PLAY

A month has gone by since the last earnings report for Dave & Buster's (PLAY). Shares have lost about 17.4% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Dave & Buster's due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Dave & Buster's Entertainment, Inc. before we dive into how investors and analysts have reacted as of late. Dave & Buster's reported weak first-quarter fiscal 2026 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate. Both metrics also declined on a year-over-year basis.The quarter was primarily weighed down by weaker customer demand at existing locations, as reflected in lower comparable-store sales. This softness, particularly in the company's core entertainment segment, contributed to an overall decline in revenues. At the same time, profitability came under pressure due to higher labor, administrative and depreciation-related expenses, which compressed operating margins.Despite a challenging quarter, Dave & Buster's highlighted several encouraging developments. Management noted that its back-to-basics strategy is gaining traction, with improvements across food and beverage offerings, marketing initiatives and the refreshed remodel program contributing to a stronger guest experience. The company continued to execute on its growth strategy through new store openings, remodel activities and international franchise expansion. For the fiscal first quarter, the company reported adjusted earnings per share (EPS) of 22 cents, which missed the consensus mark of 37 cents by 40.5%. In the year-ago quarter, it had reported an adjusted EPS of 76 cents.Quarterly revenues of $559.2 million missed the consensus estimate of $571 million by 2.1% and declined 1.5% year over year. The top line was pressured by a $29.2 million decline in comparable store revenues, partly offset by an $18.1 million increase in noncomparable store revenues. Food and Beverage revenues (38.3% of total revenues in the reported quarter) increased 6.5% year over year to $214.1 million. The company cited eat-and-play combo enhancements and menu changes made in the second half of fiscal 2025 as factors supporting higher food attach rates and check growth. Our estimate was $202.5 million.Entertainment revenues (61.7%) fell 5.9% year over year to $345.1 million. Our estimate was $373.1 million. Comparable store sales (including Main Event-branded locations) declined 5.4% year over year. Management attributed the decline in comparable store revenues to a reduction in walk-in business relative to the prior-year period. Operating income totaled $46.9 million compared with $63.2 million in the year-ago quarter. Operating margin declined to 8.4% from 11.1% reported in the first quarter of fiscal 2025. Our estimate for operating income was $43 million.Adjusted EBITDA came in at $123.2 million compared with $136.1 million in the prior-year quarter. Adjusted EBITDA margin contracted to 22% from 24%, reflecting softer sales leverage and higher operating cost pressure. Cash and cash equivalents were $19.6 million as of May 5, 2026, compared with $16.6 million as of Feb. 3, 2026. Long-term debt, net, was $1.50 billion compared with $1.52 billion at fiscal 2025-end. The company ended the quarter with $499.1 million of available liquidity, consisting of cash and availability under its $650 million revolving credit facility.Net cash provided by operating activities improved to $113.8 million from $95.8 million in the prior-year period, mainly due to working-capital timing, partly offset by lower net income. Capital expenditures were $105.3 million, down from $154.6 million. Adjusted free cash flow was positive $25.3 million against negative $58.8 million in the year-ago quarter. The company opened one new domestic store in the first quarter and has opened three additional domestic stores in the second quarter. It has completed remodels of six Dave & Buster’s stores so far in fiscal 2026 and expects to complete two more during the remainder of the year.International franchise growth also continued. Dave & Buster’s opened its fifth international franchise store in May and sixth in June, and expects at least one more opening during the remainder of fiscal 2026. Management said its back-to-basics strategy is gaining traction across food and beverage, marketing and remodels, and reiterated confidence in generating more than $100 million in free cash flow in fiscal 2026. It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -22.22% due to these changes. Currently, Dave & Buster's has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Dave & Buster's has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. Dave & Buster's is part of the Zacks Retail - Restaurants industry. Over the past month, Cracker Barrel Old Country Store (CBRL), a stock from the same industry, has gained 22%. The company reported its results for the quarter ended April 2026 more than a month ago. Cracker Barrel reported revenues of $797.37 million in the last reported quarter, representing a year-over-year change of -2.9%. EPS of $0.29 for the same period compares with $0.58 a year ago. For the current quarter, Cracker Barrel is expected to post a loss of $0.33 per share, indicating a change of -144.