Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY)
Shares of Dave & Buster’s Entertainment surged 13.74% to $54.40 before the opening bell Tuesday.
The gain came after the dining and entertainment group posted its earnings results for the first quarter of fiscal 2018. D&B’s swung to a profit of $42.2 million, or $1.04 a share during the quarter.
The results handily beat Wall Street estimates and sent shares rallying.
The company also revealed that Chief Executive Stephen King will step down at the end of the second quarter on Aug. 5 this year. However, he will still continue to serve as chairman and remain on the board of the directors.
He has held the CEO position for more than a decade, and is set to be replaced by the company’s current Chief Financial Officer, Mr. Brian Jenkins.
PLAY Earnings & Outlook
The company reported a net income of $42.2 million, or $1.04 per share for the period ended May 6. This compares to a net income of $42.8 million, or $0.98 per share, the company posted in last year’s comparable quarter.
Revenue came in at $332.2 million, up 9.2% from $304.2 million in the prior-year quarter.
Analysts expected revenue of $321.6 million and earnings per share of $0.94. The company sees revenue in the range of $1.2 billion to $1.24 billion for the full year. Analysts expect it to report a revenue of $1.23 billion.
Dave & Buster’s Entertainment Executive Comments
Stephen King issued the following remarks: “We continue to be pleased with our new store performance and are confident in our unit growth guidance for the year. We opened six stores during the quarter, our fastest pace so far, and these openings include a few that have delivered some of the highest volume openings in our history. The 2017 class of stores is also performing well for us, on track to achieve strong first year returns in line with our recent classes of stores.”
“At the same time, evolving the brand and improving comparable store performance is a priority for us. The upcoming launch of our proprietary virtual reality platform, and the new 100% Angus Butcher’s Blend burger are just two examples of improvements in our overall offering,” King concluded.
Dave & Buster’s Entertainment, Inc. Company Profile
Dave & Buster’s owns and operates restaurant and entertainment venues for families and adults. The venues offer appetizers and entrées menu, together with a full selection of alcoholic and non-alcoholic beverages.
It also offers entertainment attractions, including watching live sports and playing games. Its venues are also designed to cater for corporate-sponsored functions and private parties.
The venues operate under its Dave & Buster’s name. The company owned and operated a total of 110 stores in the U.S., Canada, and Puerto Rico as of April 3, 2018.
Dave & Buster’s Entertainment was founded in 1982 by James W. Corley and David O. Corriveau. Its headquarters are located in Dallas, Texas. –CNN