Time to PLAY at Dave and Buster's
Dave and Buster's (PLAY) vaulted over $4 a share on news of another strong quarter with revenues and EPS beating consensus and an increase in guidance, notes small cap expert Tom Bishop, editor of BI Research.
Revenues increased 16% to $304 million aided by a 2.2% increase in comps (strong for this industry lately), in fact marking the 20th consecutive quarter of comp store sales increasing by more than the industry average.
The company also opened 4 new stores in Q1 and has opened 3 more since the end of the quarter for a total of 7 year to date.
Five more are on tap for the balance of the year, equaling the high end of its guidance of 11-12 store openings. Regionally, Texas rebounded nicely, likely aided by the rebound in the oil patch in Q1.
The company’s amusement games and other revenue continues to be an important driver of results surging 20.3% and now accounting for 57.3% of revenues.
Dave & Busters is constantly adding new games to keep its amusement section timely and exciting. For example, in the most recent quarter they added two Zombie-themed games, Zombie Snatcher and The Walking Dead and recently launched a game based on the Pirates of the Caribbean with a Spider Man game coming this summer.
Meanwhile after a somewhat rocky start, the company said the uptime for its proprietary Rock ‘em Sock ‘em Robots continues to improve.