Dave & Buster’s Stock Climbs 25% in 2025 After Strong EBITDA and $200M Buyback Boost
In 2025, Dave & Buster’s Entertainment surpassed EBITDA expectations, expanded its stock repurchase program to $200 million, and shared an optimistic outlook, driving shares to near record highs.
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HIGHLIGHTS
- Dave & Buster’s Entertainment outperformed EBITDA forecasts, increased its stock buyback authorization, and projected positive growth in its latest earnings report.
- These gains helped offset weaker-than-expected fourth-quarter profit and revenue figures.
- The company's shares approached all-time highs on Wednesday, marking a 25% gain year-to-date.
Shares of Dave & Buster’s Entertainment (PLAY) surged Wednesday following the announcement of stronger-than-anticipated EBITDA results and an expanded stock repurchase program.
The company reported fourth-quarter EBITDA of $151.8 million, a 9.7% year-over-year increase, surpassing analyst predictions. CEO Chris Morris affirmed that the company’s strategic turnaround initiatives are yielding positive results.
During the fiscal year, Dave & Buster’s opened six new domestic locations and plans to launch 15 additional U.S. stores along with up to four international venues, according to Morris. He highlighted successful efforts in remodeling locations, updating menus, and implementing price adjustments.
Additionally, the company increased its share repurchase authorization by $100 million, bringing the total buyback capacity to $200 million.
Truist Securities raised its price target from $75 to $78 per share, citing new growth strategies expected to mitigate short-term economic challenges.
Despite the EBITDA strength, the fourth quarter saw earnings per share of $1.03 and revenue of $599.1 million, both slightly below expectations. Same-store sales declined 7%, with management attributing the drop to adverse weather conditions in January.
As of 10:40 a.m. ET, Dave & Buster’s shares traded 11% higher at $68.68, reflecting a robust 25% increase year-to-date.
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