Dave & Busters Entertainment (PLAY) AI Stock Analysis

• Market Cap: $458.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 40.2
• Beta (1Y): 0.93
• Revenue Growth: -4.46%
• EPS Growth: -86.94%
• Country: US
• Employees: 23,420
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.32
• Shares Outstanding: 34,666,565
• 10 Day Avg. Volume: 1,710,672
• 30 Day Avg. Volume: 1,404,681
• 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 Cap: 9.73
• Enterprise Value/Revenue: 2.83
• Enterprise Value/Gross Profit: 7.77
• Enterprise Value/Ebitda: 15.55
• 1Y Price Target: $25.67
• Price Target Upside: 83.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $15.00 ▲(7.07% Upside)

Dave & Buster's Entertainment faces significant financial and operational challenges, reflected in its declining profitability margins and high leverage. The stock's technical indicators suggest a bearish trend, and its valuation appears stretched with a high P/E ratio. While the earnings call highlighted some positive strategic initiatives, the decrease in comparable store sales and operational missteps remain concerns. The company's focus on expansion and operational improvements could drive future growth, but execution will be critical.

Positive Factors

New Store Development

The expansion of new stores, including international locations, indicates a strategic growth initiative that could enhance market presence and revenue potential over the long term.

Strong Cash Flow

Robust cash flow and liquidity provide financial stability and flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Enhancements in Games and Marketing

Innovative game offerings and renewed marketing efforts can drive customer engagement and increase same-store sales, supporting long-term revenue growth.

Negative Factors

High Leverage

Significant leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth and manage economic downturns.

Declining Margins

Decreasing margins indicate operational inefficiencies and cost pressures that could impact profitability and shareholder returns over time.

Operational Challenges

Operational missteps can hinder customer satisfaction and brand reputation, affecting sales and competitive positioning in the long run.

Dave & Busters Entertainment Business Overview & Revenue Model

Company Description

Dave & Buster's Entertainment, Inc. (traded as PLAY) is a leading restaurant and entertainment company that operates a chain of venues combining dining, arcade games, and sports viewing. Founded in 1982, the company offers a unique experience that includes a full-service restaurant, a bar, and a wide variety of interactive games and attractions. Its core products and services cater to families, friends, and corporate groups seeking a fun and engaging environment for entertainment and socializing.

How the Company Makes Money

Dave & Buster's generates revenue primarily through two key streams: food and beverage sales, and amusement and entertainment sales. The food and beverage segment includes the sale of a diverse menu featuring appetizers, entrees, desserts, and a wide selection of alcoholic and non-alcoholic beverages. The amusement segment derives income from the operation of arcade games, virtual reality experiences, and other entertainment attractions, which typically require the purchase of game cards or tokens. Additionally, the company benefits from hosting corporate events, birthday parties, and special occasions, which can lead to group bookings and event packages. Strategic partnerships with game developers and suppliers also enhance its offerings and may provide financial incentives or support. Seasonal promotions and loyalty programs further boost customer engagement and repeat business, contributing to overall earnings.

Dave & Busters Entertainment Financial Statement Overview

Summary

Dave & Buster's Entertainment faces challenges with declining profitability margins and high leverage, which could impact financial stability. While there is modest revenue growth, the company needs to address its debt levels and improve cash flow generation to enhance financial health.

Income Statement

Dave & Busters Entertainment shows a modest revenue growth in the TTM period with a Gross Profit Margin of 44.55% and a Net Profit Margin of 0.46%. However, the margins have decreased compared to the previous annual report, indicating pressure on profitability. The EBIT and EBITDA margins are also lower than the previous year, reflecting operational challenges.

Balance Sheet

The company has a high Debt-to-Equity Ratio of 9.30 in the TTM period, indicating significant leverage, which poses a risk. The Return on Equity is low at 5.66%, suggesting limited returns for shareholders. The Equity Ratio is also low, reflecting a heavy reliance on debt financing.

