Dave & Buster’s reported less than a third of revenue in 2020 compared to the previous year

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Dave & Buster’s Entertainment Inc. PLAY, -5.91% released some shocking figures in their fourth quarter earnings report, demonstrating the serious toll COVID-19 has taken on the business. Revenues for 2020 totaled $ 436.5 million, less than a third of the 2019 total, when they totaled $ 1.354 billion. Like-for-like sales for the year fell a whopping 70%.

However, the company says that the fourth quarter showed signs of momentum despite an increase in coronavirus cases during the holidays. During the first eight weeks of the first quarter, total revenue was $ 150 million and ancillary sales were down 47% compared to 2019. See: ‘Plexiglass will stay on for a while’: Shoppers remain concerned about COVID but Returning to Stores Fourth Quarter Sales Exceeded FactSet Expectations. By March 19, 2020, Dave & Buster’s had adopted a “poison pill” after a 90% drop in stocks during the previous month. Between March 14 and 20, the company’s 137 locations were closed due to the coronavirus. In September 2020, the “going concern” language sent stocks down again, this time by more than 26%. As of January 31, 2021, 107 locations were operating, although they were operating with reduced capacity and hours. Now, the company is implementing a strategy that will include food and beverage innovation, including the launch of high-speed ovens and exploration of virtual kitchens, the latest in entertainment, and increased customer engagement through a new marketing program. and advertising. The company is also considering a sports betting association that would bring fantasy sports and betting to places where the law allows. Plus: Disney plans to reopen California parks on April 30 Y: Six Flags to reopen additional theme parks Raymond James analysts said “recovery is gaining strength in the quarter to date” in their latest note, maintaining their strong rating purchase price and your $ 55 price target. “In our view, the stock will appreciate as the company demonstrates that it can achieve profitability with lower sales volumes, reopen all of its stores in the spring, and benefit from pent-up demand,” Stifel analysts wrote in a note. Stifel rates the Dave & Buster share purchase with a price target of $ 54, down from $ 50. And Truist Securities raised its Dave & Buster share price target to $ 42 from $ 29, maintaining its share rating of retention. Shares of Dave & Buster fell 4.4% in Thursday’s trading, but have recovered more than 326% over the past year. The S&P 500 SPX Index, + 0.89% has gained 62.2% in the last 12 months.