DASH Blackbook
Due to a severe flu season, vacations, and studio time availability, we are pushing the DASH Blackbook to 12/16.
More detail to come.
PLAY EARNINGS
Cost cutting saves the day; RL margins declined 220bps on 13% SSS; it only gets more challenging from here.
PLAY reported 3Q22 EPS of $0.04, beating FactSet's $0.02, with revenue and EBITDA ahead of consensus. Through the first five weeks of Q4, pro forma combined comparable store sales (including Main Event branded stores) +3.1% y/y and + 9.2% vs. 2019; pro forma combined walk-in comps (2.4%) y/y and +15.7% vs. 2019; pro forma combined Special Event comps +65.3% y/y and (21.7%) vs. 2019. 3Q22 (A)EBITDA totaled $90.0 million, or 18.7% of revenue, compared with 21.5% in 3Q21. Restaurant-level operating income before D&A was $115.2 million, or 23.9% of revenue, compared with 26.1% in 3Q21. The Company generated $67.9 million in operating cash flow during the third quarter, ending the quarter with $108.2 million in cash and $491.1 million of availability under its $500 million revolving credit facility, and $1.2B in debt. Operating income totaled $30.1 million, or 6.3% of revenue, compared with operating income of $24.5 million, or 7.7% of revenue, in 3Q21.
Here is their growth story:
- the continued development and rollout of our improved hospitality-based service model;
- the brand awareness work that’s driving innovation of our product offering
- the refresh program for our stores; the continued recovery of our Special Event business
- our development pipeline of new stores for both brands;
- our progress on developing our international franchisee network;
- the tenacity of our teams to identify and implement our synergy opportunities
The synergies are nearly complete, and international is a distraction. Increasing spending on brand awareness can be margin-dilutive, and building stores in this environment is expensive. A successful store refresh program is what worries me about being short.
UNFI EARNINGS
Miss and guides in-line, but expecting an acceleration in FY23?
United Natural Foods press release (UNFI): 1Q23 Non-GAAP EPS of $1.13 misses by $0.03 and Revenue of $7.5B (+7.1% Y/Y) beats by $30M. FY2023 Outlook: Revenue of $29.8B -$30.4B vs. consensus of $30.17B; Adjusted Diluted EPS of $4.85-$5.15 vs. consensus of $5.04. “Looking ahead, our customer pipeline is robust, with new customer acquisition and expansion from existing customers expected in the second half of the year. We have enduring confidence in the opportunities before us and in our ability to capture them. We remain energized and focused on meeting the needs of our customers during the important holiday selling season, while delivering our fiscal 2023 guidance.”
