Dave & Buster's Entertainment, Inc (PLAY) AI Stock Analysis

Dave & Buster's Entertainment, Inc. operates entertainment and dining venues for adults and families across North America. Founded in 1982 and based in Coppell, Texas, the company combines food, gaming, and sports viewing in its venues. Locations offer a full food and beverage menu featuring entrees, appetizers, and both alcoholic and non-alcoholic drinks. Guests have access to interactive games, live sports viewing, and televised events. The company operates across 40 U.S. states, Puerto Rico, and one Canadian province, catering to patrons looking for dynamic food and entertainment experiences.

Revenue expanded from $1.30B in FY2022 to $2.21B in FY2024 before contracting to $2.13B in FY2025 and $2.10B in FY2026, marking a 1.4% decline in FY2026. Operating margin narrowed from 15.0% in FY2022 to 5.0% in FY2026, while gross margin rose to 85.7%. Net income swung from $108.7M in FY2022 to -$48.7M in FY2026, generating diluted earnings per share of -$0.33. For the trailing twelve months ended July 31, 2026, revenue stood at $2.08B with a profit margin of -4.3% and earnings per share of -$2.56. In the latest quarter, revenue declined 2.4% year-over-year while quarterly earnings fell 74.2%.

As of July 31, 2026, Dave & Buster's held $16.0M in cash and short-term investments against total debt of $3.59B, leading to net debt of $3.57B. Total assets stood at $4.12B and shareholders' equity was $87.9M, producing a debt-to-equity ratio of 40.79 and a current ratio of 0.30. Operating cash flow totaled $290.8M in FY2026, but capital expenditures of $391.4M resulted in free cash flow of -$100.6M. In FY2026, the company also directed $1.7M toward share buybacks.

Dave & Buster's trades at a forward P/E of 8.8x, compared to the median of 14.1x for its US-listed Communication Services peers. Its EV to EBITDA ratio sits at 10.4x, slightly above the peer group median of 10.0x. The company has an enterprise value of $3.36B and a market capitalization of $264.7M, reflecting a price-to-sales ratio of 0.1x compared to the peer median of 0.8x. Over the past year, the stock fell 59.0%, while the S&P 500 gained 16.8%. Over five years, the stock decreased 79.5% against an 83.0% increase for the S&P 500.

Wall Street sentiment includes 3 Strong Buy ratings, 0 Buy ratings, and 7 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target is $13.00, representing 71.1% upside over the October 16, 2026 close of $7.60. For the fiscal year ending January 31, 2027, analysts project revenue of $2.09B and earnings per share of -$1.65. Over the last four quarters, the company recorded 0 earnings beats. The next earnings report is scheduled for December 8, 2026.

This page is an AI-written research summary of Dave & Buster's Entertainment, Inc (PLAY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: PLAY income statement, PLAY balance sheet, PLAY key metrics, PLAY analyst forecast, PLAY chart. See the PLAY stock overview for the latest quote and news.