7 Best Entertainment Stocks To Buy According to Analysts

2. Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY)

Average Upside Potential: 55.19%

Number of Hedge Fund Holders: 27

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) owns and operates over 200 venues in North America offering premier entertainment and dining experiences to guests through two distinct brands, Dave & Buster’s and Main Event. The first Dave & Buster’s opened in Dallas in 1982.

The company has two industry-leading brands which gives it a strong position in the rapidly growing experiential entertainment sector. The footprint is extensive with 166 Dave & Buster’s branded stores in 43 states, Puerto Rico, and Canada. The firm also operates 60 Main Event branded stores in 21 states.

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) continues to undertake growth initiatives. The firm has realized significantly lower price than competitors since COVID. It is also focusing on remodeling since remodeled stores have experienced significant sales and traffic growth. Simultaneously, the special events business is improving with substantial growth in same-store sales. Furthermore, the firm continues to refine its menu and engages in strategic games pricing.

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) reported second-quarter revenue of $557.1 million, up 2.8% year-over-year. Adjusted EBITDA increased 8.1% from the second quarter of 2023 while net income went up from $25.9 million in Q2 2023 to $40.3 million. In the quarter, the firm opened two new Dave & Buster’s stores in Port St. Lucie, FL and Johnson City, NY, while it remodeled nine Dave & Buster’s stores. The CEO Chris Morris was a bit disappointed with the same-store sales performance amidst a challenging environment but was pleased with the strong financial results.

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) serves as the ultimate experiential entertainment destination and changes the whole eat, play, and watch experience. The firm boasts an exceptional business model alongside industry-leading brands and organic growth initiatives in place.