Why Dave & Buster's Stock Popped on Wednesday

Shares of entertainment restaurant company Dave Buster's (NASDAQ: PLAY) popped on Wednesday after the company released financial results for the fourth quarter of 2023. As of 2:30 p.m. ET, Dave Buster's stock was up 11% and hitting 52-week highs.

The fiscal year for Dave Buster's ended on Feb. 4. And it was largely a good year. Revenue was up 12% year over year to $2.2 billion, and it had net income of $127 million. While net income did take a step back from net income of $137 million in fiscal 2023, fiscal 2024 results still represent a respectable 5.8% profit margin.

Dave Buster's also made critical headway with its outstanding share count. For context, this company was one of the worst-hit restaurant companies during the COVID-19 pandemic because its locations are designed to be experienced in person. As its income ground to a halt, management had to issue new shares to stay afloat. From the end of fiscal 2019 through the end of fiscal 2021, the outstanding share count for Dave Buster's grew by 44% -- that's some serious shareholder dilution.

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Source Fool.com