Dave & Buster's reports disappoint Q3 sales
Same-store sales, a key statistics for restaurants, fell 1.3 percent in the quarter, which was much worse than the 0.7 percent decline as expected by analysts.
For example, the management underestimated the power of the wings.
<p class = "canvas-atom text text Mb (1.0em) Mb (0) – -m Mt (0.8em) – sm" type = "text" content = "" Fo is the football season, in Basically, w I did not put enough emphasis on sports shows when we skipped All You Can Eat Wings Promotion as we drove last year during the first 6 weeks of the season. This had an unfavorable effect on comps, "explained CEO Brian Jenkins ." To correct the course towards the end of the quarter, introduced a new and more convincing $ 19.99 unlimited turnkey game on game nights that also included unlimited video games. "" Fo is the football season, basically w I did not put enough emphasis on sports shows when we skipped the All You Can Eat Wings campaign we drove last year in the first 6 weeks of the season. This had an unfavorable effect on comps, says CEO Brian Jenkins. "To correct the course towards the end of the quarter, we presented a new and more convincing $ 19.99 unlimited game promotion on game nights that also included unlimited video games .
Stocks declined by almost 15% in pre-market trading on Wednesday.
The company reported better than expected earnings of 30 cents per share against consensus estimates of 24 cents per share.
Income also came well above expectations of $ 282 million against $ 277 million on Wall Street.
Further, Dave & Buster's management improved its revenue guidance for fiscal policy 2018, and now expects revenues between 1.24 million and 1.26 m Illions dollars increase from $ 1.23 million to $ 1.26 million previously expected.
"We are increasing the lower end of our 2018 guidance on key calculations. During the third quarter, in addition to continuing to invest in the business, we paid our first quarterly cash dividend and repurchased additional shares. These actions reflect our strong commitment to strengthen long-term shareholder value, says Finance Minister Joe DeProspero.
