Poor Dave & Busters Entertainment (NASDAQ: PLAY) can't catch a break. In yet another year in which American consumers have been more than willing to be generous with their eating-out budgets, D&B is suffering. 2018 wasn't good (shares dropped 19%), and after the company's second-quarter report, shares are down another 9% in 2019 to date.
At this point, value investors might be eyeing D&B's 13.5 trailing 12-month price-to-earnings ratio and 12.5 expected one-year forward price-to-earnings ratio. It may look cheap, but this restaurant-bar-arcade trifecta is looking cheap for a reason.
The second-quarter (the three months ended Aug. 4, 2019) headline numbers looked good enough. Total revenues increased 8% to $345 million, and earnings per share grew 7% on the back of continued share repurchases ($137 million was bought back in the last quarter).