Dave & Busters (PLAY 72.55, +2.38 +3.39%) trades to all-time highs today behind the company’s better than expected Q1 earnings report and FY18 guidance raise.
Specifically, in Q1 PLAY reported earnings per share (EPS) of $0.98 on revenues which rose 16.1% compared to last year to $304.15 million, both of which beat market views. Comparable store sales were up 2.2% in Q1 compared to a 3.6% increase in the same period last year. The company’s comparable store sales growth was driven by a 2.4% increase in walk-in sales and a 0.6% increase in special events sales. Non-comparable store revenues increased $36.5 million in Q1 to $57.0 million.
Across all stores, Food and Beverage revenues increased 10.8% to $129.8 million from $117.1 million and Amusement and Other revenues increased 20.3% to $174.3 million from $144.9 million. Food and Beverage represented 42.7% of total revenues while Amusements and Other represented 57.3% of total revenues in Q1. In comparison last year, Food & Beverage represented 44.7% of total revenues while Amusements and Other represented 55.3% of total revenues.
Given these results, in fiscal 2017, PLAY now intends to open twelve new stores, compared to their previous guidance of eleven to twelve stores, including eight large and four small store formats. The company currently has five stores under construction. In all, total capital additions (net of tenant improvement allowances) during fiscal 2017 are now expected to be $166-176 million (versus $156-166 million previously) and include development costs for store openings, four remodeling and related projects, new games and maintenance capital.
In addition to the strong Q1 performance, PLAY management raised the low-end of their FY18 revenue guidance to $1.16-1.17 billion from $1.155-1.17 billion. The company continues to see comp growth of 2-3% for the year.
Furthermore, PLAY’s board also authorized the repurchase of an additional $100 million of the company’s common stock under the existing repurchase program through the end of fiscal 2018.