Dave & Buster’s shares drop 5% on 85% drop in revenue

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Dave & Buster’s Entertainment Inc. shares initially were down 5% in after-hours trading Thursday after the restaurant chain reported fiscal second-quarter revenue that whiffed on Wall Street estimates. Dave & Buster’s reported a loss of $58.6 million, or $1.24 a share, compared with net income of $32.4 million, or 90 cents a share, in the year-ago quarter. Revenue plummeted 85% to $50.8 million from $344.6 million a year ago. Analysts surveyed by FactSet had expected a loss of $1.40 a share on revenue of $78.5 million. The chain did say it re-opened 84 stores in 27 states during the quarter, but it declined to provide fiscal 2020 guidance. Dave & Buster’s shares are down 55% this year as the company continues to feel the effects of the pandemic. The broader S&P 500 index has improved 3% in 2020.
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