Dave & Buster’s Entertainment (NASDAQ:PLAY) Announces Earnings Results, Misses Expectations By $0.38 EPS

Dave & Buster’s Entertainment (NASDAQ:PLAY) announced its earnings results on Monday. The restaurant operator reported $0.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.38), FiscalAI reports. The company had revenue of $559.20 million for the quarter, compared to the consensus estimate of $580.60 million. Dave & Buster’s Entertainment had a negative return on equity of 7.93% and a negative net margin of 2.32%.The firm’s revenue for the quarter was down 1.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.76 earnings per share.

Here are the key takeaways from Dave & Buster’s Entertainment’s conference call:

• Dave & Buster’s reported Q1 FY2026 comparable sales down 5.4%, missing both internal and external expectations as weak consumer sentiment, gas prices, geopolitics, and weather weighed on traffic. Management said April was especially soft, though Q2 comps have improved modestly to about down 4% quarter to date.
• The company said its back-to-basics initiatives are starting to work, especially in food and beverage, where same-store sales rose roughly 5% and positive F&B comps extended to nine straight months. The Eat & Play combo and return to a historically proven menu are driving better guest attach rates and higher spend.
• Management highlighted a major games refresh, including 10 new games already launched and at least five more planned for the rest of 2026. Several of the new titles are already ranking among top revenue generators, and leadership said the new content is helping bring the brand back into consideration.
• The company reiterated a commitment to over $100 million in FY2026 free cash flow despite the sales softness, helped by tighter capex discipline and stronger operating cash conversion. Q1 free cash flow was $25 million, an $84 million improvement year over year, and net capex is targeted at no more than $200 million for the year.
• Dave & Buster’s is leaning more heavily into remodels, IP partnerships, and special events like the World Cup to drive traffic and repeat visits. Management also signaled a more cautious stance on new-unit growth, saying future capital will be allocated more selectively toward the highest-return opportunities.

Dave & Buster’s Entertainment Stock Performance

NASDAQ:PLAY opened at $12.32 on Tuesday. The company has a fifty day moving average of $12.00 and a 200-day moving average of $14.85. The firm has a market capitalization of $428.00 million, a P/E ratio of -8.62 and a beta of 1.81. The company has a quick ratio of 0.19, a current ratio of 0.29 and a debt-to-equity ratio of 16.61. Dave & Buster’s Entertainment has a twelve month low of $9.61 and a twelve month high of $35.53.

Insider Transactions at Dave & Buster’s Entertainment

In related news, SVP Steve Klohn sold 6,989 shares of the stock in a transaction on Friday, April 17th. The shares were sold at an average price of $14.69, for a total transaction of $102,668.41. Following the transaction, the senior vice president directly owned 38,547 shares of the company’s stock, valued at $566,255.43. This represents a 15.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.73% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Dave & Buster’s Entertainment

Institutional investors have recently made changes to their positions in the stock. Advisory Services Network LLC acquired a new stake in shares of Dave & Buster’s Entertainment in the 3rd quarter valued at about $27,000. Caitong International Asset Management Co. Ltd raised its stake in Dave & Buster’s Entertainment by 616.6% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,942 shares of the restaurant operator’s stock worth $31,000 after buying an additional 1,671 shares during the period. Tower Research Capital LLC TRC boosted its holdings in Dave & Buster’s Entertainment by 292.4% in the second quarter. Tower Research Capital LLC TRC now owns 5,062 shares of the restaurant operator’s stock worth $152,000 after acquiring an additional 3,772 shares in the last quarter. Quadrant Capital Group LLC bought a new position in Dave & Buster’s Entertainment in the third quarter worth approximately $104,000. Finally, Marshall Wace LLP acquired a new stake in Dave & Buster’s Entertainment in the second quarter valued at approximately $243,000. Institutional investors and hedge funds own 91.45% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Piper Sandler decreased their price target on Dave & Buster’s Entertainment from $22.00 to $14.00 and set a “neutral” rating for the company in a research note on Monday, April 6th. Wall Street Zen cut Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a report on Monday, April 6th. Benchmark reissued a “buy” rating on shares of Dave & Buster’s Entertainment in a research report on Thursday. Weiss Ratings restated a “sell (d)” rating on shares of Dave & Buster’s Entertainment in a report on Monday, April 20th. Finally, Zacks Research downgraded shares of Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a research report on Thursday, April 2nd. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $21.83.

Key Stories Impacting Dave & Buster’s Entertainment

Here are the key news stories impacting Dave & Buster’s Entertainment this week:

• Negative Sentiment: Dave & Buster’s missed both earnings and revenue estimates, signaling weaker-than-expected performance in the latest quarter. Dave & Buster’s (PLAY) Q1 Earnings and Revenues Miss Estimates
• Negative Sentiment: Comparable sales declined 5.4%, reinforcing concerns about slowing customer demand and traffic trends. Dave & Buster’s Reports Lower First-Quarter Profit, Revenue as Comparable Sales Fall
• Negative Sentiment: The company reported lower profit and revenue in its first quarter, which may keep investor sentiment cautious heading into the next trading session. Dave & Buster’s Reports Lower First-Quarter Profit, Revenue as Comparable Sales Fall
• Neutral Sentiment: Analysts and market commentary are focusing on the company’s earnings call and key metrics, but no clear new catalyst beyond the disappointing quarter has emerged. Dave & Buster’s Entertainment, Inc. (PLAY) Q1 2027 Earnings Call Transcript

Dave & Buster’s Entertainment Company Profile

Dave & Buster’s Entertainment, Inc operates a chain of combined restaurant and entertainment venues designed to appeal to families, young adults and corporate groups. Each location features a full-service restaurant and bar alongside an arcade gaming area with ticket-based redemption, virtual reality experiences and skill-based games. Many venues also include multiple large-screen televisions and a sports bar atmosphere, catering to fans who wish to watch live sporting events in a social setting.

The company was founded in 1982 by David Corriveau and James “Buster” Corley, opening its first location in Dallas, Texas.