Shares of Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY) are down about 5.5% after the arcade-restaurant group lowered its full-year profit forecast and posted stronger-than-expected second quarter earnings.
The Company said revenue rose 8% during the period to USD 344.6 Million, narrowly missing Wall Street’s call for USD 345 Million. Adjusted earnings came in at USD 0.90 per share, outpacing estimates of USD 0.86 per share. Dave & Busters earned USD 0.84 per share in the same quarter of last year.
Food and Beverage sales, which represented 40% of total revenues in D&B’s latest quarter, increased 5.9% year-over-year to USD 137.9 Million. Amusement and Other revenues rose 9.4% to USD 206.7 Million, the Company said.
Meanwhile, sales at stores open at least a year declined 1.8% in the fiscal second quarter. The Company attributed the comparable sales decrease to a 2.0% slide in walk-in sales, which was partly offset by a 0.1% increase in special events revenue. Comparable sales fell 2.4% in the year-quarter prior.
Dave & Buster’s said it now sees full-year 2019 revenues in the range of USD 1.338 Billion to USD 1.359 Billion, down from its previous forecast of USD 1.365 Billion to USD 1.390 Billion. Net Income is expected to be USD 91 Million to USD 100 Million, compared to a prior estimate of USD 103 Million to USD 113 Million.
Brian Jenkins, Dave & Buster’s Chief Executive Officer added that the Company is adding some new features to “improve performance”. The restaurant group will revamp its existing stores with higher quality television displays, and an upgraded food and drink menu. It will also launch its nationwide mobile app in October.