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Dave & Buster's Hikes Dividend to Boost Shareholder Value

Zacks Equity Research

Dave & Buster's Entertainment, Inc. PLAY recently announced nearly 7% hike in quarterly cash dividend to 16 cents per share. This raised dividend will be paid to its shareholders on Nov 11, 2019, of record as on Oct 11. In the first quarter, the company paid cash dividend of 15 cents per share. The dividend yield, based on the new payout and the last closing market price, is approximately 1.53%.  

The company also aims at maximizing shareholder’s value through share repurchases and dividends. It increased the share repurchase authorization by $200-$800 million. Moreover, during the second quarter 2019, the company repurchased roughly 3.4 million shares for $137 million.

Backed by the unique customizable experience that Dave & Buster’s offers across its four platforms — Eat, Drink, Play and Watch, the company continues to deliver solid performances. Additionally, the company’s distinctive model generates favorable store economics and solid returns.

Apart from amazing food or beverages, the entertainment business has been driving the company’s growth potential. These apart, Dave & Buster’s robust sales building initiatives are commendable. Menu innovation is a key attribute of the brand and guests have responded favorably to it.

Going forward, Dave & Buster's believes that it can drive traffic by enhancing in-store and out-of-store customer experience via digital and mobile strategic initiatives as well as through employing better technology.

In the past three months, shares of Dave & Buster’s have gained 5.2% compared with the industry’s 3.5% growth.

Zacks Rank & Stocks to Consider

Dave & Buster’s has a Zacks Rank #4 (Sell).

Some better-ranked stocks from the same industry include Chuy's Holdings, Inc. CHUY, Chanticleer Holdings, Inc. BURG and Cracker Barrel Old Country Store, Inc. CBRL. While Chuy’s sports a Zacks Rank #1 (Strong Buy), Chanticleer and Cracker Barrel carry a Zacks Rank #2 (Buy). You can the complete list of today’s Zacks #1 Rank stocks here.

Chuy and Cracker Barrel have an impressive long-term earnings growth rate of 17.5% and 10%, respectively.

Shares of Chanticleer have gained 24.7% in the past month.

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Chuy's Holdings, Inc. (CHUY) : Free Stock Analysis Report
 
Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report
 
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
 
Chanticleer Holdings, Inc. (BURG) : Free Stock Analysis Report
 
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