Dave & Busters stock rises as earnings beat, revenue misses

Dave & Buster's Entertainment Inc. shares (PLAY) rose in the extended session Tuesday after the games-themed restaurant chain's quarterly earnings topped Wall Street expectations but revenue fell short. Initially, Dave & Buster's shares declined as much 3% after hours then rose as much as more than 5%, following a 5.7% rally in the regular session to close at $33.74. The company reported first-quarter net income of $70.1 million, or $1.45 a share, compared with $67 million, or $1.35 a share in the year-ago period. Revenue rose to $597.3 million from $451.1 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of $1.26 a share on revenue of $603.9 million. "As a testament to the conviction we have in the long-term success of our business and the value we see in our shares, we have repurchased $200 million of common stock thus far in fiscal 2023, reducing our shares outstanding by nearly 12%," said Chris Morris, Dave & Buster's chief executive, in a statement. Dave & Buster's shares closed Tuesday down 4.8% year to date, versus an 11.6% gain on the S&P 500 index .

-Wallace Witkowski

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06-06-23 1630ET

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