Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) stock fell over 9.7% on 12th December, 2018 (as of 10:00 am GMT-5 ; Source: Google finance) after the company’s same-store sales miss estimates and drop 1.3% in its fiscal third quarter. The company attributed the plunge in same-store sales to a 0.7% decrease in sales from walk-in customers and a 6.9% drop in special events sales. Food and beverage sales represented 42.1% of the company’s total revenues while amusements made up the remainder. Before the end of the fiscal year, Dave & Buster’s is set to open 15 new stores and it will launch as many as 15 to 16 new locations in fiscal 2019. During the third quarter 2019, adjusted EBITDA decreased 2.7% to $52.7 million from $54.1 million, but increased 4.6% on a comparable week basis. The company during the quarter launched Connect 4 Hoops and House of the Dead: Scarlet Dawn, and laid the groundwork for the December release of Dragonfrost, our proprietary virtual reality title. The company has repurchased 437,000 shares for $25.0 million. As of December 4, 2018, PLAY have cumulatively repurchased 5.1 million shares for $275.6 million under the $400 million authorization
PLAY in the third quarter of FY 19 has reported the adjusted earnings per share of 30 cents, beating the analysts’ estimates for the adjusted earnings per share of 24 cents. The company had reported the adjusted revenue growth of 35.9 percent to $282.1 million in the third quarter of FY 19, beating the analysts’ estimates for revenue of $277.6 million. Across all stores, Food and Beverage revenues increased 10.3% to $118.8 million from $107.7 million, and Amusement and Other revenues increased 14.8% to $163.3 million from $142.3 million. Food and Beverage represented 42.1% of total revenues, while Amusements and Other represented 57.9% of total revenues in the third quarter 2018. In last year’s third quarter, Food & Beverage represented 43.1% of total revenues, while Amusements and Other represented 56.9% of total revenues.
The comparable store sales decline was driven by a 0.7% decrease in walk-in sales and a 6.9% decrease in special events sales. Comparable store sales in Amusements & Other increased 1.5% but decreased 5.0% in Food & Beverage. Non-comparable store revenues increased $43.1 million, or 135.5%, in the third quarter 2018 to $75.0 million, also on a comparable week basis.
For fiscal 2019, PLAY expect high single-digit growth in revenue and mid-to-high single-digit growth in EBITDA.