Zacks Research Has Negative Outlook of PLAY Q1 Earnings

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) – Equities research analysts at Zacks Research decreased their Q1 2027 earnings per share (EPS) estimates for Dave & Buster’s Entertainment in a research report issued to clients and investors on Tuesday, April 14th. Zacks Research analyst Team now forecasts that the restaurant operator will post earnings per share of $0.38 for the quarter, down from their previous forecast of $0.74. Zacks Research currently has a “Strong Sell” rating on the stock. The consensus estimate for Dave & Buster’s Entertainment’s current full-year earnings is $2.52 per share. Zacks Research also issued estimates for Dave & Buster’s Entertainment’s Q2 2027 earnings at $0.30 EPS, Q3 2027 earnings at ($1.38) EPS, Q4 2027 earnings at ($0.07) EPS, FY2027 earnings at ($0.77) EPS, Q1 2028 earnings at $0.53 EPS, Q2 2028 earnings at $0.25 EPS, Q3 2028 earnings at ($1.17) EPS, Q4 2028 earnings at ($0.21) EPS and FY2028 earnings at ($0.60) EPS.

Several other equities analysts have also recently commented on the stock. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Dave & Buster’s Entertainment in a research report on Wednesday, January 21st. Benchmark raised shares of Dave & Buster’s Entertainment from a “hold” rating to a “buy” rating and set a $30.00 target price on the stock in a report on Friday, January 16th. UBS Group cut their target price on shares of Dave & Buster’s Entertainment from $20.00 to $19.00 and set a “neutral” rating on the stock in a report on Tuesday, January 6th. Piper Sandler cut their target price on shares of Dave & Buster’s Entertainment from $22.00 to $14.00 and set a “neutral” rating on the stock in a report on Monday, April 6th. Finally, Wall Street Zen cut Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a report on Monday, April 6th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Dave & Buster’s Entertainment has an average rating of “Hold” and an average target price of $21.83.

Dave & Buster’s Entertainment Stock Up 4.4%

Shares of Dave & Buster’s Entertainment stock opened at $14.24 on Thursday. The business has a 50-day moving average of $13.88 and a 200-day moving average of $16.13. The company has a debt-to-equity ratio of 16.61, a current ratio of 0.29 and a quick ratio of 0.19. The company has a market capitalization of $494.68 million, a PE ratio of -9.96 and a beta of 1.83. Dave & Buster’s Entertainment has a 1-year low of $9.61 and a 1-year high of $35.53.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last announced its earnings results on Tuesday, March 31st. The restaurant operator reported ($0.35) earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.74). The business had revenue of $529.60 million for the quarter, compared to analyst estimates of $556.56 million. Dave & Buster’s Entertainment had a negative net margin of 2.32% and a negative return on equity of 7.93%. The firm’s revenue was down .9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.69 earnings per share.

Institutional Investors Weigh In On Dave & Buster’s Entertainment

A number of hedge funds have recently made changes to their positions in the business. Nomura Holdings Inc. raised its holdings in shares of Dave & Buster’s Entertainment by 532.9% during the third quarter. Nomura Holdings Inc. now owns 2,411,191 shares of the restaurant operator’s stock valued at $43,787,000 after buying an additional 2,030,186 shares during the last quarter. Clearline Capital LP raised its holdings in shares of Dave & Buster’s Entertainment by 20.4% during the third quarter. Clearline Capital LP now owns 1,619,964 shares of the restaurant operator’s stock valued at $29,419,000 after buying an additional 274,541 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund raised its holdings in shares of Dave & Buster’s Entertainment by 40.1% during the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,515,000 shares of the restaurant operator’s stock valued at $24,558,000 after buying an additional 434,000 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Dave & Buster’s Entertainment by 22.3% during the fourth quarter. Goldman Sachs Group Inc. now owns 1,511,591 shares of the restaurant operator’s stock valued at $24,503,000 after buying an additional 276,064 shares during the last quarter. Finally, State Street Corp increased its stake in shares of Dave & Buster’s Entertainment by 2.6% during the fourth quarter. State Street Corp now owns 1,106,488 shares of the restaurant operator’s stock valued at $17,936,000 after acquiring an additional 28,349 shares during the period. Institutional investors own 91.45% of the company’s stock.

Trending Headlines about Dave & Buster’s Entertainment

Here are the key news stories impacting Dave & Buster’s Entertainment this week:

• Neutral Sentiment: Key contrast with market consensus — Zacks’ cuts put FY2027–FY2029 EPS into negative territory (FY2027 now -$0.77; FY2028 now -$0.60; FY2029 -$0.36), while the broader consensus still shows a positive full‑year number ($2.52). That divergence increases uncertainty and may drive volatility as investors parse which outlook is more credible. Zacks Research notes on PLAY
• Negative Sentiment: Broad downward revisions — Zacks cut estimates for multiple upcoming quarters (notably Q1–Q4 2027 and Q1–Q4 2028) and trimmed several quarter-level forecasts significantly (examples: Q1 2027 from $0.74 to $0.38; Q2 2027 from $0.49 to $0.30; Q3 2027 deeper into loss). These revisions signal weaker near‑term profitability expectations that typically weigh on valuation and investor sentiment. Zacks Research notes on PLAY
• Negative Sentiment: “Strong Sell” rating — Zacks Research explicitly assigned a Strong Sell to PLAY alongside the cuts. Rating changes from a recognized research provider can prompt selling from institutional and algorithmic strategies that track analyst sentiment. Zacks Research notes on PLAY

About Dave & Buster’s Entertainment

Dave & Buster’s Entertainment, Inc operates a chain of combined restaurant and entertainment venues designed to appeal to families, young adults and corporate groups. Each location features a full-service restaurant and bar alongside an arcade gaming area with ticket-based redemption, virtual reality experiences and skill-based games. Many venues also include multiple large-screen televisions and a sports bar atmosphere, catering to fans who wish to watch live sporting events in a social setting.

The company was founded in 1982 by David Corriveau and James “Buster” Corley, opening its first location in Dallas, Texas.