Dave & Buster's Q1 Earnings Simply Weren't Good Enough
Summary
- Dave & Buster's stock has surged post-Q1 earnings but faces significant multi-year resistance at $30–32, making further upside challenging.
- Q1 results showed sequential improvement in comparable sales, but margins continue to deteriorate sharply, raising sustainability concerns.
- Heavy investment in remodels and aggressive buybacks strains cash flow, while high debt and rising interest expenses threaten financial stability.
- PLAY stock is now expensive at 13x forward earnings, with unresolved margin and balance sheet risks.
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