Dave & Buster's Raises $94.1 M In IPO

By Christine Kern, contributing writer

Company’s second attempt at IPO garners favorable reception on Wall Street.

In its second attempt to return to the public market through an IPO, Dave & Buster’s has managed to raise $94.1 Million, according to the USA Today. Shares were priced at $16 apiece, which fell at the low end of the projected range of $16-18.

Share prices climbed to $18.43 around midday Friday, but moderated to around $17.16 later in the day. Shares are trading on the Nasdaq Stock Market LLC under the ticker symbol PLAY.

Dave & Buster’s was founded in Dallas in 1982, and the chain is best known for its “Eat, Drink, Play and Watch” tagline.  It offers a place where customers can enjoy a meal, beverage, NFL gameday ticket, and a Midway full of interactive games.  Amusement revenue contributes more than half of the chain’s overall profits.

The company had earlier filed an IPO in 2011, but after citing volatility in the market, pulled it back in 2012.

Dave and Buster’s Chief Executive Stephen King told the Nation’s Restaurant News that the chain is well positioned for expansion now, as investors are clamoring for new growth opportunities. 

“What resonated this time for investors is that we’ve had nine consecutive quarters of outperforming Knapp-Track,” which tracks same-store sales in the casual-dining segment, King said.

Dave & Buster’s ended fiscal 2013 with net income of $2.2 million and revenue of $635.6 million, with same-store sales rising 1 percent for the year.

Same-store sales increased 5.2 percent for the 26 weeks ended Aug. 3, although the company reported a net loss of $2.4 million and revenue of $376.2 million.

 The chain will reported use the funds raised in the IPO to pay down debt.