William Blair analyst Sharon Zackfia has maintained their neutral stance on PLAY stock, giving a Hold rating on November 26.
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Sharon Zackfia’s rating is based on a combination of factors surrounding Dave & Buster’s third-quarter performance. The company reported mixed results, with revenue falling short of expectations by approximately $12 million, while adjusted EBITDA exceeded forecasts due to better-than-expected unit-level margins, despite higher general and administrative expenses.
Comps declined by 4%, slightly below consensus expectations, but showed sequential improvement each month, supported by initiatives such as the new back-to-basics menu and the Eat & Play combo, which increased dining room traffic and average check values. The positive momentum in food and beverage comps, particularly in October and November, along with improvements in entertainment comps, contributed to the Hold rating, as these factors indicate potential for future growth, albeit with some caution due to the mixed quarterly results.
In another report released on November 26, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $16.00 price target.