Dave & Buster's Entertainment Inc. (PLAY) rose 2.5% to $52.04 at the close of trading on Tuesday after the company raised fiscal-year revenue and earnings guidance.
The owner and operator of entertainment and dining venues updated guidance for fiscal-year 2018 and now expects revenue between $1.259 billion and $1.263 billion, up from a range of $1.243 billion and $1.255 billion. Net income guidance also was raised and is expected to range from $112 million to $114 million compared to prior guidance of $106 million to $113 million.
The company expects to report fourth quarter and fiscal 2018 results in early April.
"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," said CEO Brian Jenkins in a statement. "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."
The company also said new stores are driving "excellent returns," providing approximately 64% cash-on-cash returns in the first year since opening. Opening new stores will remain a "key priority," with 15 to 16 new stores expected in fiscal 2019.
For the fiscal fourth quarter, the company expects comparable same-store sales growth to increase 1.8% to 2.5%, and for the full year same-sales are expected between 1.9% to 1.7%.
EBITDA for fiscal 2018 is now expected to range between $276 million to $278 million vs. a prior guidance of $268 million to $277 million.