DRIVE SHACK EARNINGS DOWN 50% YOY, OPENING 3 INTERACTIVE DRIVING RANGES IN 2018
Drive Shack Inc. (DS) delivered Q2 earnings and reported just $7 million in profit for the quarter (down from $14 million in Q2 ’16). The company however is in the process of opening 3 interactive driving ranges (think Topgolf) within the next 18 months. The first two locations scheduled to open are Orlando, FL (Q1 ’18 open) and Richmond, VA (Q3 ’18 open). Raleigh, NC (H2 ’18) will follow.
Howie Long-Short: Not interested in ELY? DS is another way to invest in the interactive driving range space. It is certainly worth noting that each Topgolf location earns +/-$20 million/year in revenue, roughly 50% coming from food/bar.
Fan Marino: Topgolf has 35+ locations in the U.S. but none in NY (there is one in Edison, NJ). Makes sense though, while the driving bays are heated, the range is open. December-March wouldn’t seem like an ideal time to spend a Saturday night outdoors.