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Dave & Busters Entertainment
(NASDAQ:PLAY)
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Rating:47Neutral
Price Target:
$12.00
▼(-15.97% Downside)
Action:Reiterated
Date:06/26/26
PLAY scores below average primarily due to weakened financial performance (sharp TTM revenue decline, recent losses, negative free cash flow, and elevated leverage risk). Technicals are only neutral, with the stock still below longer-term moving averages. The main offset is a more positive FY26 setup from the earnings call—reaffirmed >$100M free-cash-flow target, reduced CapEx plan, and a Q1 free-cash-flow turnaround—though continued negative comps keep the recovery thesis unproven.
Positive Factors
Free cash flow turnaround
A meaningful quarter-over-quarter FCF swing demonstrates that operational fixes and capital discipline can restore cash generation. Durable FCF recovery increases capacity to pay down debt, fund remodels and games, and supports liquidity even if top-line recovery is gradual.
Negative Factors
Sharp revenue decline
A ~40% TTM revenue contraction and swing to net losses indicate structural demand weakness or execution gaps. Sustained top-line pressure erodes operating leverage, delays margin normalization and makes deleveraging and reinvestment harder without consistent comp recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow turnaround
A meaningful quarter-over-quarter FCF swing demonstrates that operational fixes and capital discipline can restore cash generation. Durable FCF recovery increases capacity to pay down debt, fund remodels and games, and supports liquidity even if top-line recovery is gradual.
Read all positive factors
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 (PLAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$415.72M
Dividend YieldN/A
Average Volume (3M)2.01M
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth-0.85%
EPS Growth-277.42%
CountryUS
Employees23,420
SectorCommunication Services
Sector Strength97
IndustryMedia & Entertainment
Share Statistics
EPS (TTM)-1.87
Shares Outstanding34,788,692
10 Day Avg. Volume2,722,739
30 Day Avg. Volume2,008,208
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 Cap8.46
Enterprise Value/Revenue1.68
Enterprise Value/Gross Profit2.51
Enterprise Value/Ebitda9.83
Forecast
1Y Price Target
$16.00Price Target Upside12.04% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)-0.25
Revenue Forecast (FY)$2.13B
Dave & Busters Entertainment Business Overview & Revenue Model
Company Description
Dave & Buster's Entertainment, Inc. oversees and manages hospitality and amusement establishments designed for both adults and families throughout North America. These locations present guests with a varied menu featuring main courses and appetize...
How the Company Makes Money
Dave & Buster’s generates revenue primarily through a mix of (1) amusement/gameplay and (2) food and beverage sales at its venues. Amusements: Customers purchase gameplay (typically by loading value onto a reusable card) to access arcade games and...
Dave & Busters Entertainment Earnings Call Summary
Earnings Call Date:Jun 15, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 09, 2026
Earnings Call Sentiment Neutral
The call acknowledged a clear top-line shortfall in Q1 (same-store sales down 5.4%) and near-term pressure from macro and weather, but it highlighted meaningful operational progress: a material free-cash-flow turnaround, successful lower-cost remodels delivering ~7% uplift, F&B strength (+5% comps), a renewed games/content investment program, disciplined CapEx guidance ($200M target), and leadership upgrades. Management provided concrete early evidence of recovery (Q2 comps improving to -4%, new games pacing strong) and maintained a >$100M free cash flow target for FY26. The positives and actionable initiatives showing early validation balance the notable near-term comps weakness, resulting in a measured but cautious outlook.Positive Updates
Free Cash Flow Turnaround
Generated $25 million of free cash flow in Q1 FY26 versus negative $59 million in Q1 FY25 — an $84 million improvement quarter over quarter, enabling debt reduction while continuing reinvestment.
Negative Updates
Same-Store Sales Decline
Comparable store sales decreased 5.4% in Q1 FY26 versus prior year, coming in below both company expectations and prior guidance — a primary shortfall for the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Free Cash Flow Turnaround
Generated $25 million of free cash flow in Q1 FY26 versus negative $59 million in Q1 FY25 — an $84 million improvement quarter over quarter, enabling debt reduction while continuing reinvestment.
