Ramish Cheema
3 min read
In This Article:
We recently published a list of Jim Cramer Wants US To Be “As Good As” Europe & Discusses These 12 Stocks. In this article, we are going to take a look at where Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) stands against other stocks that Jim Cramer discusses.
Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) is an American hospitality company that owns and operates dining venues. The shares are flat year-to-date as the firm struggles in an economy driven by inflation and consumer wariness. However, Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY)’s stock surged by 17.7% in June. The share price rise was rather surprising as the firm’s first-quarter earnings, which led to the surge, saw its revenue of $567.7 million beat FactSet estimates of $566.8 million by a hairline and its $0.76 earnings fall short of $1.01 in estimates. Investors were impressed by management commentary which indicated that its revenue, operating income, and cash flow would improve in the coming months. Here is what Cramer said about Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY):
“Dave & Buster’s actually had a nice little run here. It’s become a little more fat. Dave & Buster and Urban Outfitters are the two outliers. People forgot about them, they let them forget, and that’s just wrong.”
A crowded performance hall with an audience enjoying a captivating show.
Patient Capital Management mentioned Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) in its Q1 2025 investor letter. Here is what the firm said:
“Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) trended lower over the first quarter as the market continued to worry about revenue visibility. The company had a disappointing 2024, culminating in the abrupt departure of then-CEO Chris Morris. Founded in 1982 in Dallas, Texas, the company has expanded to over 200 venues in North America across two brands (Dave & Busters, and Main Event). The company is in the middle of a multi-year transformation focused on reinvigorating growth through store remodels, store expansions, and technology upgrades while enhancing margins through cost optimizations and synergies. Despite the efforts, the results haven’t yet materialized in the numbers as the challenging macro environment continues to weigh on consumer expenditures. In the meantime, an activist, Hill Path Capital, has built up a position in the company and taken two board seats. With the Chairman of the Board stepping in as CEO, we are already starting to see improved results with the focus on a back-to-basics strategy delivering better than expected results in March and April. While the timing of business model inflection remains uncertain, what’s clear is the stock is trading at an all-time low valuation of 6.8x forward earnings. As the company works to improve its operations, they’ve been actively returning cash to shareholders through buybacks, repurchasing 12% of shares outstanding over the last 12 months.”
