We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dave & Buster's (PLAY) Posts Narrower-Than-Expected Q4 Loss
Read MoreHide Full Article
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported fourth-quarter fiscal 2020 results, with earnings and revenues beating the Zacks Consensus Estimate. However, the top and the bottom line plunged year over year due to the coronavirus pandemic.
Nonetheless, the company stated that it had regained business recovery on the back of operational improvements and disciplined expense management.
In this regard, Dave & Buster’s chief executive officer, Brian Jenkins, stated, “Our accelerating recovery continues to illustrate the resilience of the Dave & Buster’s brand and validates the plan we implemented to navigate through the challenges of the past year.”
Let’s delve into the quarterly numbers.
Dave & Busters Entertainment, Inc. Price, Consensus and EPS Surprise
During the fiscal fourth quarter, the company reported a loss $1.19 per share, which was narrower than the Zacks Consensus Estimate of a loss of $1.33 by 10.5%. The company had reported earnings per share (EPS) of 80 cents in the year-ago quarter.
Quarterly revenues of $116.8 million beat the consensus mark of $101 million by 15.4%. However, the top line slumped 66.3% from the prior-year quarter’s number. The decline was primarily due to the coronavirus pandemic. In fact, Amusements and Other revenues, and Food and Beverage revenues fell considerably during the quarter owing to the pandemic.
Food and Beverage revenues (34.4% of total revenues in the fiscal fourth quarter) plunged 73.7% year over year to $40.2 million, while Amusement and Other revenues (65.6%) fell 60.6% year over year to $76.6 million.
As of Jan 31, 2021, the company had 107 stores open, operating under reduced hours and capacity limitations.
Comps Details
Comparable store restaurant sales declined 70% year over year in the fiscal fourth quarter. The downside was primarily caused by the pandemic-related operational restrictions. Meanwhile, non-comparable store revenues in the reported quarter came in at $26.5 million, down from $52.2 million in the year-ago quarter.
Operating Highlights
Operating loss in the fiscal fourth quarter totaled $54 million against operating profit of $37.6 million in the prior-year quarter. Operating margin came in at (46.3%) against 10.8% reported in the prior-year quarter. Notably, decline in traffic due to temporary store closures negatively impacted fiscal fourth-quarter operating results.
Adjusted EBITDA was ($16 million) against $77.8 million reported in the prior-year quarter.
Balance Sheet
As of Jan 31, cash and cash equivalents totaled $11.9 million compared with $24.7 million as of Feb 2, 2020.
At the end of the fiscal fourth quarter, long-term debt came in at $596.4 million compared with $632.7 million at the end of Feb 2, 2020.
Fiscal 2020 Highlights
Total revenues in fiscal 2020 came in at $436.5 million compared with $1,354.7 million in fiscal 2019.
Operating loss in fiscal 2020 came in at $252.6 million against operating income of $148.1 million in fiscal 2019.
In fiscal 2020, net loss per diluted share came in at $4.75 against earnings of $2.94 in the previous year.
Fiscal Q1 Business Update & Outlook
During the first eight weeks of first quarter fiscal 2021 (through Mar 28, 2021), the company’s operations started to pick-up owing to moderation of COVID-19 cases and easing of certain operating restrictions. Notably, the company resumed operations in 11 New York stores and seven (of its 16) California stores. The company expects to reopen additional eight California stores by Apr 5. Meanwhile, preliminary sales during the period came in at approximately $150 million, while comps during the period declined 47% compared with 2019 levels.
Given the historical seasonal patterns and the uncertainty revolving around the pandemic, the company expects fiscal first-quarter revenues in the range of $210-$220 million. Also, the company expects positive enterprise-level EBITDA for the quarter.
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 better-ranked stocks in the same space include Darden Restaurants, Inc. (DRI - Free Report) , Jack in the Box Inc. (JACK - Free Report) and Chuy's Holdings, Inc. (CHUY - Free Report) , each carrying a Zacks Rank #2 (Buy).
Darden 2021 earnings are expected to rise 24.9%.
Jack in the Box has three-five year EPS growth rate of 17%.
