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Dave & Buster's (PLAY) to Post Q1 Earnings: What's in Store?

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Dave & Buster’s Entertainment, Inc. (PLAY - Free Report) is scheduled to report first-quarter fiscal 2021 results on Jun 10, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 10.5%.

Q1 Expectations

The Zacks Consensus Estimate for fiscal first-quarter bottom line is pegged at a loss of 13 cents, compared with a loss of $1.37 in the year-ago quarter. The consensus mark for revenues stands at $256 million, suggesting growth of 60.2% from the prior-year reported figure.

Factors to Note

Dave & Buster's fiscal first-quarter performance is likely to have benefited from reopening of stores. Notably, the company’s unique business model, sales-boosting initiatives and continual expansion plans might get reflected in the to-be-reported quarter’s results. It is also benefiting from robust digitalization. In November 2020, the company announced the launch of third-party delivery partnership with Door Dash and Uber Eats at 105 of its stores.

Moreover, robust performance of food and beverage, and amusement and other is likely to have driven the company’s performance in the quarter under review.

The Zacks Consensus Estimate for food and beverage revenues is likely to witness an improvement of 59.4% year over year to $102 million. Also, Amusement and other revenues are likely to see an increase of 60.4% year over year to $154 million.

However, Dave & Buster’s soft comps trend over the past few quarters remained a concern. In fourth-quarter fiscal 2020, comparable store restaurant sales declined 70% year over year. The decline was primarily due to the pandemic-related operational restrictions.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Dave & Buster’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Dave & Buster’s has an Earnings ESP of +107.9%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Peer Releases

Yum! Brands, Inc. (YUM - Free Report) reported strong first-quarter 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The metrics also improved year over year. The company’s adjusted earnings of $1.07 beat the Zacks Consensus Estimate of 85 cents. In the prior-year quarter, the company had reported adjusted earnings of 64 cents. Quarterly revenues of $1,486 million surpassed the consensus estimate of $1,461 million. The top line also rose 17.7% year over year. The upside can be attributed to increase in sales along with rise in franchise and property revenues.

McDonald's Corporation (MCD - Free Report) reported robust first-quarter 2021 results, wherein both earnings and revenues outpaced the Zacks Consensus Estimate. The company reported adjusted earnings of $1.92 per share, which surpassed the Zacks Consensus Estimate of $1.81. Moreover, the bottom line rose 31% year over year. Quarterly revenues of $5,124.6 million beat the Zacks Consensus Estimate of $5,047 million. Moreover, the figure climbed 9% year over year. The top line benefited from increase in global comparable sales.

Starbucks Corporation (SBUX - Free Report) reported mixed second-quarter fiscal 2021 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The company reported adjusted EPS of 62 cents, which outpaced the Zacks Consensus Estimate of 52 cents. In the prior-year quarter, the company had reported adjusted EPS of 32 cents. Meanwhile, quarterly revenues of $6,668 million missed the Zacks Consensus Estimate of $6,803 million. However, the top line increased 11.2% from the year-ago quarter’s levels. The uptick was driven by growth in comparable store sales, partially offset by the unfavorable impact of Global Coffee Alliance transition-related activities.

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