Dave & Buster's Entertainment Inc (NASDAQ: PLAY) shares headed higher, after the company reported better-than-expected earnings for its third quarter.
The Dallas-based company reported total revenues increased 9.3% to $250 million from $228.7 million in the same quarter last year. It also opened one new store compared to two new stores.
PLAY also said comparable store sales decreased 1.3%, with comparable store sales in Amusements jumping 1.1% and moving down in the Food & Beverage decreased 4.2%. Net income proved $12.2 million, or $0.29 per diluted share, vs. net income of $10.8 million, or $0.25 per diluted share.
"Hurricanes during the quarter had an unfavorable impact on our comparable store sales growth," the news release read on, "(with) total revenue and EBITDA of approximately 50 basis points, $2 million and $0.7 million respectively. In addition, wildfires had an unfavorable impact on our California stores."
To quote CEO Steve King, "Our team pulled through remarkably well in the face of unprecedented weather-related challenges in the quarter and difficult comparisons to last year.
"We continue to believe that the primary growth driver for the business is opening new stores with great returns. Our 2016 class of stores is trending very well, with returns close to 50%, in line with the first year returns for our recent classes of stores."
Shares in PLAY climbed 81 cents, or 1.5%, toward the close of business Wednesday to $53.70, within a 52-week trading range of $45.71 to $73.48.
