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April 2, 2020, 5:00 p.m. EDT

Dave & Buster's stock rallies on earnings beat, coronavirus cost cuts

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    Dave & Buster's Entertainment Inc. (PLAY)

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By Wallace Witkowski

PLAY

Dave & Buster's Entertainment Inc. /zigman2/quotes/203157296/composite PLAY -3.23% shares rallied in the extended session Thursday after the arcade-themed restaurant chain topped Wall Street estimates and announced measures to save money while its stores are closed due to the COVID-19 coronavirus pandemic. Dave & Buster's shares rallied 12% after hours, following a 6.1% decline in the regular session to close at $10.05. The company reported fourth-quarter net income of $25 million, or 80 cents a share, compared with $29.4 million, or 75 cents a share, in the year-ago period. Revenue rose to $347.2 million from $331.8 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 69 cents a share on revenue of $344.5 million. Dave & Buster's said it temporarily furloughed its more than 15,000 hourly employees, reduced store management and corporate staff by 90%, cut senior management pay by 50%, and suspended board compensation for the rest of the year. Additionally, capital spending and new store construction has been halted along with dividends and share buybacks. On March 20, the company temporarily closed all of its 137 locations, and is currently in discussions with landlords and vendors to reduce expenses.

/zigman2/quotes/203157296/composite
US : U.S.: Nasdaq
$ 13.19
-0.44 -3.23%
Volume: 5.87M
May 29, 2020 4:00p
P/E Ratio
4.64
Dividend Yield
0.00%
Market Cap
$403.71 million
Rev. per Employee
$83,452
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