olivLaw · US equity research
Dave & Buster's Entertainment, Inc. PLAY
Retail-Eating Places · SIC 5812 · Vertical: Retail-Eating Places (SIC 5812)
Dave & Buster's Entertainment, Inc. (PLAY) owns and operates venues that combine entertainment and dining under the Dave & Buster's and Main Event brands, with revenue of 2102.8 million USD in fiscal 2025. The current context is declining comparable store sales and profitability under pressure, while the company tries to resume growth through its Back-to-Basics strategy.
At the close of 04 Nov 2026, Dave & Buster's Entertainment, Inc. (PLAY) stock was 8.78 USD (+6.81% on the day), with market capitalisation 305.8 m USD, dividend yield 7.06%, beta 1.31, 52-week range 6.38–21.17 USD. Latest reported quarter (Q2 2027): revenue of 544.1 m USD (−2.4% YoY), net income of -12.5 m USD (−209.6% YoY), diluted EPS -0.36 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 62.5
- strong (55–70)
- Bollinger (20, 2)
- 6.57 – 8.64
- above the upper band · %B 1.07 · band width 27.3%
- SMA 50 / 200
- 7.60 / 11.41
- mixed trend
- MACD (12, 26, 9)
- 0.24 / 0.07
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +29.9% | −1.1% | +31.0 pp | — |
| 3 months | −16.0% | −0.5% | −15.5 pp | — |
| 6 months | −18.4% | +4.4% | −22.8 pp | — |
| Year to date | −45.8% | +12.3% | −58.2 pp | — |
| 1 year | −38.0% | +13.5% | −51.6 pp | +4.4% |
| 3 years | −75.8% | +76.4% | −152.3 pp | −0.6% |
| 5 years | −78.3% | +63.7% | −141.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 04 Aug 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 453.0 m | 534.5 m | 567.7 m | 557.4 m | 448.2 m | 529.6 m | 559.2 m | 544.1 m |
| Cost of revenue | 67.8 m | 77.5 m | 82.1 m | 76.4 m | 63.5 m | 78.2 m | 79.8 m | 83.2 m |
| Operating income | 6.3 m | 44.1 m | 63.2 m | 53.0 m | -16.2 m | -13.9 m | 46.9 m | 19.4 m |
| Depreciation & amortisation | 53.9 m | 64.0 m | 63.2 m | 65.2 m | 63.0 m | 88.0 m | 70.9 m | 73.7 m |
| Interest expense | 32.9 m | 35.4 m | 36.8 m | 38.7 m | 40.2 m | 38.3 m | 36.9 m | 38.0 m |
| Pre-tax income | -41.8 m | 8.7 m | 26.4 m | 14.3 m | -56.4 m | -52.2 m | 10.0 m | -18.6 m |
| Income tax | -9.1 m | -600.0 k | 4.7 m | 2.9 m | -14.3 m | -12.5 m | 4.3 m | -6.1 m |
| Net income | -32.7 m | 9.3 m | 21.7 m | 11.4 m | -42.1 m | -39.7 m | 5.7 m | -12.5 m |
| Diluted EPS | -0.84 | 0.24 ≈ | 0.62 | 0.32 | -1.22 | -1.14 ≈ | 0.16 | -0.36 |
| Operating cash flow | -7.2 m ≈ | 108.9 m | 95.8 m | 34.0 m ≈ | 58.0 m ≈ | 103.0 m | 113.8 m | 46.8 m ≈ |
| Capex | 131.2 m ≈ | 169.9 m | 154.6 m | 89.2 m ≈ | 78.6 m ≈ | 69.0 m | 105.3 m | 84.7 m ≈ |
| Share repurchases | 28.0 m ≈ | 83.9 m | 23.9 m | 0 ≈ | 0 ≈ | 0 | 0 | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | ⚠ 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.3 bn | 1.4 bn | 436.5 m | 1.3 bn | 2.0 bn | 2.2 bn | 2.1 bn | 2.1 bn |
| Revenue YoY | +11.0% | +7.1% | −67.8% | — | +50.6% | +12.3% | −3.3% | −1.4% |
| Net income | 117.2 m | 100.3 m | -207.0 m | 108.7 m | 137.1 m | 126.9 m | 58.3 m | -48.7 m |
| Net income YoY | −3.1% | −14.5% | −306.4% | — | +26.1% | −7.4% | −54.1% | −183.5% |
| Diluted EPS | 2.93 | 2.94 | -4.75 | 2.21 | 2.79 | 2.88 | 1.46 | -1.40 |
| Diluted EPS YoY | +3.2% | +0.3% | −261.6% | — | +26.2% | +3.2% | −49.3% | −195.9% |
| net % | 9.3% | 7.4% | -47.4% | 8.3% | 7.0% | 5.8% | 2.7% | -2.3% |
| Free cash flow | 121.3 m | 60.9 m | -132.2 m | 191.0 m | 210.2 m | 34.0 m | -217.9 m | -100.6 m |
The series breaks before 2022: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 03 Feb 2026
- Cash
- 16.6 m USD
- Financial debt
- 1.5 bn USD
- Net debt
- 1.5 bn USD
- Equity
- 91.2 m USD
- Total assets
- 4.1 bn USD
- Debt / equity
- 16.69x
- Current ratio
- 0.29x
- ROE
- -41.1%
- ROA
- -1.2%
- FCF margin
- -4.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 436.5 m | 1.3 bn | 2.0 bn | 2.2 bn | 2.1 bn | 2.1 bn | SEC (XBRL)· 31 Mar 2026verified |
| Cost of revenue | 74.9 m | 204.9 m | 323.2 m | 353.0 m | 314.4 m | 300.3 m | SEC (XBRL)· 31 Mar 2026verified |
| Gross profit | 361.6 m ≈ | 1.1 bn ≈ | 1.6 bn ≈ | 1.9 bn ≈ | 1.8 bn ≈ | 1.8 bn ≈ | SEC (XBRL)· 31 Mar 2026derived |
| Operating income | -252.6 m | 187.2 m | 262.5 m | 306.6 m | 220.4 m | 86.1 m | SEC (XBRL)· 31 Mar 2026verified |
| Depreciation & amortisation | 138.8 m | 138.3 m | 169.3 m | 208.5 m | 238.2 m | 279.4 m | SEC (XBRL)· 31 Mar 2026verified |
| EBITDA | -113.8 m ≈ | 325.5 m ≈ | 431.8 m ≈ | 515.1 m ≈ | 458.6 m ≈ | 365.5 m ≈ | SEC (XBRL)· 31 Mar 2026derived |
| Interest expense | 36.9 m | 53.9 m | 87.4 m | 127.4 m | 135.3 m | 154.0 m | SEC (XBRL)· 31 Mar 2026verified |
| Pre-tax income | -290.4 m | 127.7 m | 173.6 m | 163.1 m | 69.9 m | -67.9 m | SEC (XBRL)· 31 Mar 2026verified |
| Income tax | -83.4 m | 19.0 m | 36.5 m | 36.2 m | 11.6 m | -19.2 m | SEC (XBRL)· 31 Mar 2026verified |
| Net income | -207.0 m | 108.7 m | 137.1 m | 126.9 m | 58.3 m | -48.7 m | SEC (XBRL)· 31 Mar 2026verified |
| Diluted EPS | -4.75 | 2.21 | 2.79 | 2.88 | 1.46 | -1.40 | SEC (XBRL)· 31 Mar 2026verified |
| Weighted average diluted shares | 43.5 m | 49.3 m | 49.2 m | 44.1 m | 40.0 m | 34.7 m | SEC (XBRL)· 31 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 11.9 m | 25.9 m | 181.6 m | 37.3 m | 6.9 m | 16.6 m | SEC (XBRL)· 31 Mar 2026verified |
| Inventories | 23.8 m | 40.3 m | 45.4 m | 37.2 m | 39.8 m | 39.9 m | SEC (XBRL)· 31 Mar 2026verified |
| Current assets | 118.9 m | 145.6 m | 293.7 m | 137.5 m | 94.4 m | 124.1 m | SEC (XBRL)· 31 Mar 2026verified |
| Property, plant & equipment, net | 815.0 m | 778.6 m | 1.2 bn | 1.3 bn | 1.6 bn | 1.7 bn | SEC (XBRL)· 31 Mar 2026verified |
| Goodwill | 272.6 m | 272.6 m | 744.5 m | 742.5 m | 742.6 m | 742.6 m | SEC (XBRL)· 31 Mar 2026verified |
| Total assets | 2.4 bn | 2.3 bn | 3.8 bn | 3.8 bn | 4.0 bn | 4.1 bn | SEC (XBRL)· 31 Mar 2026verified |
| Accounts payable | 36.4 m | 62.5 m | 84.7 m | 118.6 m | 134.4 m | 125.5 m | SEC (XBRL)· 31 Mar 2026verified |
| Short-term debt | — | 0 | 8.5 m | 9.0 m | 7.0 m | 7.0 m | SEC (XBRL)· 31 Mar 2026verified |
| Long-term debt | 596.4 m | 431.4 m | 1.2 bn | 1.3 bn | 1.5 bn | 1.5 bn | SEC (XBRL)· 31 Mar 2026verified |
| Current liabilities | 271.6 m | 311.5 m | 438.0 m | 435.6 m | 433.9 m | 434.6 m | SEC (XBRL)· 31 Mar 2026verified |
| Equity | 153.2 m † | 275.4 m † | 410.5 m † | 251.2 m † | 145.8 m † | 91.2 m † | SEC (XBRL)· 31 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -49.2 m | 283.2 m | 444.4 m | 364.2 m | 312.3 m | 290.8 m | SEC (XBRL)· 31 Mar 2026verified |
| Capex | 83.0 m | 92.2 m | 234.2 m | 330.2 m | 530.2 m | 391.4 m | SEC (XBRL)· 31 Mar 2026verified |
| Free cash flow | -132.2 m ≈ | 191.0 m ≈ | 210.2 m ≈ | 34.0 m ≈ | -217.9 m ≈ | -100.6 m ≈ | SEC (XBRL)· 31 Mar 2026derived |
| Investing cash flow | -82.0 m | -91.5 m | -1.1 bn | -329.1 m | -529.8 m | -386.9 m | SEC (XBRL)· 31 Mar 2026verified |
| Financing cash flow | 118.4 m | -177.7 m | 762.9 m | -179.4 m | 187.1 m | 105.8 m | SEC (XBRL)· 31 Mar 2026verified |
| Dividends paid | 4.9 m | 0 | 0 | — | — | — | SEC (XBRL)· 28 Mar 2023verified |
| Share repurchases | 0 | 0 | 25.0 m | 300.0 m | 171.9 m | 23.9 m | SEC (XBRL)· 31 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 23 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 305.8 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet9
- Growth19
- Quality21
- Returns0
- Valuation51
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 8.15 – 141.65 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)27.87 – 141.65 (Mid 58.61)WACC 5.8% · starting FCFF 112.9 m USD · terminal value share of EV 86%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -23.5%
- Peers: EV/EBITDA26.09 – 113.34 (Mid 56.74)22 companies used · median multiple 10.5x · quartiles 7.2x – 16.4xARCO, BDL, BJRI, BLMN, CAKE, CBRL, DRI, FWRG, GTIM, LOCO, MCD, NATH, NDLS, PTLO, PZZA, QSR, RRGB, STKS, TXRH, WING, YUM, YUMC
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)8.15 – 10.96 (Mid 9.35)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 23/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 1.8% | 22 (vs peers) | 15% |
| Net margin · Quality | -4.3% | 18 (vs peers) | 9% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 2.3% | 19 (on a fixed band) | 12% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 4.5x | 17 (vs peers) | 15% |
| Interest coverage · Balance sheet | 0.2x | 0 (on a fixed band) | 9% |
| Current ratio · Balance sheet | 0.3x | 0 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | 5.4x | 91 (vs peers) | 15% |
| FCF yield · Valuation | -5.2% | 0 (on a fixed band) | 12% |
| Shareholder yield (distributions) · Returns | 0.0% | 0 (on a fixed band) | 9% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet9/100 · 3/3 factors with a value
- Growth· partial19/100 · 1/2 factors with a value
- Quality21/100 · 2/3 factors with a value
- Returns· partial0/100 · 1/2 factors with a value
- Valuation51/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Dave & Buster’s Entertainment, Inc. (PLAY). Latest full fiscal year: 2026; data up to 2026-08-04.
Figures computed from the financial statements: revenue 2.1 bn USD in 2026; YoY growth -1.4%; net margin -4.3%; ROE -69.7%; net debt/EBITDA 4.5x.
The estimated value range is 26.09–113.34 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 56.74 USD, the price of 8.78 USD leaves a potential of 546.2% (value / price − 1) and a margin of safety of 84.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 23/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EV/EBITDA: 5.4x
- The price is below the estimated value range
What contradicts it
- ROIC: 1.8%
- Net margin: -4.3%
- Revenue CAGR 3Y: 2.3%
- Net debt / EBITDA: 4.5x
- Interest coverage: 0.2x
- Current ratio: 0.3x
- FCF yield: -5.2%
- Shareholder yield (distributions): 0.0%
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, P/E (TTM), Payout ratio (FCF).
Versus the vertical median
Retail-Eating Places (SIC 5812) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MCDMcDONALD’S CORPORATION | 198.3 bn | 0.0 | — | 31.7% | +3.7% | −10% / −1% |
| YUMYum! Brands, Inc. | 45.4 bn | 20.9 | — | 25.4% | +8.8% | +9% / +32% |
| CMGChipotle Mexican Grill, Inc. | 44.5 bn | 32.9 | 48.5% | 10.8% | +5.4% | +2% / −20% |
| DRIDarden Restaurants, Inc. | 26.1 bn | 22.5 | 55.1% | 8.8% | +9.4% | +28% / +47% |
| QSRRestaurant Brands International Inc. | 24.8 bn | 18.2 | 53.8% | 20.1% | +12.2% | +8% / +10% |
| YUMCYum China Holdings, Inc. | 17.0 bn | 18.3 | 17.5% | 7.8% | +4.4% | +3% / +15% |
| TXRHTexas Roadhouse, Inc. | 12.9 bn | 31.3 | 28.1% | 6.8% | +9.4% | +12% / +75% |
| EATBrinker International, Inc. | 9.2 bn | 19.4 | 134.7% | 8.4% | +7.9% | +43% / +512% |
| CAVACAVA Group, Inc. | 7.2 bn | 109.3 | 8.3% | 4.8% | +22.4% | +27% / +82% |
| HDLSuper Hi International Holding Ltd. | 6.4 bn | 247.5 | 6.9% | 2.8% | +13.4% | −46% / unavailable |
| CAKEThe Cheesecake Factory Incorporated | 5.8 bn | 27.4 | 41.6% | 5.2% | +4.7% | +142% / +268% |
| WINGWingstop Inc. | 4.5 bn | 39.3 | — | 16.0% | +11.4% | −37% / −30% |
| CBRLCracker Barrel Old Country Store, Inc. | 1.6 bn | 50.2 | 6.7% | 1.0% | −4.7% | +143% / +5% |
| ARCOArcos Dorados Holdings Inc. | 1.5 bn | 7.0 | 33.2% | 4.5% | +4.7% | −7% / −39% |
| BJRIBj’s Restaurants, Inc. | 1.3 bn | 33.0 | 10.4% | 2.9% | +3.1% | +61% / +106% |
| SGSweetgreen, Inc. | 1.1 bn | 117.9 | 3.1% | 2.0% | +0.4% | +82% / +25% |
| BLMNBloomin’ Brands, Inc. | 939.3 m | 35.1 | 6.7% | 0.7% | +0.1% | +55% / −53% |
| FWRGFirst Watch Restaurant Group, Inc. | 833.3 m | 42.1 | 3.1% | 1.5% | +20.3% | −27% / −25% |
| PZZAPapa John’s International, Inc. | 658.1 m | 25.1 | — | 1.4% | −0.3% | −52% / −69% |
| LOCOEl Pollo Loco Holdings, Inc. | 501.2 m | 14.1 | 11.8% | 7.0% | +3.6% | +51% / +98% |
| DINDine Brands Global, Inc. | 448.6 m | 106.7 | — | 0.4% | +8.2% | +17% / −16% |
| NATHNathan's Famous, Inc. | 418.2 m | 21.1 | — | 11.8% | +9.4% | −4% / +56% |
| PTLOPortillo's Inc. | 336.8 m | 29.8 | 3.0% | 1.9% | +3.0% | +4% / −65% |
| PLAYDave & Buster’s Entertainment, Inc. | 305.8 m | — | -69.7% | -4.3% | −1.4% | −38% / −76% |
| JACKJack In The Box Inc. | 275.6 m | 8.2 | — | 2.4% | −6.7% | −27% / −80% |
1- and 3-year price returns: for PLAY from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Dave & Buster's Entertainment, Inc. (PLAY) owns and operates venues that combine entertainment and dining under the Dave & Buster's and Main Event brands, with revenue of 2102.8 million USD in fiscal 2025 1. The current context is declining comparable store sales and profitability under pressure, while the company tries to resume growth through its Back-to-Basics strategy 3.
