The US-based amusement chain Dave and Buster’s enjoyed a 2.9 per cent rise in store sales in Q4 2018.
During the quarter, the chain opened three stores during the fourth quarter in Milford, Connecticut; Birmingham, Alabama; and Corpus Christi, Texas, our second 17K format store, for a total of 15 new stores in fiscal 2018. Total capital additions, net of tenant improvement allowances and other landlord payments, during the year were $158.9m.
In fiscal 2019, the company expects to open 15 to 16 new locations and recently closed its store in Gwinnett, Georgia at the end of its lease term, representing net unit growth of approximately 12 per cent, consistent with its target of 10 per cent or more annual unit growth.
It has opened five new stores so far in Louisville, Kentucky; North Hills, Pennsylvania; Thousand Oaks, California; Daytona Beach, Florida and Fairfax, Virginia. The chain plans to open two more stores in Fort Myers, Florida and Sevierville, Tennessee for a total of seven new stores in the first quarter. Currently, there are nine stores under construction.
“We are pleased to finish the year on a strong note. On a comparable week basis, we drove double-digit revenue growth in Q4 as comparable store sales increased 2.9 per cent and new store performance remained strong. 2018 was another year of record sales and EBITDA and looking ahead to 2019, we are well positioned to deliver new revenue and EBITDA highs, and reinforce our leadership position in the combined entertainment and dining space,” said Brian Jenkins, chief executive officer.
Joe DeProspero, interim chief financial officer, said: “We remain focused on driving shareholder value by continuing to invest in new store growth, executing on our share repurchase program and paying a quarterly cash dividend. We are excited our board has authorised to expand our share repurchase program by another $200m.”
