Dave & Buster’s Updates Fiscal 2018 Financial Outlook
Globe Newswire. Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) excitedly reported that its fiscal 2018 4th Quarter (Q4) comparable store sales are expected to increase by 1.8% to 2.5%. [This is good news as the Family Entertainment Center/LBE industry closely follows how Dave & Buster’s is doing because D&B is a good benchmark indicator for this industry sector]. Note that D&B’s fiscal year-end is February 3, 2019.
Dave & Buster’s” (D&B), owns and operates 121 entertainment and dining venues in North America, offering customers the opportunity to “Eat Drink Play and Watch,” all in one location. [D&B has a unique financial model where revenues are usually evenly split between games and food/beverage]. The Company expects to report its full fourth quarter and fiscal 2018 results in early April 2019.
“We remain laser-focused on our strategic priorities to drive comparable store sales, including evolving our offering, improving the guest experience, and more effectively communicating our new news and value. I’m pleased with the progress our team made throughout the year, as we continue to evolve the brand, resulting in the return to positive comparable store sales in the fourth quarter,” said Brian Jenkins, Chief Executive Officer. “Meanwhile, new stores continue to deliver excellent returns. With their first year now completed, we are excited to report year one cash-on-cash returns of approximately 64% for our 2017 class of stores, one of our best in recent history. Opening new stores with outstanding returns remains a key priority and we are maintaining our plan to open 15 to 16 new stores in fiscal 2019,” Jenkins concluded.
What Do These Numbers Really Mean?
For the full year, comparable store sales are expected to decrease 1.7% to 1.9%. For fiscal 2018, total D&B revenues are expected to range from $1.259 billion to $1.263 billion compared to prior estimates of $1.243 billion to $1.255 billion. Net income for fiscal 2018 is expected to be $112-$114 million up from prior estimates of $106-$113 million. The effective tax rate is projected to be approximately the same at 22%. EBITDA for fiscal 2018 is projected to be $276-$178 million compared to prior estimate of $268-$277 million.
About Dave & Buster’s Entertainment, Inc. Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster’s offers a full menu of entrées and appetizers, a complete selection of alcoholic and non-alcoholic beverages, and an extensive assortment of entertainment attractions centered around playing games and watching live sports and other televised events. Dave & Buster’s currently has stores in 39 states, Puerto Rico, and Canada.
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