Dave & Busters Entertainment (PLAY) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.83
• Revenue Growth: -3.82%
• EPS Growth: -56.18%
• Country: US
• Employees: 23,420
• Sector: Communication Services
• Sector Strength: 92
• Industry: Entertainment
• EPS (TTM): 0.62
• Shares Outstanding: 34,576,046
• 10 Day Avg. Volume: 1,301,285
• 30 Day Avg. Volume: 1,287,080
• PEG Ratio: 0.00
• Price to Book (P/B): 8.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.47
• Enterprise Value/Market Cap: 3.15
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 3.45
• Enterprise Value/Ebitda: 1.80
• 1Y Price Target: $33.17
• Price Target Upside: 8.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 65 Neutral
• Price Target: $35.00 ▲(14.94%Upside)

The overall score reflects a mixed outlook for Dave & Busters Entertainment. While there are positive signs from technical analysis and strategic initiatives, financial performance remains a concern with high leverage and declining profitability. The stock is currently overvalued, impacting its attractiveness. Nevertheless, strong shareholder support and promising strategic moves contribute positively to the score.

Positive Factors

Financial Outlook

Analysts think risk/reward is skewed to the upside at the current valuation for the stock, and opportunities on the balance sheet lie ahead as repurchases continue.

Sales Performance

Recent improvements in traffic trends indicate that the 'Back-to-Basics' initiatives are resonating well with consumers.

Store Expansion

Dave & Buster's plans to open 10 to 12 new stores and complete 16 remodels, reflecting a commitment to growth and enhancement of its locations.

Negative Factors

Earnings Miss

EBITDA missed estimates, impacted by lower sales, higher pre-opening given timing, incremental repairs and maintenance, utilities, and marketing spend.

Market Volatility

Trends remained relatively volatile for the remainder of the quarter.

Sales Decline

Despite some stabilization, the year-over-year revenue decline and negative same-store sales indicate challenges in the current market environment.

Dave & Busters Entertainment Business Overview & Revenue Model

Company Description

Dave & Buster's Entertainment, Inc. (NASDAQ: PLAY) is a North American entertainment and dining company that operates a chain of venues combining dining, arcade gaming, and sports viewing. Founded in 1982 and headquartered in Coppell, Texas, Dave & Buster's offers a unique mix of entertainment experiences, including a full-service restaurant and bar, an extensive selection of arcade games, and large screen TVs for sports and live entertainment events. The company caters to a broad demographic, from families to young adults, providing a dynamic environment for social gatherings and private events.

How the Company Makes Money

Dave & Buster's primarily generates revenue through three key streams: food and beverage sales, amusement and other entertainment sales, and special events. The food and beverage segment includes sales from the company's full-service restaurant and bar offerings, ranging from casual dining options to a variety of alcoholic and non-alcoholic beverages. The amusement and other entertainment sales segment comprises revenue from the company's arcade games, which include a wide array of video and redemption games, as well as other interactive attractions. Dave & Buster's also earns a significant portion of its revenue from hosting special events and private parties, which leverage its entertainment and dining facilities. Additionally, the company benefits from partnerships with game manufacturers and beverage suppliers, which can involve revenue-sharing agreements or promotional arrangements that enhance its offerings and attract customers.

Dave & Busters Entertainment Financial Statement Overview

Summary

Dave & Busters Entertainment faces pressures in profitability and financial stability, with declining revenues and high leverage posing significant challenges. The company benefits from improved operating cash flow efficiency, but the omission of key free cash flow metrics restricts a comprehensive evaluation.

Income Statement

Dave & Busters Entertainment has demonstrated a modest financial performance. The gross profit margin remains high at 100% in 2025 due to the same gross profit and total revenue, which may indicate a data reporting issue. The net profit margin has decreased to 2.73% from 5.76% in 2024, showing a decline in profitability. Revenue growth was negative at -3.3% from 2024 to 2025, reflecting challenges in maintaining sales momentum. The EBIT margin fell to 10.34% from 13.9% in 2024, while the EBITDA margin declined to 20.8% from 22.84% previously, indicating reduced operational efficiency.

Balance Sheet

The company faces significant leverage with a debt-to-equity ratio of 10.85 in 2025, indicating high financial risk. Stockholders' equity has sharply decreased, reducing the equity ratio to 3.63%, down from 6.69% in 2024, suggesting weakened financial stability. Return on equity dropped to 39.97% from 50.53% in 2024, reflecting reduced profitability relative to equity.

