Dave & Buster's Entertainment, Inc. (PLAY): A Bull Case Theory

We came across a bullish thesis on Dave & Buster’s Entertainment, Inc. on Stock Region Research’s Substack by Stock Region. In this article, we will summarize the bulls’ thesis on PLAY. Dave & Buster’s Entertainment, Inc.'s share was trading at $30.45 as of June 27^th. PLAY’s trailing and forward P/E were 27.95 and 14.51 respectively according to Yahoo Finance.

Dave & Buster’s reported Q1 2025 revenue of $568 million with net income of $22 million, signaling resilience despite a decline in same-store sales. The dip was offset by strategic initiatives aimed at reigniting growth, most notably the revitalization of its in-store experience. The return of the popular “Eat and Play Combo” and refreshed store designs have boosted weekend foot traffic, marking an encouraging trend for the company’s core business.

In addition to domestic efforts, Dave & Buster’s is pursuing an aggressive international expansion strategy. The opening of its first franchise in India reflects the company’s broader ambition to establish a global footprint, with additional overseas locations planned. These initiatives are expected to compensate for short-term domestic sales softness by diversifying revenue streams and increasing brand reach.

From a technical standpoint, the stock shows potential for an upside breakout if it can sustain movement above the $29.40 level, while support sits at $27.10, presenting a clearly defined risk-reward setup for investors. The recent quarter underscores a transitional phase where operational enhancements and global expansion are key levers for long-term value creation. If execution remains consistent and international growth materializes as planned, Dave & Buster’s could regain momentum in its stock performance.

The company’s strategy of revitalizing customer engagement while exploring new markets offers a compelling investment thesis, especially if it can stabilize domestic trends. With strong weekend sales signaling renewed interest and a clear growth roadmap, the stock appears well-positioned for potential re-rating if early signs of success continue.

Previously we covered a bullish thesis on Dave & Buster’s Entertainment, Inc. (PLAY) by marginofdanger in May 2025, which highlighted the deep value opportunity driven by insider ownership, turnaround efforts, and distressed valuation. The company’s stock price has appreciated approximately by 41% since our coverage. Stock Region shares a similar view but emphasizes international expansion and improving weekend traffic trends.

PLAY isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of PLAY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.