logo-loader
viewDave & Buster's Entertainment

Dave & Buster's shares flounder on 2Q revenue miss, lagging same-store sales

Revenue grew 9.5% to $363.6 million, not measuring up to the consensus estimate of $371 million

Dave & Buster's
The Dallas-based company also shaved down its fiscal 2020 guidance

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

Quick facts: Dave & Buster's Entertainment

Price: 12.74 USD

NASDAQ:PLAY
Market: NASDAQ
Market Cap: $604.55 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

KORE Mining is cashed up and ready for exploration on 4 unique projects

KORE Mining (CVE: KORE) CEO Scott Trebilcock joined Steve Darling from Proactive to discuss the company, that is exploring 4 properties including their Imperial project which they just completed a positive PEA. Trebilcock tells Proactive about that gold project and also about their...

1 day, 4 hours ago

2 min read