Investing.com -- Shares in Dave & Busters, a leading operator of venues that combine dinner and entertainment offerings, surged more than 4% in after-hours trading after the Texas-based restaurant posted record-setting adjusted EBITDA and margins for the first quarter.
As a result, Dave & Busters reported earnings of $19.5 million or 0.45 per share up from earnings of $11.5 million or 0.34 per share last year during the period. The company's revenues during the quarter also shot up by 14% to $222.7 million, above analysts' forecasts of $216.3 million in revenue. Dave & Busters reported an 11.4% increase in Food and Beverage revenue to $103.6 million, along with a 17% jump in Amusement revenues to $119.1 million.
The company's adjusted EBITDA also rose by 22.3% to $61.9 million, as its comparable store sales gains outpaced the industry benchmark for the 12th consecutive quarter, the company said in a statement.
"The broad-based momentum in our business was reflected across our sales categories, operating days, day-parts, and geographies, enabling us to achieve record-setting results for adjusted EBITDA and margin for a first quarter. Given our achievements to date, including an opportunistic refinancing of our senior debt during the second quarter, we are delighted to be raising our full year guidance as detailed below," Dave & Busters' CEO Steve King said in a statement.
Moving forward, Dave & Busters has plans on opening seven to eight new stores and relocating one other in 2015. Dave & Busters also updated its forward guidance on Monday, predicting revenues of $822 to $831 million for the fiscal year up from previous forecasts of $808 to $822 million. It also anticipates comparable store sales gains of 4 to 5%, above previous estimates of 3-4% on the year.
"We are committed to unit growth of approximately 10% annually and believe our long-term potential for North America development is in excess of 200 stores, notwithstanding international opportunities," King added. "These investments are critical to strengthening our brand positioning and ensuring that we are the destination of choice for one of a kind dining, entertainment, and sports viewing."
Shares in Dave & Busters gained 1.40 or 4.21% to 34.65 in after-hours.