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -7.7% over the last 30 days. Cracker Barrel has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dave & Buster’s Entertainment, Inc. PLAY used its first-quarter fiscal 2026 call to acknowledge a weak start while arguing that the bigger story is a business reset built around games, value, food and beverage, and remodels. Management’s message was clear: Q1 disappointed, but the company believes the pieces are now in place to improve same-store sales through the rest of fiscal 2026 and deliver more than $100 million in free cash flow. CEO Tarun Lal said first-quarter results came in below both internal expectations and the outlook management had set previously. He pointed to a softer macro backdrop in April, including pressure on consumer sentiment, but also said the company was not using that as an excuse. The reported numbers were weak enough to keep the pressure on management. Adjusted earnings per share came in at $0.22, below the Zacks Consensus Estimate of $0.37, resulting in a negative earnings surprise of 40.5%. Revenues of $559.2 million missed the Zacks Consensus Estimate of $571.1 million by 2.1%. Dave & Buster's Entertainment, Inc. price-consensus-eps-surprise-chart | Dave & Buster's Entertainment, Inc. Quote Comparable store sales fell 5.4% in the first quarter, revenues declined 1.5% year over year, and adjusted EBITDA slipped to $123.2 million from $136.1 million a year earlier. Adjusted EBITDA margin also narrowed to 22% from 24%. Lal said one of the clearest lessons from the quarter was that the company’s dollar-per-day messaging did not resonate as expected. He said the company has since pivoted to promotions that are proving more compelling with customers. Management described the marketing reset as broader than a single campaign. Lal said Dave & Buster’s is simplifying its promotional calendar, leaning more heavily on data-driven media mix decisions, and trying to strike a better balance between television and digital rather than swinging too far in either direction. In Q&A, a BMO Capital Markets analyst pressed for more detail on what changed. Lal stated that the current message hierarchy is more disciplined, with 10 new games now serving as the primary message and the World Cup watch experience as a secondary one. While entertainment remained soft, management highlighted food and beverage as an early proof point. Lal said comparable food and beverage sales rose about 5% in Q1, extending a run of nine straight months of positive same-store sales in that part of the business. Lal credited the return to a historically proven menu and stronger execution of the Eat & Play Combo. CFO Darin Harper added that attach trends have improved, helping the company target value-conscious guests without overdiscounting the broader business. Games are the bigger strategic swing. Lal said the company rolled out 10 new games, the most since 2017, and expects at least five more over the rest of fiscal 2026. He framed that as a direct response to guest feedback that the arcade floor had lacked enough newness. Management repeatedly returned to the idea that new games are meant to drive visits first and spending second. In response to a Texas Capital Securities analyst, Harper said the refresh should be viewed mainly as a way to restore relevance, reengage lapsed guests, and support traffic rather than simply lift in-store game spend. Lal also tied the second-half outlook to still-unannounced intellectual property partnerships, saying those deals should help put the brand back into consumer conversation. That confidence sounded firmer in Q&A than in the prepared remarks. The World Cup is another near-term catalyst. Management said the company launched a full activation around watch parties, themed food and drinks, soccer-inspired games, and promotional ticket giveaways tied to marquee matches. Despite the weak quarter, Harper said the company generated $25.3 million of adjusted free cash flow compared with a negative $58.8 million a year earlier. Available liquidity ended the quarter at $499.1 million. Management is pairing that cash focus with stricter capital discipline. Lal reiterated that net capital expenditures should not exceed $200 million in fiscal 2026, down from about $270 million in fiscal 2025, while free cash flow should still top $100 million this year. The call also made clear that capital allocation is shifting. Lal and Harper said the core store base now takes priority, with remodels, deleveraging and shareholder returns all competing for dollars that might otherwise have gone to faster unit growth. Prepared remarks and Q&A both pointed to a tighter operating playbook. Management emphasized speed of service, more disciplined marketing, better value architecture, and a remodel program that costs about half as much as prior versions while still producing about a 7% comp uplift. Harper said six remodels have already been completed, with two more expected in fiscal 2026. He also said the company could open about half as many new units in fiscal 2027 as it refocuses spending on the existing base. Coming out of the call, management’s stance was not celebratory. It was more a case that the quarter exposed what was not working, and that the company now wants investors to judge it on execution against a narrower set of priorities over the balance of the year. PLAY carries a Zacks Rank #4 (Sell), alongside Value Score A, Growth Score B, Momentum Score A and VGM Score A. Zacks says a Style Score is meant to complement, not override, the