Dave & Buster’s Stock Surges on Tuesday After Management Outlines Cost Cuts
June 14, 2023
🌧️Trending News
Dave & Buster’s Entertainment ($NASDAQ:PLAY), a restaurant and entertainment chain, experienced a surge in stock prices on Tuesday after management announced cost reduction measures. The company has experienced ups and downs in the stock market recently, but Tuesday saw a sharp rise after executives discussed plans to reduce costs. Management outlined various strategies to help the company get back on track financially. This included plans to reduce labor costs by leveraging technology and shifting to a more efficient model.
Additionally, Dave & Buster’s is looking into renegotiating lease terms and other costs. The company is also exploring ways to improve cash flow. The news about cost reductions appears to have resonated with investors, as the stock surged on Tuesday. With the pandemic continuing to challenge the restaurant industry, Dave & Buster’s has had to adapt with creative ways for customers to enjoy their services while staying safe. The cost reduction measures announced by management will help ensure that the company is in a better financial position moving forward.
Share Price
On Tuesday, shares of DAVE & BUSTER’S ENTERTAINMENT saw a significant surge as the stock opened at $40.9 and closed at $46.1, soar by 19.2% from its previous closing price of 38.7. Furthermore, DAVE & BUSTER’S ENTERTAINMENT also intends to reduce corporate overhead expenses and will be focusing on cost-saving initiatives across their marketing, technology, and business support teams. These cost-cutting measures have been well-received by investors in the short-term as they have pushed up the stock prices of DAVE & BUSTER’S ENTERTAINMENT. The company expects these cost-saving initiatives will enable them to return to profitability and strengthen their financial position over the long-term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for PLAY. More…
| Total Revenues | Net Income | Net Margin |
| 2.11k | 140.24 | 6.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for PLAY. More…
| Operations | Investing | Financing |
| 388.27 | -1.06k | 626.71 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for PLAY. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.69k | 3.33k | 8.02 |
Key Ratios Snapshot
Some of the financial key ratios for PLAY are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.4% | 114.5% | 13.1% |
| FCF Margin | ROE | ROA |
| 6.8% | 44.8% | 4.7% |
Analysis
At GoodWhale, we analyzed DAVE & BUSTER’S ENTERTAINMENT’s financials and categorized it as a ‘gorilla’ in our Star Chart. Typically, a ‘gorilla’ is a company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. As such, we speculate that investors may be interested in this type of company for its potential earnings and growth. Additionally, DAVE & BUSTER’S ENTERTAINMENT has a strong growth score, high profitability score, medium asset score, and a weak dividend score. This suggests that the company is in good financial health overall, with an intermediate health score of 6/10 with regard to its cashflows and debt. We believe that DAVE & BUSTER’S ENTERTAINMENT is in a position to pay off debt and fund future operations. More…
Peers
The competition in the entertainment industry is intense. Companies are constantly vying for market share and trying to outdo each other. Dave & Buster’s Entertainment Inc is no different. It competes against other big names such as Bowlero Corp, Societa Sportiva Lazio SPA, and DEAG Deutsche Entertainment AG. These companies are all fighting for a piece of the pie and each has its own unique strengths and weaknesses.
– Bowlero Corp ($NYSE:BOWL)
Bowlero Corporation is the world’s largest operator of bowling centers, with more than 300 locations across the United States. The company was founded in 2013 and is headquartered in New York, New York. Bowlmor AMF is the largest operator of bowling alleys in the world. The company was formed in 2013 from the merger of AMF Bowling Worldwide and Bowlmor Lanes.
– Societa Sportiva Lazio SPA ($LTS:0MS9)
Societa Sportiva Lazio SPA is an Italian professional sports club based in Rome, Lazio. The club was founded in 1900 and currently plays in Serie A, the top flight of Italian football. Lazio has won the Coppa Italia a record seven times and the Supercoppa Italiana three times. The club has also won the UEFA Cup Winners’ Cup once and the UEFA Super Cup once.
As of 2022, Societa Sportiva Lazio SPA has a market capitalization of 68.42 million and a return on equity of -538.84%. The company is a professional sports club that competes in Serie A, the top flight of Italian football. Lazio has won several championships and trophies, including the Coppa Italia and the Supercoppa Italiana. The club also has one UEFA Cup Winners’ Cup and one UEFA Super Cup to its name.
Summary
Dave & Buster’s Entertainment Inc. saw a surge in its stock price on Tuesday after management outlined its plans for cost cuts. The company believes that by cutting costs and streamlining operations, they can turn their business around and increase their profits. Investors are impressed by their plan and responded positively to the news.
This positive outlook has caused the stock to increase significantly. The optimism of investors point to the potential of Dave & Buster’s and the potential for the company to return to a profitable state in the near future.
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