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Cramer: Inside Dave & Buster's amazing turnaround

It was a little over a year ago when a little entertainment and dining company, Dave & Buster's, returned to the tape at $16 a share. The unique story and massive expansion opportunity made Jim Cramer interested in the stock.

Dave & Buster's currently has 79 locations spanning the U.S. that encompass a restaurant, sports bar and gaming center that include everything from old-school arcade favorites like Pac-Man, to the newest high-tech video games.

"I've said it before and I'll say it again, Dave & Buster's is sort of like a Chuck-E-Cheese for grownups and I think this terrific concept is a big part of the reason for the company's success," the "Mad Money" host said.

Arcade games at a Dave and Busters in Hollywood, Calif.
Getty Images
Arcade games at a Dave and Busters in Hollywood, Calif.
"You can't go anywhere in the U.S. right now and not see people playing games" -Stephen King, CEO of Dave & Buster's

The company reported its latest quarter Tuesday and totally shot the lights out with a 9 cent earnings beat from a 3-cent basis, higher-than-expected sales and fantastic 8.8% same-store sales growth.

Year to date, its stock has jumped 51 percent.

Best of all, management raised its full-year forecasts for 2015 and issued strong guidance for 2016. But because the stock market was in a panic at the time, the stock did not get the credit it deserved until this week.

Given the opportunity ahead for Dave & Buster's, Cramer is willing to bet that the stock could have more room to run. To learn more, Cramer spoke with the company's CEO Stephen King.

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"We did a lot of things over the last 10 years really since we were taken private to make Dave & Busters the most professional and best operating company that it could be," King said.

The CEO attributed the implementation of new systems in the kitchen and labor management to its big turnaround, as it has allowed the company to be more predictable than before.

The booming business of Dave & Buster's comes at a great time in the U.S., as gaming has been riding a wave of popularity.

"You can't go anywhere in the U.S. right now and not see people playing games," King said.

King believes that the culture of gaming has now transformed so that there is no longer a stigma attached to it, and gamers are more willing to play a variety of different games. That culture shift has proven to be a benefit to the company.

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