Zacks Research Has Pessimistic Outlook of PLAY Q1 Earnings

Key Points

• Zacks slashed its Q1 2027 EPS estimate for Dave & Buster's to $0.38 (from $0.74) and assigned a Strong Sell, cutting FY2027 to ($0.77) and FY2028 to ($0.60), signaling a multi‑year negative earnings outlook.
• Dave & Buster's recently reported a quarterly loss of ($0.35) versus a $0.39 consensus and revenue of $529.6M (missed $556.6M), with negative margins and year‑over‑year revenue decline.
• Despite Zacks' bearish call, the sell‑side consensus still shows a full‑year EPS of about $2.52 and mixed analyst ratings (3 Buy / 3 Hold / 2 Sell); the stock trades near $13.64 (52‑week range $9.61–$35.53) with high institutional ownership.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Free Report) - Equities researchers at Zacks Research reduced their Q1 2027 earnings per share (EPS) estimates for Dave & Buster's Entertainment in a note issued to investors on Tuesday, April 14th. Zacks Research analyst Team now anticipates that the restaurant operator will earn $0.38 per share for the quarter, down from their previous estimate of $0.74. 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 Q2 2027 earnings at $0.30 EPS, Q3 2027 earnings at ($1.38) EPS, Q4 2027 earnings at ($0.07) EPS, FY2027 earnings at ($0.77) EPS, Q1 2028 earnings at $0.53 EPS, Q2 2028 earnings at $0.25 EPS, Q3 2028 earnings at ($1.17) EPS, Q4 2028 earnings at ($0.21) EPS and FY2028 earnings at ($0.60) EPS.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last announced its quarterly earnings results on Tuesday, March 31st. The restaurant operator reported ($0.35) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.74). The firm had revenue of $529.60 million during the quarter, compared to the consensus estimate of $556.56 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 was down .9% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.69 EPS.

PLAY has been the topic of a number of other research reports. Wall Street Zen lowered Dave & Buster's Entertainment from a "hold" rating to a "strong sell" rating in a report on Monday, April 6th. Truist Financial decreased their price target on Dave & Buster's Entertainment from $23.00 to $18.00 and set a "hold" rating for the company in a research report on Thursday, January 8th. Benchmark raised Dave & Buster's Entertainment from a "hold" rating to a "buy" rating and set a $30.00 price target for the company in a research report on Friday, January 16th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Dave & Buster's Entertainment in a research report on Wednesday, January 21st. Finally, 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 report on Monday, April 6th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $21.83.

Dave & Buster's Entertainment Stock Up 0.7%

Shares of NASDAQ:PLAY opened at $13.64 on Thursday. The business's 50 day simple moving average is $13.97 and its two-hundred day simple moving average is $16.14. The firm has a market cap of $473.85 million, a P/E ratio of -9.54 and a beta of 1.83. 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 52-week low of $9.61 and a 52-week high of $35.53.

Institutional Trading of Dave & Buster's Entertainment

A number of institutional investors and hedge funds have recently modified their holdings of PLAY. AQR Capital Management LLC purchased a new stake in shares of Dave & Buster's Entertainment during the first quarter valued at approximately $430,000. Creative Planning purchased a new stake in Dave & Buster's Entertainment in the second quarter worth $311,000. Marshall Wace LLP purchased a new stake in Dave & Buster's Entertainment in the second quarter worth $243,000. Cerity Partners LLC increased its position in Dave & Buster's Entertainment by 13.2% in the second quarter. Cerity Partners LLC now owns 22,654 shares of the restaurant operator's stock worth $681,000 after buying an additional 2,644 shares during the last quarter. Finally, Caption Management LLC increased its position in Dave & Buster's Entertainment by 624.7% in the second quarter. Caption Management LLC now owns 14,153 shares of the restaurant operator's stock worth $426,000 after buying an additional 12,200 shares during the last quarter. 91.45% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Dave & Buster's Entertainment

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

• Neutral Sentiment: Market consensus still shows a positive full‑year EPS view (about $2.52), creating a clear divergence between Zacks’ outlook and the broader sell‑side consensus.
• Negative Sentiment: Zacks cut FY2027 sharply to an EPS loss of ($0.77) from a prior $0.47 — a large swing that signals Zacks expects the business to return to losses next fiscal year. Read More.
• Negative Sentiment: Zacks lowered FY2028 to an EPS loss of ($0.60) (from $0.52 prior) and issued a FY2029 estimate of ($0.36), extending the negative multi‑year earnings outlook. Read More.
• Negative Sentiment: Multiple quarterly estimates were cut across 2027–2028 (examples: Q1‑2027 $0.74→$0.38; Q2‑2027 $0.49→$0.30; Q3‑2027 ($1.22)→($1.38); Q4‑2027 $0.45→($0.07); Q1‑Q3 2028 also reduced). The broad‑based downgrades imply weaker top‑line or margin prospects than previously expected. Read More.
• Negative Sentiment: Zacks assigned a "Strong Sell" rating — a clear near‑term negative signal for sentiment and potentially increased selling pressure, especially given PLAY’s high leverage and recent earnings miss. Read More.

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.

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