A fourth consecutive year of record growth has been reported by US FEC and restaurant chain Dave and Buster’s on the back of its 2017 fourth quarter results.
Compared to the same period in 2016, total revenue increased 12.9 per cent to US$304.9m and EBITDA was up 4.3 per cent to $70.8m.
The quarter also allowed the calculation of the full years’ results, which saw total revenue go up by 13.4 per cent from $1.005bn to $1.140bn and an EBITDA increase of 12.4 per cent to $268.5m from $238.8m
Steve King, Dave and Buster’s chief executive officer, said: “2017 was another outstanding year for us as we delivered double-digit revenue, net income and EBITDA growth. Our primary growth vehicle and the biggest driver of value continues to be opening stores that offer excellent returns in the face of a more intense competitive environment. However, recent sales trends in our comparable stores have been disappointing and we are working diligently to rebuild momentum by evolving the brand.”
Five stores were opened during the fourth quarter: in Brandon, Florida; Woodbridge, New Jersey; Auburn, Washington; White Marsh, Maryland, and Bayamon, Puerto Rico for a total of 14 stores for the year.
The firm has plans in place to open a total of 14 to 15 new stores in 2018, including two 17K format stores which are 17,000sq.ft outlets in smaller cities to better fit with the populations there.
This year, four stores have already opened in Rogers, Arkansas; Memphis, Tennessee; Wayne, New Jersey and Anchorage, Alaska. Two additional stores are planned for Madison, Wisconsin and Rosemont, Illinois during the remainder of the first quarter.
Expanding on the real estate theme, US media outlet CNBC reported that Dave and Buster’s is taking advantage of the retail slowdown and targeting shuttered stores in malls.
It claims that former locations of the department store chain Sears are being sought because they are a particularly good fit for Dave & Buster’s as they often offer access to major highways, are easily visible and have plenty of parking.
