Dave & Busters Entertainment (PLAY) AI Stock Analysis

• Market Cap: $589.91M
• Dividend Yield: N/A
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -4.07%
• EPS Growth: -100.72%
• Country: US
• Employees: 23,420
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -1.22
• Shares Outstanding: 34,680,264
• 10 Day Avg. Volume: 2,041,279
• 30 Day Avg. Volume: 1,537,598
• 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: 3.45
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 3.15
• Enterprise Value/Ebitda: 5.12
• 1Y Price Target: $23.40
• Price Target Upside: 37.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.42
• Revenue Forecast (FY): $2.15B

• Rating: 52 Neutral
• Price Target: $20.50 ▲(20.52% Upside)

The overall stock score of 52 reflects significant financial challenges, including high leverage and declining profitability margins. Technical indicators show short-term bullish momentum but longer-term bearish trends, with overbought conditions suggesting a potential pullback. The high P/E ratio indicates overvaluation, and the absence of a dividend yield further detracts from the stock's appeal.

Positive Factors

Revenue Diversification

The diversified revenue model reduces dependency on any single income stream, enhancing resilience against market fluctuations and supporting long-term growth.

Same-Store Sales Improvement

Sequential improvement in same-store sales indicates effective strategies in place, suggesting potential for sustained revenue growth and operational recovery.

Executive Incentive Alignment

Aligning executive incentives with performance metrics can drive strategic focus and improve operational execution, benefiting long-term shareholder value.

Negative Factors

High Leverage

Significant leverage poses a risk to financial stability, limiting flexibility and increasing vulnerability to economic downturns.

Declining Profitability Margins

Decreasing margins indicate operational inefficiencies or cost pressures, which could hinder profitability and long-term financial health.

Net Loss for the Quarter

A net loss reflects underlying financial challenges, potentially impacting future investment capacity and strategic initiatives.

Dave & Busters Entertainment Business Overview & Revenue Model

Company Description

Dave & Buster's Entertainment, Inc. (NASDAQ: PLAY) is a leading restaurant and entertainment company that combines dining with a wide array of games and attractions. Founded in 1982, the company operates a chain of entertainment venues that feature a full-service restaurant and bar, along with a variety of arcade games, simulators, and other entertainment options. Dave & Buster's focuses on providing a fun and engaging atmosphere for guests of all ages, catering to families, groups, and corporate events across the United States and Canada.

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 appetizers, entrees, and a wide selection of alcoholic and non-alcoholic beverages. In addition to dining, Dave & Buster's earns significant income from its extensive arcade and gaming operations, where customers purchase game play cards for access to various games and attractions. Special events, such as birthday parties and corporate gatherings, also contribute to revenue, often including catering and exclusive gaming experiences. The company has established partnerships with various game developers and brands, which help enhance its gaming offerings and attract a broader customer base. Overall, the combination of food, drink, and entertainment creates a unique experience that drives customer traffic and revenue growth.

Dave & Busters Entertainment Financial Statement Overview

Summary

Dave & Busters 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	2.11B	2.13B	2.21B	1.96B	1.30B	436.51M
Gross Profit	646.20M	1.82B	723.90M	1.66B	1.10B	361.61M
EBITDA	397.40M	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	1.56B	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	-175.00M	-217.90M	34.00M	210.24M	190.93M	-132.24M
Operating Cash Flow	238.70M	312.30M	364.20M	444.47M	283.13M	-49.22M
Investing Cash Flow	-409.20M	-529.80M	-329.10M	-1.05B	-91.47M	-81.96M
Financing Cash Flow	173.90M	187.10M	-179.40M	762.81M	-177.64M	118.42M

Dave & Busters Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.01
• 50DMA: Positive
• 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 17.01 is below the 20-day moving average (MA) of 17.76, above the 50-day MA of 16.64, and below the 200-day MA of 21.82, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 46.79 is Neutral, neither overbought nor oversold. The STOCH value of 18.85 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
MCS	63 Neutral	$459.83M	65.19	1.68%	1.96%	6.28%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CNK	58 Neutral	$2.62B	21.66	32.60%	1.48%	9.70%	-31.62%
AMCX	57 Neutral	$419.16M	-2.57	-12.87%	―	-7.38%	-483.59%
SBGI	53 Neutral	$1.11B	-25.31	-11.81%	6.29%	-0.98%	82.16%
PLAY	52 Neutral	$589.91M	-491.62	0.17%	―	-4.07%	-100.72%
AMC	47 Neutral	$897.65M	-1.24	―	―	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.