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) Posts Wider-Than-Expected Loss in Q1
Read MoreHide Full Article
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported dismal first-quarter fiscal 2020 (ended May 3, 2020) results, wherein earnings and revenues not only missed the Zacks Consensus Estimate but also declined on a year-over-year basis.
Even though the coronavirus pandemic materially impacted the company’s first-quarter results, the company has taken aggressive measures to enhance its liquidity position to tide over the crisis. It is also resorting to store re-openings with limited capacity to boost its top-line growth. Markedly, the initiatives were backed by positive investor sentiments, as shares of the company gained 3.6% during the after-hours trading on Jun 11.
Adjusted loss during the quarter was $1.37 per share, which was 73.4% wider than the Zacks Consensus Estimate of loss of 79 cents. The company reported earnings per share of $1.13 in the year-ago quarter.
Let’s delve into the quarterly numbers.
Dave Busters Entertainment, Inc. Price, Consensus and EPS Surprise
Quarterly revenues of $159.8 million missed the consensus mark of $187 million by 14.6%. The top line also declined 56% from the prior-year quarter’s number. The decline was primarily attributed to lower operating weeks due to temporary store closures from mid-March. Due to this, Amusements and Other revenues as well as Food and Beverage revenues fell considerably during the quarter.
Food and Beverage revenues (40% of total revenues in the fiscal first quarter) decreased 56.9% year over year to $63.9 million, while Amusement and Other revenues (60% of total revenues) fell 55.5% to $95.9 million.
Comps Details
Comparable store restaurant sales declined 58.6% in the fiscal first quarter compared to a fall of 0.3% in the year-ago quarter. The decline was primarily caused by temporary store closures, thus, leading to lower customer volumes.
Non-comparable store revenues in the reported quarter declined 17.2% to $22.6 million compared to $27.3 million in the year-ago quarter. The decrease was primarily driven by temporary store closures.
Operating Highlights
Operating loss in the fiscal first quarter totaled $61.4 million against an operating profit of $57.8 million in the prior-year quarter. Operating margin came in at negative 38.4%, down 5430 bps from the year-ago quarter. Notably, a decline in traffic due to temporary store closures has negatively impacted the operating results for the fiscal first quarter.
EBITDA was ($10.8 million) against $98.1 million in the prior-year quarter. Also, EBITDA margin contracted 3370 bps year over year to a decline of 6.7%.
Net cash provided by operating activities was $16.8 million in the fiscal first quarter compared with $85.7 million in the year-ago quarter.
Balance Sheet
As of May 3, cash and cash equivalents totaled $156.8 million compared with $20.4 million as of May 5, 2019.
Long-term debt summed $735.3 million at the end of the reported quarter, up from $632.7 million at the end of Feb 2, 2020.
Due to uncertainties tied to the COVID-19 pandemic, the company suspended its share-repurchase activity as well as the dividend payment program.
Stores Update
Although Dave & Buster’s was operating only through delivery and takeaway services from late March through late April, it started to initiate dine-in openings thereafter. With 28 stores already reopened, the company expects to re-open 48 stores across 15 states by Jun 12.
Company-owned stores at the end of the fiscal first quarter totaled 137 compared to 127 stores in the prior-year quarter.
Fiscal 2020 Guidance
Owing to the unprecedented and evolving nature of the coronavirus outbreak, the company has not provided its fiscal 2020 financial guidance at this time.
Domino's Pizza, Inc. (DPZ - Free Report) reported first-quarter 2020 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings of $3.07 per share outpaced the consensus mark of $2.29 and improved 39.5% on a year-over-year basis. Revenues of $873.1 million beat the consensus mark of $867 million and improved 4.4% year over year.
Yum China Holdings, Inc. (YUMC - Free Report) reported first-quarter 2020 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings of 16 cents compared favorably with the Zacks Consensus Estimate of a loss of 25 cents. However, the reported figure declined 72.9% from the year-ago quarter. Total revenues of $1,754 million beat the consensus mark of $1,145 million but deteriorated 23.9% year over year.
BJs Restaurants Inc.’s (BJRI - Free Report) first-quarter 2020 adjusted loss (excluding an impairment charge of 12 cents per share) of 10 cents per share was narrower than the Zacks Consensus Estimate of a loss of 38 cents. In the year-ago period, it reported adjusted earnings of 62 cents per share. Total quarterly revenues of $254.6 million lagged the consensus estimate of $261.7 million by 2.7% and declined 12.4% year over year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Dave & Buster's (PLAY) Posts Wider-Than-Expected Loss in Q1
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported dismal first-quarter fiscal 2020 (ended May 3, 2020) results, wherein earnings and revenues not only missed the Zacks Consensus Estimate but also declined on a year-over-year basis.
