Dave & Busters Entertainment (PLAY)
NASDAQ:PLAY
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Dave & Busters Entertainment
(NASDAQ:PLAY)
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Rating:49Neutral
Price Target:
$14.00
▼(-1.96% Downside)
Action:ReiteratedDate:04/02/26
The score is held down primarily by deteriorating financial performance (sharp 2026 revenue decline and a return to net losses) and bearish technicals (below key moving averages with weak momentum). Offsetting factors are ongoing EBITDA/operating cash flow generation and an earnings-call narrative indicating some sequential comp improvement and initiatives that could support recovery, though profitability and margin pressure remain key risks.
Positive Factors
Cash generation and EBITDA
A roughly 17% EBITDA margin coupled with ~ $291M of operating cash flow shows the core venues still generate substantial cash even in a down year. Durable cash generation improves ability to fund operations, service obligations, and invest in promotions or capex over the medium term.
Negative Factors
Sharp revenue decline and net loss
A ~24% annual revenue drop and a return to net losses mark a material deterioration in demand and operating leverage. Such sizable declines weaken unit economics, prolong recovery timelines, and increase pressure on margins and cash conversion over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation and EBITDA
A roughly 17% EBITDA margin coupled with ~ $291M of operating cash flow shows the core venues still generate substantial cash even in a down year. Durable cash generation improves ability to fund operations, service obligations, and invest in promotions or capex over the medium term.
Read all positive factors
Dave & Busters Entertainment (PLAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$473.85M
Dividend YieldN/A
Average Volume (3M)1.86M
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth-4.07%
EPS Growth-100.72%
CountryUS
Employees23,420
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-1.15
Shares Outstanding34,739,407
10 Day Avg. Volume1,133,339
30 Day Avg. Volume1,859,615
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)7.39
Price to Sales (P/S)0.32
P/FCF Ratio-6.70
Enterprise Value/Market Cap7.66
Enterprise Value/Revenue1.73
Enterprise Value/Gross Profit2.01
Enterprise Value/Ebitda10.16
Forecast
1Y Price Target
$17.75Price Target Upside24.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.85
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
The company primarily makes money through revenue generated at its venues from (1) amusements and (2) food and beverage sales. Amusements revenue is earned when guests purchase gameplay on the company’s proprietary stored-value power card (or simi...
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:Jun 17, 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
56
Neutral
Balance Sheet
45
Neutral
Cash Flow
52
Neutral
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.10B | 2.13B | 2.21B | 1.96B | 1.30B |
| Gross Profit | 1.80B | 1.82B | 1.85B | 1.64B | 1.10B |
| EBITDA | 357.20M | 433.20M | 491.90M | 422.40M | 315.70M |
| Net Income | -48.70M | 58.30M | 126.90M | 137.10M | 108.70M |
Balance Sheet | |||||
| Total Assets | 4.12B | 4.02B | 3.75B | 3.76B | 2.35B |
| Cash, Cash Equivalents and Short-Term Investments | 16.60M | 6.90M | 37.30M | 181.60M | 25.91M |
| Total Debt | 3.17B | 3.14B | 2.91B | 2.86B | 1.75B |
| Total Liabilities | 4.03B | 3.87B | 3.50B | 3.35B | 2.07B |
| Stockholders Equity | 91.20M | 145.80M | 251.20M | 410.50M | 275.46M |
Cash Flow | |||||
| Free Cash Flow | -100.60M | -217.90M | 34.00M | 210.24M | 190.93M |
| Operating Cash Flow | 290.80M | 312.30M | 364.20M | 444.47M | 283.13M |
| Investing Cash Flow | -386.90M | -529.80M | -329.10M | -1.05B | -91.47M |
| Financing Cash Flow | 105.80M | 187.10M | -179.40M | 762.81M | -177.64M |
Dave & Busters Entertainment Technical Analysis
Neutral
14.28
Price Trends
14.00
Positive
16.00
Negative
19.26
Negative
Market Momentum
0.04
Negative
58.06
Neutral
86.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLAY, the sentiment is Neutral. The current price of 14.28 is above the 20-day moving average (MA) of 12.32, above the 50-day MA of 14.00, and below the 200-day MA of 19.26, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.06 is Neutral, neither overbought nor oversold. The STOCH value of 86.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $3.45B | 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 | $571.66M | 20.03 | 2.82% | 1.97% | 6.28% | ― | |
58 Neutral | $1.16B | 2.45 | -28.23% | 6.52% | -0.98% | 82.16% | |
52 Neutral | $973.27M | -1.27 | 35.45% | ― | 9.74% | 12.29% | |
50 Neutral | $343.85M | -1.88 | 9.18% | ― | -7.38% | -483.59% | |
49 Neutral | $473.85M | -13.83 | -36.41% | ― | -4.07% | -100.72% |
* Communication Services Sector Average
PLAY
Dave & Busters Entertainment
14.28
-5.18
-26.62%
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45.80%
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19.82
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26.41%
SBGI
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16.79
3.83
29.53%
AMC
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1.86
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-30.86%
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.