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Dave & Buster's Q3 Earnings Beat, Revenues Miss Estimates
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Key Takeaways
Dave & Buster's posted mixed Q3 results with earnings beating estimates but revenues missing the same.
PLAY saw weak comparable sales and margin pressure, though targeted initiatives showed early progress.
Sequential sales improvements and strong menu and combo performance supported better trends into November.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported mixed third-quarter fiscal 2025 results, with earnings surpassing the Zacks Consensus Estimate but revenues missing the same.
PLAY continues to face challenges, with weak comparable store sales reflecting softer underlying demand and ongoing pressure in the entertainment segment. Margin headwinds further weighed on its performance. Despite these pressures, management noted that targeted initiatives across marketing, games innovation, operations and remodels are beginning to show early signs of progress.
The company remains confident about the Back-to-Basics strategy, targeted initiatives across marketing, games innovation, operations and remodels, and believes these efforts will help stabilize performance and drive long-term shareholder value. Sequential improvements in same-store sales, strong early results from the new menu launch and increased adoption of the Eat & Play Combo supported better trends through the quarter and into November.
Dave & Buster’s Q3 Earnings & Revenues
For the fiscal third quarter, the company incurred an adjusted loss per share of $1.14, narrower than the Zacks Consensus Estimate of a loss of $1.16. In the year-ago quarter, it had reported an adjusted loss per share of 45 cents.
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise
Quarterly revenues totaled $448.2 million, missing the consensus mark of $460 million by 2.6%. The top line decreased 1.1% from $453 million reported in the prior-year quarter.
Food and Beverage revenues (37.7% of total revenues in the reported quarter) increased 6.6% year over year to $168.8 million. Our estimate was $170 million.
Entertainment revenues (62.3%) fell 5.2% year over year to $279.4 million. Our estimate was $290.9 million. To strengthen cash flow, the company has been enforcing stricter control over capital spending and cutting unnecessary costs.
Comparable store sales (including Main Event-branded locations) declined 4% year over year. However, management highlighted steady monthly improvement throughout the quarter, with October comps down only about 1% from the prior year. The positive trend continued into November.
Dave & Buster’s Q3 Operating Highlights
In the fiscal third quarter, operating loss amounted to $16.2 million against operating income of $6.3 million reported in the year-ago quarter. Our estimate for operating income was $8.9 million.
Adjusted EBITDA in the quarter was $59.4 million compared with $68.3 million in the year-earlier quarter. Our estimate for the metric was $68.1 million. EBITDA margin declined to 13.3% from 15.1% reported in the prior-year period.
Balance Sheet of PLAY
As of Nov. 4, 2025, cash and cash equivalents were $13.6 million compared with $6.9 million as of Feb. 4, 2025.
At quarter-end, net long-term debt was approximately $1.55 billion compared with $1.48 billion at the end of fiscal 2024. The company maintains available liquidity of $441.9 million, including its revolving credit facility.
Dave & Buster’s Store Development Updates
Dave & Buster’s continues to advance its growth initiatives through new store openings and remodels. In the fiscal third quarter, the company opened one domestic Dave & Buster’s store in Spokane, WA, along with three new Main Event locations in Taylor, MI, Norman, OK and Greenville, NC.
Internationally, the company opened its third franchise location in Manila, Philippines, in October and expects four additional international openings within six months, supported by agreements for more than 35 future stores. Construction also began on three remodeled units in November under its updated prototype, scheduled to debut in early 2026.
PLAY’s Zacks Rank & Key Picks
Dave & Buster’s currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Zacks Retail-Wholesale sector are:
El Pollo Loco Holdings, Inc. (LOCO - Free Report) presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 19.6%, on average. LOCO stock has fallen 0.6% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LOCO’s 2026 sales and EPS indicates growth of 1.3% and 4.2%, respectively, year over year.
Dillard's, Inc. (DDS - Free Report) sports a Zacks Rank #1 at present. The company delivered a trailing four-quarter earnings surprise of 26.5%, on average. DDS stock has rallied 66.3% year to date.
The Zacks Consensus Estimate for Dillard’s 2026 sales suggests growth of 0.7%, while that for EPS implies a decline of 8.2% year over year.
Expedia Group, Inc. (EXPE - Free Report) sports a Zacks Rank #1 at present. The company delivered a trailing four-quarter earnings surprise of 4.5%, on average. EXPE stock has gained 43.4% year to date.
The Zacks Consensus Estimate for EXPE’s 2026 sales and EPS indicates growth of 6.3% and 20.9%, respectively, year over year.
