Lucky Strike Entertainment (LUCK) AI Stock Analysis

• Market Cap: $1.36B
• Dividend Yield: 2.27%
• Average Volume (3M): 184.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 4.05%
• EPS Growth: 77.32%
• Country: US
• Employees: 11,374
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.52
• Shares Outstanding: 81,695,760
• 10 Day Avg. Volume: 244,004
• 30 Day Avg. Volume: 184,758
• PEG Ratio: 1.69
• Price to Book (P/B): -7.47
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 35.40
• Enterprise Value/Market Cap: 3.27
• Enterprise Value/Revenue: 3.71
• Enterprise Value/Gross Profit: 9.97
• Enterprise Value/Ebitda: 11.29
• 1Y Price Target: $13.85
• Price Target Upside: 42.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 52 Neutral
• Price Target: $10.00 ▲(3.20% Upside)

Lucky Strike Entertainment's overall stock score is driven by a mixed financial performance and concerning valuation metrics. However, the positive sentiment from the earnings call and slight bullish technical indicators provide some optimism. The company's strategic growth initiatives and strong liquidity position are key strengths, but financial instability and high leverage remain significant risks.

Positive Factors

Strategic Acquisitions

Strategic acquisitions expand Lucky Strike's market presence and diversify its entertainment offerings, enhancing long-term growth potential and competitive positioning.

Strong Liquidity Position

A robust liquidity position provides financial flexibility to support strategic initiatives, manage debt obligations, and invest in growth opportunities, ensuring business resilience.

Innovative Offerings

Innovative food and beverage offerings drive customer engagement and revenue growth, enhancing the overall customer experience and supporting sustained business expansion.

Negative Factors

High Leverage

High leverage indicates significant reliance on debt financing, which can strain cash flow and limit financial flexibility, posing long-term financial risks.

Decline in Same-Store Sales

A decline in same-store sales suggests challenges in maintaining customer traffic and revenue at existing locations, potentially impacting profitability and growth.

Negative Free Cash Flow

Negative free cash flow indicates challenges in converting profits into cash, which can hinder the company's ability to fund operations and growth initiatives sustainably.

Lucky Strike Entertainment Business Overview & Revenue Model

Company Description

Lucky Strike Entertainment Corporation provides location-based entertainment platforms under the AMF, Bowlero, Lucky X Strike, Boomers, and PBA brand names in North America. It also operates bowling, amusements, water parks, and family entertainment centers. The company was formerly known as Bowlero Corp. and changed its name to Lucky Strike Entertainment Corporation in December 2024. Lucky Strike Entertainment Corporation was founded in 1997 and is headquartered in Mechanicsville, Virginia.

How the Company Makes Money

Lucky Strike Entertainment generates revenue primarily through a combination of bowling lane rentals, food and beverage sales, and event hosting. Bowling lane rentals are a significant revenue stream, with customers paying hourly fees to use the lanes. The full-service restaurant and bar contribute through the sale of food and beverages, including popular menu items and specialty cocktails. Additionally, the company hosts private events, such as corporate gatherings and parties, which bring in substantial revenue. Partnerships with sponsors and collaborations with local artists or performers also provide supplementary income streams by enhancing the overall entertainment offerings and attracting more visitors.

Lucky Strike Entertainment Financial Statement Overview

Summary

Lucky Strike Entertainment shows mixed financial performance with some revenue growth and improved gross profit margins. However, challenges include low profitability, high leverage, and negative equity, which indicate financial instability and risk.

Income Statement

Lucky Strike Entertainment shows a mixed performance in its income statement. The company has achieved a positive revenue growth rate of 1.46% TTM, indicating some growth momentum. However, the net profit margin is extremely low at 0.21% TTM, reflecting minimal profitability. The gross profit margin has improved to 35.53% TTM, suggesting better cost management. Despite these improvements, the negative net income in recent periods highlights ongoing profitability challenges.

