Dave and Buster’s CEO Steve King has revealed that the US-based dining and entertainment location operator is close to agreeing a deal to bring the brand to the international marketplace.
Announcing the company’s financial results for the second quarter, a period during which total revenues jumped nearly 20 per cent to $217.3m and comparable store sales were up 11 per cent year on year, King said the business had enjoyed “an incredible year of financial performance.”
The company reported adjusted EBITDA $52.7m, an increase of 31.1 per cent on the figure recorded in the second quarter of last year. Net income also improved to $12.6m from a net loss of $13.9m.
Across all stores, food and beverage revenues were up 16.8 per cent and amusements and "other" revenues were 22.4 per cent higher. The latter represented 54.4 per cent of total revenues, a slight increase on the same period in 2014.
The company’s plans to further extend its reach across the country are also therefore on track, King said.
"We have already opened five stores this year and are raising our development guidance to eight to nine stores, of which all but one will be in the large store format,” he said. “Our long-term target for North America development is in excess of 200 stores which we intend to achieve through approximately 10 per cent annual growth in our store base.”
In the third quarter, a D&B’s store opened in Edina, Minnesota, and a newly relocated Buffalo, New York, store is due to open in October. The fourth quarter will also see new stores unveiled in Houston, Texas, in Phoenix, Arizona, and Springfield in Greater DC, Virginia.
Expansion in North America, however, is only one of the company’s targets.
“We are also making progress in realising our international opportunities and are extremely close to signing a multi-store agreement for licensed development,” he added.
