|
|
|
|
|||||
|
|
|
Dave & Buster's Entertainment, Inc. PLAY 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.
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-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.
During the quarter under discussion, comparable store sales (including Main Event-branded stores) declined 9.4% year over year.
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.
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.
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.
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.
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, Kura Sushi USA, Inc. KRUS and Sprouts Farmers Market, Inc. SFM.
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.
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
This article originally published on Zacks Investment Research (zacks.com).
| 1 hour | |
| Apr-15 | |
| Apr-15 |
Sprouts Farmers Market's Profits Keep Growing As This Gold Stock Shines
SFM
Investor's Business Daily
|
| Apr-15 | |
| Apr-15 | |
| Apr-15 | |
| Apr-15 | |
| Apr-15 | |
| Apr-15 | |
| Apr-15 | |
| Apr-14 | |
| Apr-14 | |
| Apr-14 | |
| Apr-14 | |
| Apr-14 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite