# Dave & Buster's Entertainment (PLAY.US)

Canonical: https://gigainvestors.com/s/PLAY

Analysis as of: 2026-10-16T07:31:13.596Z. Financial observations: FY2010–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $7.96 per share; close as of 2026-10-15.

Estimated value: low $38.59 per share, central $45.14 per share, high $52.51 per share. Buy at or below the central value $45.14 per share. Valuation as of 2026-10-16T07:31:13.596Z; scenarios are not confidence intervals.

Expected annual return: 44.9% at the stated quote. About 44.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 2

- Operating margin variation: 3.86×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.15×

- FY2018: 0.15×

- FY2019: 0.13×

- FY2020: 0.11×

- FY2021: -0.58×

- FY2022: 0.15×

- FY2023: 0.14×

- FY2024: 0.15×

- FY2025: 0.11×

- FY2026: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.5%

- ROIC, second-lowest year: 3.3%

- Typical minus recent gross margin: -2.1 pp

- Typical gross margin (annual median): 83.2%

- Recent gross margin (lower of latest and 3-year median): 85.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 17.5%

- ROIC including acquisitions, ten-year median: 4.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 23.8%

- FY2018: 25.8%

- FY2019: 26.2%

- FY2020: 6.5%

- FY2021: -11.2%

- FY2022: 9.6%

- FY2023: 9.3%

- FY2024: 10.6%

- FY2025: 7.9%

- FY2026: 3.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.06×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $24M

- Net income, five-year total: $382M

- Return on incremental invested capital: 1.3%

- Working capital / revenue, annual change: 0.0 pp

- Working capital / revenue, change between three-year averages: 0.3 pp

- Working capital / revenue, final three-year average: -2.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.42×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: -4.01×

- FY2026: 3.30×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 25.8% vs 7.9%

- Per-share earnings: 2.10 to 1.46 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.1%

- Ordinary dilution, 5-year annual growth: -4.5%

- Market cap gain: -$1.6B

- Cumulative retained earnings: $464M

- Diluted shares, 10-year annual growth: -2.1%

- Diluted shares, 5-year annual growth: -4.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -4.5%

- Per-share value change: -$0.64

- Per-share value, starting three-year median: $2.10

- Per-share value, ending three-year median: $1.46

- Buybacks concentrated in cheaper years (correlation): 0.64

- Average buyback yield: 7.4%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $819M

- Cumulative net income, 10 years: $605M

- ROIC, first three-year median: 25.8%

- ROIC, last three-year median: 7.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: $2.10

- FY2018: $2.84

- FY2019: $2.93

- FY2020: $2.94

- FY2021: -$4.75

- FY2022: $2.21

- FY2023: $2.79

- FY2024: $2.88

- FY2025: $1.46

- FY2026: -$1.40

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -8.2%

- Receivables to sales index (DSRI): 1.89×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 6.7%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 10.10×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -13.3%

- FY2018: -12.0%

- FY2019: -17.3%

- FY2020: -8.0%

- FY2021: -6.7%

- FY2022: -7.4%

- FY2023: -8.2%

- FY2024: -6.3%

- FY2025: -6.3%

- FY2026: -8.2%

## Holders

- [Samantha McLemore](https://gigainvestors.com/PTNT): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 87% since Mar 2024 · sales -1.4%

Story as of 2026-10-16T09:59:24.609Z; price observation 2026-10-15.

Price needs cash profits to shrink 21.2% a year for ten years

### Sales · FY2025–2026

sales -1.4%; source https://www.sec.gov/Archives/edgar/data/1525769/000152576926000008/play-20260203.htm; observed 2026-03-31.

- FY2017: $1.0B 

- FY2018: $1.1B 

- FY2019: $1.3B 

- FY2020: $1.4B 

- FY2021: $437M 

- FY2022: $1.3B 

- FY2023: $2.0B 

- FY2024: $2.2B 

- FY2025: $2.1B 

- FY2026: $2.1B 

### Gross margin · FY2026

gross margin 85.7%; source https://www.sec.gov/Archives/edgar/data/1525769/000152576926000008/play-20260203.htm; observed 2026-03-31.

- FY2017: 82.1% 

- FY2018: 82.7% 

- FY2019: 82.6% 

- FY2020: 82.8% 

- FY2021: 82.8% 

- FY2022: 84.3% 

- FY2023: 83.5% 

- FY2024: 84.0% 

- FY2025: 85.3% 

- FY2026: 85.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in entertainment; annual sales are USD 2.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1525769/000152576926000008/play-20260203.htm (filed 2026-03-31); FY2026: revenue 2102800000; grossProfit 1802500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); PLAY.US: Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America. Its venues offer a menu of entrées and appetizers, as well as a selection of alcoholic and non-alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company also provides food, drinks, and entertainment, including bowling, laser tag, arcade games, and virtual reality. The company operates its venues under the Dave & Buster's and Main Event brands. Dave & Buster's Entertainment, Inc. was founded in 1982 and is headquartered in Coppell, Texas.

### Why customers stay

Margins ranged from 84% to 85.7% during 2024–26; it earns 9.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2024: grossProfit / revenue = 84%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2025: grossProfit / revenue = 85.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1525769/000152576926000008/play-20260203.htm (filed 2026-03-31); FY2026: grossProfit / revenue = 85.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); 10-year return on capital observations [[2017,0.2381188118811881],[2018,0.2582012048498135],[2019,0.2619912191245222],[2020,0.06532017370064505],[2021,-0.11215438774753227],[2022,0.09601974184248516],[2023,0.09322205208992801],[2024,0.10597918678496009],[2025,0.07865776438406438],[2026,0.03325017019742902]]; median 0.09462089696620658. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 84% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1525769/000152576926000008/play-20260203.htm (filed 2026-03-31); Gross margin observations: [[2021,0.8284010519756616],[2022,0.8428680981595092],[2023,0.835471390755447]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 6 of 10 years; bought back USD 1.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2017: growth capex 81721960.01671454; upkeep 98855039.98328546; owner earnings 80244960.01671454. Growth capex / owner earnings = 1.018406140394267.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2018: growth capex 81854680.35458577; upkeep 138046319.64541423; owner earnings 85668680.35458577. Growth capex / owner earnings = 0.9554796457210066.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2019: growth capex 76957314.53241062; upkeep 139328685.46758938; owner earnings 96167314.53241062. Growth capex / owner earnings = 0.8002439800528507.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2020: growth capex 69606215.45731515; upkeep 158484784.54268485; owner earnings 74238215.45731515. Growth capex / owner earnings = 0.9376062588322416.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2022: growth capex 0; upkeep 92197000; cash acquisitions 0; owner earnings 154803000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2023: growth capex 64924000; upkeep 169300000; cash acquisitions 818700000; owner earnings 137100000. Growth capex plus acquisitions / owner earnings = 6.445105762217359.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); FY2024: growth capex 121700000; upkeep 208500000; cash acquisitions 0; owner earnings 126900000. Growth capex plus acquisitions / owner earnings = 0.959022852639874.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); Dividend observations: [[2017,101360000],[2018,510344000],[2019,11570000],[2020,15724000],[2021,4891000],[2022,5124000],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1525769/000152576926000008/play-20260203.htm (filed 2026-03-31); FY2026: cash repurchases 1700000 USD.

### Are managers owners

Insiders own 4.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); PLAY.US SharesStats.PercentInsiders = 4.763 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits shrink 21.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-31); Ten-year compound average after fade. Initial solved rate -0.30351298730829035. Price 7.96; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.08300323681886 → FY2026 -4.635131237381021. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $41.35 per share