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Dave & Buster's Q3 Earnings Beat, Revenues Miss Estimates
Key Takeaways
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) reported mixed third-quarter fiscal 2025 results, with earnings surpassing the Zacks Consensus Estimate but revenues missing the same.
PLAY continues to face challenges, with weak comparable store sales reflecting softer underlying demand and ongoing pressure in the entertainment segment. Margin headwinds further weighed on its performance. Despite these pressures, management noted that targeted initiatives across marketing, games innovation, operations and remodels are beginning to show early signs of progress.
The company remains confident about the Back-to-Basics strategy, targeted initiatives across marketing, games innovation, operations and remodels, and believes these efforts will help stabilize performance and drive long-term shareholder value. Sequential improvements in same-store sales, strong early results from the new menu launch and increased adoption of the Eat & Play Combo supported better trends through the quarter and into November.
Dave & Buster’s Q3 Earnings & Revenues
For the fiscal third quarter, the company incurred an adjusted loss per share of $1.14, narrower than the Zacks Consensus Estimate of a loss of $1.16. In the year-ago quarter, it had reported an adjusted loss per share of 45 cents.
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise
Dave & Buster's Entertainment, Inc. price-consensus-eps-surprise-chart | Dave & Buster's Entertainment, Inc. Quote
Quarterly revenues totaled $448.2 million, missing the consensus mark of $460 million by 2.6%. The top line decreased 1.1% from $453 million reported in the prior-year quarter.
Food and Beverage revenues (37.7% of total revenues in the reported quarter) increased 6.6% year over year to $168.8 million. Our estimate was $170 million.
Entertainment revenues (62.3%) fell 5.2% year over year to $279.4 million. Our estimate was $290.9 million. To strengthen cash flow, the company has been enforcing stricter control over capital spending and cutting unnecessary costs.
Comparable store sales (including Main Event-branded locations) declined 4% year over year. However, management highlighted steady monthly improvement throughout the quarter, with October comps down only about 1% from the prior year. The positive trend continued into November.
Dave & Buster’s Q3 Operating Highlights
In the fiscal third quarter, operating loss amounted to $16.2 million against operating income of $6.3 million reported in the year-ago quarter. Our estimate for operating income was $8.9 million.
Adjusted EBITDA in the quarter was $59.4 million compared with $68.3 million in the year-earlier quarter. Our estimate for the metric was $68.1 million. EBITDA margin declined to 13.3% from 15.1% reported in the prior-year period.
Balance Sheet of PLAY
As of Nov. 4, 2025, cash and cash equivalents were $13.6 million compared with $6.9 million as of Feb. 4, 2025.
At quarter-end, net long-term debt was approximately $1.55 billion compared with $1.48 billion at the end of fiscal 2024. The company maintains available liquidity of $441.9 million, including its revolving credit facility.
Dave & Buster’s Store Development Updates
Dave & Buster’s continues to advance its growth initiatives through new store openings and remodels. In the fiscal third quarter, the company opened one domestic Dave & Buster’s store in Spokane, WA, along with three new Main Event locations in Taylor, MI, Norman, OK and Greenville, NC.
Internationally, the company opened its third franchise location in Manila, Philippines, in October and expects four additional international openings within six months, supported by agreements for more than 35 future stores. Construction also began on three remodeled units in November under its updated prototype, scheduled to debut in early 2026.
PLAY’s Zacks Rank & Key Picks
Dave & Buster’s currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Zacks Retail-Wholesale sector are:
El Pollo Loco Holdings, Inc. (LOCO - Free Report) presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 19.6%, on average. LOCO stock has fallen 0.6% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LOCO’s 2026 sales and EPS indicates growth of 1.3% and 4.2%, respectively, year over year.
Dillard's, Inc. (DDS - Free Report) sports a Zacks Rank #1 at present. The company delivered a trailing four-quarter earnings surprise of 26.5%, on average. DDS stock has rallied 66.3% year to date.
The Zacks Consensus Estimate for Dillard’s 2026 sales suggests growth of 0.7%, while that for EPS implies a decline of 8.2% year over year.
Expedia Group, Inc. (EXPE - Free Report) sports a Zacks Rank #1 at present. The company delivered a trailing four-quarter earnings surprise of 4.5%, on average. EXPE stock has gained 43.4% year to date.
The Zacks Consensus Estimate for EXPE’s 2026 sales and EPS indicates growth of 6.3% and 20.9%, respectively, year over year.