Leisure Facilities Stocks Q3 Highlights: Dave & Buster's (NASDAQ:PLAY)

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Dave & Buster's (NASDAQ:PLAY) and the rest of the leisure facilities stocks fared in Q3.

Leisure facilities companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted their spending from "things" to "experiences". Leisure facilities seek to benefit but must innovate to do so because of the industry's high competition and capital intensity.

The 11 leisure facilities stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 0.6% below.

Thankfully, share prices of the companies have been resilient as they are up 5.5% on average since the latest earnings results.

Dave & Buster's (NASDAQ:PLAY)

Founded by a former game parlor and bar operator, Dave & Buster’s (NASDAQ:PLAY) operates a chain of arcades providing immersive entertainment experiences.

Dave & Buster's reported revenues of $448.2 million, down 1.1% year on year. This print fell short of analysts’ expectations by 2.8%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.

“I am pleased to report we are making substantive progress on our back-to-basics plan,” said Tarun Lal, Chief Executive Officer.

Interestingly, the stock is up 1.8% since reporting and currently trades at $18.52.

Read our full report on Dave & Buster's here, it’s free for active Edge members.

Best Q3: AMC Entertainment (NYSE:AMC)

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE:AMC) operates movie theaters primarily in the US and Europe.

AMC Entertainment reported revenues of $1.3 billion, down 3.6% year on year, outperforming analysts’ expectations by 6.3%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

AMC Entertainment delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 27.4% since reporting. It currently trades at $1.83.

Is now the time to buy AMC Entertainment? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: United Parks & Resorts (NYSE:PRKS)

Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE:PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.

United Parks & Resorts reported revenues of $511.9 million, down 6.2% year on year, falling short of analysts’ expectations by 5.2%. It was a disappointing quarter as it posted a miss of analysts’ visitors and revenue estimates.

As expected, the stock is down 23.5% since the results and currently trades at $35.34.

Read our full analysis of United Parks & Resorts’s results here.

Xponential Fitness (NYSE:XPOF)

Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE:XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.

Xponential Fitness reported revenues of $78.82 million, down 2.1% year on year. This print topped analysts’ expectations by 3.9%. Overall, it was a very strong quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 21% since reporting and currently trades at $7.62.

Read our full, actionable report on Xponential Fitness here, it’s free for active Edge members.

European Wax Center (NASDAQ:EWCZ)

Founded by two siblings, European Wax Center (NASDAQ:EWCZ) is a beauty and waxing salon chain specializing in professional wax services and skincare products.

European Wax Center reported revenues of $54.19 million, down 2.2% year on year. This result surpassed analysts’ expectations by 2.7%. It was a strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

European Wax Center had the weakest full-year guidance update among its peers. The stock is up 2.5% since reporting and currently trades at $3.74.

Read our full, actionable report on European Wax Center here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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