Dave & Buster’s Gains on Robust Outlook as Sales Jump, Stores Open By Investing.com

© Reuters.

By Dhirendra Tripathi

Investing.com – Dave & Buster’s stock (NASDAQ:) rose 7% Friday as the operator of “eat, drink, play and watch” locations said its third quarter comparable store sales will be approximately in line with the quarter-to-date trends of 2019.

It said third-quarter earnings before interest, taxes, depreciation and amortization will be significantly higher than 2019 quarter’s $39.8 million, but with some moderation compared with the increase in the second quarter.

Second-quarter Ebitda was $114.0 million, or 30% of revenue, compared to a loss in the year-ago period and Ebitda of $79 million, or 23% of revenue in the 2019 quarter.

Revenue soared more than seven-fold to a record $377.6 million from the 2020 quarter and was about 10% higher than 2019 quarter’s $344.6 million. Overall, comparable store sales rose 3.6% compared to the same period in 2019 as stores reopened and people returned to dining out and play games.

The company closed the quarter with all its 142 combined restaurant and arcade locations open.

The company swung back to a profit of $52.8 million in the quarter compared to a net loss last time. Its profit in the comparable 2019 quarter was $32.4 million.

The entertainment and dining chain said business recovery has continued through the first five weeks of the third quarter, including Labor Day Monday, during which comparable store sales rose 1.3% compared to 2019.

A total of four new stores are expected to open in the current financial year with one outlet being relocated, according to a company note.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.