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Dave & Buster’s Entertainment (NASDAQ:PLAY) is a top stock to watch as consumer behavior shifts in 2023, according to a new report by Placer.ai.
A white paper released on Tuesday points to the company’s appeal to “eatertainment”, a rising trend for consumers in late 2022 into 2023. Placer.ai defines the activity as “a combination of dining and a fun activity” and notes that both families and young adults are increasingly interested in the experience. The paper adds that the core Dave & Busters brand is best positioned to appeal to young adults while its Main Event acquisition offers greater inroads to family dining.
Main Event was cited as a rapidly growing brand as well, with foot traffic rising by over 20% from pre-pandemic levels for the months of July through October. Dave & Buster’s trends remained positive through those months as well, though foot traffic dipped notably in the month of November. However, trends are expected to pick back up into 2023, especially as Main Event’s clientele adds to the total market addressed by the company rather than cannibalizing customers.
“As more people seek out unique activities, the company’s ability to reach both families and singles through the two brands should continue to serve it well in the new year,” the report concluded.
Read more on analyst ratings on the stock.
