Benchmark Co. analyst Mike Hickey has maintained their neutral stance on PLAY stock, giving a Hold rating today.
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Mike Hickey has given his Hold rating due to a combination of factors impacting Dave & Buster’s Entertainment. The company’s recent quarterly results did not meet expectations, with a notable decline in same-store sales for the tenth consecutive quarter. Revenue remained stagnant, and profitability metrics, such as AEBITDA, fell short of consensus estimates, indicating financial strain.
Management attributed these challenges to both temporary and structural issues, including increased marketing and maintenance costs, which pressured margins. Despite a strategic plan aimed at growth through new store development and menu innovation, execution missteps have hindered progress. The reduction of the long-term AEBITDA target further underscores the challenges faced by the company, leading to a Hold rating as management works to address these operational issues.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $26.00 price target.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is neutral on the stock.