Dave & Buster's skyrockets 16% after private equity fund KKR says it's pushing for changes at the chain

• On Friday, private equity giant KKR said in an SEC filing that it is pushing for changes at Dave & Buster's, of which it holds a 10.7% stake.
• Dave & Buster's stock skyrocketed as much as 16% Friday.
• According to the filing, KKR intends to speak with management or the board of directors about Dave & Buster's business, operations, strategy, plans, and prospects.
• Watch Dave & Buster's trade live on Markets Insider.
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Shares of Dave & Buster's surged as much as 16% Friday to the highest the stock's been since June after KKR, a private-equity firm, disclosed in a Securities and Exchange filing that it is pushing for changes at the chain.

It's unusual for a firm like KKR to publicly release such plans. The firm also said in the filing that it holds a 10.7% stake in Dave & Buster's that includes shares and options. That's an increase in KKR's stake in the restaurant chain - a passive filing dated September 30 showed the firm held a 2.65% stake.

KKR has held and intends to continue to engage in discussions with management or the board of directors of Dave & Buster's about its business, operations, strategy, plans, and prospects, according to the filing. It also said that it might speak with stockholders or large security holders and could take actions such as board or management changes, or transactions including a merger, reorganization, or liquidation.

The stock gains and news of KKR's involvement come after a less-than-stellar year for Dave & Buster's. In 2019, the stock shed nearly 10% while the S&P 500 gained 29%. The company suffered a steep drop in June when its quarterly earnings report showed an unexpected decline in same-store sales.

Dave & Buster's has gained roughly 5% year-to-date through Thursday's close.

Disclaimer: KKR is a major shareholder of German media group Axel Springer, which owns Business Insider.