Please ensure Javascript is enabled for purposes of website accessibility

Dave and Busters Entertainment, Inc. (PLAY)

Analysts are forecasting a 27% growth rate for this entertainment company this year. Earnings are scheduled to be announced on September 6.
Dave and Busters Entertainment, Inc. (PLAY)
From BI Research

Dave and Busters Entertainment, Inc. (PLAY) is an 82 location casual restaurant concept where you can go to have a good time and not only eat and/or have a few drinks, but also play games and watch sports or whatever is on the TV screens.

I reported that Q1 EPS of $.72 blew by analysts’ estimates of $.59 and vs. last year’s $.46, up 56%, and a 22% upside surprise. Now we are awaiting fiscal Q2 results for the 7/31 Q, which should be out by early September.

Analysts are looking for EPS to come in at about $.44 on revenues of $246 million vs. last year’s EPS of $.40 on revenues of $217 million. While we wait, it is worth pointing out that Macy’s recently announced that it would be closing about 100 of its 850 department stores. Last year Sears also announced it was closing a boat load of stores or downsizing them And of course, it is people’s increasing inclination to shop over the Internet that is driving this.

But there is a silver lining in this for Dave & Busters, whose restaurant, bar and arcade/games area fits very nicely into the footprint of a former department store. D&B’s footprint is about 40,000 s.f. for a regular sized location and 26,500 s.f. for its smaller format. So the demise of department stores will help the company more readily find suitable locations, and likely at better lease rates. In fact, concepts like Dave & Busters are becoming the new anchor tenants instead of department stores to drive traffic to the malls.

So what’s not good for department stores turns out to be great for Dave & Busters. Buy.

Tom Bishop, BI Research,, August 22, 2016