Dave & Buster’s (PLAY) Beats Expectations for Q1

Dave & Buster’s Entertainment Inc (NASDAQ:PLAY) has an interesting history. Back in the 1970s, James Buster Corley started a restaurant, and around the same time, Dave Corriveau was operating a place for entertainment and games. In 1982, Corley and Dave met each other and came up with the idea of opening first Dave Buster’s. Since then, the company has been offering high-quality food and beverage as well as sports and other entertainment under one roof.

The Dallas, Texas-based restaurant and entertainment company recently announced better-than-expected financial results for the first quarter. Dave & Buster’s reported earnings of $19.6 million, or 40 cents per share for the three months ended May 2, compared to a loss of $43.5 million, or $1.37 per share in the year-ago quarter.

Revenue came in at $265.3 million, significantly higher than $159.8 million in the comparable period of 2020. Analysts, on average, were expecting Dave & Buster’s to report a loss of 16 cents per share on revenue of $246 million.

Commenting on the results, CEO Brian Jenkins said, “The strength and resilience of the Dave & Buster’s brand has never been more evident. We saw a significant improvement in demand across our store base in the first quarter, including at our recently re-opened New York and California stores. We generated $265 million in total sales, surpassing the top end of our expected range for the quarter, and established a new high-water mark in our post-Covid sales recovery. This strong sales rebound, coupled with our lean operating model, drove outstanding profit flow-through during the quarter, and generated $72 million in EBITDA, only 19% below the first quarter of 2019.”

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Dave & Buster’s also issued its revenue outlook for the second quarter. It is expecting revenue in the range of $335 million to $350 million, compared to $345 million in the second quarter of 2019 (see best restaurant stocks to buy).