Dave & Buster's: An Intriguing Turnaround Opportunity

Summary

  • Dave & Buster's is a chain of entertainment and dining venues that combines a restaurant and sports bar with an arcade.
  • The company acquired its competitor 'Main Event' and decided to maintain its management to begin a strategic review.
  • This strategic review aims to increase growth and improve operational efficiency through well-marked key points that seem highly achievable.
  • Although the business was already good in itself, this strategic change could give 'boost' to the company's performance, which together with the current valuation makes it a compelling turnaround.

Dave & Buster"s Hollywood & Highland Grand Opening

Mark Davis

Investment Thesis

Dave & Buster's (NASDAQ:PLAY) is a company that, in the past, consistently outperformed the index, demonstrating year-over-year profit growth. Contrary to initial perceptions, its business model proves to be more stable and resilient

This article was written by

I'm a long-term, fundamentals-focused investor who is interested in quality and growth opportunities mostly, but I like to search for deep value/turnaround situations as well.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PLAY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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