Dave & Buster’s Entertainment Inc is introducing smaller-format centers it says will spur unit growth.
In its third quarter earnings results, released Tuesday, the Dallas-based Dave & Buster’s (Nasdaq: PLAY) said the smaller concept will span 15,000 to 20,000 square feet, allowing Dave & Buster’s to open stores in smaller markets with less available real estate,w rites Korri Kezar in the Philadelphia Business Journal.
Dave & Busters currently operates more than 100 locations in 36 states and Canada. There are two in Philadelphia and one in Plymouth Meeting.
The company added that the venues will expand its whitespace opportunity by 10 to 20 percent beyond original targets of 211 units in the U.S. and Canada. Four smaller-format stores are expected to open in fiscal 2017, along with 10 traditional units.
In its quarterly results, the company also reported total revenues of $249.98 million, missing analyst estimates of $255 million. But earnings per share of 29 cents beat forecasts of 23 cents.
“Our team pulled through remarkably well in the face of unprecedented weather-related challenges in the quarter and difficult comparisons to last year,” Dave & Buster’s CEO Steve King said in an earnings release. “We continue to believe that the primary growth driver for the business is opening new stores with great returns. While it is still early, we are also pleased with the results from our 2017 store openings, which reaffirms the concept’s broad based appeal.”
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