Zacks Rank, with the rank remaining the first screen because earnings estimate revisions are the most important driver in the system. That leaves PLAY with a mixed signal. The style profile points to favorable value, growth and momentum characteristics, but Zacks’ framework says investors should not buy stocks rated Zacks Rank #4 or 5 (Strong Sell) even when each Style Score is strong. That ranking can still change as estimate revisions move following the latest results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dave & Buster's Q1 earnings and revenue both missed Street expectations. CEO Tarun Lal said Dave & Buster’s started Q1 strongly but was hurt by high gas prices, geopolitical uncertainty, and weaker consumer sentiment. Retail sentiment turned ‘bearish’ on Stocktwits after Q1 results. Dave & Buster's Entertainment (PLAY) stock slumped 11% overnight after a weaker-than-expected start to fiscal 2026, with company leadership acknowledging that first-quarter (Q1) performance fell short of both internal forecasts and investor expectations as economic pressures affected customer spending. The restaurant and entertainment company’s Q1 revenue of $559.2 million and adjusted earnings of $0.22 per share both missed the analysts’ consensus estimates of $578.38 million and $0.66 per share, respectively, according to Fiscal AI data. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Speaking during the Q1 earnings call, Dave & Buster's Entertainment CEO Tarun Lal said the business entered the quarter on a solid footing before facing mounting challenges later in the period. “Of the macro backdrop, elevated gas prices, geopolitical uncertainty and a meaningful softness in consumer sentiment. They all were a real headwind in April.” These conditions created headwinds for discretionary spending, affecting visits and overall sales trends at the entertainment and dining chain. Dave & Buster’s posted a 5.4% drop in comparable-store sales during Q1. Lal said management reviewed the effectiveness of the company’s promotional efforts. “We found that our dollar per day messaging did not resonate as strongly as we hoped. And since then, we have pivoted to more compelling promotions, which are resonating with customers,” said Lal. The initiative was designed to appeal to budget-conscious families, but the strategy did not generate the expected traffic, prompting the company to revise its promotional approach. While food and beverage sales remained resilient and continued to improve, the company's arcade and gaming operations, which typically yield higher profit margins, saw weaker demand. As a result, the entertainment segment accounted for a smaller share of overall revenue, placing additional pressure on earnings. Dave & Buster's Entertainment stock traded over 11% lower, ahead of Tuesday. On Stocktwits, retail sentiment around the stock worsened, shifting to ‘bearish’ from ‘bullish’ the previous day. Message volume increased 6,300% in 24 hours. Retail traders were disappointed at the earnings and criticized the leadership. A user said, “I can't believe Tarun Lal single-handedly led a 60% decline in equity value. Really, this should be used by Colleges as an example of self sabotage, the Chairman can't be trusted, very poor judgement and leading the very company he built into the gutter. Chapter 7 in two years or less Of course, they'll blame the weather and gas prices for their insolvency.” Another user said, “Hear me out on this. Just saw PLAY missed earnings pretty bad tonight. GME should look into acquiring Dave and Buster’s since they have the cash right now.​It would actually be a really cool setup if you could win GameStop PowerPacks, Pokémon cards, or graded slabs at the prize counter. Then, if you don't want to keep them, you could just sell them right back to the counter for cash or credit to buy more game chips and keep playing.​It gives people a genuine reason to go out and play games again, and it solves D&B’s foot traffic problem.” A third user took a dig at PLAY investors, saying, “it fills my heart with laughter that in the middle of 2026, in the middle of the on ramp to AI revolution, and new revolution in nuclear and renewable energy, people are eyeing dave and busters and thinking "i want to invest". PLAY stock has declined 24% year to date. Also See: ROKU Stock Edges Higher Overnight Despite Wall Street Skepticism Over $22B Fox Deal: Retail Bulls Won’t Budge For updates and corrections, email newsroom[at]stocktwits[dot]com. Shivani Kumaresan has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: Dow Hits Record High On Strong Banks And Industrial Stocks, Nasdaq And S&P 500 Slip On Tech Weakness — SPCX, YUM, HOOD, RIVN, AAPL, SNAP In Focus TTWO Stock Pops 6.35% As Analyst Flags Massive ‘GTA VI’ Launch Potential Tesla Seeks Customer Backing To Oppose New Jersey Driverless Vehicle Bills

