Why Dave & Buster's Stock Plunged Today
Shares of Dave & Buster's Entertainment (NASDAQ: PLAY) fell 14% on Thursday after the restaurant operator's second-quarter earnings fell short of its shareholders' expectations.
Dave & Buster's revenue rose 24% year over year to $468.4 million. Its growth was bolstered by its acquisition of Main Event for $835 million in June. The all-cash deal paired Dave & Buster's namesake restaurant and entertainment chain, which caters to young adults, with Main Event's family-focused concept.
Both chains have enjoyed solid revenue gains during the pandemic. Dave & Buster's branded stores saw their comparable sales rise by 9.6% compared with the second quarter of 2019. And from June 29 through July 31 -- the day Dave & Buster's purchased Main Event to the end of the second quarter -- Main Event's comps were up 29.7% compared with the same period in 2019.
Source Fool.com
