Categories LATEST

Dave & Buster’s Entertainment (PLAY) tumbles on bankruptcy fears

Entertainment and restaurant chain Dave & Buster’s Entertainment (NASDAQ: PLAY) plunged 26% yesterday as WSJ reported that the company could file a voluntary petition for relief under Chapter 11 to implement a restructuring plan. However, the market watchers felt that the investors had hit the panic button and dragged down the stock.

10-Q reporting

In the quarterly filing for the second quarter, the Dallas, Texas-based firm said that its failure to obtain additional waivers would have a material adverse effect on the company’s liquidity, financial condition and results of operations. Dave & Buster’s added in the filing that this may result in filing a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code to implement a restructuring plan.

Dave and Buster reports Q2 2020 earnings results

Q2 results

Dave & Buster’s swung to a loss in the second quarter of 2020, hurt by a revenue plunge of 85%. Comparable sales, which decreased by 58.6% in the first quarter, nosedived 87% in the second quarter. During the Q&A session, CFO Scott Bowman stated that comp-store sales for August was negative 75%.

Going concerns

In March, the company closed 100% of its 137 operating stores in compliance with guidance and orders issued by federal, state and local governments to combat the spread of the COVID-19 pandemic. Even though the company has re-opened 65% of its stores now, the store closures have caused a material adverse impact on its revenues, results of operations and cash flows.

According to Restaurant Business, Dave & Buster’s plans to cut 1,300 jobs at locations in seven states. It’s worth noting that operating payroll and benefits expense decreased by 83% to $13.8 million, primarily due to furloughs, and the introduction of a leaner labor model at re-opened stores.

Related: Dave & Buster’s Entertainment (PLAY) Q2 2020 Earnings Call Transcript

Store re-openings

At the end of the second quarter, the company had opened 84 stores against its goal of opening 90 to 95 stores. The COVID resurgence forced Dave & Buster’s to close or re-close nine stores. Since the end of the second quarter, an additional five net stores were opened, including a brand-new store in Manchester, New Hampshire, bringing the total count to 89 stores now. Dave & Buster’s forecast to re-open all of its remaining stores before the end of December, barring any additional delays due to COVID-19 resurgence.

Analyst views

Truist Securities analyst Jake Bartlett reiterated the buy rating and $22 price target on PLAY stock, saying that the market got overexcited on the bankruptcy news. Market watchers expect that the lenders will again grant covenant relief and this drove the shares up by 5% during the extended-hours trading. PLAY stock tanked 65% both in the year-to-date period and in the past 12 months.

Most Popular

WBA Earnings Preview: Will Walgreens’ Q3 report bring cheer to investors?

Walgreens Boots Alliance, Inc. (NASDAQ: WBA) has been facing challenges due to higher operating costs, rising competition, and an unfavorable retail environment. These factors have put pressure on the drugstore

Main points from Accenture’s (ACN) Q3 2024 earnings report

Shares of Accenture (NYSE: ACN) rose 6% on Thursday, following the company’s announcement of its third-quarter 2024 earnings results. Although revenue and profits missed expectations, the stock jumped after the

ACB Earnings: Aurora Cannabis reports narrower Q4 loss on higher revenues

Aurora Cannabis, Inc. (NASDAQ: ACB) on Thursday reported a net loss for the fourth quarter of 2024. The company’s revenues moved up 5% year-over-year during the quarter. The Canada-based recreational


  1. Pingback: Leandro Farland
  2. Pingback: Civility
  3. Pingback: Finance research
  4. Pingback: Field Visits
  5. Pingback: Magnetic stirrers
  6. Pingback: Academic Advising
  7. Pingback: E-Learning
  8. Pingback: Faculty expertise
  9. Pingback: Spectrophotometer
  10. Pingback: ????? ??????
  11. Pingback: Fiverr Earn
  12. Pingback: Fiverr Earn
  13. Pingback: Fiverr Earn
  14. Pingback:
  15. Pingback:
  16. Pingback:
  17. Pingback:
  18. Pingback: liv pure
  19. Pingback: Freight Broker
  20. Pingback:
  21. Pingback: clima para mañana
  22. Pingback:
  23. Pingback:
  24. Pingback: springerdoodles
  25. Pingback: pied frenchie
  26. Pingback: Samsung phone
  27. Pingback: future university
  28. Pingback: bulldogs puppy
  29. Pingback: fue
  30. Pingback: french bulldog
  31. Pingback: lean six sigma
  32. Pingback: Warranty
  33. Pingback: FUE
  34. Pingback: Classic Books 500
  35. Pingback: FiverrEarn
  36. Pingback: FiverrEarn
  37. Pingback: Streamer
  38. Pingback: FiverrEarn
  39. Pingback: Becoming Porn star
  40. Pingback: pupuk
  41. Pingback: pupuk organik
  42. Pingback: partners
  43. Pingback: red boost price
  44. Pingback: pineal
  45. Pingback: gluconite official
  46. Pingback: FiverrEarn
  47. Pingback: FiverrEarn
  48. Pingback: FiverrEarn
  49. Pingback: live sex cams
  50. Pingback: FiverrEarn
  51. Pingback: FiverrEarn
  52. Pingback: FiverrEarn
  53. Pingback: FiverrEarn
  54. Pingback: FiverrEarn
  55. Pingback: FiverrEarn
  56. Pingback: FiverrEarn
  57. Pingback: FiverrEarn
  58. Pingback: FiverrEarn
  59. Pingback: FiverrEarn
  60. Pingback: education
  61. Pingback: Slot Thailand
  62. Pingback: FiverrEarn
  63. Pingback: FiverrEarn
  64. Pingback: amiclear scam
  65. Pingback:
  66. Pingback:
  67. Pingback:
  68. Pingback: live sex cams
  69. Pingback: live sex cams
  70. Pingback: Freeze dried
  71. Pingback: rare breed-trigger
  72. Pingback: 늑대닷컴
  73. Pingback: Slot Olahraga
  74. Pingback: allgame
  75. Pingback: 918kiss
  76. Pingback: หวย24
  77. Pingback: Skincare products
  78. Pingback: Dating Classes
  79. Pingback: resort lake placid
  80. Pingback: apply evisa online
  81. Pingback: 300 wsm ammo
  82. Pingback: 6.5 prc ammo
  83. Pingback: 6.5 grendel ammo
  84. Pingback: itsMasum.Com
  85. Pingback: rssi salaire
  86. Pingback: nangs Sydney
  87. Pingback: nangs sydney
  88. Pingback:
Add Comment
Viewing Highlight