Dave & Buster's Entertainment Inc (NASDAQ:PLAY) stock powered down after the restaurant and arcade chain posted fiscal first-quarter results marred by a revenue miss and declining same-store sales.
Revenue grew 9.5% to $363.6 million, not measuring up to the consensus estimate of $371 million. Same-store sales growth declined 0.3%, drastically short of the 1.6% called for by analysts, according to a published report.
Shares took a big hit before the bell Wednesday, dropping more than 17% to $42.50.
READ: Internet of Things sees revenue boost in 2018 as it continues to build out data-driven IoT companies
Net income was $42.4 million, or $1.13 per share, a narrow beat over Street expectations of $1.12.
The Dallas-based company also shaved down its fiscal 2020 guidance. Revenue is now expected to come in between $1.365 billion to $1.39 billion, down from $1.37 billion to $1.4 billion. Analysts are calling for $1.4 billion.
Comparable sales sit between down 1.5% and up 0.5%, a decrease from prior estimates between flat and up 1.5%. The company also expects to open 15 to 16 new stores.
“We delivered robust revenue and EPS growth and our new store performance remained strong, but comparable store sales were below expectations largely due to the Easter shift, which proved unfavorable this year,” CEO Brian Jenkins said. “We are fully committed to executing on our four strategic priorities to strengthen the brand and remain focused on creating significant shareholder value over the long term.”
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel