Download PDF

1. Company Snapshot

1.a. Company Description

Dave & Buster's Entertainment, Inc.owns and operates entertainment and dining venues for adults and families in North America.Its venues offer a menu of entrées 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.


The company operates its venues under the Dave & Buster's name.As of January 30, 2022, it owned and operated 144 stores located in 40 states, Puerto Rico, and one Canadian Province.The company was founded in 1982 and is headquartered in Coppell, Texas.

Show Full description

1.b. Last Insights on PLAY

The recent 3 months performance of Dave & Buster's Entertainment, Inc. was negatively driven by dismal contributions from food and beverage and entertainment segments, resulting in revenue lag. The company's fiscal fourth-quarter revenues were impacted by disruptions due to remodeling construction at certain locations, leading to a decline in comparable sales. Additionally, the company's share buybacks have been criticized for being poorly timed, given its high leverage and negative free cash flow.

1.c. Company Highlights

2. Q2 Earnings Analysis: A Deep Dive into Dave & Buster's Performance

The company's Q2 revenue stood at $557 million, with a net income of $11 million, translating to $0.32 EPS. The adjusted net income was $14 million, with an EPS of $0.40. The adjusted EBITDA margin was 23%, amounting to $130 million. Year-to-date, the operating cash flow was $130 million, with $443 million in liquidity.

Publication Date: Sep -18

📋 Highlights

Financial Performance and Strategic Initiatives

Tarun Lal, the CEO, emphasized the company's focus on sharpening brand distinctiveness, improving marketing, and enhancing guest experiences. The company has been working on rebuilding its marketing efforts, launching new menus, and refreshing games with over 10 new introductions annually. The "Eat & Play" combo achieved an 8-10% opt-in rate, driving food upgrades and positive guest engagement.

Valuation Metrics and Future Outlook

The company's current valuation metrics are as follows: P/E Ratio at 72.56, P/B Ratio at 4.24, P/S Ratio at 0.33, EV/EBITDA at 5.7, with a Dividend Yield of 0.0%. The Free Cash Flow Yield is -44.45%, ROIC at 5.74%, and ROE at 5.66%. The Net Debt / EBITDA ratio stands at 3.9. With the EBITDA target now focused at $675 million, the company's strategic priorities include capital efficiency, guest-centric operations, and leveraging the brand's social connection model.

Operational Highlights and Challenges

The company opened 8 new stores in 2025, with plans for 11 total by year-end and 5 international openings. Same-store sales trends in Q3 are aligning with Q2's decline, with July's performance affected by calendar shifts. The company is addressing value perception challenges through simplified communication and enhanced brand distinctiveness.

Leadership's Confidence and Future Plans

Tarun Lal emphasized the company's confidence in future growth, prioritizing long-term transformation through aligning culture, brand clarity, and guest focus. The company remains focused on delivering value for shareholders, with a strong foundation and resilient operations.

3. NewsRoom

Card image cap

Seeking Clues to Dave & Buster's (PLAY) Q3 Earnings? A Peek Into Wall Street Projections for Key Metrics

Dec -04

Source: zacks.com

Card image cap

Boston Partners Reduces Stock Position in Dave & Buster’s Entertainment, Inc. $PLAY

Dec -01

Source: defenseworld.net

Card image cap

Dave & Buster's Entertainment, Inc. to Report Third Quarter 2025 Financial Results on December 9, 2025

Nov -28

Source: globenewswire.com

Card image cap

Envestnet Asset Management Inc. Sells 3,699 Shares of Dave & Buster’s Entertainment, Inc. $PLAY

Nov -27

Source: defenseworld.net

Card image cap

USA TODAY Launches USA TODAY PLAY

Oct -15

Source: businesswire.com

Card image cap

New Strong Sell Stocks for October 1st

Oct -01

Source: zacks.com

Card image cap

Dave & Buster's Is Down 17%. Is the Stock a Buy?

