My negative investment thesis on Dave & Buster's Entertainment (PLAY) continues to hold as the company has a busted business plan. The entertainment space remains too competitive, especially with their gaming options over-shadowed by home entertainment systems and other entertainment venues offering more active experiences. The stock appears to be dead money until a catalysts pop up, if ever.
Margins Rolling Over
Dave & Buster's makes its money by the Amusement sector driving gross margins of nearly 89%. When comp sales starting weakening in the last few years, margins started rolling over.
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