Zacks Research Issues Negative Forecast for PLAY Earnings

Key Points

• Zacks Research cut its Q2 2027 EPS estimate for PLAY to $0.18 from $0.30 and assigned a Strong Sell rating, while revising multi-year EPS forecasts further into negative territory.
• Dave & Buster's recently missed earnings (Q1 EPS -$0.35 vs. $0.39 expected) with revenue down 0.9% YoY, and carries concerning financials — including a quick ratio of 0.19, current ratio of 0.29 and debt-to-equity of 16.61 — as the stock trades near $10.47.
• Analyst views remain mixed (three Buys, three Holds, two Sells) leaving an average rating of Hold and an average target of $21.83, amid recent price-target cuts, insider selling and ~91% institutional ownership.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Free Report) - Research analysts at Zacks Research dropped their Q2 2027 earnings per share (EPS) estimates for shares of Dave & Buster's Entertainment in a research note issued to investors on Wednesday, May 6th. Zacks Research analyst Team now expects that the restaurant operator will post earnings per share of $0.18 for the quarter, down from their prior forecast of $0.30. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Dave & Buster's Entertainment's current full-year earnings is ($0.80) per share. Zacks Research also issued estimates for Dave & Buster's Entertainment's Q4 2027 earnings at ($0.11) EPS, FY2027 earnings at ($0.93) EPS, Q2 2028 earnings at $0.03 EPS, Q3 2028 earnings at ($1.27) EPS, Q4 2028 earnings at ($0.22) EPS, FY2028 earnings at ($0.94) EPS and FY2029 earnings at ($0.67) EPS.

PLAY has been the topic of a number of other research reports. Benchmark raised shares of Dave & Buster's Entertainment from a "hold" rating to a "buy" rating and set a $30.00 price objective on the stock in a report on Friday, January 16th. Wall Street Zen lowered shares of Dave & Buster's Entertainment from a "hold" rating to a "strong sell" rating in a research report on Monday, April 6th. Truist Financial decreased their price target on shares of Dave & Buster's Entertainment from $23.00 to $18.00 and set a "hold" rating on the stock in a research note on Thursday, January 8th. Piper Sandler lowered their price target on shares of Dave & Buster's Entertainment from $22.00 to $14.00 and set a "neutral" rating for the company in a report on Monday, April 6th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Dave & Buster's Entertainment in a research report on Monday, April 20th. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $21.83.

Dave & Buster's Entertainment Stock Performance

Dave & Buster's Entertainment stock opened at $10.47 on Friday. The stock has a 50-day simple moving average of $12.80 and a 200 day simple moving average of $15.55. The stock has a market capitalization of $363.72 million, a price-to-earnings ratio of -7.32 and a beta of 1.78. 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 12-month low of $9.61 and a 12-month high of $35.53.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last posted its quarterly earnings data on Tuesday, March 31st. The restaurant operator reported ($0.35) EPS for the quarter, missing analysts' consensus estimates of $0.39 by ($0.74). Dave & Buster's Entertainment had a negative return on equity of 7.93% and a negative net margin of 2.32%.The business had revenue of $529.60 million during the quarter, compared to analyst estimates of $556.56 million. During the same period in the prior year, the firm posted $0.69 EPS. Dave & Buster's Entertainment's revenue for the quarter was down .9% compared to the same quarter last year.

Institutional Investors Weigh In On Dave & Buster's Entertainment

A number of institutional investors and hedge funds have recently modified their holdings of PLAY. Y Intercept Hong Kong Ltd bought a new position in Dave & Buster's Entertainment in the first quarter valued at approximately $735,000. SG Americas Securities LLC raised its position in shares of Dave & Buster's Entertainment by 4.6% during the 1st quarter. SG Americas Securities LLC now owns 663,199 shares of the restaurant operator's stock valued at $7,182,000 after acquiring an additional 29,051 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its position in shares of Dave & Buster's Entertainment by 1,547.2% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,464 shares of the restaurant operator's stock valued at $72,000 after acquiring an additional 4,193 shares during the last quarter. Virtu Financial LLC acquired a new position in shares of Dave & Buster's Entertainment in the 4th quarter valued at $360,000. Finally, Invesco Ltd. lifted its stake in shares of Dave & Buster's Entertainment by 31.2% in the 4th quarter. Invesco Ltd. now owns 357,133 shares of the restaurant operator's stock valued at $5,789,000 after purchasing an additional 84,951 shares during the period. 91.45% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other Dave & Buster's Entertainment 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 transaction, the senior vice president directly owned 38,547 shares in the company, valued at approximately $566,255.43. This represents a 15.35% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.02% 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.

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