Key Takeaways
- Dave & Buster’s Entertainment reported profit that exceeded analysts’ forecasts as the chain made changes to its menu, pricing strategy, and added new locations.
- Still, comparable store sales fell 6.3% from a year ago as CEO Chris Morris said the company faced a “complex and challenging environment.”
- Shares of Dave & Buster’s rose in early trading Wednesday before giving up gains later in the session.
Dave & Buster’s Entertainment (PLAY) posted a better-than-expected profit for the second quarter as the chain made changes to its menu, pricing strategy, and added new locations.
The company reported second-quarter diluted earnings per share (EPS) of 99 cents, above analysts’ estimates compiled by Visible Alpha. Revenue rose 2.8% from a year ago to $557.1 million, below forecasts.
Menu, Pricing Changes ‘Well Received’
CEO Chris Morris said the chain’s new menu “continues to be well received by our guests,” and the company’s top line and margins benefited from testing of pricing levels for games, food, and beverages. An increase in special events business and new stores also helped.
Still, comparable store sales fell 6.3% from a year ago as Morris said the company faces a “complex and challenging environment.” Morris said Dave & Buster’s is “laser focused on our medium-term goals and encouraged by the progress we are making on each of the initiatives,” anticipating a rebound in the coming quarters.
Shares of Dave & Buster’s rose in early trading Wednesday before giving up gains later in the session. They’ve lost over 44% of their value since the start of the year.
TradingView