designed to be experienced in person. As its income ground to a halt, management had to issue new shares to stay afloat. From the end of fiscal 2019 through the end of fiscal 2021, the outstanding share count for Dave & Buster's grew by 44% -- that's some serious shareholder dilution.
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Why Dave & Buster's Stock Popped on Wednesday