Chuy's Holdings has a trailing four-quarter earnings surprise of 126.5%, on average.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Dave & Buster's (PLAY) Posts Narrower-Than-Expected Q4 Loss
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported fourth-quarter fiscal 2020 results, with earnings and revenues beating the Zacks Consensus Estimate. However, the top and the bottom line plunged year over year due to the coronavirus pandemic.
Nonetheless, the company stated that it had regained business recovery on the back of operational improvements and disciplined expense management.
In this regard, Dave & Buster’s chief executive officer, Brian Jenkins, stated, “Our accelerating recovery continues to illustrate the resilience of the Dave & Buster’s brand and validates the plan we implemented to navigate through the challenges of the past year.”
Let’s delve into the quarterly numbers.
Dave & Busters Entertainment, Inc. Price, Consensus and EPS Surprise
Dave & Busters Entertainment, Inc. price-consensus-eps-surprise-chart | Dave & Busters Entertainment, Inc. Quote
Earnings & Revenue Discussion
During the fiscal fourth quarter, the company reported a loss $1.19 per share, which was narrower than the Zacks Consensus Estimate of a loss of $1.33 by 10.5%. The company had reported earnings per share (EPS) of 80 cents in the year-ago quarter.
Quarterly revenues of $116.8 million beat the consensus mark of $101 million by 15.4%. However, the top line slumped 66.3% from the prior-year quarter’s number. The decline was primarily due to the coronavirus pandemic. In fact, Amusements and Other revenues, and Food and Beverage revenues fell considerably during the quarter owing to the pandemic.
Food and Beverage revenues (34.4% of total revenues in the fiscal fourth quarter) plunged 73.7% year over year to $40.2 million, while Amusement and Other revenues (65.6%) fell 60.6% year over year to $76.6 million.
As of Jan 31, 2021, the company had 107 stores open, operating under reduced hours and capacity limitations.
Comps Details
Comparable store restaurant sales declined 70% year over year in the fiscal fourth quarter. The downside was primarily caused by the pandemic-related operational restrictions. Meanwhile, non-comparable store revenues in the reported quarter came in at $26.5 million, down from $52.2 million in the year-ago quarter.
Operating Highlights
Operating loss in the fiscal fourth quarter totaled $54 million against operating profit of $37.6 million in the prior-year quarter. Operating margin came in at (46.3%) against 10.8% reported in the prior-year quarter. Notably, decline in traffic due to temporary store closures negatively impacted fiscal fourth-quarter operating results.
Adjusted EBITDA was ($16 million) against $77.8 million reported in the prior-year quarter.
Balance Sheet
As of Jan 31, cash and cash equivalents totaled $11.9 million compared with $24.7 million as of Feb 2, 2020.
At the end of the fiscal fourth quarter, long-term debt came in at $596.4 million compared with $632.7 million at the end of Feb 2, 2020.
Fiscal 2020 Highlights
Total revenues in fiscal 2020 came in at $436.5 million compared with $1,354.7 million in fiscal 2019.
Operating loss in fiscal 2020 came in at $252.6 million against operating income of $148.1 million in fiscal 2019.
In fiscal 2020, net loss per diluted share came in at $4.75 against earnings of $2.94 in the previous year.
Fiscal Q1 Business Update & Outlook
During the first eight weeks of first quarter fiscal 2021 (through Mar 28, 2021), the company’s operations started to pick-up owing to moderation of COVID-19 cases and easing of certain operating restrictions. Notably, the company resumed operations in 11 New York stores and seven (of its 16) California stores. The company expects to reopen additional eight California stores by Apr 5. Meanwhile, preliminary sales during the period came in at approximately $150 million, while comps during the period declined 47% compared with 2019 levels.
Given the historical seasonal patterns and the uncertainty revolving around the pandemic, the company expects fiscal first-quarter revenues in the range of $210-$220 million. Also, the company expects positive enterprise-level EBITDA for the quarter.
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 & Key Picks
Dave & Buster’s currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the same space include Darden Restaurants, Inc. (DRI - Free Report) , Jack in the Box Inc. (JACK - Free Report) and Chuy's Holdings, Inc. (CHUY - Free Report) , each carrying a Zacks Rank #2 (Buy).
Darden 2021 earnings are expected to rise 24.9%.
Jack in the Box has three-five year EPS growth rate of 17%.
Chuy's Holdings has a trailing four-quarter earnings surprise of 126.5%, on average.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>