This article first appeared on GuruFocus. Total Revenue: $559 million for Q1 FY26. Net Income: $6 million or $0.16 per diluted share. Adjusted Net Income: $8 million or $0.22 per diluted share. Adjusted EBITDA: $123 million with a margin of 22%. Same-Store Sales Growth: Declined 5.4% in Q1 FY26. Food and Beverage Same-Store Sales Growth: Increased over 5% in Q1 FY26. Special Events Growth: Approximately 3% increase in Q1 FY26. Free Cash Flow: $25 million in Q1 FY26, an $84 million improvement from Q1 FY25. Net CapEx: Approximately $71 million in Q1 FY26. Cash and Liquidity: $20 million in cash and $499 million in total liquidity at the end of Q1 FY26. New Store Openings: One new domestic store in Q1 FY26, with three additional domestic stores opened in Q2 FY26. International Franchise Locations: Opened fifth location in Australia and sixth in Delhi, India. Remodel Program: Six remodels completed with a 7% comp uplift. Warning! GuruFocus has detected 9 Warning Signs with PLAY. Is PLAY fairly valued? Test your thesis with our free DCF calculator. Release Date: June 15, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dave & Buster's Entertainment Inc (NASDAQ:PLAY) has seen a 5% growth in comparable food and beverage sales in Q1, driven by a return to a historically proven menu and strong eat and play combo execution. The company has rolled out 10 new games, the most since 2017, which are already among the top revenue generators, indicating a positive response to their midway investment. Dave & Buster's Entertainment Inc (NASDAQ:PLAY) has strengthened its leadership team with new executives from reputable companies, enhancing its marketing, technology, and legal capabilities. The company has successfully implemented a new remodel prototype that costs half of previous remodels while delivering a similar sales lift, demonstrating efficient capital use. Dave & Buster's Entertainment Inc (NASDAQ:PLAY) expects to generate more than $100 million in free cash flow for the full year, supported by disciplined capital expenditure management and strong unit economics. Q1 results came in below expectations, with a 5.4% decline in same-store sales, attributed to macroeconomic challenges such as elevated gas prices and geopolitical uncertainty. The company's dollar-per-day messaging did not resonate with customers as expected, leading to a pivot in promotional strategies. Despite improvements, the company still faces a 4% decline in comps quarter-to-date in Q2, indicating ongoing challenges in driving traffic. There is significant pressure on lower-end consumers, impacting sales, and the company is focusing on value offers to attract this segment without over-discounting. The lack of newness in games has been a concern, with only 80% of arcades refreshed over the last year, highlighting the need for more aggressive investment in entertainment offerings. Q: Are you assuming any changes in the external environment for the second half inflection on same-store sales? A: Tarun Lal, CEO, stated that their confidence is more in their internal strategy and execution rather than relying on changes in the external environment. They are optimistic about consumer sentiment improving but are primarily focused on the initiatives they have put into motion, such as new games and IP partnerships, which are expected to drive growth. Q: How are you managing margins with incremental investments in labor and value initiatives? A: Darin Harper, CFO, explained that they have managed margins well by improving cost of sales and labor efficiency. They have enhanced their menu and scheduling to optimize guest experience without anticipating material changes to these elements for the rest of the year. Q: What are your plans to create more durability with revenue streams following the World Cup? A: Tarun Lal, CEO, emphasized the importance of converting special events guests into repeat visitors. They have invested in new games and food and beverage offerings to enhance guest experience, which they believe will encourage repeat visits. Darin Harper, CFO, added that they have launched soccer-inspired games and themed food and drinks to leverage the World Cup excitement. Q: Can you elaborate on your marketing messaging and customer targeting strategies? A: Tarun Lal, CEO, highlighted that they are focusing on elevating their product offerings and value propositions. They have learned to balance their media spend between TV and digital, using data-driven media planning. They are also structuring their messaging with primary and secondary focuses, such as promoting new games and World Cup events. Q: How are you evaluating capital allocation between new store growth and internal investments? A: Tarun Lal, CEO, stated that their priority is driving same-store sales growth in core stores. They will be more risk-averse with new store capital, ensuring high confidence in returns before investing. Darin Harper, CFO, added that they are reallocating capital to core business while maintaining confidence in new store growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Dave & Buster's Entertainment, Inc.? Here are five stocks we like better. First-quarter results missed expectations as revenue came in at $559 million and comparable store sales fell 5.4%, with management citing April weakness from higher gas prices, soft consumer sentiment and promotional missteps. Executives said Q2 trends are improving, with quarter-to-date comparable sales down about 4% but expected to turn positive for the rest of the year as new games, menu changes, marketing adjustments and events like the World Cup roll out. Dave & Buster’s is leaning into a back-to-basics strategy focused on games, food, marketing and operations while also prioritizing free cash flow and capital discipline, including lower planned capex and potential shifts in new-store spending. Why Dave & Buster's Stock Is Ripping Higher Despite