Dave & Buster's Repurchases $100M Of Shares And Executes Sale Leaseback Of Four Properties For $86M
Portfolio Pulse from Benzinga Newsdesk
Dave & Buster's (PLAY) repurchased 2.8 million shares for $100M in Q3, totaling 8.5 million shares for $300M in fiscal 2023, which is 17.5% of shares outstanding at the end of fiscal 2022. The company still has $100M left in its share repurchase authorization. Additionally, PLAY executed a sale leaseback of four properties, generating $85.8M. CEO Chris Morris highlighted progress in growth initiatives and confidence in achieving a $1 billion AEBITDA target in the coming years.
December 05, 2023 | 9:07 pm
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POSITIVE IMPACT
Dave & Buster's repurchased a significant portion of its shares and executed a sale leaseback transaction, indicating a strong cash position and commitment to shareholder value. The CEO's confidence in growth initiatives and a $1 billion AEBITDA target may positively influence investor sentiment.
The share repurchase and sale leaseback transactions demonstrate Dave & Buster's financial strength and management's confidence in the company's future performance. The repurchase of 17.5% of outstanding shares is a significant buyback that can lead to earnings per share accretion and potentially boost the stock price in the short term. The CEO's remarks about future revenue and profitability improvements, along with the $1 billion AEBITDA target, are likely to be viewed positively by investors, further supporting the stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100