Dave & Buster shares pick up on pace of profits and cost reduction of coronaviruses

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Dave & Buster’s Entertainment Inc.
TO PLAY,
-6.07%

Shares rallied at extended session Thursday after arcade-themed restaurant chain surpassed Wall Street estimates and announced measures to save money during pandemic store closings COVID-19 coronavirus. Dave & Buster’s shares rose 12% after business hours, after falling 6.1% in regular session to close at $ 10.05. The company reported fourth quarter net earnings of $ 25 million, or 80 cents per share, compared to $ 29.4 million, or 75 cents per share, for the same period last year. Revenues increased to $ 347.2 million from $ 331.8 million in the prior year quarter. Analysts polled by FactSet had forecast earnings of 69 cents a share on revenue of $ 344.5 million. Dave & Buster’s said it has temporarily put its more than 15,000 hourly employees on leave, cut store management and company staff by 90%, cut executive salaries by 50%, and suspended board compensation. administration for the rest of the year. In addition, capital spending and the construction of new stores were halted as were dividends and share buybacks. On March 20, the company temporarily closed all 137 locations and is currently in talks with owners and sellers to cut spending.

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