Bowlero Corp. Class A’s Mixed Earnings Call Insights

Bowlero Corp. Class A ((LUCK)) has held its Q3 earnings call. Read on for the main highlights of the call.

Bowlero Corp. Class A’s recent earnings call painted a picture of mixed sentiment. While the company celebrated achievements such as revenue growth, successful new builds, and a surge in summer pass sales, it also faced significant hurdles, particularly in the corporate events sector and regions hit by economic and natural disruptions.

Total Revenue Growth

Lucky Strike Entertainment reported a modest total revenue increase of 0.7% for the third quarter of 2025, reaching $339.9 million compared to $337.7 million in the previous year. This growth, although slight, indicates a steady performance amidst challenging conditions.

Summer Season Pass Success

The company saw a remarkable 200+ percent year-over-year increase in early sales of summer season passes. This surge highlights a strong consumer interest in local, high-value entertainment options, providing a positive outlook for future seasonal offerings.

New Builds and Acquisitions

New properties launched between September and December 2024 exceeded expectations, generating nearly $8 million in revenue and $4 million in EBITDA. Additionally, the acquisition of Shipwreck Island in Panama City Beach, Florida for $30 million marks a strategic expansion in the company’s portfolio.

Food Sales Increase

Lucky Strike experienced a 1% rise in comparable food sales, with total food sales up 8% year-over-year. This growth was driven by refreshed food and beverage offerings, indicating successful adaptation to consumer preferences.

PBA Viewership Growth

The Professional Bowlers Association (PBA) achieved a 103% year-over-year increase in viewership for its recent telecast, supported by a new multi-year media rights agreement with CW. This significant growth underscores the increasing popularity of bowling as a spectator sport.

Decline in Same-Store Sales

Same-store sales declined by 5.6%, with the corporate events segment, particularly in California, contributing nearly 50% of this decline. This downturn highlights the challenges faced in maintaining consistent sales across existing locations.

Challenges from California Market

California, which represents 21% of total sales, experienced broad-based softness, especially in Los Angeles. This regional downturn negatively impacted overall performance, emphasizing the need for strategic adjustments in this key market.

Corporate Event Business Decline

The corporate events sector faced high single-digit declines, largely due to macroeconomic uncertainty and layoffs, particularly in the tech sector. This decline poses a significant challenge to the company’s event-driven revenue streams.

Impact of Natural Disasters

The lingering effects of January’s devastating fires in Southern California continue to weigh on business performance in that region. This ongoing impact underscores the vulnerability of operations to natural disruptions.

Forward-Looking Guidance

During the earnings call, Lucky Strike provided guidance for several key financial metrics. Despite a 5.6% decline in same-store sales, the company reported a modest revenue increase of 0.7% to $339.9 million. Adjusted EBITDA was $117.3 million, down from $122.8 million, with same-store sales contributing a $19 million headwind. However, improvements in payroll and reductions in maintenance and service costs contributed positively, with savings of $8 million and $3 million respectively. The company remains optimistic about future growth, particularly with the anticipated rebound in corporate events and strategic expansion of its entertainment centers and water parks.

In conclusion, Bowlero Corp. Class A’s earnings call revealed a mixed sentiment, balancing between positive growth indicators and significant challenges. While the company celebrates successes in new builds, acquisitions, and increased consumer interest, it must navigate the hurdles presented by declines in same-store sales and the corporate events sector. The forward-looking guidance suggests cautious optimism, with strategic investments and expansions poised to drive future growth.