Dave & Buster’s Entertainment (PLAY -7.9%) is lower after reporting soft FQ2 results. While the tough patch for sales was largely anticipated, the tone from management on the pace of restaurant re-openings in California and New York could also be a factor in today’s trading.
“As for the cadence of those remaining reopenings, we continue to expect our 11 New York and 16 California stores to be among the last to reopen. These 27 stores represent over half of our remaining openings and about 20% of our total store count. Combined, they have historically generated approximately 25% of our system-wide sales include several of our top quartile stores in terms of historical store-level profitability. So obviously, these stores are very important to reopen in order for us to fully rebuild our business to pre-COVID levels over the longer term,” noted CEO Brian Jenkins on the earnings call.
During Q&A with analysts, Jenkins said the the expectation is that New York and California re-openings aren’t expected to be near the end of that time period in question (December).