Key takeaways
- Dave & Buster has set earnings and revenue records.
- The restaurant chain has repurchased $200 million in stock so far this year.
- Two new deals will add franchises in India and Australia.
Dave & Buster's Entertainment (PLAY) surged as the gaming-themed restaurant chain posted record profits and sales.
Dave & Buster reported first-quarter fiscal 2023 revenue of $70.1 million, or $1.45 per share, beating guidance. Revenue climbed 32.4% to $597.3 million, although that was less than analysts had expected.
CEO Chris Morris indicated Dave & Buster's realized the strategic opportunities he identified “to unlock significant revenue growth and profitability opportunities in our business.”
The company noted that it had repurchased 3.6 million shares at a cost of $125.5 million during the quarter. Since then, he has purchased an additional 2.1 million shares worth $74.5 million, bringing the total so far this fiscal year to $5.7 million. shares for $200 million.
In addition to his earnings, Dave & amp; Buster's announced two agreements to create a 15-store partnership in India and a five-store agreement in Australia. It added that it was the second and third multi-store franchise deals since publishing its global expansion plans last year. The company added that these moves “firmly cemented the brand” in the Asia-Pacific and Middle East-Africa regions, with 31 stores engaged in development since then.
Dave & Shares of Buster soared 24% on Wednesday morning after the news, putting them in positive territory for the year.
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Source: investopedia.com
