Dave & Buster’s Entertainment Inc. soared after reporting revenue that beat estimates and appointing a new chief executive officer.
The stock jumped as much as 20 percent in late trading on Monday. The Dallas-based restaurant-and-gaming company said that income from both food and gaming rose. It also announced that Chief Financial Officer Brian Jenkins will replace Stephen M. King as CEO. King will remain as chairman.
The report shows that Dave & Buster’s move to simplify its menu is paying off. Earlier this year, it cut its menu items by about 20 percent, and began selling a new Angus-blend burger. The company also is introducing new virtual-reality gaming this year.
First-quarter revenue was $332.2 million, topping analysts’ estimates and rising 9.2 percent from a year ago. Same-store sales also fell less than analysts had anticipated.
The shares rose to as high as $57.40 in late trading. The stock had declined 13 percent this year through Monday’s close.
King, who’s been Dave & Buster’s leader for more than a decade, will step down as CEO as of Aug. 5.
©2018 Bloomberg L.P.
Read Skift Table for Essential News on the Business of Restaurants
Subscribe to our daily newsletter to follow industry trends, creativity, and innovation as we help define the future of dining out.