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Why Is Dave & Buster's (PLAY) Down 19.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Dave & Buster's (PLAY - Free Report) . Shares have lost about 19.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Dave & Buster's due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Dave & Buster's Q3 Earnings Beat, Revenues Miss Estimates
Dave & Buster's 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.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -11.96% due to these changes.
VGM Scores
At this time, Dave & Buster's has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Dave & Buster's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Dave & Buster's (PLAY) Down 19.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Dave & Buster's (PLAY - Free Report) . Shares have lost about 19.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Dave & Buster's due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Dave & Buster's Q3 Earnings Beat, Revenues Miss Estimates
Dave & Buster's 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.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -11.96% due to these changes.
VGM Scores
At this time, Dave & Buster's has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Dave & Buster's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.