Dave & Busters Entertainment (PLAY)
NASDAQ:PLAY
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Dave & Busters Entertainment
(NASDAQ:PLAY)
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Rating:42Neutral
Price Target:
$15.00
▲(52.91% Upside)
Action:ReiteratedDate:02/21/26
The score is held down primarily by deteriorating TTM financial performance (sharp revenue decline, near-zero profitability, and negative free cash flow) combined with high balance-sheet leverage and a thin equity buffer. Technicals are also weak with the stock trading below major moving averages and negative MACD. The latest earnings call adds some support via sequential sales improvement and product/promo traction, but ongoing comp declines and a quarterly net loss limit confidence.
Positive Factors
Diversified revenue streams
Dave & Buster's multi-pronged model (restaurant, arcade games, events) creates diversified, recurring revenue sources that reduce dependence on any single segment. This cross-selling ability supports steady guest spend and helps stabilize cash flows across economic cycles, aiding long-term resilience.
Negative Factors
Sharp revenue decline
A large, persistent revenue decline erodes operating leverage and pressures margins; reversing a ~22.7% TTM drop requires sustained customer re-engagement across locations. Prolonged top-line weakness makes margin recovery and debt servicing materially harder over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue streams
Dave & Buster's multi-pronged model (restaurant, arcade games, events) creates diversified, recurring revenue sources that reduce dependence on any single segment. This cross-selling ability supports steady guest spend and helps stabilize cash flows across economic cycles, aiding long-term resilience.
Read all positive factors
Dave & Busters Entertainment (PLAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$340.21M
Dividend YieldN/A
Average Volume (3M)1.34M
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth-4.07%
EPS Growth-100.72%
CountryUS
Employees23,420
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-1.22
Shares Outstanding34,680,264
10 Day Avg. Volume1,896,024
30 Day Avg. Volume1,342,184
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)7.12
Price to Sales (P/S)0.49
P/FCF Ratio-4.76
Enterprise Value/Market Cap10.35
Enterprise Value/Revenue1.67
Enterprise Value/Gross Profit5.27
Enterprise Value/Ebitda8.75
Forecast
1Y Price Target
$24.33Price Target Upside148.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.83
Revenue Forecast (FY)$2.23B
Dave & Busters Entertainment Business Overview & Revenue Model
Company Description
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America. Its venues offer a menu of entrées and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and...
How the Company Makes Money
Dave & Buster's generates revenue through multiple streams, primarily from food and beverage sales, game play, and special events. The company's core revenue comes from its full-service restaurant and bar, where it offers a diverse menu of appetiz...
Dave & Busters Entertainment Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by business segments, offering insight into which parts of the company are driving growth and which may need strategic adjustments.
Breaks down revenue by business segments, offering insight into which parts of the company are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyDave & Busters Entertainment Earnings Call Summary
Earnings Call Date:Dec 09, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture. While there are positive developments such as sequential improvement in same-store sales, successful new menu launch, and strong free cash flow generation, significant challenges remain, including a decline in comparable store sales and a net loss for the quarter. The sentiment is balanced between optimism for future growth and concerns over current financial losses.Positive Updates
Sequential Improvement in Same-Store Sales
Same-store sales showed sequential improvement each month during the third quarter, with the final month down only roughly 1%.
Negative Updates
Decline in Comparable Store Sales
Comparable store sales decreased 4% versus the prior year period, with a slight deceleration on a two-year stack.
Read all updates
Q3-2025 Updates
Positive
Negative
Sequential Improvement in Same-Store Sales
Same-store sales showed sequential improvement each month during the third quarter, with the final month down only roughly 1%.
Read all positive updates
Company Guidance
During the Dave & Buster's Q3 2025 earnings call, the company provided guidance reflecting a progressive improvement in their business metrics. Same-store sales showed sequential improvement, with October's sales down only roughly 1% compared to the prior year. The company reported a revenue of $448 million and an adjusted EBITDA of $59 million, resulting in an adjusted EBITDA margin of 13%. Despite a 4% decrease in comparable store sales versus the prior year, there was a positive shift in food and beverage sales, driven by a new menu launch. Dave & Buster's also highlighted the success of their Eat & Play combo promotion, which has significantly increased guest attachment to double-digit percentages. The company ended the quarter with $14 million in cash and $442 million in total liquidity. Their focus on optimizing costs and enhancing guest experiences is expected to support continued margin expansion and long-term shareholder value.Dave & Busters Entertainment Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
18
Very Negative
Cash Flow
33
Negative
| Breakdown | TTM | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 | Jan 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.11B | 2.13B | 2.21B | 1.96B | 1.30B | 436.51M |
| Gross Profit | 668.20M | 1.82B | 723.90M | 1.66B | 1.10B | 361.61M |
| EBITDA | 402.70M | 443.40M | 491.90M | 426.87M | 325.53M | -116.89M |
| Net Income | 300.00K | 58.30M | 126.90M | 137.10M | 108.70M | -206.97M |
Balance Sheet | ||||||
| Total Assets | 4.13B | 4.02B | 3.75B | 3.76B | 2.35B | 2.35B |
| Cash, Cash Equivalents and Short-Term Investments | 13.60M | 6.90M | 37.30M | 181.59M | 25.91M | 11.89M |
| Total Debt | 3.20B | 3.14B | 3.00B | 2.86B | 1.75B | 1.86B |
| Total Liabilities | 4.00B | 3.87B | 3.50B | 3.35B | 2.07B | 2.20B |
| Stockholders Equity | 130.80M | 145.80M | 251.20M | 410.54M | 275.46M | 153.23M |
Cash Flow | ||||||
| Free Cash Flow | -195.60M | -217.90M | 34.00M | 210.24M | 190.93M | -132.24M |
| Operating Cash Flow | 296.70M | 312.30M | 364.20M | 444.47M | 283.13M | -49.22M |
| Investing Cash Flow | -487.80M | -529.80M | -329.10M | -1.05B | -91.47M | -81.96M |
| Financing Cash Flow | 196.10M | 187.10M | -179.40M | 762.81M | -177.64M | 118.42M |
Dave & Busters Entertainment Technical Analysis
Negative
9.81
Price Trends
16.14
Negative
16.25
Negative
20.64
Negative
Market Momentum
-1.20
Positive
30.29
Neutral
15.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLAY, the sentiment is Negative. The current price of 9.81 is below the 20-day moving average (MA) of 13.33, below the 50-day MA of 16.14, and below the 200-day MA of 20.64, indicating a bearish trend. The MACD of -1.20 indicates Positive momentum. The RSI at 30.29 is Neutral, neither overbought nor oversold. The STOCH value of 15.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLAY.
Dave & Busters Entertainment Risk Analysis
Dave & Busters Entertainment disclosed 31 risk factors in its most recent earnings report. Dave & Busters Entertainment reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dave & Busters Entertainment Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $3.24B | 19.44 | 25.84% | 1.45% | 9.70% | -31.62% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $499.90M | 37.60 | 2.82% | 1.97% | 6.28% | ― | |
58 Neutral | $941.07M | -9.44 | -28.23% | 6.52% | -0.98% | 82.16% | |
50 Neutral | $278.50M | -1.88 | 9.18% | ― | -7.38% | -483.59% | |
44 Neutral | $529.05M | -1.27 | 35.45% | ― | 9.74% | 12.29% | |
42 Neutral | $340.21M | -2.91 | 0.20% | ― | -4.07% | -100.72% |
* Communication Services Sector Average
PLAY
Dave & Busters Entertainment
9.81
-9.06
-48.01%
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6.52
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2.23%
SBGI
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13.14
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AMC
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0.95
-1.93
-67.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.