NASDAQ: PLAY: Impact of Covid-19

A Market Crash Was Coming, Coronavirus Was Just the Spark | Time

Dave & Buster’s is an American restaurant, the headquarter of this company is situated in Dallas. It currently has 137 locations in the USA and Canada. It’s a great place for food and games. NASDAQ: PLAY at is the stock of Dave & Buster. Whatever shares are traded under the NASDAQ stock, the Play symbol is used.

It became a victim of Covid-19. Being an entertainment place with food and drinks is certainly not good in the time of a global pandemic. As with many businesses in the entertainment industry NASDAQ: PLAY also had a very bad impact on it. The revenue stopped coming and the stores kept on closing. The stocks hit an all-time low of 4.87 in mid-March. Since then Dave & Buster have been growing up but as the cases increase the stocks are not certain to stay at high for long.

NASDAQ: PLAY stocks fell for about 58.6% as compared to the same quarter last year. The management reacted fast by suspending the dividend and share repurchase program. The company ended the first quarter of 2020 with $157 million in cash and equivalents after revolving it’s credit facility and raising $75 million through an equity offering. Another $111 million equity raise in the second quarter should give investors some breathing room as the short-term business in Dave & Buster remains uncertain.

Now as for the current scenario the locations are reopening with only 65% of the time when compared to the pre-COVID situation. But 90% of their revenue comes in these timings only, so it won’t have much effect on NASDAQ: PLAY. Since at many places they are not allowed to reopen now and there is no confirmation when they will be so the price of stocks is uncertain as with many other companies in the same industry. The investors should have a keen look at these stocks as are down now but can go way up again when everything becomes normal.

The stock trades at a price-to-sales (P/S) ratio of just 0.51. This metric averaged is 1.81 over the last five years, and by comparison, the current P/S ratio for the S&P 500 stands at approximately 2.2. Next year they expect to have an earning of $0.39 per stock, it’s very less as compared to $2.93 in the fiscal 2019 but after a pandemic, something positive is a good sign for the future. Nonetheless, many of the locations have been reopened since March and it is looking sturdy if the revenue seems to improve as time passes. You can check more stock news from stock investing apps. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

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