**Investment Thesis:** Dave & Buster’s Stock Priced at 4x EBITDA – Is It a Massive Buy Opportunity?

Orlando, Florida – Dave & Buster’s, a chain of entertainment and dining venues popular for its arcade games and food offerings, is poised for growth and profitability in the coming years. The company, with its unique combination of restaurant and arcade experiences, aims to achieve $1 billion in EBITDA in the near future, making it an attractive investment opportunity.

Despite facing challenges such as inflationary pressures and a competitive environment, Dave & Buster’s has strategic initiatives in place to drive growth. The company’s focus on expanding its domestic and international store base, introduction of organic growth initiatives, and the implementation of digital marketing and personalized loyalty programs are expected to increase guest traffic and improve profitability.

In fiscal Q4 2023, Dave & Buster’s consolidated revenues increased by 6% compared to the same period a year ago, with adjusted EBITDA margins reaching 25.3%. The company’s strong performance in fiscal 2023, with a total adjusted EBITDA margin expansion of 70 basis points, aligns with its goal of reaching $1 billion in EBITDA in the coming years.

With revenue growth rates expected to reach up to 8% CAGR in the upcoming year, Dave & Buster’s valuation stands at approximately 4x EBITDA, making it an undervalued stock. Additionally, the company’s commitment to shareholder value is evident through its share repurchase program, with $300 million already repurchased and a further $200 million announced for repurchases.

Overall, Dave & Buster’s presents a compelling investment opportunity with promising near-term prospects and a solid plan for capital deployment. With its focus on profitability and growth, the company is well-positioned for success in the entertainment and dining industry.