Dave & Buster’s (NASDAQ:PLAY) reported its latest quarterly earnings results late today, bringing in adjusted EBITDA and revenue that increased year-over-year, yet a decline in comparable store sales played a role in PLAY stock declining sharply after hours.
The restaurant chain said that for its first quarter of its fiscal 2019, it brought in sales of $363.6 million, which marked a 9.5% increase when compared to the $332.2 million it amassed during the same period in its fiscal 2018. The brand also revealed that it opened seven new stores, better than the six new stores it brought in during the same period a year ago.
Dave & Buster’s added that its net income for the period tallied up to $42.4 million, or $1.13 per diluted share, a touch above its net income from the year-ago, which amounted to $42.2 million, or $1.04 per diluted share. The company’s EBITDA gained 3.2% year-over-year to $88.9 million, while adjusted EBITDA surged 2.4% to $98.2 million.
However, the business suffered from its comparable store sales falling 0.3% compared to the year-ago. “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,” said Brian Jenkins, Dave & Buster’s CEO.
“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,” he added.
PLAY stock is sinking roughly 16.2% after the bell Tuesday following the company’s quarterly earnings results, which were mixed. Shares had been surging 1.9% during regular trading hours.