Cash Flow

Operating Cash Flow is positive, but Free Cash Flow is negative in the TTM period, indicating cash flow challenges. The Operating Cash Flow to Net Income Ratio is 0.56, showing moderate cash generation relative to net income. The Free Cash Flow to Net Income Ratio is negative, highlighting cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.58B	2.13B	2.21B	1.96B	1.30B	436.51M
Gross Profit	574.40M	1.82B	723.90M	1.66B	1.10B	361.61M
EBITDA	287.00M	443.40M	503.70M	426.87M	312.35M	-116.89M
Net Income	400.00K	58.30M	126.90M	137.10M	108.70M	-206.97M
Balance Sheet
Total Assets	4.09B	4.02B	3.75B	3.76B	2.35B	2.35B
Cash, Cash Equivalents and Short-Term Investments	12.00M	6.90M	37.30M	181.59M	25.91M	11.89M
Total Debt	1.55B	3.14B	3.00B	2.86B	1.75B	1.86B
Total Liabilities	3.93B	3.87B	3.50B	3.35B	2.07B	2.20B
Stockholders Equity	166.20M	145.80M	251.20M	410.54M	275.46M	153.23M
Cash Flow
Free Cash Flow	-252.40M	-217.90M	34.00M	210.24M	190.93M	-132.24M
Operating Cash Flow	122.60M	312.30M	364.20M	444.47M	283.13M	-49.22M
Investing Cash Flow	-370.50M	-529.80M	-329.10M	-1.05B	-91.47M	-81.96M
Financing Cash Flow	248.50M	187.10M	-179.40M	762.81M	-177.64M	118.42M

Dave & Busters Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 14.01 is below the 20-day moving average (MA) of 16.62, below the 50-day MA of 19.03, and below the 200-day MA of 22.95, indicating a bearish trend. The MACD of -1.51 indicates Positive momentum. The RSI at 30.76 is Neutral, neither overbought nor oversold. The STOCH value of 10.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLAY.

Dave & Busters Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNK	66 Neutral	$3.31B	28.00	32.60%	0.90%	9.70%	-31.62%
SBGI	65 Neutral	$949.29M	―	―	7.34%	-0.98%	82.16%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MCS	57 Neutral	$453.23M	64.26	1.68%	1.88%	6.28%	―
PLAY	49 Neutral	$458.64M	40.19	4.31%	―	-4.46%	-86.94%
AMCX	48 Neutral	$323.64M	―	-17.26%	―	-7.25%	-395.48%
AMC	45 Neutral	$1.33B	―	―	―	9.74%	12.29%

Dave & Busters Entertainment Corporate Events

Dave & Buster’s Announces New Executive Equity Awards

On October 21, 2025, Dave & Buster’s Entertainment, Inc. announced a one-time grant of equity awards to its executive officers under the 2025 Omnibus Incentive Plan. This initiative involves the cancellation of previous performance stock unit awards and introduces new restricted stock units, time-based stock options, and performance stock units with specific vesting schedules and performance targets. The grants are designed to align executive incentives with company performance, potentially impacting the company’s operational focus and stakeholder interests by tying compensation to financial and market performance metrics.

The most recent analyst rating on (PLAY) stock is a Hold with a $18.50 price target. To see the full list of analyst forecasts on Dave & Busters Entertainment stock, see the PLAY Stock Forecast page.

Dave & Buster’s Earnings Call: Mixed Sentiment and Strategic Plans

The recent earnings call for Dave & Buster’s Entertainment Inc. presented a mixed sentiment, reflecting both optimism and challenges. The company highlighted strong cash flow and new store development as significant positives. However, the decrease in comparable store sales and operational challenges tempered the overall outlook. Strategic plans are in place to address these issues, aiming for a more robust future performance.

Dave & Buster’s Reports Mixed Q2 2025 Results

Dave & Buster’s Entertainment, Inc., a prominent operator and franchisor of entertainment and dining venues, has released its financial results for the second quarter of fiscal 2025. The company, known for its unique blend of dining and entertainment experiences, operates under the brands Dave & Buster’s and Main Event across North America.