Dave & Buster’s Entertainment Inc (PLAY) Shares Sink on Revenue Miss

Dave & Buster’s Entertainment Inc (NASDAQ:PLAY) reported its latest quarterly results, which were mixed.

Dave & Buster's Entertainment Inc (PLAY)The restaurant and entertainment business chain announced fourth-quarter adjusted earnings of 61 cents per share, which was a decline compared to the year-ago profit. However, the figure did top analysts’ expectations of 59 cents per share, according to data compiled by Zacks Investment Research.

On the revenue front, Dave & Buster’s Entertainment brought in $304.9 million, marking an increase of nearly 13% compared to the year-ago quarter. Analysts were calling for revenue to hike up to $305 million, according to Zacks.

Same-store sales underwhelmed for the restaurant chain as they fell 5.9% year-over-year during the fourth quarter. The Wall Street consensus estimate was calling for a same-store sales decline of 5.1% year-over-year, according to Consensus Metrix.

Dave & Buster’s Entertainment’s food and beverage business fell 7.8% compared to the year-ago quarter, steeper than the 6.8% slide that analysts predicted, according to Consensus Metrix. The company’s amusement and other sales decreased 4.2% year-over-year, below the 3.7% miss that Wall Street projected, per Consensus Metrix.

For fiscal 2018, the company is calling for revenue of $1.2 billion to $1.24 billion, below the consensus estimate of $1.28 billion. Same-store sales are slated to be down in the low-to-mid single digits for Dave & Buster’s Entertainment.

“Our primary growth vehicle and the biggest driver of value continues to be opening stores that offer excellent returns in the face of a more intense competitive environment,” said CEO Steve King in a statement. “However, recent sales trends in our comparable stores have been disappointing and we are working diligently to re-build momentum by evolving the brand.”

PLAY stock fell about 5.4% after the bell Tuesday..


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