From a happenstance glimpse, the investment prospect for American restaurant and entertainment business Dave & Buster’s Entertainment (PLAY) seems rather dim. Since the beginning of the year, PLAY stock fell almost exactly 10%. During the same period, the benchmark S&P 500 index gained nearly 12%. Thus, a basket of boring blue-chip securities represents a far better catalyst, which is hardly a confidence-inspiring narrative.
At the same time, PLAY stock also suffered disproportionately from the COVID-19 crisis. As an enterprise specializing in high social contact activities, the pandemic-fueled mitigation protocols – which effectively shut down non-essential travel on a temporary basis – could not have been a worse headwind for Dave & Buster’s. Still, burgeoning social normalization trends imply that the embattled company may surge back in relevance.
