Renowned entertainment and restaurant chain Dave & Busters’ Entertainment (PLAY) recently released its first quarter earnings report with impressive year-over-year gains. However, following the earnings release, the stock’s has price slumped more than 3% and is currently trading below its short-term moving average. So, will the stock be able to rebound amid the current industry tailwinds? Read more to find out. High-volume entertainment and dining services provider Dave & Buster’s Entertainment, Inc. (PLAY) reported its fiscal first quarter (ended May 2) results on June 11. The company’s revenues for the quarter increased 66% year-over-year to $265.30 million, while its net income improved 145.1% from the same period last year to $19.60 million.
But despite strong quarterly results, the stock declined 3.3% after the release. In fact, with this decline, the stock is currently trading below its 50-day moving average of $43.59.
Despite an impressive recovery in its business, PLAY has yet to regain its pre-pandemic level of operations. Furthermore, while PLAY had approximately 76% of its total stores open for business at the beginning of the first quarter, its revenues were 27% lower than its pre-COVID 2019 levels. Though PLAY is currently operating at 100% capacity, its relatively slow recovery rate raises questions regarding the company’s current standing in the highly competitive industry.