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Dave & Buster's (PLAY) Stock Up on Q1 Earnings & Revenues Beat
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Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported solid first-quarter fiscal 2021 results, wherein both earnings and revenues beat the Zacks Consensus Estimate for the second straight quarter. Moreover, both the metrics improved year over year. The company’s results benefited from reopening of stores. Following the earnings announcement, its shares increased nearly 4% in after-hour trading session on Jun 10.
The company commenced first-quarter fiscal 2021 with 107 open stores, or nearly 76% of its total store base. As of May 2, 138 stores are open. During the reported quarter, the company also opened one new store, bringing the total store count to 141. The company also benefited from operational improvements and disciplined expense management.
Dave & Buster’s CEO, Brian Jenkins, stated, “The strength and resilience of the Dave & Buster’s brand has never been more evident. We saw a significant improvement in demand across our store base in the first quarter, including at our recently re-opened New York and California stores.”
Earnings & Revenues in Detail
The company reported fiscal first-quarter, adjusted earnings per share of 40 cents, surpassing the Zacks Consensus Estimate of 5 cents. The company had reported loss per share (EPS) of $1.37 in the year-ago quarter, due to the coronavirus-related woes.
Quarterly revenues of $265.3 million outpaced the consensus mark of $257 million by 3.1%. Moreover, the top line improved 66% from the prior-year quarter’s number. In fact, Amusements and Other revenues, and Food and Beverage revenues also rose significantly during the quarter owing to store reopenings.
Food and Beverage revenues (32.3% of total revenues in the fiscal first quarter) rose 34.2% year over year to $85.8 million, while Amusement and Other revenues (67.7%) jumped 87.3% year over year to $179.6 million.
Dave & Busters Entertainment, Inc. Price, Consensus and EPS Surprise
Comparable store restaurant sales declined 35% year over year in the fiscal first quarter compared with first-quarter 2019. The downside was primarily due to the coronavirus pandemic. By month, comps declined 59%, 31% and 12% in February, March and April, respectively, in comparison to the same period in 2019. Meanwhile, non-comparable store revenues in the reported quarter were $57 million, up from $24.2 million in the year-ago quarter.
Operating Highlights
Operating income in the fiscal first quarter totaled $37 million against an operating loss of $61.4 million in the prior-year quarter. Operating margin came in at 14% against (38.4%) reported in the prior-year quarter. Adjusted EBITDA was $76.7 million against ($10.8) million reported in the prior-year quarter.
Balance Sheet
As of May 2, 2021, cash and cash equivalents totaled $20.1 million compared with $11.9 million as of Jan 31, 2021.
At the end of the fiscal first quarter, long-term debt totaled $537.1 million compared with $596.4 million at the end of Jan 31, 2021.
Fiscal Q2 Business Update & Outlook
During the first five weeks of second-quarter fiscal 2021, the company’s operations started to pick-up owing to moderation of COVID-19 cases and easing of certain operating restrictions. Meanwhile, during the first five weeks of second-quarter fiscal 2021 comps declined 4% compared with 2019 levels.
The company expects fiscal second-quarter revenues in the range of $335 million to $350 million. However, it anticipates margin to decrease in the fiscal second quarter compared with first-quarter fiscal 2021 due to increase in commodity, labor and marketing costs.
For fiscal 2021, the company anticipates capital additions of $65-$70 million. Also, it expects four new store openings and the relocation of one existing location during the fiscal year.
Some other top-ranked stocks in the same space include Bloomin' Brands, Inc. (BLMN - Free Report) , Dine Brands Global, Inc. (DIN - Free Report) and Chuy's Holdings, Inc. (CHUY - Free Report) , each carrying a Zacks Rank #2.
Bloomin' Brands 2021 earnings are expected to rise 391.3%.
Jack in the Box 2021 earnings are expected to rise 269.3%.
