The first time we visited a location, and subsequently hosted a corporate event there, it quickly became clear to us that (PLAY) was a cash cow, and this was without looking into the financials of the company. In this article, we discuss the company's ability to generate sales and maintain this cash cow status, despite the stock having tanked recently.
Source: Yahoo finance
To attract a diverse clientele, there was a full bar complete with over a dozen big screen TVs to offer sporting events and other entertainment. The company is working hard to continue to grow at a manageable pace, but we have had some concerns over the comparable same-store sales. Still, the stock has been hammered. To know whether Dave & Buster's can still be invested in here, we have to turn to the numbers. And the growth is still there, in many respects.
In the company's just reported Q4 2017, we saw a few records made. Total sales increased a respectable 14.9%, coming in at $304.9 million, up from $270.2 million in Q4 2016. This seems very strong, however, this top line print may have concerned some on the Street, as Dave and Buster's missed consensus expectations by $0.6 million. Still, sales continue to propel higher at a reliable pace. The slight miss does not concern us, however, we must be aware of what is influencing the top line.