By Dhirendra Tripathi
Investing.com – Dave & Buster’s stock (NASDAQ:PLAY) rose 7% Friday as the operator of "eat, drink, play and watch" locations said its third quarter comparable store sales will be approximately in line with the quarter-to-date trends of 2019.
It said third-quarter earnings before interest, taxes, depreciation and amortization will be significantly higher than 2019 quarter’s $39.8 million, but with some moderation compared with the increase in the second quarter.
Second-quarter Ebitda was $114.0 million, or 30% of revenue, compared to a loss in the year-ago period and Ebitda of $79 million, or 23% of revenue in the 2019 quarter.
Revenue soared more than seven-fold to a record $377.6 million from the 2020 quarter and was about 10% higher than 2019 quarter’s $344.6 million. Overall, comparable store sales rose 3.6% compared to the same period in 2019 as stores reopened and people returned to dining out and play games.
The company closed the quarter with all its 142 combined restaurant and arcade locations open.
The company swung back to a profit of $52.8 million in the quarter compared to a net loss last time. Its profit in the comparable 2019 quarter was $32.4 million.
The entertainment and dining chain said business recovery has continued through the first five weeks of the third quarter, including Labor Day Monday, during which comparable store sales rose 1.3% compared to 2019.
A total of four new stores are expected to open in the current financial year with one outlet being relocated, according to a company note.