Dave & Buster's Posts Mixed Q1 Results, Plans To Open 20 Stores In India And Australia

Dave & Buster's Entertainment Inc PLAY reported Q1 2023 revenues of 32.4% Y/Y to $597.3 million, missing the consensus of $601.7 million.

Pro forma combined comparable store sales (including Main Event branded stores) fell 4.1% Y/Y in the quarter.

Adjusted EBITDA increased 29.8% Y/Y to $182.1 million, with margins contracting to 30.5% from 31.1% a year ago.

EPS of $1.45 exceeded the consensus of $1.24.

Operating cash flow stood at $92.4 million in the quarter vs. $148.6 million a year ago.

Cash and equivalents stood at $91.5 million at the end of the quarter.

Repurchase: PLAY repurchased shares worth $125.5 million in the quarter. 

Also, subsequent to the end of the quarter, the company purchased shares worth $74.5 million.

"As a testament to the conviction we have in the long-term success of our business and the value we see in our shares, we have repurchased $200 million of common stock thus far in fiscal 2023, reducing our shares outstanding by nearly 12%. We see tremendous upside as we continue to drive value creation for our stakeholders and we look forward to keeping you updated on our progress," said Chris Morris, CEO.

Along with the Q1 release, PLAY announced two significant deals for expanding in India and Australia.

The company inked a 15-store deal with the Malpani Group in India and a 5-store agreement with the NightOwl Entertainment Group in Australia.

Price Action: PLAY shares are trading higher by 2.87% at $34.71 premarket on the last check Wednesday.