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Dave & Buster's: Catching On With A Younger Audience, Expect Market Share Gains To Continue

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Dave & Buster's: Catching On With A Younger Audience, Expect Market Share Gains To Continue

Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY) shares may near all-time high territory after a solid first-quarter beat Thursday.

Parsing Through The Quarter Print

The entertainment venue's differentiated concept appeals to all ages and continues to drive market share gains and same-store sales growth in a challenging sector.

Within the Wells Fargo note, analyst Jeff Farmer said Dave & Buster's concept holds a considerable competitive advantage relative to traditional casual dining peers.

“We continue to believe that PLAY represents one of the highest quality unit growth stories in the sector,” said the bank.

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Greater brand awareness among a younger audience also helped the company widen the gap between itself and competitors in the first quarter. Same-store sales rose 2.2 percent, but the bright spot was amusement SSS grew 6.4 percent in the quarter, a nod to the younger generation.

Management attributed this widening gap on the company’s advertising focus centering its message around gaming to bring in business and a growing number of mid-teen customers who spend less on food and come to stores earlier in the day.

Management has raised its fiscal year 2017 guidance and authorized a new $100 million share repurchase authorization following the release.

Wells Fargo maintains an Outperform rating on the stock and raised its price target to $78 from $75.

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Dave & Busters Impresses Where It Matters

Dave & Busters Makes New All-Time High After Q1 Beat
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Image Credit: By Michael Rivera (Own work) [CC BY-SA 4.0 (http://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons

Latest Ratings for PLAY

DateFirmActionFromTo
Jan 2021Raymond JamesMaintainsStrong Buy
Dec 2020Wells FargoDowngradesEqual-WeightUnderweight
Dec 2020Raymond JamesMaintainsStrong Buy

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