Dave & Buster’s says comparable store sales for the first nine weeks of the fourth quarter fell 75%

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Dave & Buster’s Entertainment Inc. shares slipped 0.8% in Monday premarket trading after the company said preliminary comparable store sales for the first nine weeks of the fourth-quarter ending Jan. 3, 2021 were down 75% to $69.4 million. Preliminary weekly cash burn rate was $3.7 million, and, as of Jan. 3, the company had $12 million in cash and equivalents and $277 million of availability under its revolving credit agreement. At the beginning of the fourth quarter, Dave & Buster’s had 104 open stores, about three-quarters of its base. As of Jan. 3, only 89 were open due to restrictions related to the spread of COVID-19. The company expects more than 100 stores to be open by mid-January and for the 27 stores in New York and California to remain closed for the rest of the quarter. Fourth-quarter revenue is expected to be in the range of $98 million to $102 million, ahead of the FactSet consensus for $88.1 million. Dave & Buster’s stock has fallen 23.4% over the last year, while the benchmark S&P 500 index is up 17.1% for the period.
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