Jim Cramer on Dave & Buster's: "I Think It's Too Early to Put Money In"

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) is one of the stocks on Jim Cramer’s radar. Cramer highlighted the problems faced by the company, as he commented:

“Next, in early November, Jim in Florida asked about another consumer facing name. This was Dave & Buster’s. Now, this one I actually knew, but I wanted to do more research to see if there was an opportunity here… It was public then went private, then came public. Dave & Buster’s stock has been struggling of late… Still, the numbers are not so hot. Dave & Buster’s look set to… get its third straight year of negative same-store sales and its second consecutive year of declining earnings per share.

The company’s been doing so poorly that around this time last year, their CEO had to resign. After several months with an interim CEO, the board brought in an executive from Yum! Brands, Tarun Lal, who’s rolled out a bunch of initiatives to turn things around, bringing back TV ads, changing the menu, decreasing promotions, but it’s still too soon to tell if this stuff is working. We’ll have a better idea when Dave & Buster’s reports just next week.

Here’s what I’ll say for Jim in Florida: listen, I’m intrigued by the idea of Dave & Buster’s turnaround, but with many consumers struggling and the company itself doing so poorly, I’m nervous about trying to get into the stock ahead of the turn. Doesn’t help that the balance sheet remains a mess. So for now, I’m keeping an eye on Dave & Buster’s, watching, maybe you got a potential turn, but at this point, I think it’s too early to put money in.”

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) operates venues that combine dining, drinks, and a mix of games and attractions, including arcades, bowling, laser tag, virtual reality, and live sports viewing.

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Disclosure: None. This article is originally published at Insider Monkey.