SWOT
Strengths
- The Dave & Buster's and Main Event brands have high national recognition and broad appeal among families and young adults 1.
- Entertainment carries low variable costs and a very high gross margin, which makes the business model less exposed to food costs 1.
- The large store network and the remodelling programme provide a solid operating base and a way to refresh the offer 13.
Weaknesses
- Comparable store sales and profitability declined in fiscal 2025 and in the second quarter of fiscal 2026, and the company reported net losses 13.
- Debt is substantial, and long-term non-cancellable lease obligations limit financial flexibility 1.
- Operating margin has been compressed by personnel costs and other store operating expenses 12.
Opportunities
- International expansion through franchising, with planned locations in several countries, could add revenue without large direct investment 13.
- Growth in food, beverage and special events sales could offset pressure on entertainment revenue 3.
- Remodels and new games could draw customers back to existing venues if the July trend holds 13.
Threats
- Consumer discretionary spending is sensitive to the economy, and a drop in confidence or income could reduce store traffic 1.
- The legalisation of casino gambling and online sports betting in nearby areas could weigh on demand 1.
- Competition from home entertainment and restaurants may limit pricing and volumes 1.
Risks
- Sensitivity to discretionary spendinghigh
A fall in consumer confidence or disposable income could reduce visitor numbers and the average amount spent per visit 1.
- Debt and lease obligationshigh
Significant debt and leases that cannot be easily cancelled could limit the company's ability to fund growth if cash flow weakens 1.
- Brand reputationmedium
Negative publicity about food quality, safety or incidents in a store could affect the whole network 1.
- Technology and consumer behaviourmedium
Technological change, including artificial intelligence, and new consumer preferences could weaken the appeal of the in-store experience 1.
- Labour costsmedium
Minimum wage increases and competition for staff could raise personnel costs if they cannot be offset through prices 12.
Investment thesis
What would need to be true (bull case)
- If comparable store sales keep improving after the second quarter, the company could gradually recover revenue and operating margin 3.
- The entertainment model, with a very high gross margin, could generate enough cash to reduce debt and fund remodels and new openings 13.
- International franchise expansion could add revenue with lower capital outlay than company-operated stores 13.
What would break the thesis
- The decline in comparable store sales and the reported net losses could show that demand and cost problems run deeper than management expects 13.
- High debt and long-term lease obligations could limit flexibility in a difficult economic period 1.
- Competition and changing consumer behaviour could reduce the appeal of the venues if remodels do not deliver the expected results 1.
What to watch
- Development of comparable store sales in the third quarter of fiscal 2026Q3 2026
- Adjusted EBITDA margin and the effect of cost-reduction programmesQ3 2026
- Number of remodels completed and performance of remodelled stores2026
- Number of franchise stores opened outside the US and the level of debtnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
The company owns and operates high-volume venues in North America that offer entertainment and dining for adults and families 1. As of February 3, 2026, the network included 179 Dave & Buster's stores and 64 Main Event stores, and by the end of the second quarter of fiscal 2026 the total number of company-operated stores had reached 250 13. The company also acts as an international franchisor, with six Dave & Buster's franchise stores open at the reporting date 3.
The business model rests on arcade games, bowling, laser tag, virtual reality, televised sports and a food and beverage offer, all in one place 1. Entertainment revenue made up most of total revenue, and its gross margin, supported by low variable costs, underpins the store economics 1. The company reinvests operating cash flow in stores, debt repayment, share repurchases or dividends 1.
The long-term strategy combines growth in comparable store sales, opening new US stores, remodelling existing ones and international expansion through franchising 1. In fiscal 2025 the company opened eight Dave & Buster's and three Main Event stores, and in the first half of fiscal 2026 it opened seven more new stores, five Dave & Buster's and two Main Event 12.
