Dave & Buster's stock falls on Q1 revenue miss

Shares of Dave & Buster's (PLAY) are falling after the company reported weaker-than-expected first quarter earnings, missing on revenue estimates. The company also saw comparable sales fall 5.6% year over year, weighing on shares in Thursday's trading session.

Yahoo Finance's Seana Smith and Madison Mills break down the details.

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This post was written by Angel Smith

Video transcript

Joseph Dave and Busters plunging after reporting revenue falling 1.5% in the first quarter.

It's com sales also falling short of the streets expectations reporting a larger than expected decline falling by 5.6% from just about a year ago.

And here we are just about an hour, exactly an hour into the trading day.

We're looking at shares off about 11.5% when it comes to some of the weakness within this report and digging into it just a bit clearly, Dave and Busters feeling some of that pressure of the macro environment.

That's something that was cited in this release on the call here with analysts last night.

And that's also reflected in the quick analyst commentary that we're getting out here this morning following this print, Raymond James calling it underwhelming truest raising some of the questions just about the stiff macro headwinds force discretionary offering, how much of that is going to offset any of the initiatives that Dave and Buster's has laid out and are working on here over the coming quarters.

But despite lowering estimates, the price target here on the stock, we're not seeing too many changes.

You at least you have.

True.

Is there price target cut to 64 from 67 so lower by just three bucks a share.

So not a huge move here to the downside.

But again, I think just material weakness that we're seeing on a macro level is starting to weigh on names and has been weighing on names like Dave and Buster's.

Yeah.

And to your point, Jeffrey's reiterating their buy but cutting their price target and just saying that the street might have been a little bit too optimistic.

Have you been to a Dave and Buster's?

I love Dave and Buster's.

Oh, no, not with, not with the kids.

That's how I feel like I, I'm not a mom so I can't imagine, but I, I can't imagine going and monitoring the Children.

That part seems a bridge too far.

Oh my gosh, that would be.

No, that, that, that would be stress in a lot of levels.

But I've had a heck of a lot of fun at Dave and Buster's without kids.

So I think, I mean, it's also an interesting point about this story, right?

Because I think there's one side of it where we talk about a lot that people are still spending on experiences and you would think that a name like Dave and Buster's then would benefit and I think it has to a certain extent, it's also launching a number of different types of offerings revamping some of their uh establishments in order to cater to that need or demand that we are seeing from consumers.

But on the flip side, I think people are faced with tough choices and we talk about inflation, meaning very sticky.

People are under more and more pressure as the months pile up.

And I think as a result of that, we could see some weakness here and I think that is being reflected in these numbers, but a ton of fun.

If you're gonna spend your money, I'm a big fan of Dave and Buster's.

You won't regret it.

I'll put it that much.

We gotta go, we gotta go to the Times Square one.

I've only been in Florida, which is probably a unique layer of, lots of different personalities and experiences.