Dave & Buster's Q1 Profit Rises, Lifts Outlook

(RTTNews) - Casual dining restaurant chain Dave & Buster's Entertainment Inc. (PLAY), Monday reported an increase in profit for the first quarter, as revenues improved on more traffic. Moving ahead, the company also lifted its full-year financial outlook.

Dallas, Texas-based Dave & Buster's first-quarter profit rose to $19.5 million or $0.45 per share from $11.5 million or $0.34 per share last year.

Excluding one-time items, adjusted earnings for the quarter improved to $0.46 per share from $0.33 per share a year ago. On average, five analysts polled by Thomson Reuters estimated a profit of $0.37 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 quarter grew 14.3 percent to $222.7 million from $194.8 million a year ago. Analysts had a consensus revenue estimate of $216.3 million for the quarter.

Comparable store sales increased 9.9 percent compared to 4.7 percent last year, while the company opened two stores in the quarter. Total operating costs, as a percent of sales, dropped to 83.9 percent from 85.5 percent last 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 last year, Dave & Buster filed for an initial public offering and raised $94 million by selling 5.9 million shares at $16 a share.

Looking forward to the full-year 2015, the company now expect adjusted earnings of $43.5 million to $46 million on revenues of $822 million to $831 million. Analysts currently expect earnings of $0.96 per share on revenues of $821.9 million for the year.

Earlier, the company indicated earnings of $36.7 million to $40.4 million on revenues of $808 million to $822 million.

The company also lifted its full-year comparable store sales growth outlook to a range of 4.0 to 5.0 percent from prior outlook of 3.0 to 4.0 percent.

PLAY closed Monday's trading at $33.25, down $0.27 or 0.81%, on the Nasdaq. The stock, however, gained $1.14 or 3.43%, in the after-hours trade.