Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) is gearing up to unveil its second-quarter fiscal 2023 results on September 6, 2023, following the closing of the market. In the previous quarter, the company was pleasantly surprised with earnings that surpassed expectations by a substantial 23.9%.
Q2 Outlook
Analysts anticipate a positive performance for Dave & Buster’s in the fiscal second quarter, with the Zacks Consensus Estimate projecting earnings per share (EPS) of 94 cents. This represents a noteworthy improvement of 54.1% compared to the 61 cents reported in the same period last year.
When it comes to revenue, the consensus forecast stands at $558.4 million, indicating a robust 19.2% increase from the figures reported in the year-ago quarter.
Key Factors at Play
Dave & Buster’s is expected to have benefited significantly in its fiscal second quarter from several factors. These include a robust Special Events business, enhancements in their culinary offerings, and a commitment to expanding their unit presence. These strategic initiatives, coupled with improved labor efficiency and more stringent cost controls, are likely to have set the stage for margin enhancements during this reporting period.
The company’s strong performance in food and beverage, as well as amusement and other categories, is anticipated to be reflected in its quarterly financials. According to our projections, food and beverage revenues for the fiscal second quarter are expected to rise by 14.3% year-over-year, reaching $179.4 million. Additionally, Entertainment revenues are predicted to experience a 19.9% year-over-year surge, reaching $373.3 million.
Dave & Buster’s focus on upgrading guest-facing technology, aimed at streamlining the ordering process, and its summer campaign promotions, designed to boost foot traffic, are believed to have contributed positively to the company’s performance in the fiscal second quarter.
Nevertheless, the company may have had to grapple with challenges posed by a demanding macroeconomic environment. This includes inflationary pressures affecting labor and commodities, which may have impacted the company’s bottom line for the quarter. Our model suggests that total operating expenses are likely to have risen by 11.8% year-over-year, reaching $460.7 million in the fiscal second quarter.
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