Dave & Busters Entertainment, Inc. (NASDAQ: PLAY)
Dave & Busters Entertainment, Inc. (PLAY), an entertainment and dining venue comapny yesterday reported their first quarter 2016 financial results. Dave & Busters reported first quarter earnings of $0.72 per share which beat analyst expectations of $0.59 per share. Dave & Busters reported revenues increased 17.6% year over year to $262 million which beat analyst expectations of $251.42 million.
Dave & Busters Entertainment, Inc. CEO’s Comments
“We are off to a great start in fiscal 2016 with results that surpassed our expectations and are pleased to already be raising our annual outlook. Our unique entertainment, dining, and sports viewing venues are demonstrating their broad-based appeal despite challenges affecting many of our casual dining peers and we are committed to keeping our brand fresh through a continuous stream of ‘new news’ to further differentiate ourselves,” said Steve King, Chief Executive Officer.
“During the first quarter, our 18 non-comparable stores contributed an incremental $31.1 million to our top-line, and together with a 3.6% increase in comparable store sales, resulted in an acceleration of total revenue growth by 17.7% to $262 million. This was the largest number of non-comparable stores for any first quarter in Dave & Buster’s history and reflects the growing impact of new store development on our overall financial performance. Our comparable store sales have now exceeded the competitive casual dining benchmark for 16 straight quarters and reached 13.5% on a two-year stacked basis. The continued shift in revenues to our higher-margin amusement category coupled with operating leverage enabled us to grow Adjusted EBITDA and Margins by 28.4% and 250 basis points, respectively. In doing so, we set new first quarter records for these metrics,” King continued. Globe Newswire
PLAY Technical Analysis
PLAY opened trading yesterday at $42.54 which was up from the previous days trading of $41.47. PLAY closed trading yesterday at $41.86 and spiked up after market to $44.10, equivalent to a 5% increase from the closing price. Taking a look at the daily chart we can see that the last time PLAY traded above this price level was on December 7th when it traded at $44.03. Taking a closer look at the daily chart we can see that PLAY is in unchartered territory as it is trading at all time highs. PLAY has a float of 37.11 million shares and traded over 3.16 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see PLAY open trading on Wednesday above $43.50 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Dave & Busters Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America. Its venues offer a menu of Fun American New Gourmet entrées and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Busters name. As of January 31, 2016, it owned and operated 81 stores in 30 states and Canada. Dave & Busters Entertainment, Inc. was founded in 1982 and is headquartered in Dallas, Texas. Yahoo Finance
