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Dave & Buster's (PLAY) to Boost Presence in India & Australia
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In order to ensure a successful global expansion, Dave & Buster’s Entertainment, Inc. (PLAY - Free Report) announced two significant deals in India and Australia.
The company recently inked a deal with the Malpani Group to open 15 new stores in India. Also, it partnered with the NightOwl Entertainment Group to open 5 stores in Australia. These strategic moves mark the company’s second and third multi-store franchise agreements, respectively, in the APAC and MEA regions. The move is in line with the commitment made during the global expansion plans announced in 2022.
Dave & Buster's will also offer localized entertainment and late-night programming for customers and will introduce immersive experiences to enhance customer engagement in the competitive socializing space.
Following the announcement, shares of the company jumped 3.73% in the after-hours trading session on Jun 6.
Focus on Unit Expansion
Dave & Buster's continues to pursue a disciplined new store growth strategy in new and existing markets to drive growth. Management believes it can grow the concept to more than 200 units in North and have significant appeal in certain international markets. In September 2022, the company signed an international franchise partnership to expand Dave & Buster's brand to locations in the Kingdom of Saudi Arabia, the United Arab Emirates and Egypt.
In fiscal 2023, the company intends to open 16 new stores (including 11 Dave & Buster's and 5 Main Event locations) and relocate Dave & Buster's Vernon Hills store.
This apart, the company has implemented several strategic initiatives to boost customers’ experiences, including a customized footprint to meet specific market requirements and localized menu offerings with high regional resonance to cater to local preferences and tastes. It has also introduced a proprietary dynamic pricing model, launched global marketing programs and implemented a unique amusement strategy and packages to differentiate itself in the market.
Image Source: Zacks Investment Research
Shares of the company have declined 4.8% in the year-to-date period against the industry's growth of 10.5%. A challenging macroeconomic environment, including inflationary pressures on labor and commodities, is a persistent headwind. Although the company is aggressively working to mitigate inflationary pressures (with operational efficiencies and appropriate pricing actions), it anticipates the headwinds to persist over the next few quarters.
Nonetheless, the recent move, along with benefits from its digital initiatives, robust comp growth and entertainment offerings, are likely to boost performance in future.
Zacks Rank & Key Picks
Dave & Buster’s currently carries a Zacks Rank #3 (Hold).
YUMC a trailing four-quarter earnings surprise of 301.6%, on average.
The Zacks Consensus Estimate for YUMC’s 2023 sales and EPS suggests growth of 19.7% and 89.5%, respectively, from the year-ago period’s levels.
CMG has a trailing four-quarter earnings surprise of 4.7%, on average.
The Zacks Consensus Estimate for CMG’s 2023 sales and EPS suggests growth of 14% and 33.9%, respectively, from the year-ago period’s levels.
SHAK has a trailing four-quarter earnings surprise of 58.6%, on average.
The Zacks Consensus Estimate for SHAK’s 2023 sales and EPS suggests growth of 21.4% and 148.4%, respectively, from the year-ago period’s reported levels.
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Dave & Buster's (PLAY) to Boost Presence in India & Australia
In order to ensure a successful global expansion, Dave & Buster’s Entertainment, Inc. (PLAY - Free Report) announced two significant deals in India and Australia.
The company recently inked a deal with the Malpani Group to open 15 new stores in India. Also, it partnered with the NightOwl Entertainment Group to open 5 stores in Australia. These strategic moves mark the company’s second and third multi-store franchise agreements, respectively, in the APAC and MEA regions. The move is in line with the commitment made during the global expansion plans announced in 2022.
Dave & Buster's will also offer localized entertainment and late-night programming for customers and will introduce immersive experiences to enhance customer engagement in the competitive socializing space.
Following the announcement, shares of the company jumped 3.73% in the after-hours trading session on Jun 6.
Focus on Unit Expansion
Dave & Buster's continues to pursue a disciplined new store growth strategy in new and existing markets to drive growth. Management believes it can grow the concept to more than 200 units in North and have significant appeal in certain international markets. In September 2022, the company signed an international franchise partnership to expand Dave & Buster's brand to locations in the Kingdom of Saudi Arabia, the United Arab Emirates and Egypt.
In fiscal 2023, the company intends to open 16 new stores (including 11 Dave & Buster's and 5 Main Event locations) and relocate Dave & Buster's Vernon Hills store.
This apart, the company has implemented several strategic initiatives to boost customers’ experiences, including a customized footprint to meet specific market requirements and localized menu offerings with high regional resonance to cater to local preferences and tastes. It has also introduced a proprietary dynamic pricing model, launched global marketing programs and implemented a unique amusement strategy and packages to differentiate itself in the market.
Image Source: Zacks Investment Research
Shares of the company have declined 4.8% in the year-to-date period against the industry's growth of 10.5%. A challenging macroeconomic environment, including inflationary pressures on labor and commodities, is a persistent headwind. Although the company is aggressively working to mitigate inflationary pressures (with operational efficiencies and appropriate pricing actions), it anticipates the headwinds to persist over the next few quarters.
Nonetheless, the recent move, along with benefits from its digital initiatives, robust comp growth and entertainment offerings, are likely to boost performance in future.
Zacks Rank & Key Picks
Dave & Buster’s currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector are Yum China Holdings, Inc. (YUMC - Free Report) , Chipotle Mexican Grill, Inc. (CMG - Free Report) and Shake Shack Inc. (SHAK - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
YUMC a trailing four-quarter earnings surprise of 301.6%, on average.
The Zacks Consensus Estimate for YUMC’s 2023 sales and EPS suggests growth of 19.7% and 89.5%, respectively, from the year-ago period’s levels.
CMG has a trailing four-quarter earnings surprise of 4.7%, on average.
The Zacks Consensus Estimate for CMG’s 2023 sales and EPS suggests growth of 14% and 33.9%, respectively, from the year-ago period’s levels.
SHAK has a trailing four-quarter earnings surprise of 58.6%, on average.
The Zacks Consensus Estimate for SHAK’s 2023 sales and EPS suggests growth of 21.4% and 148.4%, respectively, from the year-ago period’s reported levels.