Shares of Dave & Buster’s experienced a significant surge in morning trading following the release of its third-quarter financial report. Although the family-entertainment chain reported a sales slowdown, it was not as severe as anticipated by Wall Street analysts.
The stock witnessed an impressive 11% increase, reaching $46.37 in recent trading. Year-to-date, Dave & Buster’s shares have risen by approximately 32%, surpassing the S&P 500’s 19% growth over the same period.
The Dallas-based company, operating under the Dave & Buster’s and Main Event banners, disclosed a 7.8% decline in same-store sales for the quarter. This result outperformed analysts’ expectations of an 8.9% drop, as reported by FactSet.
In comparison to the same period in 2019, same-store sales demonstrated an 8.1% increase. Chief Financial Officer Michael Quartieri noted that this improvement marks a positive turnaround from the previous quarter, indicating that the company is emerging from its most challenging comparisons.
Dave & Buster’s reported a loss of 12 cents per share for the third quarter, contrasting with a profit of 4 cents per share during the same period last year. Adjusted earnings were only a penny per share. Analysts had projected a loss of 14 cents per share.
The company is actively implementing strategies to enhance its business performance. This includes menu overhauls, venue remodeling, and adjustments in game pricing. During a conference call with analysts, Chief Executive Chris Morris shared promising early results from the company’s first remodeled store in Texas.