- 2016-11: $46.85 per share

- 2016-12: $56.30 per share

- 2017-01: $54.46 per share

- 2017-02: $57.19 per share

- 2017-03: $61.09 per share

- 2017-04: $64.01 per share

- 2017-05: $66.70 per share

- 2017-06: $66.51 per share

- 2017-07: $62.11 per share

- 2017-08: $58.46 per share

- 2017-09: $52.48 per share

- 2017-10: $48.20 per share

- 2017-11: $53.03 per share

- 2017-12: $55.17 per share

- 2018-01: $47.00 per share

- 2018-02: $44.77 per share

- 2018-03: $41.74 per share

- 2018-04: $42.49 per share

- 2018-05: $41.64 per share

- 2018-06: $47.60 per share

- 2018-07: $49.15 per share

- 2018-08: $58.17 per share

- 2018-09: $66.22 per share

- 2018-10: $59.55 per share

- 2018-11: $56.86 per share

- 2018-12: $44.56 per share

- 2019-01: $51.45 per share

- 2019-02: $51.33 per share

- 2019-03: $49.87 per share

- 2019-04: $56.84 per share

- 2019-05: $49.74 per share

- 2019-06: $40.47 per share

- 2019-07: $40.65 per share

- 2019-08: $43.05 per share

- 2019-09: $38.95 per share

- 2019-10: $39.78 per share

- 2019-11: $40.18 per share

- 2019-12: $40.17 per share

- 2020-01: $44.16 per share

- 2020-02: $33.01 per share

- 2020-03: $13.08 per share

- 2020-04: $14.64 per share

- 2020-05: $13.19 per share

- 2020-06: $13.33 per share

- 2020-07: $12.34 per share

- 2020-08: $16.63 per share

- 2020-09: $15.16 per share

- 2020-10: $17.16 per share

- 2020-11: $25.32 per share

- 2020-12: $30.02 per share

- 2021-01: $34.02 per share

- 2021-02: $40.61 per share

- 2021-03: $47.90 per share

- 2021-04: $45.66 per share

- 2021-05: $42.28 per share

- 2021-06: $40.60 per share

- 2021-07: $33.28 per share

- 2021-08: $37.42 per share

- 2021-09: $38.33 per share

- 2021-10: $37.13 per share

- 2021-11: $32.48 per share

- 2021-12: $38.40 per share

- 2022-01: $35.79 per share

- 2022-02: $43.34 per share

- 2022-03: $49.10 per share

- 2022-04: $45.50 per share

- 2022-05: $37.89 per share

- 2022-06: $32.78 per share

- 2022-07: $37.36 per share

- 2022-08: $41.34 per share

- 2022-09: $31.03 per share

- 2022-10: $39.85 per share

- 2022-11: $39.66 per share

- 2022-12: $35.44 per share

- 2023-01: $43.35 per share

- 2023-02: $40.02 per share

- 2023-03: $36.79 per share

- 2023-04: $35.46 per share

- 2023-05: $32.15 per share

- 2023-06: $44.56 per share

- 2023-07: $45.80 per share

- 2023-08: $39.27 per share

- 2023-09: $37.07 per share

- 2023-10: $34.94 per share

- 2023-11: $41.04 per share

- 2023-12: $53.85 per share

- 2024-01: $53.53 per share

- 2024-02: $61.74 per share

- 2024-03: $62.60 per share

- 2024-04: $53.40 per share

- 2024-05: $51.09 per share

- 2024-06: $39.81 per share

- 2024-07: $37.61 per share

- 2024-08: $31.34 per share

- 2024-09: $34.05 per share

- 2024-10: $36.93 per share

- 2024-11: $39.32 per share

- 2024-12: $29.19 per share

- 2025-01: $26.56 per share

- 2025-02: $20.89 per share

- 2025-03: $17.57 per share

- 2025-04: $19.19 per share

- 2025-05: $21.96 per share

- 2025-06: $30.08 per share

- 2025-07: $29.24 per share

- 2025-08: $25.67 per share

- 2025-09: $18.16 per share

- 2025-10: $14.69 per share

- 2025-11: $17.49 per share

- 2025-12: $16.21 per share

- 2026-01: $18.77 per share

- 2026-02: $14.72 per share

- 2026-03: $10.83 per share

- 2026-04: $11.27 per share

- 2026-05: $13.37 per share

- 2026-06: $11.40 per share

- 2026-07: $10.84 per share

- 2026-08: $8.97 per share

- 2026-09: $6.38 per share

- 2026-10: $7.96 per share

## Annual estimated value (USD per share)

- FY2017: low $3.67 per share, central $4.17 per share, high $4.84 per share

- FY2018: low $15.64 per share, central $17.79 per share, high $20.66 per share

- FY2019: low $26.00 per share, central $29.59 per share, high $34.36 per share

- FY2020: low $40.59 per share, central $57.99 per share, high $68.12 per share

- FY2021: low $8.31 per share, central $9.44 per share, high $10.95 per share

- FY2022: low $26.08 per share, central $35.89 per share, high $42.08 per share

- FY2023: low $39.95 per share, central $54.61 per share, high $63.58 per share

- FY2024: low $38.78 per share, central $54.86 per share, high $64.42 per share

- FY2025: low $41.70 per share, central $59.57 per share, high $69.97 per share

- FY2026: low $39.17 per share, central $45.83 per share, high $53.30 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1525769/000152576926000008/play-20260203.htm); period 2026-02-03, filed 2026-03-31.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.