Dave & Buster’s Wilts on Downward Q1 Sales

Dave & Buster's Entertainment Inc (NASDAQ:PLAY) fell hard Wednesday morning after the company reported downbeat sales for its first quarter and cut FY2019 sales guidance.

The Dallas-based restaurant chain revealed Tuesday total revenues increased 9.5% to $363.6 million from $332.2 million. This growth was driven by an 11.9% increase in Amusements and Other revenue and a 6.1% increase in Food and Beverage revenue.

The company opened seven new stores compared to six new stores. Comparable store sales decreased 0.3%, compared to a decrease of 4.9% in the comparable period last year.

Net income proved $42.4 million, or $1.13 per diluted share, compared to prior-year net income of $42.2 million, or $1.04 per diluted share. EBITDA increased 3.2% to $88.9 million from $86.1 million.

In the words of CEO Brian Jenkins, “We delivered robust revenue and EPS growth and our new store performance remained strong, but comparable store sales were below expectations largely due to the Easter shift, which proved unfavorable this year. We are fully committed to executing on our four strategic priorities to strengthen the brand and remain focused on creating significant shareholder value over the long term.”

In fiscal 2019, PLAY says it remains on track to open 15 to 16 new locations, representing unit growth of approximately 12% (net of Gwinnett (Duluth), Georgia closing), consistent with its target of 10% or more annual unit growth.

Shares stumbled $9.99, or 19.4%, to $41.54