Chuy's Holdings has a trailing four-quarter earnings surprise of 127.6%, on average.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Shutterstock
Dave & Buster's (PLAY) Stock Up on Q1 Earnings & Revenues Beat
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported solid first-quarter fiscal 2021 results, wherein both earnings and revenues beat the Zacks Consensus Estimate for the second straight quarter. Moreover, both the metrics improved year over year. The company’s results benefited from reopening of stores. Following the earnings announcement, its shares increased nearly 4% in after-hour trading session on Jun 10.
The company commenced first-quarter fiscal 2021 with 107 open stores, or nearly 76% of its total store base. As of May 2, 138 stores are open. During the reported quarter, the company also opened one new store, bringing the total store count to 141. The company also benefited from operational improvements and disciplined expense management.
Dave & Buster’s CEO, Brian Jenkins, stated, “The strength and resilience of the Dave & Buster’s brand has never been more evident. We saw a significant improvement in demand across our store base in the first quarter, including at our recently re-opened New York and California stores.”
Earnings & Revenues in Detail
The company reported fiscal first-quarter, adjusted earnings per share of 40 cents, surpassing the Zacks Consensus Estimate of 5 cents. The company had reported loss per share (EPS) of $1.37 in the year-ago quarter, due to the coronavirus-related woes.
Quarterly revenues of $265.3 million outpaced the consensus mark of $257 million by 3.1%. Moreover, the top line improved 66% from the prior-year quarter’s number. In fact, Amusements and Other revenues, and Food and Beverage revenues also rose significantly during the quarter owing to store reopenings.
Food and Beverage revenues (32.3% of total revenues in the fiscal first quarter) rose 34.2% year over year to $85.8 million, while Amusement and Other revenues (67.7%) jumped 87.3% year over year to $179.6 million.
Dave & Busters Entertainment, Inc. Price, Consensus and EPS Surprise
Dave & Busters Entertainment, Inc. price-consensus-eps-surprise-chart | Dave & Busters Entertainment, Inc. Quote
Comps Details
Comparable store restaurant sales declined 35% year over year in the fiscal first quarter compared with first-quarter 2019. The downside was primarily due to the coronavirus pandemic. By month, comps declined 59%, 31% and 12% in February, March and April, respectively, in comparison to the same period in 2019. Meanwhile, non-comparable store revenues in the reported quarter were $57 million, up from $24.2 million in the year-ago quarter.
Operating Highlights
Operating income in the fiscal first quarter totaled $37 million against an operating loss of $61.4 million in the prior-year quarter. Operating margin came in at 14% against (38.4%) reported in the prior-year quarter. Adjusted EBITDA was $76.7 million against ($10.8) million reported in the prior-year quarter.
Balance Sheet
As of May 2, 2021, cash and cash equivalents totaled $20.1 million compared with $11.9 million as of Jan 31, 2021.
At the end of the fiscal first quarter, long-term debt totaled $537.1 million compared with $596.4 million at the end of Jan 31, 2021.
Fiscal Q2 Business Update & Outlook
During the first five weeks of second-quarter fiscal 2021, the company’s operations started to pick-up owing to moderation of COVID-19 cases and easing of certain operating restrictions. Meanwhile, during the first five weeks of second-quarter fiscal 2021 comps declined 4% compared with 2019 levels.
The company expects fiscal second-quarter revenues in the range of $335 million to $350 million. However, it anticipates margin to decrease in the fiscal second quarter compared with first-quarter fiscal 2021 due to increase in commodity, labor and marketing costs.
For fiscal 2021, the company anticipates capital additions of $65-$70 million. Also, it expects four new store openings and the relocation of one existing location during the fiscal year.
Zacks Rank & Other Key Picks
Dave & Buster’s currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the same space include Bloomin' Brands, Inc. (BLMN - Free Report) , Dine Brands Global, Inc. (DIN - Free Report) and Chuy's Holdings, Inc. (CHUY - Free Report) , each carrying a Zacks Rank #2.
Bloomin' Brands 2021 earnings are expected to rise 391.3%.
Jack in the Box 2021 earnings are expected to rise 269.3%.
Chuy's Holdings has a trailing four-quarter earnings surprise of 127.6%, on average.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>