Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY) reported its fiscal first-quarter financial results after the markets closed on Tuesday. The company posted $0.72 in earnings per share (EPS) on $262 million in revenue. That compared to consensus estimates of $0.59 in EPS on revenue of $251.5 million. In the same period of last year, the company posted EPS of $0.46 and $222.7 million in revenue.
Total revenues increased 17.7% from last year, which was driven by revenue gains of 21.6% in Amusement and Other and 31.1% in Food and Beverage.
During the most recent quarter, comparable store sales increased 3.6% compared to a 9.9% increase in the same period last year. The comparable store sales growth was driven by a 4.0% increase in walk-in sales, partially offset by a 0.7% decrease in special events sales. Separately, non-comparable store revenues increased by $31.1 million or 181.6% in this quarter as well.
In terms of the guidance for the fiscal year, the company expects total revenues in the range of $983 million to $995 million and comparable sales increasing in the range of 3.25% to $4.25%. The consensus estimates call for $1.81 in EPS on $982.0 million in revenue for the full year.
The board of directors also approved a share repurchase plan up to $100 million, which will take place through the end of fiscal 2018.
CEO Steve King commented:
During the first quarter, our 18 non-comparable stores contributed an incremental $31.1 million to our top-line, and together with a 3.6% increase in comparable store sales, resulted in an acceleration of total revenue growth by 17.7% to $262 million. This was the largest number of non-comparable stores for any first quarter in Dave & Buster’s history and reflects the growing impact of new store development on our overall financial performance. Our comparable store sales have now exceeded the competitive casual dining benchmark for 16 straight quarters and reached 13.5% on a two-year stacked basis. The continued shift in revenues to our higher-margin amusement category coupled with operating leverage enabled us to grow Adjusted EBITDA and Margins by 28.4% and 250 basis points, respectively. In doing so, we set new first quarter records for these metrics.
On the books, Dave & Buster’s cash and cash equivalents totaled $28.12 million at the end of the quarter, compared to $25.50 million at the end of the previous fiscal year.
Shares of Dave & Buster’s were trading up about 7.6% at $45.05 on Wednesday, with a consensus analyst price target of $48.80 and a 52-week trading of $29.54 to $45.70.
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