Dave Busters Story

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PLAY -- USA Stock  

USD 34.00  0.31  0.92%

While many traders are getting carried away by overanalyzing competition within consumer cyclical space, it is quite reasonable to break down both, Dave Busters and McDonalds as potential short-term investments. We are going to inspect some of the competitive aspects of both Dave Busters and McDonalds.
Published over a month ago
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Are McDonalds (NYSE:MCD) investors switching to Dave Busters (NASDAQ:PLAY)?
By analyzing existing basic indicators between Dave Busters and McDonalds, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in McDonalds with a short position in Dave Busters. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Dave Busters has an asset utilization ratio of 85.4 percent. This suggests that the company is making $0.85 for each dollar of assets. An increasing asset utilization means that Dave Busters Entertainment is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Dave Busters or McDonalds is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Dave Busters dividends

A dividend is the distribution of a portion of Dave Busters earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Dave Busters dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Dave Busters one year expected dividend income is about $0.21 per share.
Investing in stocks that pay dividends, such as stock of Dave Busters Entertainment, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Dave Busters must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Dave Busters. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Dave Busters's Liquidity

Dave Busters financial leverage refers to using borrowed capital as a funding source to finance Dave Busters Entertainment ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Dave Busters financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Dave Busters's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Dave Busters, but it might be worth checking our own buy vs. sell analysis

Correlation Between Dave Busters and McDonalds

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Dave Busters together with similar or unrelated positions with a negative correlation. For example, you can also add McDonalds to your portfolio. If McDonalds is not perfectly correlated to Dave Busters it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Dave Busters for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between PLAY and MCD for more information.

Note

Are you currently holding both Dave Busters and McDonalds in your portfolio? Please note if you are using this as a pair-trade strategy between Dave Busters and McDonalds, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Dave Busters exotic insider transaction detected

Legal trades by Dave Busters insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Dave Busters insider trading alert for general transaction of no securities are beneficially owned by Chambers James P, the corporate stakeholder, on 4th of January 2021. This event was filed by Dave Busters Entertainmen with SEC on 2021-01-04. Initial filing of beneficial ownership - SEC Form 3 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Dave Busters Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Dave Busters revenue. Based on the latest financial disclosure, Dave Busters Entertainment reported 857.15 M of revenue. This is 87.98% lower than that of the Consumer Cyclical sector and 66.8% lower than that of the Restaurants industry. The revenue for all United States stocks is 90.92% higher than that of Dave Busters Enterta. As for McDonalds we see revenue of 19.03 B, which is much higher than that of the Restaurants

MCD
19 B
PLAY857.15 Million3.81
Sector2.58 Billion11.49
MCD19.03 Billion84.69

Dave Busters technical analysis suggests possible recoup

Dave Busters current maximum drawdown rises over 43.01. Dave Busters Entertainment is displaying above-average volatility over the selected time horizon. Investors should scrutinize Dave Busters Entertainment independently to ensure intended market timing strategies are aligned with expectations about Dave Busters volatility.

Our Bottom Line On Dave Busters Enterta

While some companies within the restaurants industry are still a little expensive, even after the recent corrections, Dave Busters may offer a potential longer-term growth to investors. To conclude, as of the 10th of December 2020, we believe that at this point, Dave Busters is overvalued with below average odds of financial turmoil within the next 2 years. Our actual buy-hold-sell recommendation on the company is Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Dave Busters Entertainment. Please refer to our Terms of Use for any information regarding our disclosure principles.

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