Dave & Buster's Loss Narrows, Shares Up 6%

(RTTNews) - Casual dining restaurant chain Dave & Buster's Entertainment Inc (PLAY), Tuesday reported a third-quarter loss that narrowed from a year ago, as revenues increased and operating costs dropped. Following the news, Dave & Buster's shares gained nearly 6 percent in the after-hours trade.

Dallas, Texas-based Dave & Buster's third-quarter loss narrowed to $4.6 million or $0.13 per share from last year's loss of $10.2 million or $0.31 per share. Pro-forma loss narrowed to $0.06 per basic share from last year's $0.11 per basic share.

Analysts polled by Thomson Reuters estimated a loss of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.

Dave & Buster's, which operates a chain that focuses on games and food, said revenues for the third quarter grew 14.9 percent to $163.5 million from $142.3 million last year. Analysts had a consensus revenue estimate of $159.3 million for the quarter.

Comparable store sales increased 8.7 percent compared to 2.4 percent last year, while the company opened two stores in the quarter. Total operating costs, as a percent of sales, dropped to 99.4 percent from 100.6 percent last year.

Moving ahead, the company expects comparable store sales increase of 5.5 to 6 percent for the full year.

Dave & Buster's operates venues that combine dining and entertainment. It offers food and beverage items combined with an assortment of entertainment attractions, including skill and sports-oriented redemption games and video games. In October, Dave & Buster's raised $94 million in its initial public offering of 5.9 million shares at $16 a share.

PLAY closed Tuesday's trading at $21.63, up $0.04 or 0.19%, on the Nasdaq. The stock further gained $1.22 or 5.64% in the after-hours trade.