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Investing.com - Benchmark maintained its Hold rating on Dave & Buster’s (NASDAQ:PLAY) stock following disappointing second-quarter 2025 results that missed analyst expectations.
The entertainment and dining chain reported its tenth consecutive quarter of negative same-store sales, with comparable store sales declining 3.0% versus the consensus estimate of a 2.2% drop.
Revenue remained essentially flat year-over-year at $557 million, falling short of the $563 million expected by analysts, according to Benchmark.
Profitability metrics showed significant deterioration, with adjusted EBITDA falling 14% to $130 million, below consensus expectations of $142 million. The AEBITDA margin contracted 390 basis points year-over-year to 23.3%.
Operating cash flow decreased sharply by 67% to $34 million, which Benchmark noted reflects "meaningful pressure on liquidity" for the company.
In other recent news, Dave & Buster’s reported its second-quarter fiscal 2025 earnings, revealing a decline in same-store sales by 3%, which slightly exceeded consensus expectations of a 2.3% drop. The company also faced a decline in adjusted EBITDA, missing consensus estimates by $12 million, largely due to softer sales and unexpected expenses. As a result, several analyst firms have adjusted their price targets for the company. Truist Securities lowered its price target to $22, citing decelerating sales despite easier year-ago comparisons. Piper Sandler also reduced its target to $26, maintaining a Neutral rating due to weak sales. UBS adjusted its target to $25, attributing the reduction to challenging macroeconomic conditions and brand-specific issues. On a more positive note, Jefferies reiterated a Buy rating with a $30 price target, despite mixed results and a slower start to the third quarter. BMO Capital also maintained its Outperform rating with a $35 price target, noting that certain expenses impacting earnings are not expected to recur later in the fiscal year.
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