Why Dave & Buster's Entertainment, At Home Group, and Independence Realty Trust Slumped Today
Wall Street bounced back slightly on Wednesday, recovering a portion of the losses from Tuesday's post-Labor Day session as some encouraging signs emerged from Washington. News that Democrats and Republicans in Congress had reached an agreement with President Trump on a deal to raise the debt ceiling and keep the government operating for another three months was seen as a step toward more cooperation in Washington, and a lack of any further bad news from North Korea was enough to offset concerns about the forecast impact of Hurricane Irma as it approaches Florida. The major U.S. indexes closed the day between 0.25% and 0.31% higher.
Yet even on a broadly upbeat day for U.S. markets, some companies delivered bad news that sent their shares lower: Dave & Buster's Entertainment (NASDAQ: PLAY), At Home Group (NYSE: HOME), and Independence Realty Trust (NYSEMKT: IRT) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Dave & Buster's Entertainment dropped 11.6% after the operator of dining and entertainment locations announced disappointing second-quarter financial results and offered weak guidance. Its revenue climbed 15% year over year, but comparable-store sales growth was just 1.1%. Dave & Buster's also said that it now expects comps in a range of just 1% to 2% for the 2017 fiscal year, down by a percentage point from its previous guidance range. The company is accelerating the pace of its restaurant openings, but investors Wednesday seemed more focused on the potential impact from hurricanes in the third quarter, as well as the ongoing pressures facing the restaurant industry generally.
Source: Fool.com
