By Christiana Sciaudone
Investing.com -- It's safe to play arcade games again! Okay, maybe not, but Dave & Buster's tried to assure us that things aren't as bad as they may seem.
Same-store sales are down just 62% in September, a relative improvement over August, when they fell 75%, and 87% in the second quarter.
As of Oct. 4, 98 of 136 stores have reopened and a brand new one was inaugurated. Dave & Buster’s Entertainment (NASDAQ:PLAY) had $197 million in cash and equivalents at the time, and about $744 million outstanding under its credit facility.
The company expects earnings before interest, taxes, depreciation and amortization at breakeven if it can reach between 50% and 55% of 2019 sales.
“The progress we’ve made re-opening stores and driving sales recovery demonstrates the enduring strength of the Dave & Buster’s brand and the loyalty of our guests across the country," Chief Executive Officer Brian Jenkins said in a statement. "We remain optimistic that we will emerge from this challenge in a stronger competitive position to deliver fun to our guests and value to our shareholders.”
Meanwhile, Covid-19 cases are ticking up worldwide. Small gatherings are becoming a growing source of the spread as cases and hospitalizations rise across the U.S., CNN reported Centers for Disease Control and Prevention Director Dr. Robert Redfield a saying during a call with the nation's governors on Tuesday. The U.S.'s seven-day average of new daily cases surpassed 51,000 Tuesday, the first time in more than two months that the figure was above 50,000, CNN said, citing Johns Hopkins University data.
Shares of Dave & Buster's are down more than 60% in 2020. Last month, the company reported a loss per share of $1.24 on sales of almost $51 million. That compares to earnings per share of 90 cents on sales of $345 million a year earlier.