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Non-Tech : Dave & Busters (DAB) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (226)	12/10/1999 6:19:00 PM
From: A.L. Reagan	Read Replies (1) \| Respond to of 278

Agree with your caution, Glenn. Usually takes a while for these things to work out of the doghouse (if they ever do), and dead money in the interim. The new store in Austin seems to be doing killer (based on Lynchian parking lot analysis) even on Mondays and Tuesdays - but somewhere in the chain there must be some real turds to account for the same store drop. Also keep in mind that in the eatertainment biz a considerable amount of cash flow needs to go back into the existing stores to keep them up-to-date, remodeled, etc. Particularly games. For an operation like D&B $250K per year per store would a minimal amount. If you just put eatertainment stores on line with the view of waiting five years for remodeling, updating, equipment replacement, etc. you run the risk of well... a 6.4% drop in same store sales. A lot of people in this business miss the constant reinvestment requirements in their cash flow models. So... maybe the "net income" element of cash flow can cover the same stores, and the new stores by the D&A component. Topic requires more analysis. Conceptwise D&B has long legs unlike other "theme" outfits. I remember being "86'd" from the original D&B on Mockingbird Lane in Dallas way back ca. 1982 for the sin of, get this, wearing tennis shoes! (In Texas, no less.)