Dave & Buster's (PLAY 55.49, +2.60) has climbed 4.9% in pre-market after reporting mixed results for the third quarter.
The operator of a sports bar and arcade chain reported above-consensus third quarter earnings of $0.27 per share on a 9.3% year-over-year increase in revenue to $250 million, which was shy of expectations.
Systemwide Food and Beverage revenue grew 6.3% to $107.70 million while Amusement and Other revenue grew 11.8% to $142.30 million. Food and Beverage revenue made up 43.1% of total revenue while Amusements and Other sales accounted for 56.9% of total revenue. One year ago, Food and Beverage revenue made up 44.3% of total revenue while Amusements and Other revenue represented 55.7% of total sales.
Comparable store sales declined 1.3% year-over-year as a 4.2% decline in Food & Beverage comparable sales offset a 1.1% increase in comparable Amusements sales.
Dave & Buster's opened one new location during the quarter after opening two new stores one year ago. The company believes that future growth will be supported by new store openings with 14 new stores expected to be opened during the fiscal year, which would translate to unit growth of 15.0%. The company announced plans for a new smaller store format of 15,000 to 20,000 square feet, which will allow Dave & Buster's to enter markets that were not included in the company's original expansion plan.
Looking ahead, the company expects that revenue for the full year will be between $1.148 billion and $1.155 billion, which is down from previous guidance for sales between $1.160 billion and $1.170 billion. Comparable store sales are expected to increase up to 0.75%, which is down from previous guidance for growth between 1.0% and 2.0%. The company's guidance was reduced due to the expected impact of hurricanes and a delay in the opening of a store in Puerto Rico.
For fiscal year 2019, the company expects low-double-digit growth in revenue and high-single-digit to double-digit growth in earnings before interest, taxes, depreciation, and amortization.