Read all positive updates
Company Guidance
Management reaffirmed FY26 targets to generate more than $100 million of free cash flow while capping net CapEx at no more than $200 million (vs. ~ $270M in FY25) and opening 11 new stores; Q1 results were $559M revenue, $6M net income ($0.16/diluted share), $8M adjusted net income ($0.22), $123M adjusted EBITDA (22% margin) and $25M free cash flow (an $84M improvement YoY) despite a -5.4% comparable‑store sales decline (Q2‑to‑date ~ -4%). Supporting the guidance are operational initiatives including 10 new games (at least five more planned), F&B comps +~5%, special events +~3%, six remodels opened (+2 coming) driving ~700 bps uplift, ~$71M net CapEx in Q1, $20M cash and ~$499M total liquidity.Dave & Busters Entertainment Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
38
Negative
Cash Flow
46
Neutral
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.09B | 2.10B | 2.13B | 2.21B | 1.96B | 1.30B |
| Gross Profit | 1.40B | 1.80B | 1.82B | 1.85B | 1.64B | 1.10B |
| EBITDA | 357.90M | 357.20M | 433.20M | 491.90M | 422.40M | 315.70M |
| Net Income | -64.70M | -48.70M | 58.30M | 126.90M | 137.10M | 108.70M |
Balance Sheet | ||||||
| Total Assets | 4.14B | 4.12B | 4.02B | 3.75B | 3.76B | 2.35B |
| Cash, Cash Equivalents and Short-Term Investments | 19.60M | 16.60M | 6.90M | 37.30M | 181.60M | 25.91M |
| Total Debt | 3.15B | 3.17B | 3.14B | 2.91B | 2.86B | 1.75B |
| Total Liabilities | 4.04B | 4.03B | 3.87B | 3.50B | 3.35B | 2.07B |
| Stockholders Equity | 99.60M | 91.20M | 145.80M | 251.20M | 410.50M | 275.46M |
Cash Flow | ||||||
| Free Cash Flow | -33.30M | -100.60M | -217.90M | 34.00M | 210.24M | 190.93M |
| Operating Cash Flow | 308.80M | 290.80M | 312.30M | 364.20M | 444.47M | 283.13M |
| Investing Cash Flow | -337.60M | -386.90M | -529.80M | -329.10M | -1.05B | -91.47M |
| Financing Cash Flow | 36.50M | 105.80M | 187.10M | -179.40M | 762.81M | -177.64M |
Dave & Busters Entertainment Technical Analysis
Negative
14.28
Price Trends
11.54
Negative
12.66
Negative
15.11
Negative
Market Momentum
-0.13
Positive
45.13
Neutral
36.59
Neutral
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 14.28 is above the 20-day moving average (MA) of 11.66, above the 50-day MA of 11.54, and below the 200-day MA of 15.11, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 45.13 is Neutral, neither overbought nor oversold. The STOCH value of 36.59 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $3.68B | 21.45 | 31.48% | 1.45% | 6.85% | -26.53% | |
64 Neutral | $450.70M | 8.84 | 5.30% | ― | -3.42% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $696.69M | 52.73 | 3.14% | 1.97% | 2.46% | ― | |
54 Neutral | $1.11B | 17.03 | 15.82% | 6.52% | -9.25% | -54.61% | |
50 Neutral | $1.69B | -1.78 | 29.90% | ― | 10.63% | -7.77% | |
47 Neutral | $415.72M | ― | -53.05% | ― | -0.85% | -277.42% |
* Communication Services Sector Average
PLAY
Dave & Busters Entertainment
11.04
-21.70
-66.28%
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Dave & Busters Entertainment Corporate Events
Executive/Board ChangesShareholder Meetings
Dave & Buster’s Shareholders Back Board, Signal Governance Scrutiny
Positive
Jun 25, 2026
At the June 18, 2026 annual meeting, Dave Buster’s shareholders elected James P. Chambers, Tarun Lal, Nathaniel J. Lipman, Charles H. Protell, Kevin M. Sheehan and Allen R. Weiss to the board, while director Scott I. Ross failed to receive ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Dave & Buster’s Announces Planned Audit Committee Leadership Transition
Positive
May 1, 2026
On April 27, 2026, Dave Buster’s Entertainment appointed Charles H. Protell, currently president and chief financial officer of Golden Entertainment, Inc., to its board of directors and its audit committee, aligning his compensation with th...
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.