An increase in revenue from amusements helped boost Dave & Buster’s Entertainment Inc. profit in the first quarter ended May 1, the company said Tuesday.
The Dallas-based company reported a 59.5-percent increase in profit, to $31.2 million, or 72 cents a share, from $19.5 million, or 46 cents a share, in the prior-year period. Revenue increased 17.7 percent, to $262 million, from $222.7 million in the same quarter last year.
Same-store sales increased 3.6 percent in the quarter, compared with a 9.9-percent increase in the same period last year.
Steve King, Dave & Buster’s CEO, said in a statement that the entertainment venue operator was noting a “continued shift in revenues to our higher-margin amusement category.”
In the first quarter, amusement and other revenues rose 21.6 percent, to $144.9 million, eclipsing food and beverage revenue, which increased 13.1 percent, to $117.1 million.
“Food and beverage represented 44.7 percent of total revenues, while amusements and other represented 55.3 percent of total revenues in the first quarter 2016,” the company said in an earnings release.
In the same quarter last year, food and beverage sales were 46.5 percent of total revenue, and amusements and other represented 53.5 percent.
"We are off to a great start in fiscal 2016 with results that surpassed our expectations and are pleased to already be raising our annual outlook,” King said. “Our unique entertainment, dining and sports-viewing venues are demonstrating their broad-based appeal despite challenges affecting many of our casual-dining peers.”
King said Dave & Buster’s was “committed to keeping our brand fresh through a continuous stream of ‘new news' to further differentiate ourselves.”
The company raised its guidance for fiscal 2016, including boosting its forecast same-store sales to a range of between 3.3 percent and 4.3 percent from 2 percent to 4 percent. It also announced that its board has authorized a $100 million share repurchase program.
Dave & Buster's owns and operates 84 venues in 30 states and Canada.