Zacks Research Has Negative Outlook for PLAY FY2026 Earnings

Key Points

• Zacks Research has reduced its FY2026 earnings estimate for Dave & Buster's Entertainment to $0.43 per share, down from $0.48, and issued a "Strong Sell" rating on the stock.
• The company's recent quarterly earnings were reported at $0.32 per share, significantly missing analysts' estimates of $0.92, with revenue of $557.40 million falling short of expectations.
• Multiple analysts have lowered their target prices for the stock, with the latest being from Truist Financial, indicating a cautious outlook among market experts.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Free Report) - Analysts at Zacks Research lowered their FY2026 earnings estimates for Dave & Buster's Entertainment in a research report issued to clients and investors on Tuesday, October 21st. Zacks Research analyst Team now expects that the restaurant operator will post earnings per share of $0.43 for the year, down from their prior forecast of $0.48. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Dave & Buster's Entertainment's current full-year earnings is $2.52 per share. Zacks Research also issued estimates for Dave & Buster's Entertainment's Q4 2026 earnings at $0.46 EPS, Q4 2027 earnings at $0.26 EPS and FY2028 earnings at $0.76 EPS.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last announced its quarterly earnings data on Monday, September 15th. The restaurant operator reported $0.32 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.92 by ($0.60). The firm had revenue of $557.40 million during the quarter, compared to the consensus estimate of $565.43 million. Dave & Buster's Entertainment had a net margin of 0.46% and a return on equity of 29.24%. The business's revenue was up .1% compared to the same quarter last year. During the same period last year, the business earned $0.99 earnings per share.

PLAY has been the topic of a number of other research reports. Piper Sandler cut their target price on shares of Dave & Buster's Entertainment from $30.00 to $26.00 and set a "neutral" rating on the stock in a research report on Tuesday, September 16th. Truist Financial cut their target price on shares of Dave & Buster's Entertainment from $27.00 to $22.00 and set a "hold" rating on the stock in a research report on Tuesday, September 16th. Weiss Ratings restated a "sell (d)" rating on shares of Dave & Buster's Entertainment in a research report on Wednesday, October 8th. Finally, UBS Group cut their target price on shares of Dave & Buster's Entertainment from $29.00 to $25.00 and set a "neutral" rating on the stock in a research report on Tuesday, September 16th. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $31.33.

Dave & Buster's Entertainment Stock Performance

Shares of Dave & Buster's Entertainment stock opened at $18.73 on Wednesday. Dave & Buster's Entertainment has a fifty-two week low of $15.08 and a fifty-two week high of $43.73. The company has a debt-to-equity ratio of 9.32, a current ratio of 0.33 and a quick ratio of 0.22. The firm has a market capitalization of $649.31 million, a P/E ratio of 55.09 and a beta of 1.97. The company's 50 day moving average price is $21.50 and its two-hundred day moving average price is $23.93.

Hedge Funds Weigh In On Dave & Buster's Entertainment

Hedge funds have recently modified their holdings of the business. Farther Finance Advisors LLC acquired a new position in shares of Dave & Buster's Entertainment during the second quarter worth $37,000. US Bancorp DE lifted its holdings in Dave & Buster's Entertainment by 442.0% in the first quarter. US Bancorp DE now owns 1,561 shares of the restaurant operator's stock valued at $27,000 after buying an additional 1,273 shares during the period. Signaturefd LLC lifted its holdings in Dave & Buster's Entertainment by 1,427.5% in the first quarter. Signaturefd LLC now owns 4,277 shares of the restaurant operator's stock valued at $75,000 after buying an additional 3,997 shares during the period. GAMMA Investing LLC lifted its holdings in Dave & Buster's Entertainment by 3,974.8% in the first quarter. GAMMA Investing LLC now owns 4,360 shares of the restaurant operator's stock valued at $77,000 after buying an additional 4,253 shares during the period. Finally, Tower Research Capital LLC TRC lifted 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 valued at $152,000 after buying an additional 3,772 shares during the period. Institutional investors and hedge funds own 91.45% of the company's stock.

About Dave & Buster's Entertainment

Dave & Buster's Entertainment, Inc owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events.

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