📊 PLAY Key Takeaways
Is Dave & Buster's Entertainment, Inc. (PLAY) a Good Investment?
Dave & Buster's faces severe financial distress with net income collapsing 183.5% YoY, stagnant revenue (-1.4%), and an extremely overleveraged balance sheet (15.37x debt-to-equity ratio). With operating leverage consuming most OCF, minimal liquidity (0.29x current ratio), and interest coverage barely above 1.0x, the company is vulnerable to covenant breaches and refinancing risk.
Dave & Buster's Entertainment, Inc. Key Strengths (PLAY)
- Operating cash flow of $113.8M remains positive, providing near-term debt service capability
- Operating margin of 8.4% demonstrates the core business generates acceptable unit economics before financing burden
- Established market position in entertainment/dining sector with existing customer base
PLAY Stock Risks: Dave & Buster's Entertainment, Inc. Investment Risks
- Net income declined 183.5% YoY with net margin compressed to 1.0%, indicating severe operational or cost structure issues
- Extreme overleveraging with $1.5B debt against only $99.6M equity (15.37x D/E ratio) and interest coverage of 1.4x creates imminent solvency risk
- Critical liquidity crisis: current ratio of 0.29x with only $19.6M cash; unable to meet short-term obligations without operational cash generation
- Revenue contraction of 1.4% YoY combined with deteriorating profitability suggests loss of market share and demand challenges
- Capital intensity ($105.3M capex) consumes nearly all free cash flow, eliminating financial flexibility and refinancing capacity
- High insider activity (36 Form 4 filings in 90 days) may indicate distress-related transactions
Key Metrics to Watch
- Debt covenant compliance and refinancing capacity (critical with 1.4x interest coverage)
- Quarterly same-store sales and total revenue trends (must stabilize negative YoY growth)
- Free cash flow to debt service ratio and cash burn rate (sustainability at current leverage)
- Liquidity position and cash reserves (0.29x current ratio is unsustainable)
Dave & Buster's Entertainment, Inc. (PLAY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.5% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
PLAY Profit Margin, ROE & Profitability Analysis
PLAY vs Consumer Sector: How Dave & Buster's Entertainment, Inc. Compares
How Dave & Buster's Entertainment, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Dave & Buster's Entertainment, Inc. Stock Overvalued? PLAY Valuation Analysis 2026
Based on fundamental analysis, Dave & Buster's Entertainment, Inc. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Dave & Buster's Entertainment, Inc. Balance Sheet: PLAY Debt, Cash & Liquidity
PLAY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Dave & Buster's Entertainment, Inc.'s revenue has grown significantly by 63% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.79 reflects profitable operations.
PLAY Revenue Growth, EPS Growth & YoY Performance
PLAY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $559.2M | $5.7M | $0.16 |
| Q3 2025 | $448.2M | -$9.0M | $-0.26 |
| Q2 2025 | $557.1M | $11.4M | $0.32 |
| Q1 2025 | $567.7M | N/A | $0.62 |
| Q3 2024 | $453.0M | N/A | $-0.12 |
| Q2 2024 | $542.1M | N/A | $0.60 |
| Q1 2024 | $588.1M | N/A | $0.99 |
| Q3 2023 | $466.9M | N/A | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Dave & Buster's Entertainment, Inc. Dividends, Buybacks & Capital Allocation
PLAY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Dave & Buster's Entertainment, Inc. (CIK: 0001525769)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PLAY
What is the AI rating for PLAY?
Dave & Buster's Entertainment, Inc. (PLAY) has an AI grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PLAY's key strengths?
Claude: Operating cash flow of $113.8M remains positive, providing near-term debt service capability. Operating margin of 8.4% demonstrates the core business generates acceptable unit economics before financing burden.
What are the risks of investing in PLAY?
Claude: Net income declined 183.5% YoY with net margin compressed to 1.0%, indicating severe operational or cost structure issues. Extreme overleveraging with $1.5B debt against only $99.6M equity (15.37x D/E ratio) and interest coverage of 1.4x creates imminent solvency risk.
What is PLAY's revenue and growth?
Dave & Buster's Entertainment, Inc. reported revenue of $559.2M.
Does PLAY pay dividends?
Dave & Buster's Entertainment, Inc. does not currently pay dividends.
Where can I find PLAY SEC filings?
Official SEC filings for Dave & Buster's Entertainment, Inc. (CIK: 0001525769) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PLAY's EPS?
Dave & Buster's Entertainment, Inc. has a diluted EPS of $0.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PLAY's fundamental grade?
Based on our AI fundamental analysis in June 2026, Dave & Buster's Entertainment, Inc. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PLAY stock overvalued or undervalued?
Valuation metrics for PLAY: ROE of 5.7% (sector avg: 18%), net margin of 1.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is PLAY's AI grade for 2026?
Our dual AI analysis gives Dave & Buster's Entertainment, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PLAY's free cash flow?
Dave & Buster's Entertainment, Inc.'s operating cash flow is $113.8M, with capital expenditures of $105.3M. FCF margin is 1.5%.
How does PLAY compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 1.0% (avg: 8%), ROE 5.7% (avg: 18%), current ratio 0.29 (avg: 1.5).
Is Dave & Buster's Entertainment, Inc. carrying too much debt?
PLAY has a debt-to-equity ratio of 15.37x, which is above the Consumer sector average of 0.8x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.