Ugly Earnings Dave & Buster's Entertainment (NASDAQ:PLAY) reported weaker-than-expected first-quarter results for fiscal 2026, with management pointing to macroeconomic pressure in April, a softer consumer backdrop and promotional missteps as contributors to a 5.4% decline in comparable store sales. Chief Executive Officer Tarun Lal told investors that the quarter “came in below both our own expectations and the expectations we set with you last quarter.” Lal said the company began the quarter well in February and that the March-April spring break calendar shift unfolded largely as expected, but April was pressured by “elevated gas prices, geopolitical uncertainty, and a meaningful softness in consumer sentiment.” → Viasat's Orbiting Profits: Space Force Jackpot? Dave & Buster’s Reversal Is in PLAY After Double-Bottom Breakout “That said, we are not here to make excuses,” Lal said, adding that management believes the business model remains resilient and that the company is taking steps to improve performance. Chief Financial Officer Darin Harper said first-quarter revenue was $559 million. Net income was $6 million, or $0.16 per diluted share, while adjusted net income was $8 million, or $0.22 per diluted share. Adjusted EBITDA was $123 million, representing a 22% adjusted EBITDA margin. → What to Expect From Q2 Earnings as Tech Strength Broadens Dave & Buster’s Stock: Is Now the Time to Make a PLAY? Despite the first-quarter decline, executives said comparable sales trends have improved so far in the second quarter. Lal said quarter-to-date comps were down approximately 4%, despite unfavorable weather, and said the company remains confident in improvement later in the quarter. Harper clarified during the question-and-answer session that management’s expectation for positive comparable store sales applies “starting today through the balance of the year,” rather than necessarily including the quarter-to-date decline already recorded in Q2. → Alphabet's Most Overlooked Division Just Had a Big Week Executives attributed their confidence to initiatives already underway, including new games, food and beverage changes, marketing adjustments, store remodels and entertainment activations tied to major events such as the World Cup. Lal said Dave & Buster’s has drifted in recent years from elements that historically supported the brand, including investment in games, food and beverage, marketing and operational execution. He described the current plan as a “back-to-basics” strategy intended to restore those pillars. Food and beverage was one of the stronger areas in the quarter. Lal said comparable food and beverage sales grew approximately 5% in Q1, helped by the company’s return to a historically proven menu last October and stronger execution of its Eat & Play Combo. He said the company has now posted nine straight months of positive food and beverage same-store sales. Harper said special events grew approximately 3% during the quarter. In response to a question from William Blair analyst Sharon Zackfia, Lal said the company is investing in its special events organization and using its database to reach corporate and institutional customers. He said the goal is to convert event guests into repeat visitors by improving games, food and value offerings. The company also emphasized renewed investment in arcade content. Lal said Dave & Buster’s recently rolled out 10 new games, the largest rollout since 2017, and expects at least five more new games later in fiscal 2026. He cited new titles including Hot Wheels Ultimate Speedway, ICEE Slush Rush, John Wick: Continental Pursuit, Odin’s Hammer Strike, Perfect Pump, The Mandalorian & Grogu and Stranger Things-related content. Harper said the new games are meant to refresh more than 10% of the game room floor and improve relevance and traffic, rather than simply increase spending from guests already in stores. Lal added that consumers are spending more time on the games floor and that the company’s challenge is to market the new games more effectively. Lal said the company’s “dollar-per-day” messaging did not resonate as strongly as management had hoped, prompting a shift to what he described as more compelling promotions. In the Q&A session, he said guests have been asking for both improved product and stronger value. Management said the company is working to rebuild its marketing strategy around a simpler promotional calendar, media mix modeling and a better balance between television and digital advertising. Lal said Dave & Buster’s had previously swung too far in both directions — first spending heavily on television and later shifting heavily toward digital — and is now using data to guide channel decisions. The company also described its World Cup activation as a key summer initiative. Lal said the offering includes two soccer-inspired arcade games, tournament-themed food and drinks, tickets to major World Cup matches placed inside Human Crane games and a ticketed “Hat Trick Watch Experience” that includes all-you-can-eat wings and fries and unlimited gameplay starting at $24.99. Dave & Buster’s generated $25 million in free cash flow during the first quarter, compared with negative free cash flow of $59 million in the prior-year period, an $84 million improvement. Harper said the company ended the quarter with $20 million in cash and $499 million in total liquidity, including