What happened
Restaurant and entertainment specialist Dave & Buster's (PLAY 6.90%) underperformed a weak market last month as the stock lost 13% compared to a 7% decline in the S&P 500, according to data provided by S&P Global Market Intelligence.
The drop removed much of shareholders' above-market gains for the year, and the stock now is roughly even with the broader market's 13% increase in 2019.
Image source: Getty Images.
So what
Dave & Buster's announced a new CFO early in the month and also celebrated the addition of its fourth North Carolina location. Yet May's stock slump was likely driven more by weakness in the broader stock market and by concerns that the company might announce weak first-quarter sales results in its upcoming earnings report.
Now what
The chain is expected to post modestly higher comparable-store sales on Wednesday, June 12, to likely mark its second straight quarter of growth following more than a year of declines. In addition to those customer traffic trends, investors will be watching for signs that profitability is stabilizing, with help from a revamped food menu and the addition of several exclusive VR gaming titles. Success on these points should support management's aggressive expansion plans, which call for adding a record 16 new locations to the sales footprint in 2019.
