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Why Dave & Buster's is One of the Best Restaurant Stocks
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Based in Texas, Dave & Buster's Entertainment, Inc. (PLAY - Free Report) began trading in Oct 2014. Since the launch of its IPO, the company has had a phenomenal run with shares soaring nearly 173%.
The core concept of the restaurateur is “Eat Drink Play and Watch”, all in one location. Its menu comprises “Fun American New Gourmet” entrées and appetizers and a full selection of non-alcoholic and alcoholic beverages.
Growth Factors
The company continues to perform well on the back of the unique customizable experience that it offers across its four platforms, “Eat Drink Play and Watch”.
Apart from great food and beverages, the company’s amusement and other segment have been driving growth. In fact, in the last reported quarter, the segment accounted for over 55% of the company’s revenues, and is thus one of the major reasons behind the company’s success over competitors as with increased dependence on gaming makes the company is less prone to food costs variations.
Thus, it is this unique model that sets it apart and we expect the company’s amusement and other segment to carry the growth story forward.
Moreover, Dave & Buster’s consistent efforts to build sales and improve margins through various initiatives bode well. In this regard, continual opening of stores, menu innovation, launch of new games and the new Fun American New Gourmet and beverage options should help the company boost its top and bottom line, going ahead.
Keeping with this, in fiscal 2016 (ending Jan 29, 2017), the company intends to open a total of nine to ten new stores across the small and large store formats.
Meanwhile, the company has reported seven quarterly results so far, exceeding expectations every time. In fact, the company has an average positive earnings surprise of 104.80% for the trailing four quarters.
Moreover, for 2016, sales and EPS are likely to improve 14.4% and 29.2%, respectively, further underlining its potential.
Bottom Line
Despite stiff competition from the likes of McDonald's Corp. (MCD - Free Report) , BJ's Restaurants, Inc. (BJRI - Free Report) and Darden Restaurants, Inc. (DRI - Free Report) , the company has been doing pretty well. In fact, the long-term growth prospects of the company are compelling, given its strong sales, earnings growth and significant margin improvement.
Given the improving consumer spending patterns and booming prospects of the restaurant industry, we thus expect this Zacks Rank #1 (Strong Buy) company to sustain the momentum going ahead.
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Why Dave & Buster's is One of the Best Restaurant Stocks
Based in Texas, Dave & Buster's Entertainment, Inc. (PLAY - Free Report) began trading in Oct 2014. Since the launch of its IPO, the company has had a phenomenal run with shares soaring nearly 173%.
The core concept of the restaurateur is “Eat Drink Play and Watch”, all in one location. Its menu comprises “Fun American New Gourmet” entrées and appetizers and a full selection of non-alcoholic and alcoholic beverages.
Growth Factors
The company continues to perform well on the back of the unique customizable experience that it offers across its four platforms, “Eat Drink Play and Watch”.
DAVE&BUSTRS ENT Price and Consensus
DAVE&BUSTRS ENT Price and Consensus | DAVE&BUSTRS ENT Quote
Apart from great food and beverages, the company’s amusement and other segment have been driving growth. In fact, in the last reported quarter, the segment accounted for over 55% of the company’s revenues, and is thus one of the major reasons behind the company’s success over competitors as with increased dependence on gaming makes the company is less prone to food costs variations.
Thus, it is this unique model that sets it apart and we expect the company’s amusement and other segment to carry the growth story forward.
Moreover, Dave & Buster’s consistent efforts to build sales and improve margins through various initiatives bode well. In this regard, continual opening of stores, menu innovation, launch of new games and the new Fun American New Gourmet and beverage options should help the company boost its top and bottom line, going ahead.
Keeping with this, in fiscal 2016 (ending Jan 29, 2017), the company intends to open a total of nine to ten new stores across the small and large store formats.
Meanwhile, the company has reported seven quarterly results so far, exceeding expectations every time. In fact, the company has an average positive earnings surprise of 104.80% for the trailing four quarters.
Moreover, for 2016, sales and EPS are likely to improve 14.4% and 29.2%, respectively, further underlining its potential.
Bottom Line
Despite stiff competition from the likes of McDonald's Corp. (MCD - Free Report) , BJ's Restaurants, Inc. (BJRI - Free Report) and Darden Restaurants, Inc. (DRI - Free Report) , the company has been doing pretty well. In fact, the long-term growth prospects of the company are compelling, given its strong sales, earnings growth and significant margin improvement.
Given the improving consumer spending patterns and booming prospects of the restaurant industry, we thus expect this Zacks Rank #1 (Strong Buy) company to sustain the momentum going ahead.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>