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Dave & Buster's Q4 Earnings Surpass Estimates, Revenues Lag
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Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported fourth-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both metrics declined on a year-over-year basis.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Dave & Buster’s reported a weak fourth quarter but expressed confidence in the company’s direction as recent trends show signs of improvement. The current leadership team is undoing several decisions made by prior management in marketing, operations and capital spending, and is returning to a more disciplined, fundamentals-driven strategy. While execution faltered in the past, management maintains that the strategic plan is sound and expects current corrective actions to drive stronger revenues, EBITDA and free cash flow in the coming periods. Early results from March and April have already outpaced prior months, and the company remains in a solid financial position with low leverage and no near-term debt pressures.
PLAY’s Q4 Earnings & Revenues
For the fiscal fourth quarter, the company reported an adjusted earnings per share (EPS) of 69 cents, beating the Zacks Consensus Estimate of 64 cents. In the year-ago quarter, it reported an adjusted EPS of $1.03.
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise
Quarterly revenues of $534.5 million missed the consensus mark of $545 million. The top line declined 10.8% from $599.1 million reported in the prior-year quarter.
Food and Beverage revenues (37.3% of total revenues in the reported quarter) declined 9.4% year over year to $199.5 million. Our estimate was $166.9 million.
Entertainment revenues (62.7%) fell 11.6% year over year to $335 million. Our estimate was $383.7 million.
Comps Details
During the quarter under discussion, comparable store sales (including Main Event-branded stores) declined 9.4% year over year.
Dave & Buster's Q4 Operating Highlights
During the fiscal fourth quarter, operating income amounted to $44.1 million compared with $89.6 million reported in the prior-year quarter. The operating margin was 8.3% compared with 15% in the year-ago quarter. Our estimate for the metric was 10.7%.
Adjusted EBITDA during the quarter came in at $127.2 million compared with $151.8 million reported in the year-earlier quarter. Our estimate for the metric was $121.9 million.
Balance Sheet
As of Feb. 4, 2025, cash and cash equivalents were $6.9 million compared with $37.3 million as of Feb. 4, 2024.
At the fiscal fourth-quarter end, net long-term debt totaled approximately $1.48 billion compared with $1.28 billion as of Feb. 4, 2024.
PLAY’s Fiscal 2024 Highlights
Total revenues in fiscal 2024 came in at $2.13 billion compared with $2.2 billion in fiscal 2023.
Operating income in fiscal 2024 came in at $220.4 million compared with $306.6 million in fiscal 2023.
In fiscal 2024, adjusted EPS came in at $2.53 compared with $3.56 reported in the previous year.
PLAY Store Development Updates
Dave & Buster’s continues to demonstrate strong execution of its growth strategy through high-return new store development. In the fourth quarter of fiscal 2024, the company added five new locations — four Dave & Buster’s venues in Clarksville, TN; Mobile, AL; Niles, OH; and Bloomington, IN; along with one Main Event location in Montclair, CA. This brings the total number of new store openings to 14 for the fiscal year.
In a notable milestone, the company announced the launch of its first international franchise location in India in December. To date, Dave & Buster’s has signed 35 franchise partnership agreements, with commitments for more than 35 stores. At least six additional franchise units are expected to open within the next 12 months.
Looking ahead, the company plans to open 10 to 12 new stores in fiscal 2025, along with a store relocation in Honolulu, HI.
PLAY’s Zacks Rank & Key Picks
Dave & Buster currently has a Zacks Rank #4 (Sell).
The company delivered a trailing four-quarter negative earnings surprise of 84.7%, on average. The stock has declined 6.3% in the past six months. The Zacks Consensus Estimate for BJ's Restaurants’ 2025 sales and EPS indicates growth of 3.3% and 13.6%, respectively, from the year-ago period’s levels.
Kura Sushi currently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of negative 70.8%, on average. The stock has declined 62.5% in the past year.
The consensus estimate for Kura Sushi’s 2025 sales and EPS indicates growth of 18.8% and 243.8%, respectively, from the year-ago period’s levels.
Sprouts Farmers currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 15.1%, on average. The stock has gained 29.4% in the past six months.
The Zacks Consensus Estimate for Sprouts Farmers’ 2025 sales and EPS indicates a rise of 11.9% and 24.3%, respectively, from the year-ago period’s level.
