Will Dave & Buster's Entertainment Survive the Coronavirus Recession?
While March 2020 was an unhappy month for everyone, investor or not -- some are hurting from the coronavirus more than others. In the business world, employees and stakeholders in Dave & Buster's Entertainment (NASDAQ: PLAY) are one such example. In response to the pandemic and shelter-in-place orders all over the country, the company closed its 137 locations on March 20, furloughed over 15,000 hourly workers, and reduced its management and corporate headcount by nearly 90%. Senior leadership took a 50% pay cut too.
Neither have shareholders been exempt. Dave & Buster's stock is down 71% year to date as of this writing, compounding the 10% decline in 2019 even as the broad market rallied nearly 30%. The situation isn't too surprising as Dave & Buster's sits at the crossroads between some of the hardest hit industries: restaurants, sports, and entertainment. And when the company is able to reopen its doors, it will be an uphill battle getting customers to return with lingering fears of the outbreak, and it's still unclear when major sporting events will resume. Plus, the restaurant side of the business was never its strong suit. This is more than just a cash crunch but a fight for survival.
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Source Fool.com