Dave & Buster's Misses Q2 Earnings and Revenue Targets

Earnings Performance and Market Reaction

Dave & Buster's (PLAY) recently released its quarterly earnings, reporting $0.4 per share, which fell short of the Zacks Consensus Estimate of $0.88 per share. This figure is adjusted for non-recurring items, and it represents a significant drop compared to the $1.12 per share recorded in the same period last year. The earnings missed expectations by a large margin, resulting in an earnings surprise of -54.55%.

This underperformance was not entirely unexpected. A quarter prior, the company had also failed to meet earnings projections, with actual results coming in at $0.76 per share versus an expected $0.96. That result led to a surprise of -20.83%. Over the past four quarters, Dave & Buster's has only exceeded consensus EPS estimates once, highlighting a consistent pattern of missing expectations.

In terms of revenue, the company reported $557.4 million for the quarter ended July 2025, slightly below the Zacks Consensus Estimate of $557.4 million by 0.81%. This marks a slight increase from the $557.1 million in revenues from the same period last year. However, the company has only surpassed revenue estimates once in the last four quarters, reinforcing concerns about its financial performance.

The stock's recent price movement appears to be influenced heavily by management's commentary during the earnings call. Investors are closely watching how leadership addresses future earnings expectations and potential challenges facing the business.

Stock Performance and Market Comparison

Since the start of the year, Dave & Buster's shares have declined by approximately 19%, while the S&P 500 has gained 12%. This underperformance raises questions about the company’s long-term prospects and its ability to compete effectively in the retail and restaurant industry.

Investors are now asking: what comes next for the stock? While there are no clear answers, one reliable indicator is the company’s earnings outlook. This includes current consensus expectations for the upcoming quarters and how these expectations have evolved over time.

Research shows that near-term stock movements often correlate with trends in earnings estimate revisions. Investors can track these changes themselves or use tools like the Zacks Rank, which has a strong history of leveraging earnings estimate revisions to predict stock performance.

Earnings Outlook and Industry Position

Ahead of this earnings report, the trend in estimate revisions for Dave & Buster's was mixed. However, based on current data, the stock holds a Zacks Rank #3 (Hold), suggesting it is expected to perform in line with the market in the near term. This ranking indicates that investors should anticipate moderate returns without significant outperformance.

Looking ahead, the current consensus EPS estimate for the next quarter is -$0.86 on $469.07 million in revenues, with expectations for the current fiscal year standing at $1.53 on $2.17 billion in revenues. These figures will likely evolve as more data becomes available and as the company provides further guidance.

It's also important to consider the broader industry context. The Retail - Restaurants sector, where Dave & Buster's operates, ranks in the bottom 30% of all Zacks industries. Research indicates that top-ranked industries tend to outperform the bottom half by more than a 2-to-1 margin, highlighting the challenges faced by companies in this sector.

Comparative Analysis with Domino's Pizza

Another player in the same industry, Domino's Pizza (DPZ), has yet to release its quarterly results for the period ending September 2025. However, analysts expect the pizza chain to report earnings of $3.98 per share, reflecting a year-over-year decline of 5%. Despite this, the consensus EPS estimate for the quarter has increased by 0.1% over the last 30 days.

Domino's revenues are anticipated to reach $1.14 billion, up 5.4% from the previous year. This suggests that the company may still be performing well relative to its peers, even as the overall industry faces headwinds.

Investors should remain attentive to both Dave & Buster's and Domino's performance, as shifts in earnings expectations could significantly impact stock valuations in the coming months.