Segments
Entertainment
Entertainment revenue, which includes arcade games, virtual reality, bowling and other attractions, accounted for 62.9% of total revenue in fiscal 2025 and had a gross margin of 91.9% 1. In the second quarter of fiscal 2026 entertainment revenue fell to 332.6 million USD from 364.5 million USD a year earlier 3.
Market context
The out-of-home entertainment market is highly competitive and depends on consumer discretionary spending, which can be hit by economic conditions, inflation and consumer confidence 1. The company cites fuel prices, minimum wage increases and supplier price pressure as factors 1.
Comparable store sales have declined in the last two reports, pointing to weaker demand in existing venues 13. Seasonality matters: spring and year-end holidays usually bring higher revenue, while the third quarter, the back-to-school season, is typically the weakest 1.
Trends
- Recovery in comparable salesmixed
Management says comparable store sales improved in July and that the trend continued into the third quarter to date, which could point to stabilisation if the pace holds 3. A 2.9% decline remains in the second quarter 3.
- Remodels and store modernisationtailwind
The company has completed Dave & Buster's remodels and says remodelled stores outperform the system, which could support sales growth over the medium term 13.
- Labour and lease costsheadwind
Payroll and other store operating costs have grown as a share of revenue, compressing operating margin 12. Most stores are leased, and the leases include annual rent escalators, which adds fixed cost pressure 1.
- Debt and liquiditymixed
Total debt remains high, and interest and principal payments limit free cash flow, although available liquidity stood at 492.1 million USD at the end of the second quarter 13. Adjusted free cash flow was positive in the first half of fiscal 2026 3.
Competitive position
The company competes for customers' discretionary income with cinemas, bowling alleys, arcades, nightclubs, restaurants and theme parks, as well as with home entertainment such as video games and streaming 1. Some of these businesses are larger with greater financial resources, and the legalisation of casino gambling or online sports betting in nearby areas could hurt the company 1.
Competition also comes from local and regional restaurants offering similar experiences at competitive prices 1. The company differentiates itself by combining games, sports viewing and food in one space, which it says cannot be easily replicated at home or without visiting several destinations 1.
- Cinemas and family entertainment centres
Compete for the same discretionary spending of families and young adults, as cited in the company's competitive risks 1.
- Restaurants with entertainment offers
Compete on price, service quality and type of food, which the company names as direct pressure on its food and beverage segment 1.
- Local arcades and bowling centres
Local operators offering similar games and activities, often with fewer resources but a dispersed presence 1.
- In-home entertainment, video games and streaming
Forms of home entertainment that the company describes as an increasingly sophisticated competitive force 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Stocks making the biggest moves midday: Skyworks Solutions, Axon, Dave & Buster's, Revvity & moreCNBC — Top News · 15 Sept 2026 · EN
- Dave & Buster's (PLAY) Q2 2027 Earnings Call TranscriptYahoo Finance — News · 15 Sept 2026 · EN
- Dave & Buster's Entertainment, Inc. Q2 2026 Earnings Call SummaryYahoo Finance — News · 15 Sept 2026 · EN
- Stocks making the biggest moves premarket: Dave & Buster's, Enova, Etsy & moreCNBC — Top News · 15 Sept 2026 · EN
- Dave & Buster's Entertainment Q2 Earnings Call HighlightsYahoo Finance — News · 14 Sept 2026 · EN
The latest news item in our archive is from 15 Sept 2026; the newest SEC filing is from 21 Sept 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report21 Sept 2026Departure or appointment of officers · Other events · Financial statements and exhibits
- Current report14 Sept 2026Results of operations · Financial statements and exhibits
- Quarterly report14 Sept 2026
- Current report04 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Current report25 Jun 2026Shareholder vote · Financial statements and exhibits
- Quarterly report15 Jun 2026
- Current report15 Jun 2026Results of operations · Financial statements and exhibits
- Proxy statement06 May 2026
- Current report01 May 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Annual report31 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2026-02-03 · SEC / Dave & Buster's Entertainment, Inc. · 31 Mar 2026
- [2] Form 10-Q, quarter ended 2026-08-04 · SEC / Dave & Buster's Entertainment, Inc. · 14 Sept 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Dave & Buster's Entertainment, Inc. · 14 Sept 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.