Dave & Buster's Sees Sales Trends Improving After Weak Q2, UBS Says

12:03 PM EDT, 09/15/2026 (MT Newswires) -- Dave & Buster's Entertainment (PLAY) expects improving sales trends in fiscal Q3 after a disappointing Q2, UBS Securities said Tuesday in a report. The company on Monday reported a surprise Q2 loss as revenue missed Wall Street estimates. UBS said a continued focus on cost savings, with about $15 million to be realized over the next 12 months and $30 million in total targeted, should support margin gains over time, UBS said. UBS expects Q3 same-store sales to decline 1.2%, compared with the 2.9% drop in Q2, and forecasts an EBITDA margin of 11.4%, down from 18.2%. In the coming quarters, the focus will be on traction against sales plans and an eventual inflection to positive same-store sales, as well as EBITDA growth, free cash flow generation, and capital usage, the report said. UBS lowered its price target on Dave & Buster's stock to $9 from $12 and maintained its neutral rating. Price: 6.99, Change: -1.48, Percent Change: -17.47