Dave & Buster’s Entertainment, Inc., (NASDAQ: PLAY) updated guidance for its fiscal 2018, which ends on February 3, 2019. Following the results, shares of Dave & Busters are up 5% Tuesday morning.
The new and improved outlook for fiscal 2018 comes after fourth-quarter sales that have exceeded previous expectations. The Company now expects fiscal fourth-quarter comparable same-store sales to increase by 1.8% to 2.5%.
While comparable store sales for the full year are expected to decrease by 1.9% to 1.7% versus prior guidance of a low single-digits decrease.
For fiscal 2018, the Dallas-based Company expects total revenues to range from USD1.259 Billion to USD 1.263 Billion compared to prior guidance of USD1.243 Billion to USD1.255 Billion. Net income for fiscal 2018 is expected to range from USD 112 Million to USD 114 Million versus prior guidance of USD 106 Million to USD113 Million.
For the fourth quarter analysts polled by FactSet are expecting Dave & Busters to report earnings of 62 cents on sales of USD 319 Million for the fourth quarter.
An All You Can Eat Wings promotion at the start of the football season, is actually what caused disappointing third-quarter sales. A decision to not include the USD 19.99 offer in the third quarter hurt the Company, but after reintroducing the deal in the fourth quarter it prompted the better than expected sales and ultimately caused the improvements for fiscal 2018 guidance.
Heading into 2019 Dave & Busters plans on developing its technology by adding kiosk upgrades, RFID power cards for its games, and updating its mobile app. The company is putting a lot of emphasis on improving there technology to create a full “Eat Drink Play and Watch” location for its customers.
The Company plans on opening 15 to 16 new stores for fiscal 2019 and has signed 25 leases for new stores. Currently, 11 of these future locations are already under construction.
Full fourth quarter and fiscal 2018 results are expected to be released in early April 2019
“We remain laser-focused on our strategic priorities to drive comparable store sales, including evolving our offering, improving the guest experience, and more effectively communicating our new news and value. I’m pleased with the progress our team made throughout the year, as we continue to evolve the brand, resulting in the return to positive comparable store sales in the fourth quarter,” said Brian Jenkins, Chief Executive Officer in a press release.