AmericanMusic/Events/OtherStocks

Dave & Buster’s Going Public

Posted on September 9th, 2014 · American Music/Events/Other Stocks

* Dave & Buster’s Going Public.

Let me ask you guys something…When was the last time that you were in a Dave & Buster’s? Okay-okay-okay…How about-when was the last time that you even thought about going to a Dave & Buster’s?

Before Jeff Eats goes any further, for you guys who don’t know, Dave & Buster’s is a national sports bar chain which features a HUGE and I do mean HUGE game arcade.

You can read-up on Dave & Buster’s at daveandbusters.com.

Anyway,

Over the years Jeff Eats has done 2- write-ups (2/27/08 and 3/14/14) on Dave & Buster’s. Dave & Buster’s currently has 5 Florida locations-Hollywood, Jacksonville, Miami, Orlando, Panama City Beach.

For what it’s worth, Dave & Buster’s has good food and real good arcades. That said- do you know what the term “passé” means? Sure you do, and Dave & Buster’s concept is passé. Not to go into too much detail, but today- doesn’t every kid in America have video games “in” his or her bedroom not to mention cell-phone?

Anyway,

Just read on foxbusines.com that Dave & Buster’s is planning an Initial Public Stock Offering…that story is reprinted below.

Now, just an opinion here, but I think that the IPO is a sucker’s bet. Makes no sense to me to buy shares of PASSE…I mean Dave & Buster’s!

*****
Dave & Buster’s Entertainment Inc. filed to go public Monday, seeking to raise about $100 million in its second return to the public markets.

The Dallas-based company operates restaurants that have video games and show live sports on TV. It opened its first location in 1982 and was public from 1997 until it was bought out by Wellspring Capital Partners and HBK Main Street Investors in 2006. The chain was sold four years later to private equity firm Oak Hill Capital.

It currently operates 69 Dave & Buster’s in 26 states and Canada, and it plans to expand overseas in 2016.

For the 26 weeks ended Aug. 3, Dave & Buster’s lost $2.4 million, or $16.38 per share, hurt by a debt-retirement charge. Revenue increased to $376.2 million from $321.9 million the same period a year earlier, while sales at locations open at least a year — a key metric of a retailer’s health — rose 5.2 percent.

The company plans to use proceeds from the offering to repay debt. The amount it expects to raise in the IPO could change as its bankers gauge investor interest.

Dave & Buster’s expects to list its shares on the Nasdaq Stock Market under the “PLAY” symbol.

10 Comments to “Dave & Buster’s Going Public”

  1. LODI says...

    Jeff,
    Dave & Buster’s was a hot chain in the 1990s.
    You are 100% correct that the concept of having a huge arcade is passé. Back in the 1990s video games were a relatively new thing now everyone and their mother has them on home computer and other devices.
    This IPO is some hedge fund trying to cash out of a not so good business.

    • Doug says...

      1st of all – Video Games were New in the 90’s??? Don’t tell PacMan, Galaga, Mortal Kombat, & 100’s of others from the 80’s!!! Secondly – If you have not been to a Dave & Buster’s in the last Two years, you have No Idea what they are, what they look like and who their core customer is. Two years ago D&B developed a Whole New Concept – The Best Sports Bar Ever and have been redesigning Exsisting Locations as well as Opening New Location at a Record pace. Like any Business model with ever growing competition, not just from the resturant side but the gaming side as well, D&B had to figure out a way to bring the public back in time after time after time. The technology that the New Arcade Games have is unparalled. Sure everyone has Fruit Ninja on thier Smart Phone or Tablet, but D&B has taken the technology of the “App” Games and brought them to life in a completely new & interactive way…. Oh and you get prizes at the end!

      Before everyone PooPoos the concept as being Passe’ and not a storng IPO, go and see for yourself. How often do you get to invest in something that – A) You actually know what it does & B) You can go and Eat, Drink and Play there!!!!

      • JeffEats says...

        Doug,

        Just had a chance to read your well thought out comments.

        Just so you know I agree that, D&B’s food is good, it has terrific games and a great bar setup.

        Now you know and I know that a stock’s price and a company’s business are two totally different things.

        I’ll stick with my opinion that D&B is a passé concept. What you have described is a new coat of paint.

        Finally, no question D&B is a fun place to go. What I think you’ll find is that D&B can’t draw the huge crowds needed to make its stock a huge winner.

        Thanks for reading…

      • FB (Miami) says...

        Doug,
        I am 43 years old. My wife is 40 years old. We have 3 children, 2 boys and 1 girl. One boy is 15 and the other is 13. The girl is 10.

        From my perspective Jeff is 100% correct.

        The arcade business is DEAD. My kids got more Xboxs etc than you can shake a stick at. They know all about Chucky Cheese and Dave & Busters and I can’t recall the last time they asked me or my wife to go to either one of them.

        I agree with you that D&B is fun when you are there, but people don’t go out of their way to go there.

        I think passe’ is the right term for its business.

      • gino davis says...

        doug
        you can spend your money on d&b games i’ll spend my money on the new apple watch. both a waste of money but at least i’ll look cool for a month or two.

  2. Ken W. says...

    This is a sign the market is at a top.. Buy PUTS (SHORT) In Chipotle (CMG) . It’s 677 a share. The 500 march puts are only $7… This stock will be cut in half soon .

  3. ZED says...

    Jeff,
    I use to own DB stock before it was taken private.
    The concept was hot 20 years ago, but not any more.
    As you correctly point out, arcade games are everywhere. There is no need and I might add nothing fresh about a HUGE arcade.
    Every so often DB makes sense for someone with kids but for adults it doesn’t.
    Just a hedge fun trying to unload its position.

  4. KSR says...

    D&B was a fun concept years ago.
    The problem it got into was that there is no way that a 50,000 sq ft restaurant/bar/arcade can make money.
    D&B are fun to go to but as a business concept it sucks.
    The IPO is just cash in time.
    This is just an old pig getting a fresh coat of lipstick to fool the public.
    Good story Jeff.

  5. Anthony Franza says...

    When crap like this starts to come to market it tells me that the market is going to have a huge correction in the not too distant future.

    By the way the last time I was in a Dave & Buster’s my son was 13 and that was 10 years ago.

  6. Stella says...

    IPO at 16 this morning
    Right now 17.12 at 3:30pm

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