Sep -19

Source: fool.com

Card image cap

Dave & Buster's Stock: Is Now the Time to Make a PLAY?

Sep -17

Source: marketbeat.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.54%)

6. Segments

Entertainment

Expected Growth: 9%

Dave & Buster's Entertainment, Inc.'s 9% growth in the Entertainment segment is driven by increasing demand for experiential entertainment, successful menu innovation, and strategic marketing efforts. Additionally, the company's focus on enhancing the guest experience through technology integration and remodels has contributed to higher sales and profitability.

Food

Expected Growth: 8%

Dave & Buster's Entertainment, Inc.'s 8% food segment growth is driven by increasing demand for experiential dining, successful menu innovation, and expansion of online ordering and delivery capabilities. Additionally, the company's focus on improving food quality, enhancing the guest experience, and investing in digital marketing initiatives contribute to the growth.

Beverage

Expected Growth: 7%

Dave & Buster's Entertainment, Inc.'s 7% growth in Beverage segment is driven by increasing demand for premium beverages, expansion of menu offerings, and strategic pricing. Additionally, the company's focus on enhancing the guest experience through innovative drink options and loyalty programs contributes to the growth.

7. Detailed Products

Food and Beverages

Dave & Buster's offers a wide variety of food and beverages, including burgers, sandwiches, salads, and appetizers, as well as a full bar with cocktails and other drinks.

Games and Entertainment

Dave & Buster's features a wide range of interactive games, including arcade games, sports games, and prize redemption games.

Events and Parties

Dave & Buster's offers private event spaces and catering services for corporate events, birthday parties, and other celebrations.

Sports Viewing

Dave & Buster's features large screens and projection TVs for watching live sports, including football, basketball, baseball, and more.

8. Dave & Buster's Entertainment, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Dave & Buster's Entertainment, Inc. faces moderate threat from substitutes, as customers have alternative options for entertainment, such as movie theaters, bowling alleys, and home-based gaming. However, the company's unique combination of food, drinks, and entertainment provides a differentiated experience that sets it apart from substitutes.

Bargaining Power Of Customers

Dave & Buster's Entertainment, Inc. has a low bargaining power of customers, as individual customers have limited negotiating power. The company's large customer base and diversified revenue streams also reduce the bargaining power of individual customers.

Bargaining Power Of Suppliers

Dave & Buster's Entertainment, Inc. has a low bargaining power of suppliers, as the company has a diversified supply chain and is not heavily dependent on a single supplier. The company's scale and purchasing power also give it an advantage in negotiating with suppliers.

Threat Of New Entrants

Dave & Buster's Entertainment, Inc. faces a moderate threat from new entrants, as the entertainment and hospitality industry is relatively easy to enter. However, the company's established brand, scale, and operational expertise create barriers to entry for new competitors.

Intensity Of Rivalry

Dave & Buster's Entertainment, Inc. operates in a highly competitive industry, with intense rivalry among entertainment and hospitality companies. The company must continually innovate and differentiate itself to maintain market share and competitiveness.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 84.37%
Debt Cost 5.16%
Equity Weight 15.63%
Equity Cost 14.35%
WACC 6.59%
Leverage 539.97%

11. Quality Control: Dave & Buster's Entertainment, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sinclair Broadcast Group

A-Score: 5.4/10

Value: 7.2

Growth: 4.4

Quality: 4.5

Yield: 10.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Marcus

A-Score: 4.8/10

Value: 7.4

Growth: 4.0

Quality: 4.6

Yield: 3.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
AMC Networks

A-Score: 4.5/10

Value: 9.8

Growth: 3.1

Quality: 4.9

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Gaia

A-Score: 3.8/10

Value: 5.7

Growth: 4.0

Quality: 4.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
LiveOne

A-Score: 3.8/10

Value: 9.6

Growth: 6.8

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Dave & Buster's

A-Score: 3.1/10

Value: 6.3

Growth: 5.9

Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.29$

Current Price

17.3$

Potential

-0.00%

Expected Cash-Flows