Even though the coronavirus pandemic materially impacted the company’s first-quarter results, the company has taken aggressive measures to enhance its liquidity position to tide over the crisis. It is also resorting to store re-openings with limited capacity to boost its top-line growth. Markedly, the initiatives were backed by positive investor sentiments, as shares of the company gained 3.6% during the after-hours trading on Jun 11.
Adjusted loss during the quarter was $1.37 per share, which was 73.4% wider than the Zacks Consensus Estimate of loss of 79 cents. The company reported earnings per share of $1.13 in the year-ago quarter.
Let’s delve into the quarterly numbers.
Dave Busters Entertainment, Inc. Price, Consensus and EPS Surprise
Dave Busters Entertainment, Inc. price-consensus-eps-surprise-chart | Dave Busters Entertainment, Inc. Quote
Detailed Revenue Discussion
Quarterly revenues of $159.8 million missed the consensus mark of $187 million by 14.6%. The top line also declined 56% from the prior-year quarter’s number. The decline was primarily attributed to lower operating weeks due to temporary store closures from mid-March. Due to this, Amusements and Other revenues as well as Food and Beverage revenues fell considerably during the quarter.
Food and Beverage revenues (40% of total revenues in the fiscal first quarter) decreased 56.9% year over year to $63.9 million, while Amusement and Other revenues (60% of total revenues) fell 55.5% to $95.9 million.
Comps Details
Comparable store restaurant sales declined 58.6% in the fiscal first quarter compared to a fall of 0.3% in the year-ago quarter. The decline was primarily caused by temporary store closures, thus, leading to lower customer volumes.
Non-comparable store revenues in the reported quarter declined 17.2% to $22.6 million compared to $27.3 million in the year-ago quarter. The decrease was primarily driven by temporary store closures.
Operating Highlights
Operating loss in the fiscal first quarter totaled $61.4 million against an operating profit of $57.8 million in the prior-year quarter. Operating margin came in at negative 38.4%, down 5430 bps from the year-ago quarter. Notably, a decline in traffic due to temporary store closures has negatively impacted the operating results for the fiscal first quarter.
EBITDA was ($10.8 million) against $98.1 million in the prior-year quarter. Also, EBITDA margin contracted 3370 bps year over year to a decline of 6.7%.
Net cash provided by operating activities was $16.8 million in the fiscal first quarter compared with $85.7 million in the year-ago quarter.
Balance Sheet
As of May 3, cash and cash equivalents totaled $156.8 million compared with $20.4 million as of May 5, 2019.
Long-term debt summed $735.3 million at the end of the reported quarter, up from $632.7 million at the end of Feb 2, 2020.
Due to uncertainties tied to the COVID-19 pandemic, the company suspended its share-repurchase activity as well as the dividend payment program.
Stores Update
Although Dave & Buster’s was operating only through delivery and takeaway services from late March through late April, it started to initiate dine-in openings thereafter. With 28 stores already reopened, the company expects to re-open 48 stores across 15 states by Jun 12.
Company-owned stores at the end of the fiscal first quarter totaled 137 compared to 127 stores in the prior-year quarter.
Fiscal 2020 Guidance
Owing to the unprecedented and evolving nature of the coronavirus outbreak, the company has not provided its fiscal 2020 financial guidance at this time.
Zacks Rank
Dave & Buster’s currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
Domino's Pizza, Inc. (DPZ - Free Report) reported first-quarter 2020 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings of $3.07 per share outpaced the consensus mark of $2.29 and improved 39.5% on a year-over-year basis. Revenues of $873.1 million beat the consensus mark of $867 million and improved 4.4% year over year.
Yum China Holdings, Inc. (YUMC - Free Report) reported first-quarter 2020 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings of 16 cents compared favorably with the Zacks Consensus Estimate of a loss of 25 cents. However, the reported figure declined 72.9% from the year-ago quarter. Total revenues of $1,754 million beat the consensus mark of $1,145 million but deteriorated 23.9% year over year.
BJs Restaurants Inc.’s (BJRI - Free Report) first-quarter 2020 adjusted loss (excluding an impairment charge of 12 cents per share) of 10 cents per share was narrower than the Zacks Consensus Estimate of a loss of 38 cents. In the year-ago period, it reported adjusted earnings of 62 cents per share. Total quarterly revenues of $254.6 million lagged the consensus estimate of $261.7 million by 2.7% and declined 12.4% year over year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>