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Dave & Buster's Q4 Earnings Surpass Estimates, Revenues Lag
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported fourth-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both metrics declined on a year-over-year basis.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Dave & Buster’s reported a weak fourth quarter but expressed confidence in the company’s direction as recent trends show signs of improvement. The current leadership team is undoing several decisions made by prior management in marketing, operations and capital spending, and is returning to a more disciplined, fundamentals-driven strategy. While execution faltered in the past, management maintains that the strategic plan is sound and expects current corrective actions to drive stronger revenues, EBITDA and free cash flow in the coming periods. Early results from March and April have already outpaced prior months, and the company remains in a solid financial position with low leverage and no near-term debt pressures.
PLAY’s Q4 Earnings & Revenues
For the fiscal fourth quarter, the company reported an adjusted earnings per share (EPS) of 69 cents, beating the Zacks Consensus Estimate of 64 cents. In the year-ago quarter, it reported an adjusted EPS of $1.03.
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 $534.5 million missed the consensus mark of $545 million. The top line declined 10.8% from $599.1 million reported in the prior-year quarter.
Food and Beverage revenues (37.3% of total revenues in the reported quarter) declined 9.4% year over year to $199.5 million. Our estimate was $166.9 million.
Entertainment revenues (62.7%) fell 11.6% year over year to $335 million. Our estimate was $383.7 million.
Comps Details
During the quarter under discussion, comparable store sales (including Main Event-branded stores) declined 9.4% year over year.
Dave & Buster's Q4 Operating Highlights
During the fiscal fourth quarter, operating income amounted to $44.1 million compared with $89.6 million reported in the prior-year quarter. The operating margin was 8.3% compared with 15% in the year-ago quarter. Our estimate for the metric was 10.7%.
Adjusted EBITDA during the quarter came in at $127.2 million compared with $151.8 million reported in the year-earlier quarter. Our estimate for the metric was $121.9 million.
Balance Sheet
As of Feb. 4, 2025, cash and cash equivalents were $6.9 million compared with $37.3 million as of Feb. 4, 2024.
At the fiscal fourth-quarter end, net long-term debt totaled approximately $1.48 billion compared with $1.28 billion as of Feb. 4, 2024.
PLAY’s Fiscal 2024 Highlights
Total revenues in fiscal 2024 came in at $2.13 billion compared with $2.2 billion in fiscal 2023.
Operating income in fiscal 2024 came in at $220.4 million compared with $306.6 million in fiscal 2023.
In fiscal 2024, adjusted EPS came in at $2.53 compared with $3.56 reported in the previous year.
PLAY Store Development Updates
Dave & Buster’s continues to demonstrate strong execution of its growth strategy through high-return new store development. In the fourth quarter of fiscal 2024, the company added five new locations — four Dave & Buster’s venues in Clarksville, TN; Mobile, AL; Niles, OH; and Bloomington, IN; along with one Main Event location in Montclair, CA. This brings the total number of new store openings to 14 for the fiscal year.
In a notable milestone, the company announced the launch of its first international franchise location in India in December. To date, Dave & Buster’s has signed 35 franchise partnership agreements, with commitments for more than 35 stores. At least six additional franchise units are expected to open within the next 12 months.
Looking ahead, the company plans to open 10 to 12 new stores in fiscal 2025, along with a store relocation in Honolulu, HI.
PLAY’s Zacks Rank & Key Picks
Dave & Buster currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Retail-Wholesale sector are BJ's Restaurants, Inc. (BJRI - Free Report) , Kura Sushi USA, Inc. (KRUS - Free Report) and Sprouts Farmers Market, Inc. (SFM - Free Report) .
BJ's Restaurants currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter negative earnings surprise of 84.7%, on average. The stock has declined 6.3% in the past six months. The Zacks Consensus Estimate for BJ's Restaurants’ 2025 sales and EPS indicates growth of 3.3% and 13.6%, respectively, from the year-ago period’s levels.
Kura Sushi currently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of negative 70.8%, on average. The stock has declined 62.5% in the past year.
The consensus estimate for Kura Sushi’s 2025 sales and EPS indicates growth of 18.8% and 243.8%, respectively, from the year-ago period’s levels.
Sprouts Farmers currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 15.1%, on average. The stock has gained 29.4% in the past six months.
The Zacks Consensus Estimate for Sprouts Farmers’ 2025 sales and EPS indicates a rise of 11.9% and 24.3%, respectively, from the year-ago period’s level.