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) Q3 Earnings & Revenues Top Estimates
Read MoreHide Full Article
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported impressive third-quarter fiscal 2022 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line rose year over year, while the bottom line declined from the prior-year quarter's figure.
Chris Morris, Dave & Buster’s chief executive officer, stated, “Our outstanding team continues to strongly execute our integration plan and deliver exceptional results, despite the challenging macro and inflationary environment. We remain focused on driving innovation, growth and value creation for our stakeholders.”
Earnings & Revenues in Detail
During the fiscal third quarter, the company reported adjusted earnings per share (EPS) of 4 cents, surpassing the Zacks Consensus Estimate of 3 cents by 33.3%. In the year-ago quarter, it had reported an adjusted EPS of 21 cents.
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise
Quarterly revenues of $481.2 million surpassed the consensus mark of $474 million. In the prior-year quarter, the company reported revenues of $318 million. Revenues jumped 60.7% from third-quarter fiscal 2019.
Food and Beverage revenues (34.5% of total revenues in the fiscal third quarter) soared 53.9% year over year to $165.9 million. Amusement and Other revenues (65.5%) increased 50% year over year to $315.4 million.
Comps Details
During the fiscal third quarter, pro forma comparable store sales (including Main Event branded stores) increased 13.3% year over year and 17.5% from 2019 levels. During the quarter, pro forma combined walk-in comparable store sales increased 8.0% year over year.
Operating Highlights
During the fiscal third quarter, operating income amounted to $30.1 million compared with $24.5 million reported in the prior-year quarter. The operating margin was 6.3% compared with 7.7% reported in the prior-year quarter. During the quarter, adjusted EBITDA was $90 million compared with $68.2 million reported in the prior-year quarter.
Balance Sheet
As of Oct 30, 2022, cash and cash equivalents totaled $108.2 million compared with $100.4 million as of Jul 31, 2022.
At the end of the fiscal third quarter, net long-term debt totaled $1,222.2 million compared with $1,219.7 million at the end of second-quarter fiscal 2022.
Fiscal Q4 Business Update & Outlook
During the first five weeks of fourth-quarter fiscal 2022, the company’s comps rose 3.1% from 2021 levels and 9.2% from 2019 levels. During the five-week period, pro-forma combined walk-in comparable store sales fell 2.4% year over year but increased 15.7% from 2019 levels. Meanwhile, Special Event comparable store sales (on a pro-forma basis) increased 65.3% year over year, but declined 21.7% from 2019 levels.
The Zacks Consensus Estimate for TGLS’ 2023 sales and EPS suggests growth of 11.2% and 9%, respectively, from the year-ago period’s levels.
Wingstop currently sports a Zacks Rank #1. WING has a long-term earnings growth rate of 11%. Shares of WING have decreased 13.3% year to date.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and EPS suggests growth of 18% and 16.2%, respectively, from the comparable year-ago period’s levels.
Chipotle currently carries a Zacks Rank #2 (Buy). CMG has a trailing four-quarter earnings surprise of 4.1%, on average. The stock has declined 13.7% year to date.
The Zacks Consensus Estimate for Chipotle’s 2023 sales and EPS suggests growth of 13.4% and 27.9%, respectively, from the corresponding year-ago period’s levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Dave & Buster's (PLAY) Q3 Earnings & Revenues Top Estimates
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported impressive third-quarter fiscal 2022 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line rose year over year, while the bottom line declined from the prior-year quarter's figure.
Chris Morris, Dave & Buster’s chief executive officer, stated, “Our outstanding team continues to strongly execute our integration plan and deliver exceptional results, despite the challenging macro and inflationary environment. We remain focused on driving innovation, growth and value creation for our stakeholders.”
Earnings & Revenues in Detail
During the fiscal third quarter, the company reported adjusted earnings per share (EPS) of 4 cents, surpassing the Zacks Consensus Estimate of 3 cents by 33.3%. In the year-ago quarter, it had reported an adjusted EPS of 21 cents.
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise
Dave & Buster's Entertainment, Inc. price-consensus-eps-surprise-chart | Dave & Buster's Entertainment, Inc. Quote
Quarterly revenues of $481.2 million surpassed the consensus mark of $474 million. In the prior-year quarter, the company reported revenues of $318 million. Revenues jumped 60.7% from third-quarter fiscal 2019.
Food and Beverage revenues (34.5% of total revenues in the fiscal third quarter) soared 53.9% year over year to $165.9 million. Amusement and Other revenues (65.5%) increased 50% year over year to $315.4 million.
Comps Details
During the fiscal third quarter, pro forma comparable store sales (including Main Event branded stores) increased 13.3% year over year and 17.5% from 2019 levels. During the quarter, pro forma combined walk-in comparable store sales increased 8.0% year over year.
Operating Highlights
During the fiscal third quarter, operating income amounted to $30.1 million compared with $24.5 million reported in the prior-year quarter. The operating margin was 6.3% compared with 7.7% reported in the prior-year quarter. During the quarter, adjusted EBITDA was $90 million compared with $68.2 million reported in the prior-year quarter.
Balance Sheet
As of Oct 30, 2022, cash and cash equivalents totaled $108.2 million compared with $100.4 million as of Jul 31, 2022.
At the end of the fiscal third quarter, net long-term debt totaled $1,222.2 million compared with $1,219.7 million at the end of second-quarter fiscal 2022.
Fiscal Q4 Business Update & Outlook
During the first five weeks of fourth-quarter fiscal 2022, the company’s comps rose 3.1% from 2021 levels and 9.2% from 2019 levels. During the five-week period, pro-forma combined walk-in comparable store sales fell 2.4% year over year but increased 15.7% from 2019 levels. Meanwhile, Special Event comparable store sales (on a pro-forma basis) increased 65.3% year over year, but declined 21.7% from 2019 levels.
Zacks Rank & Key Picks
Dave & Buster’s has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Zacks Retail-Wholesale sector are Tecnoglass Inc. (TGLS - Free Report) , Wingstop Inc. (WING - Free Report) and Chipotle Mexican Grill, Inc. (CMG - Free Report) .
Tecnoglass currently sports a Zacks Rank #1 (Strong Buy). Shares of the company have gained 16.4% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TGLS’ 2023 sales and EPS suggests growth of 11.2% and 9%, respectively, from the year-ago period’s levels.
Wingstop currently sports a Zacks Rank #1. WING has a long-term earnings growth rate of 11%. Shares of WING have decreased 13.3% year to date.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and EPS suggests growth of 18% and 16.2%, respectively, from the comparable year-ago period’s levels.
Chipotle currently carries a Zacks Rank #2 (Buy). CMG has a trailing four-quarter earnings surprise of 4.1%, on average. The stock has declined 13.7% year to date.
The Zacks Consensus Estimate for Chipotle’s 2023 sales and EPS suggests growth of 13.4% and 27.9%, respectively, from the corresponding year-ago period’s levels.