Should you buy Dave & Busters stock? (June 2024)

Published first at https://www.3minutebreakdowns.com Dave & Busters stock analysis. Ticker: $PLAY Restaurant and entertainment business Dave & Busters is what’s known as a battleground stock. Bears see a restaurant concept in decline while bulls see an undervalued turnaround. But for the last 8 years neither side has been right as the stock has essentially gone nowhere. At the latest price, Dave & Busters has a market cap of 1.7 billion dollars. With 32 million of cash on its balance sheet and 1.3 billion of long term debt the enterprise value is just under 3 billion. Revenue over the last 12 months comes to 2.2 billion with 98 million of net income and 533 million of adjusted ebitda. So Dave & Busters stock is now valued at 17 times earnings and 5.6 times EBITDA. The bear case for Dave & Busters is relatively simple. The company isn’t growing fast enough. Same store sales are up only 8% since 2019 and net income has remained flat over the same period. Meanwhile, debt levels have increased to about 2.5 times ebitda. Dave & Buster’s runs a relatively capital-intensive model with free cash flow turning negative over the past four quarters. And there’s a clear sense that Dave & Busters arcade concept has become dated, competing with other venues and at-home entertainment. #investing #stocks #stockmarket #3mb