availability under its $650 million revolving credit facility, net of $20 million in letters of credit. Management maintained its expectation for more than $100 million in free cash flow for fiscal 2026 and said net capital expenditures are expected to be no more than $200 million, down from approximately $270 million in fiscal 2025. Lal said the company is focused on “strict capital expenditure discipline” and minimum return thresholds. The company continues to expect 11 new stores in fiscal 2026. However, Harper said Dave & Buster’s is evaluating whether to redirect some future new store capital toward core business investments, remodels, deleveraging or other shareholder returns. In response to a Raymond James analyst question, Harper said he would anticipate about half the number of new units in fiscal 2027 and fiscal 2028, or roughly five new units, based on current thinking. Store remodels remain part of the investment plan. Lal said six remodels have recently opened under a new, lower-cost prototype, with two more planned in the coming months. Management said the new remodels cost about half as much as the prior remodel program while producing a similar sales lift, with the remodeled locations outperforming the rest of the system by nearly 700 basis points. Harper said Dave & Buster’s opened its fifth international franchise location in Australia during the first quarter and its sixth in Delhi, India, during the second quarter. The company expects at least one more international opening this year in Mexico City. Harper said Dave & Buster’s has agreements for more than 30 additional international franchise stores in coming years and views international franchising as an asset-light growth opportunity with limited investment and risk. In closing remarks, Lal said the company is in the early stages of its transformation and is focused on same-store sales growth, EBITDA expansion and free cash flow generation. He said guest feedback is informing decisions across games, food, value, marketing and operations, and that management expects to provide updates on additional intellectual property partnerships in the coming months. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Dave & Buster's Entertainment Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.

Dave & Buster's (PLAY) came out with quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -40.54%. A quarter ago, it was expected that this owner of Dave & Buster's, a chain of restaurants and arcades would post earnings of $0.39 per share when it actually produced a loss of $0.35, delivering a surprise of -189.74%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Dave & Buster's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $559.2 million for the quarter ended April 2026, missing the Zacks Consensus Estimate by 2.08%. This compares to year-ago revenues of $567.7 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Dave & Buster's shares have lost about 20.2% since the beginning of the year versus the S&P 500's gain of 8.6%. While Dave & Buster's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Dave & Buster's was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.19 on $566.43 million in revenues for the coming quarter and -$0.77 on $2.15 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Kura Sushi (KRUS), is yet to report results for the quarter ended May 2026. This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of -160%. The consensus EPS estimate for the quarter has been revised 25% higher over the last 30 days to the current level. Kura Sushi's revenues are expected to be $86.27 million, up 16.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report Kura Sushi USA, Inc. (KRUS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

DALLAS, June 15, 2026 (GLOBE NEWSWIRE) -- Dave & Buster's Entertainment, Inc. (NASDAQ: PLAY) (“Dave & Buster's” or “the Company”), an owner, operator, and franchisor of entertainment and dining venues, today announced financial results for its first quarter of fiscal 2026 ended May 5, 2026. First Quarter 2026 Financial Summary Revenue of $559.2 million decreased 1.5% from the first quarter of fiscal 2025. Comparable store sales decreased 5.4% compared to the same calendar period in fiscal 2025. Net income totaled $5.7 million, or $0.16 per diluted share, compared to net income of $21.7 million, or $0.62 per diluted share in the first quarter of fiscal 2025. Adjusted net income1 totaled $7.8 million, or $0.22 per diluted share, compared to Adjusted net income1 of $26.7 million, or $0.76 per diluted share in the first quarter of fiscal 2025. Adjusted EBITDA1 was $123.2 million compared to $136.1 million in the first quarter of fiscal 2025. Adjusted free cash flow2 was positive $25.3 million compared to negative $58.8 million in the first quarter of fiscal 2025. Additional Events and Commentary The Company opened one new domestic store in the first quarter and has opened three additional domestic stores in the second quarter. The Company has completed remodels of six Dave & Buster’s stores thus far in fiscal 2026 and expects to complete two additional Dave & Buster’s store remodels during the remainder of fiscal 2026. The Company opened its fifth international franchise store in May and sixth international franchise store in June, and expects to open at least one additional international franchise store during