Dave & Buster's Entertainment (Dave & Buster's Entertainment) Gross Margin % : 84.92% (As of Jan. 2024)

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What is Dave & Buster's Entertainment Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Dave & Buster's Entertainment's Gross Profit for the three months ended in Jan. 2024 was $509 Mil. Dave & Buster's Entertainment's Revenue for the three months ended in Jan. 2024 was $599 Mil. Therefore, Dave & Buster's Entertainment's Gross Margin % for the quarter that ended in Jan. 2024 was 84.92%.

The historical rank and industry rank for Dave & Buster's Entertainment's Gross Margin % or its related term are showing as below:

PLAY' s Gross Margin % Range Over the Past 10 Years
Min: 80.39 Med: 82.76 Max: 84.72
Current: 84.72

During the past 13 years, the highest Gross Margin % of Dave & Buster's Entertainment was 84.72%. The lowest was 80.39%. And the median was 82.76%.

PLAY's Gross Margin % is ranked better than
90.15% of 964 companies
in the Media - Diversified industry
Industry Median: 38.555 vs PLAY: 84.72

Dave & Buster's Entertainment had a gross margin of 84.92% for the quarter that ended in Jan. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Dave & Buster's Entertainment was 0.60% per year.

Dave & Buster's Entertainment Gross Margin % Historical Data

The historical data trend for Dave & Buster's Entertainment's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dave & Buster's Entertainment Gross Margin % Chart

Dave & Buster's Entertainment Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Gross Margin %

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82.78

82.84

84.29

84.28

84.72

Dave & Buster's Entertainment Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %	Get a 7-Day Free Trial															84.55	84.88	84.58	84.41	84.92

Competitive Comparison of Dave & Buster's Entertainment's Gross Margin %

For the Entertainment subindustry, Dave & Buster's Entertainment's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Dave & Buster's Entertainment's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Dave & Buster's Entertainment's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Dave & Buster's Entertainment's Gross Margin % falls into.

Dave & Buster's Entertainment Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Dave & Buster's Entertainment's Gross Margin for the fiscal year that ended in Jan. 2024 is calculated as

Gross Margin % (A: Jan. 2024 )	=	Gross Profit (A: Jan. 2024 )	/	Revenue (A: Jan. 2024 )
	=	1868.3	/	2205.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2205.3 - 337)	/	2205.3
	=	84.72 %

Dave & Buster's Entertainment's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	508.7	/	599
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(599 - 90.3)	/	599
	=	84.92 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Dave & Buster's Entertainment (NAS:PLAY) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Dave & Buster's Entertainment had a gross margin of 84.92% for the quarter that ended in Jan. 2024 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Dave & Buster's Entertainment Gross Margin % Related Terms

Thank you for viewing the detailed overview of Dave & Buster's Entertainment's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Dave & Buster's Entertainment (Dave & Buster's Entertainment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Dave & Buster's Entertainment Inc (NAS:PLAY) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

9DB:Germany

Address

1221 Beltline Road, Suite 500, Coppell, TX, USA, 75019

Website

https://www.daveandbusters.com

Dave & Buster's Entertainment Inc owns and operates nearly a hundred entertainment and dining establishments in the United States where customers can eat, drink, play games, and watch televised sports. The play division includes amusement, simulation, and video games, accounts for more than half of total company revenue. Food and beverage accounts for the rest. About one third of food and beverage revenue comes from alcoholic drinks, with the rest coming from food and nonalcoholic beverages.

Executives

John Mulleady	officer: SVP, RE & Dev	DAVE & BUSTER'S ENTERTAINMENT, INC., 2481 MANANA DRIVE, DALLAS TX 75220
Michael J Griffith	director	DAVE & BUSTER'S ENTERTAINMENT, INC., 2481 MANANA DRIVE, DALLAS TX 75220
Antonio Pineiro	officer: SVP, Chief Int'l Dev Ofc	1221 S. BELT LINE RD., SUITE 500, COOPELL TX 75220
Randall L Jones	officer: VP Accounting and Controller	1221 S. BELT LINE RD., SUITE 500, COPPELL TX 75019
Ashley Zickefoose	officer: SVP, Chief Marketing Officer	1221 S. BELT LINE RD., SUITE 500, COPPELL TX 75019
Hill Path Capital Partners Lp	other: SEE EXPLANATION OF RESPONSES	150 EAST 58TH STREET, 32ND FLOOR, NEW YORK NY 10155
Hill Path D Fund Lp	other: SEE FOOTNOTE 1	150 E 58TH STREET, FLOOR 32, NEW YORK NY 10155
Hp G Gp Llc	other: SEE EXPLANATION OF RESPONSES	150 EAST 58TH STREET, 32ND FLOOR, NEW YORK NY 10019
Hp J Gp Llc	other: SEE EXPLANATION OF RESPONSES	150 EAST 58TH STREET, 32ND FLOOR, NEW YORK NY 10019
Hill Path J Fund Lp	other: SEE EXPLANATION OF RESPONSES	150 EAST 58TH STREET, 32ND FLOOR, NEW YORK NY 10019
Hill Path G Fund Lp	other: SEE EXPLANATION OF RESPONSES	150 EAST 58TH STREET, 32ND FLOOR, NEW YORK NY 10019
Steve Klohn	officer: SVP Chief Information Officer	1221 S. BELT LINE RD., SUITE 500, COPPELL TX 75019
Michael Quartieri	officer: Chief Financial Officer	C/O SCIENTIFIC GAMES CORPORATION, 6601 BERMUDA ROAD, LAS VEGAS NV 89119
Tony Wehner	officer: SVP, Chief Operating Officer	1221 S. BELT LINE RD., SUITE 500, COPPELL TX 75019
Les Lehner	officer: SVP, Chief Procurement Ofc	1221 S. BELT LINE RD., SUITE 500, COPPELL TX 75019