Balance Sheet

The balance sheet reveals significant financial leverage, with a high debt-to-equity ratio of -30.03 TTM, indicating substantial reliance on debt financing. The negative stockholders' equity is a concern, as it suggests financial instability. The return on equity is negative, reflecting poor returns for shareholders. Overall, the balance sheet indicates potential financial risk due to high leverage and negative equity.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a significant drop of -1209.39% TTM. However, the operating cash flow to net income ratio is relatively strong at 0.80 TTM, indicating decent cash generation relative to net income. The free cash flow to net income ratio is negative, reflecting challenges in converting profits into free cash flow. The cash flow situation is mixed, with some strengths in operating cash flow but weaknesses in free cash flow generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.20B	1.20B	1.15B	1.06B	911.71M	395.23M
Gross Profit	447.08M	447.08M	314.18M	342.41M	301.73M	20.98M
EBITDA	394.71M	394.71M	211.42M	218.06M	170.79M	53.21M
Net Income	-10.02M	-10.02M	-83.58M	82.05M	-29.93M	-126.46M
Balance Sheet
Total Assets	3.16B	3.16B	3.11B	2.84B	1.85B	1.78B
Cash, Cash Equivalents and Short-Term Investments	59.69M	59.69M	66.97M	195.63M	132.24M	187.09M
Total Debt	2.63B	2.63B	2.41B	2.26B	1.27B	1.25B
Total Liabilities	3.33B	3.33B	3.16B	2.54B	1.66B	1.45B
Stockholders Equity	-171.35M	-171.35M	-49.85M	299.55M	192.32M	330.12M
Cash Flow
Free Cash Flow	36.16M	36.16M	-39.75M	68.25M	12.87M	15.04M
Operating Cash Flow	177.22M	177.22M	154.83M	217.79M	177.67M	58.23M
Investing Cash Flow	-220.31M	-220.31M	-385.66M	-253.22M	-220.34M	-46.68M
Financing Cash Flow	35.86M	35.86M	102.16M	98.96M	-12.14M	34.80M

Lucky Strike Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.69
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUCK, the sentiment is Negative. The current price of 9.69 is below the 20-day moving average (MA) of 10.16, below the 50-day MA of 10.08, and below the 200-day MA of 9.89, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 42.99 is Neutral, neither overbought nor oversold. The STOCH value of 31.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LUCK.

Lucky Strike Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YETI	69 Neutral	2.87B	17.10	22.07%	―	3.63%	-2.60%
OSW	69 Neutral	2.25B	32.29	12.98%	0.72%	8.51%	31.24%
MODG	57 Neutral	1.68B	-1.17	-60.04%	―	-2.35%	-7104.57%
PTON	56 Neutral	3.32B	-25.67	28.74%	―	-7.76%	79.66%
LUCK	52 Neutral	$1.36B	―	-108.04%	2.27%	4.05%	77.32%
XPOF	52 Neutral	395.81M	-4.67	65.10%	―	-3.02%	-517.53%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Lucky Strike Entertainment Corporate Events

Lucky Strike Entertainment Reports Q4 Revenue Growth

Lucky Strike Entertainment reported a 6.1% revenue growth in the fourth quarter of fiscal year 2025, ending June 29, 2025, despite a net loss increase to $74.7 million. The company expanded its locations to 370, with significant contributions from acquisitions and new builds, and highlighted the success of its revamped Summer Season Pass program, which drove record visitor numbers and revenue. The company remains focused on profitable growth and issued a positive revenue and EBITDA guidance for fiscal year 2026.

Lucky Strike Declares Quarterly Cash Dividend

On August 19, 2025, Lucky Strike Entertainment‘s Board of Directors declared a quarterly cash dividend of $0.055 per share, payable on September 12, 2025, to shareholders recorded by August 29, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and may impact its financial positioning by reinforcing investor confidence.

Lucky Strike Entertainment Expands Credit Agreement by $50M

On July 16, 2025, Lucky Strike Entertainment Corporation announced a Fourteenth Amendment to its First Lien Credit Agreement, originally dated July 3, 2017. This amendment involves a $50 million increase in the total revolving commitments, bringing the aggregate amount to $385 million. The terms of the new commitments align with the existing ones, including interest rates and maturity dates.

Lucky Strike Secures $230M for Major Acquisition

On July 10, 2025, Lucky Strike Entertainment announced a significant financial maneuver by entering into a Thirteenth Amendment to its First Lien Credit Agreement, securing $230 million in incremental bridge term loans to finance a major acquisition. This acquisition involves purchasing the real estate of 58 locations for $306 million, a strategic move aimed at reducing rent obligations and enhancing financial flexibility. The transaction is expected to be immediately accretive to earnings and cash flow, positioning the company for long-term growth and improved capital allocation. By transitioning from renter to owner, Lucky Strike aims to eliminate future lease inflation risks and strengthen control over key market assets, reflecting its commitment to building enduring shareholder value.

Lucky Strike Appoints New Board Members for Growth

On June 23, 2025, Lucky Strike Entertainment announced the appointment of Richard Born and Jason Harinstein to its Board of Directors, enhancing the company’s leadership with their expertise in hospitality, real estate, finance, and technology. These strategic appointments are expected to bolster Lucky Strike’s commitment to innovation and growth, as the company continues to expand its industry footprint and strengthen its position as a leader in location-based entertainment.

Lucky Strike Surpasses 200,000 Summer Season Pass Members

On June 16, 2025, Lucky Strike Entertainment announced a significant achievement for its 2025 Summer Season Pass, surpassing 200,000 members and generating over $10.3 million in sales by the second week of June, exceeding the entire 2024 program’s sales. This record-breaking start highlights the success of the company’s guest-focused enhancements to the Summer Season Pass, which includes perks like daily bowling games and exclusive discounts. The program’s success reflects positively on the company’s strategic optimizations and is expected to continue shaping the future of this growing initiative.