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Dave & Buster's shares slump after missing Street's estimates on fiscal 3Q same-store sales

The Texan company's profits and revenue clocked in ahead of consensus estimates
kids who are gaming
Founded in 1982, Dave & Buster's Entertainment is the operator of 120 venues in the US and Canada

Shares of Dave & Buster’s Entertainment Inc (NASDAQ:PLAY), the restaurant and arcade chain, slipped in Tuesday’s after-hours session after the company saw it same-store sales miss estimates and drop 1.3% in its fiscal third quarter.

In its latest quarter, which ended on November 4, the Dallas-based company reported net income of $11.9 million, or $0.30 per diluted share, which zipped past Wall Street’s estimate of $0.24 per share.

Its revenue also came in ahead of the consensus estimate of $277.66 million, clocking in at $282.1 million.

READ: Dave & Buster's turns in sterling 2Q as Jurrasic World VR seen driving performance

But disappointed by the slowdown in same-store sales, a key indicator of profitability, investors sent Dave & Buster’s shares down 8.8% to $46.50 in Tuesday’s after-hours trading session.

The company attributed the plunge in same-store sales to a 0.7% decrease in sales from walk-in customers and a 6.9% drop in special events sales.

Food and beverage sales represented 42.1% of the company’s total revenues while amusements made up the remainder.

Before the end of the fiscal year, Dave & Buster’s is set to open 15 new stores and it will launch as many as 15 to 16 new locations in fiscal 2019.

Looking ahead, Dave & Buster’s expects full-year revenue to fall in the range of $1.24 billion to $1.25 billion.

 

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