Cash Flow

The company's cash flow situation presents mixed signals. Operating cash flow to net income ratio improved to 5.36 from 2.87 in 2024, showing better cash conversion of profits. However, the absence of a calculated free cash flow growth rate and free cash flow to net income ratio limits a thorough analysis. Overall, while operating efficiency appears to have improved, the lack of data on free cash flow is a concern.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.11B	2.13B	2.21B	1.96B	1.30B	436.51M
Gross Profit	961.20M	1.82B	723.90M	1.66B	1.10B	361.61M
EBITDA	416.60M	443.40M	503.70M	426.87M	312.35M	-116.89M
Net Income	38.60M	58.30M	126.90M	137.10M	108.70M	-206.97M
Balance Sheet
Total Assets	4.06B	4.02B	3.75B	3.76B	2.35B	2.35B
Cash, Cash Equivalents and Short-Term Investments	11.90M	6.90M	37.30M	181.59M	25.91M	11.89M
Total Debt	1.56B	3.14B	3.00B	2.86B	1.75B	1.86B
Total Liabilities	3.92B	3.87B	3.50B	3.35B	2.07B	2.20B
Stockholders Equity	146.80M	145.80M	251.20M	410.54M	275.46M	153.23M
Cash Flow
Free Cash Flow	-272.50M	-217.90M	34.00M	210.24M	190.93M	-132.24M
Operating Cash Flow	299.30M	312.30M	364.20M	444.47M	283.13M	-49.22M
Investing Cash Flow	-571.60M	-529.80M	-329.10M	-1.05B	-91.47M	-81.96M
Financing Cash Flow	252.10M	187.10M	-179.40M	762.81M	-177.64M	118.42M

Dave & Busters Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLAY, the sentiment is Positive. The current price of 30.45 is above the 20-day moving average (MA) of 28.16, above the 50-day MA of 23.57, and above the 200-day MA of 27.51, indicating a bullish trend. The MACD of 2.48 indicates Positive momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 27.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLAY.

Dave & Busters Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BATRA	73 Outperform	$2.91B	―	-4.43%	―	4.04%	82.47%
CNK	69 Neutral	$3.46B	19.87	71.46%	1.05%	-0.80%	13.07%
PLAY	65 Neutral	$1.05B	30.08	17.57%	―	-3.82%	-56.18%
MSGE	63 Neutral	$1.92B	14.82	1222.83%	―	5.81%	133.05%
MCS	60 Neutral	$518.35M	―	-2.83%	1.67%	4.18%	-207.46%
Sector *	55 Neutral	HK$65.49B	-1.50	-1.91%	8.90%	-4.18%	-13.99%
AMC	47 Neutral	$1.33B	―	20.03%	―	-5.43%	26.07%

Dave & Busters Entertainment Corporate Events

Dave & Buster’s Shareholders Approve Key Proposals at Annual Meeting

On June 18, 2025, Dave & Buster’s Entertainment held its Annual Meeting where several key proposals were voted on by shareholders. The company’s board of directors was re-elected, KPMG LLP was ratified as the independent public accounting firm for the fiscal year, executive compensation was approved, and the 2025 Omnibus Incentive Plan was also approved, indicating continued shareholder support for the company’s strategic initiatives.

The most recent analyst rating on (PLAY) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Dave & Busters Entertainment stock, see the PLAY Stock Forecast page.

Dave & Buster’s Announces CDO Transition Plan

On June 13, 2025, Dave & Buster’s Entertainment, Inc. announced the upcoming retirement of John Mulleady, its Chief Development Officer, effective October 23, 2025. Mr. Mulleady will transition to a Senior Advisor role on June 30, 2025, to ensure a smooth transition and will continue to provide consulting services until January 31, 2026. This transition involves an amended employment agreement, detailing consulting fees and supplemental payments, while Mr. Mulleady adheres to non-compete and non-solicitation covenants. The announcement reflects the company’s strategic planning for leadership transitions, potentially impacting its operational continuity and stakeholder relations.

The most recent analyst rating on (PLAY) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Dave & Busters Entertainment stock, see the PLAY Stock Forecast page.

Dave & Buster’s Announces New CEO Agreement and Board Changes

On April 28, 2025, Dave & Buster’s Entertainment announced that directors Michael J. Griffith, Gail Mandel, and Jennifer Storms will not stand for reelection at the upcoming annual meeting on June 20, 2025. Their decision is not due to any disagreements with the company, and the board will reduce its size from eight to seven members. Additionally, on May 2, 2025, the company entered into a supplemental agreement with Interim CEO Kevin Sheehan, providing him with equity-based compensation contingent on performance goals and shareholder approval of the 2025 Omnibus Incentive Plan. The company also announced the nomination of Allen R. Weiss and Nathaniel J. Lipman as new board members, bringing extensive industry expertise to the board.