the remainder of fiscal 2026. “While first quarter results fell short of expectations, our back-to-basics strategy is gaining clear traction,” said Tarun Lal, Chief Executive Officer. “We are driving meaningful progress across food and beverage, marketing, and our refreshed remodel program, which are delivering a sharper value proposition and driving a stronger guest experience. We have the right strategy, the right team, and the right momentum, and we are highly confident in our ability to drive positive comps for the remainder of the year while generating over $100 million in free cash flow in fiscal 2026.” Cash Flow and Liquidity The Company generated $25.3 million in Adjusted free cash flow during the first quarter, ending the quarter with $499.1 million of available liquidity.1 Quarterly Report on Form 10-Q Available The Company’s Quarterly Report on Form 10-Q, which will be available at www.sec.gov and on the Company’s investor relations website, contains a thorough review of its financial results for the first quarter ended May 5, 2026. Investor Conference Call and Webcast Management will host a conference call to discuss these results on Monday, June 15, 2026 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). Both the live and archived webcasts of the conference call will be available at ir.daveandbusters.com. Participants in the U.S. can access the conference call by dialing toll-free (888) 596-4144, and international participants can access by dialing +1 (646) 968-2525. The conference ID is 2926680. A replay will be available after the call beginning at 6:00 p.m. Central Time (7:00 p.m. Eastern Time) and can be accessed by dialing toll-free (800) 770-2030 or by the toll number +1 (609) 800-9909. The replay conference ID is also 2926680. About Dave & Buster’s Entertainment, Inc. Founded in 1982 and headquartered in Coppell, Texas, Dave & Buster's Entertainment, Inc. is the owner and operator of 247 stores in North America that offer premier entertainment and dining experiences to guests through two distinct brands: Dave & Buster’s and Main Event. The Company has 182 Dave & Buster’s branded stores in 43 states, Puerto Rico, and Canada and offers guests the opportunity to “Eat Drink Play and Watch” all in one location. Each store offers a full menu of entrées and appetizers, a complete selection of alcoholic and non-alcoholic beverages, and an extensive assortment of entertainment attractions centered around playing games and watching live sports and other televised events. The Company also operates 65 Main Event branded stores in 23 states across the country, and offers state-of-the-art bowling, laser tag, hundreds of arcade games and virtual reality, making it the perfect place for families to connect and make memories. Internationally, the Company is in early-stage growth as a franchisor of its brands with six Dave & Buster’s franchise stores currently open. For more information about each brand, visit daveandbusters.com and mainevent.com. Forward-Looking Statements The Company cautions that this release contains forward-looking statements. These forward-looking statements involve risks and uncertainties, including: our ability to continue as a going concern; our ability to obtain waivers, and thereafter continue to satisfy covenant requirements under our revolving credit facility; our ability to access other funding sources; our overall level of indebtedness; general business and economic conditions; the impact of competition; the seasonality of the Company's business; adverse weather conditions; future commodity prices; guest and employee complaints and litigation; fuel and utility costs; labor costs and availability; changes in consumer and corporate spending; changes in demographic trends; changes in governmental regulations; unfavorable publicity; our ability to open new stores; and acts of God. Accordingly, actual results may differ materially from the forward-looking statements, and the Company therefore cautions you against relying on such forward-looking statements. The Company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more appropriate information becomes available, except as required by law. Non-GAAP Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company uses the following non-GAAP financial measures: Adjusted EBITDA, Credit Adjusted EBITDA (calculated in accordance with the Company’s Credit Facility), Net Total Leverage Ratio (calculated in accordance with the Company’s Credit Facility), Store operating income before depreciation and amortization, Adjusted net income (loss), Adjusted net income (loss) per share - diluted, and Adjusted free cash flow reconciliations or numerical inputs of which can be found on the following pages or in the Company’s Quarterly Report on Form 10-Q (collectively the “non-GAAP financial measures”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures used by the Company in this press release may be different from the measures used by other companies or calculated differently than similar measures used by other companies. For Investor Relations Inquiries: Cory Hatton, Head of Entertainment Finance, Investor Relations & TreasurerDave & Buster’s Entertainment, [email protected] Adjusted EBITDA: Adjusted EBITDA represents net income, plus interest expense, net, loss on debt refinancing, provision for income taxes, depreciation and amortization expense, (gain) loss on property and equipment transactions, impairment of long-lived assets, share-based compensation, currency transaction (gains) losses and other costs, as calculated below. Adjusted EBITDA is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to net income as an indicator of operating performance or as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with GAAP). Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA is presented because we believe that it provides useful information to investors and analysts regarding our operating performance. By reporting Adjusted EBITDA, we provide a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. A reconciliation of net income (loss) to Adjusted EBITDA is provided below for the periods presented: Store Operating Income Before Depreciation and Amortization: Store Operating Income Before Depreciation and Amortization, a non-GAAP measure, represents operating income, plus depreciation and amortization expense, general and administrative expenses, pre-opening costs and other gains and charges. We believe that Store Operating Income Before Depreciation and Amortization is another useful measure in evaluating our operating performance because it removes the impact of general and administrative expenses, which are not incurred at the store level, and the costs of opening new stores, which are non-recurring at the store level, and thereby enables the comparability of the operating performance of our stores for the periods presented. We also believe that Store Operating Income Before Depreciation and Amortization is a useful measure in evaluating our operating performance within the entertainment and dining industry because it permits the evaluation of store-level productivity, efficiency, and performance, and we use Store Operating Income Before Depreciation and Amortization as a means of evaluating store financial performance compared with our competitors. However, because this measure excludes significant items such as general and administrative expenses, pre-opening costs and other gains and charges, as well as our interest expense, net, loss on debt extinguishment/refinance and depreciation and amortization expense, which are important in evaluating our consolidated financial performance from period to period, the value of this measure is limited as a measure of our consolidated financial performance. Credit Adjusted EBITDA and Net Total Leverage Ratio: Credit Adjusted EBITDA, a non-GAAP measure, represents net loss plus certain items as defined at Adjusted EBITDA above, as well as certain other adjustments as defined in our Credit Agreement. These other adjustments include (i) entertainment revenue deferrals, (ii) the cost of new projects, including store pre-opening costs, (iii) business optimization expenses and other restructuring costs, and (iv) other costs and adjustments as permitted by the Credit Agreement. We believe the presentation of Credit Adjusted EBITDA is appropriate as it provides additional information to investors about the calculation of, and compliance with, certain financial covenants in the Credit Agreement. The following table sets forth a reconciliation of Net income to Credit Adjusted EBITDA for the period shown: The following table provides a calculation of Net Total Leverage Ratio, as defined in the Credit Agreement, for the period shown: Adjusted Net Income and Adjusted Net Income Per Share - Diluted: Adjusted net income, a non-GAAP measure, represents net income before special items, as calculated below, and Adjusted net income per share - diluted, a non-GAAP measure, represents Adjusted net income on a fully diluted, per share basis. We believe excluding these special items from net income provides investors with a clearer perspective of our ongoing operating performance and a more relevant comparison to prior period results. The following table presents a reconciliation of net income to Adjusted net income and presents Adjusted net income per diluted share, for the periods shown:

Dave & Buster's (PLAY) reported $559.2 million in revenue for the quarter ended April 2026, representing a year-over-year decline of 1.5%. EPS of $0.22 for the same period compares to $0.76 a year ago. The reported revenue represents a surprise of -2.08% over the Zacks Consensus Estimate of $571.09 million. With the consensus EPS estimate being $0.37, the EPS surprise was -40.54%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Dave & Buster's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Comparable Store Sales - Total: -5.4% compared to the -2.6% average estimate based on four analysts. Stores Count - End of Period: 247 compared to the 244 average estimate based on four analysts. Company-owned stores at end of period - Dave & Buster's: 182 compared to the 181 average estimate based on three analysts. Company-owned stores at end of period - Main Event: 65 versus the three-analyst average estimate of 62. Entertainment revenues: $345.1 million versus the four-analyst average estimate of $358.35 million. The reported number represents a year-over-year change of -5.9%. Food and beverage revenues: $214.1 million versus $212.51 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6.5% change. View all Key Company Metrics for Dave & Buster's here>>> Shares of Dave & Buster's have returned +27.9% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research