Zacks Research Analysts Lower Earnings Estimates for PLAY

Key Points

• Zacks Research lowered its earnings outlook for Dave & Buster’s, trimming Q3 2027 EPS estimates and cutting multiple longer-term forecasts, including FY2027 and FY2028, which suggests continued pressure on profitability.
• The broader analyst view remains cautious: the stock carries an average “Hold” rating, with several firms recently cutting price targets or initiating coverage at neutral levels.
• Dave & Buster’s recent results were weak, as the company reported $0.22 EPS versus the $0.60 consensus and revenue of $559.2 million, both below expectations, while shares traded around $11.40.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Free Report) - Research analysts at Zacks Research lowered their Q3 2027 earnings estimates for shares of Dave & Buster's Entertainment in a report released on Monday, June 29th. Zacks Research analyst Team now anticipates that the restaurant operator will post earnings of ($1.40) per share for the quarter, down from their prior estimate of ($1.38). Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Dave & Buster's Entertainment's current full-year earnings is ($1.02) per share. Zacks Research also issued estimates for Dave & Buster's Entertainment's Q4 2027 earnings at ($0.18) EPS, FY2027 earnings at ($1.18) EPS, Q1 2028 earnings at $0.34 EPS, Q2 2028 earnings at $0.05 EPS, Q3 2028 earnings at ($1.30) EPS, Q4 2028 earnings at ($0.18) EPS, FY2028 earnings at ($1.09) EPS, Q1 2029 earnings at $0.36 EPS and FY2029 earnings at ($0.81) EPS.

Several other analysts have also recently weighed in on the company. Citigroup began coverage on Dave & Buster's Entertainment in a research report on Monday. They set a "market perform" rating on the stock. Piper Sandler lowered their target price 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. UBS Group dropped their price target on Dave & Buster's Entertainment from $13.00 to $12.00 and set a "neutral" rating on the stock in a research report on Tuesday, June 16th. BMO Capital Markets reduced their price target on Dave & Buster's Entertainment from $24.00 to $22.00 and set an "outperform" rating on the stock in a research note on Tuesday, June 16th. Finally, Wall Street Zen downgraded Dave & Buster's Entertainment from a "hold" rating to a "strong sell" rating in a report on Monday, April 6th. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $19.33.

Dave & Buster's Entertainment Price Performance

PLAY stock opened at $11.40 on Wednesday. Dave & Buster's Entertainment has a 1 year low of $9.61 and a 1 year high of $35.53. The company has a market cap of $396.61 million, a P/E ratio of -6.03 and a beta of 1.81. The firm has a 50-day moving average of $11.65 and a 200 day moving average of $14.36. The company has a debt-to-equity ratio of 15.01, a current ratio of 0.29 and a quick ratio of 0.20.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last announced its earnings results on Monday, June 15th. The restaurant operator reported $0.22 earnings per share for the quarter, missing analysts' consensus estimates of $0.60 by ($0.38). Dave & Buster's Entertainment had a negative net margin of 3.09% and a negative return on equity of 24.19%. The company had revenue of $559.20 million for the quarter, compared to the consensus estimate of $580.60 million. During the same period in the previous year, the firm posted $0.76 EPS. The company's revenue for the quarter was down 1.5% on a year-over-year basis.

Institutional Investors Weigh In On Dave & Buster's Entertainment

Institutional investors have recently made changes to their positions in the company. Nomura Holdings Inc. raised its holdings in Dave & Buster's Entertainment by 532.9% in the 3rd quarter. Nomura Holdings Inc. now owns 2,411,191 shares of the restaurant operator's stock worth $43,787,000 after acquiring an additional 2,030,186 shares during the last quarter. Clearline Capital LP raised its stake in shares of Dave & Buster's Entertainment by 20.4% in the third quarter. Clearline Capital LP now owns 1,619,964 shares of the restaurant operator's stock worth $29,419,000 after purchasing an additional 274,541 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund lifted its holdings in shares of Dave & Buster's Entertainment by 40.1% during the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,515,000 shares of the restaurant operator's stock valued at $24,558,000 after purchasing an additional 434,000 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Dave & Buster's Entertainment by 22.3% during the fourth quarter. Goldman Sachs Group Inc. now owns 1,511,591 shares of the restaurant operator's stock valued at $24,503,000 after purchasing an additional 276,064 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in shares of Dave & Buster's Entertainment by 44.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,509,752 shares of the restaurant operator's stock valued at $16,351,000 after buying an additional 468,174 shares during the last quarter. Hedge funds and other institutional investors own 91.45% of the company's stock.

Insider Transactions at Dave & Buster's Entertainment

In related news, SVP Steve Klohn sold 6,989 shares of the 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 sale, the senior vice president directly owned 38,547 shares of the company's stock, valued at approximately $566,255.43. This represents a 15.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.73% of the stock is currently owned by insiders.

More Dave & Buster's Entertainment News

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

• Positive Sentiment: Zacks Research slightly raised its Q2 2028 EPS estimate to $0.05 from $0.03, suggesting a modest improvement in that period.
• Neutral Sentiment: Citizens JMP initiated coverage with a “market perform” rating, which is less bearish than Zacks’ view but does not imply a strong upside catalyst. Tickerreport.com
• Negative Sentiment: Zacks Research lowered FY2027 EPS to ($1.18) from ($0.93) and FY2028 EPS to ($1.09) from ($0.94), reinforcing a view that losses could persist.
• Negative Sentiment: The firm also cut Q1 2028 EPS to $0.34 from $0.53 and Q4 2027 EPS to ($0.18) from ($0.11), adding to near-term earnings concerns.
• Negative Sentiment: More cautious long-range forecasts, including FY2029 EPS reduced to ($0.81) from ($0.67) and Q1 2029 EPS cut to $0.36 from $0.57, may weigh on sentiment around the stock.

About Dave & Buster's Entertainment

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.

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