Shares of Dave & Buster's Entertainment (PLAY) plummeted 5.04% during Wednesday's intraday trading session following the release of disappointing full-year 2025 results and a significant analyst price target cut.

The entertainment and dining chain reported a 3.3% year-over-year decline in revenue to $2.13 billion for fiscal year 2025. More alarmingly, net income plunged 54% to $58.3 million, resulting in a sharp drop in profit margin from 5.8% to 2.7%. Earnings per share (EPS) came in at $1.49, missing analyst estimates by 22% and falling well short of the $2.94 reported in the previous year.

Adding to the negative sentiment, BMO Capital Markets slashed its price target for Dave & Buster's from $47 to $30, although it maintained an Outperform rating on the stock. This significant reduction in the price target suggests concerns about the company's near-term growth prospects and profitability. The combination of weak financial results and the analyst's bearish view has led investors to reassess their positions, resulting in today's sharp sell-off.