Dave & Buster’s Entertainment (NASDAQ:PLAY) Issues Quarterly Earnings Results

Dave & Buster’s Entertainment (NASDAQ:PLAY) released its earnings results on Monday. The restaurant operator reported $0.22 earnings per share for the quarter, missing the consensus estimate of $0.60 by ($0.38), FiscalAI reports. Dave & Buster’s Entertainment had a negative net margin of 3.09% and a negative return on equity of 22.80%. The business had revenue of $559.20 million for the quarter, compared to the consensus estimate of $580.60 million. During the same quarter in the previous year, the firm earned $0.76 EPS. The firm’s revenue for the quarter was down 1.5% on a year-over-year basis.

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 Down 6.3%

Dave & Buster’s Entertainment stock opened at $11.55 on Wednesday. The company has a 50-day simple moving average of $11.99 and a 200-day simple moving average of $14.81. The firm has a market capitalization of $401.24 million, a P/E ratio of -6.11 and a beta of 1.81. The company has a debt-to-equity ratio of 16.61, a quick ratio of 0.19 and a current ratio of 0.29. Dave & Buster’s Entertainment has a one year low of $9.61 and a one year high of $35.53.

More Dave & Buster’s Entertainment News

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

• Positive Sentiment: Management said it plans to lean on new games, sharper value messaging, food improvements, and remodels to help reset the business in the second half of the year. PLAY Q1 Earnings Call Flags Slow Start, Back-Half Bet
• Neutral Sentiment: The company’s Q1 earnings call and transcript provided more detail on the quarter, but did not change the main takeaway that the turnaround is still in progress. Full Transcript: Dave & Buster’s Enter Q1 2026 Earnings Call
• Negative Sentiment: Dave & Buster’s reported first-quarter EPS of $0.22, well below estimates, while revenue of $559.2 million also missed expectations. Dave & Buster’s (PLAY) Q1 Earnings and Revenues Miss Estimates
• Negative Sentiment: Comparable-store sales fell 5.4%, signaling weaker traffic and demand at the core business. Dave & Buster’s Reports Lower First-Quarter Profit, Revenue as Comparable Sales Fall
• Negative Sentiment: Several reports said shares fell after hours and premarket as investors reacted to the earnings miss, weaker comps, and lower profitability, with one note also citing a UBS price-target cut. Dave & Buster’s Stock Falls After Q1 Double Miss, Comparable Sales Drop 5.4%

Analyst Ratings Changes

Several research firms have weighed in on PLAY. Zacks Research lowered shares of Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a research note on Thursday, April 2nd. UBS Group lowered their target price on shares of Dave & Buster’s Entertainment from $13.00 to $12.00 and set a “neutral” rating for the company in a research note on Tuesday. Piper Sandler lowered their target price on shares of 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. BMO Capital Markets lowered their target price on shares of Dave & Buster’s Entertainment from $24.00 to $22.00 and set an “outperform” rating for the company in a research note on Tuesday. Finally, Wall Street Zen lowered shares of Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a research note on Monday, April 6th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $19.33.

Insider Activity at Dave & Buster’s Entertainment

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

Hedge Funds Weigh In On Dave & Buster’s Entertainment

Several institutional investors have recently modified their holdings of PLAY. Counterpoint Mutual Funds LLC acquired a new stake in Dave & Buster’s Entertainment in the fourth quarter worth about $514,000. AQR Capital Management LLC acquired a new stake in Dave & Buster’s Entertainment in the first quarter worth about $430,000. State of Wisconsin Investment Board acquired a new stake in Dave & Buster’s Entertainment in the fourth quarter worth about $429,000. Deutsche Bank AG lifted its holdings in Dave & Buster’s Entertainment by 3.1% in the fourth quarter. Deutsche Bank AG now owns 24,794 shares of the restaurant operator’s stock worth $402,000 after purchasing an additional 741 shares during the period. Finally, Bayesian Capital Management LP acquired a new stake in Dave & Buster’s Entertainment in the second quarter worth about $391,000. Institutional investors own 91.45% of the company’s stock.

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.