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Dave & Buster's (PLAY) Q1 Earnings & Revenues Beat Estimates
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Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported impressive first-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis. The upside was backed by strong Special Event business, store expansions and cost-saving efforts. Following the results, shares of the company gained 4.2% during after hours trading session on Jun 6.
Earnings & Revenues in Detail
During the fiscal first quarter, the company reported adjusted earnings per share (EPS) of $1.45, surpassing the Zacks Consensus Estimate of $1.17 by 23.9%. In the year-ago quarter, it had reported an adjusted EPS of $1.35.
Quarterly revenues of $597.3 million surpassed the consensus mark of $597 million. In the prior-year quarter, the company reported revenues of $451.1 million.
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise
Food and Beverage revenues (34.2% of total revenues in the fiscal first quarter) soared 34.4% year over year to $204.2 million. Entertainment revenues (65.8%) increased 31.4% year over year to $393.1 million.
Comps Details
During the fiscal first quarter, pro-forma comparable store sales (including Main Event branded stores) declined 4.1% year over year, but increased 10.3% from 2019 levels. During the quarter, pro-forma combined walk-in comparable store sales declined 6.4% year over year.
Operating Highlights
During the fiscal first quarter, operating income amounted to $121.4 million compared with $98.7 million reported in the prior-year quarter. The operating margin was 20.2% compared with 21.8% reported in the prior-year quarter.
During the quarter, adjusted EBITDA was $182.1 million compared with $140.3 million reported in the prior-year quarter.
Balance Sheet
As of Apr 30, 2023, cash and cash equivalents totaled $91.5 million compared with $181.6 million as of Jan 29, 2023.
During the fiscal first quarter, the company repurchased nearly 3.6 million shares for an aggregate cost of $125.5 million. As of Jun 6, 2023, the company stated the availability of $100 million under its repurchase program.
At the end of the fiscal first quarter, net long-term debt totaled $1,221.1 million compared with $1,222.7 million at the end of fourth-quarter fiscal 2022.
Zacks Rank & Key Picks
Dave & Buster currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Chipotle’s 2024 sales and EPS suggests growth of 12.5% and 19.7%, respectively, from the year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth rate of 9.5%. The stock has gained 14.9% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests growth of 13.4% and 4.4%, respectively, from the year-ago period’s levels.
Chuy’s Holdings carries a Zacks Rank #2. CHUY has a trailing four-quarter earnings surprise of 23.4%, on average. Shares of CHUY have increased 74.5% in the past year.
The Zacks Consensus Estimate for Chuy’s Holdings 2023 sales and EPS suggests growth of 9.9% and 24.8%, respectively, from the year-ago period’s levels.
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Dave & Buster's (PLAY) Q1 Earnings & Revenues Beat Estimates
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported impressive first-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis. The upside was backed by strong Special Event business, store expansions and cost-saving efforts. Following the results, shares of the company gained 4.2% during after hours trading session on Jun 6.
Earnings & Revenues in Detail
During the fiscal first quarter, the company reported adjusted earnings per share (EPS) of $1.45, surpassing the Zacks Consensus Estimate of $1.17 by 23.9%. In the year-ago quarter, it had reported an adjusted EPS of $1.35.
Quarterly revenues of $597.3 million surpassed the consensus mark of $597 million. In the prior-year quarter, the company reported revenues of $451.1 million.
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
Food and Beverage revenues (34.2% of total revenues in the fiscal first quarter) soared 34.4% year over year to $204.2 million. Entertainment revenues (65.8%) increased 31.4% year over year to $393.1 million.
Comps Details
During the fiscal first quarter, pro-forma comparable store sales (including Main Event branded stores) declined 4.1% year over year, but increased 10.3% from 2019 levels. During the quarter, pro-forma combined walk-in comparable store sales declined 6.4% year over year.
Operating Highlights
During the fiscal first quarter, operating income amounted to $121.4 million compared with $98.7 million reported in the prior-year quarter. The operating margin was 20.2% compared with 21.8% reported in the prior-year quarter.
During the quarter, adjusted EBITDA was $182.1 million compared with $140.3 million reported in the prior-year quarter.
Balance Sheet
As of Apr 30, 2023, cash and cash equivalents totaled $91.5 million compared with $181.6 million as of Jan 29, 2023.
During the fiscal first quarter, the company repurchased nearly 3.6 million shares for an aggregate cost of $125.5 million. As of Jun 6, 2023, the company stated the availability of $100 million under its repurchase program.
At the end of the fiscal first quarter, net long-term debt totaled $1,221.1 million compared with $1,222.7 million at the end of fourth-quarter fiscal 2022.
Zacks Rank & Key Picks
Dave & Buster currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector are Chipotle Mexican Grill, Inc. (CMG - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Chuy's Holdings, Inc. (CHUY - Free Report) .
Chipotle sports a Zacks Rank #1 (Strong Buy). CMG has a long-term earnings growth rate of 31.8%. The stock has improved 49.9% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for Chipotle’s 2024 sales and EPS suggests growth of 12.5% and 19.7%, respectively, from the year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth rate of 9.5%. The stock has gained 14.9% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests growth of 13.4% and 4.4%, respectively, from the year-ago period’s levels.
Chuy’s Holdings carries a Zacks Rank #2. CHUY has a trailing four-quarter earnings surprise of 23.4%, on average. Shares of CHUY have increased 74.5% in the past year.
The Zacks Consensus Estimate for Chuy’s Holdings 2023 sales and EPS suggests growth of 9.9% and 24.8%, respectively, from the year-ago period’s levels.