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Lucky Strike Entertainment (LUCK)
NYSE:LUCK
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Lucky Strike Entertainment (LUCK) AI Stock Analysis

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LUCK

Lucky Strike Entertainment

(NYSE:LUCK)

Rating:57Neutral
Price Target:
$10.00
▼(-6.28% Downside)
Lucky Strike Entertainment's stock score reflects a blend of strong growth potential and significant financial risks. The company's robust revenue and operational improvements are mitigated by concerns over profitability and leverage. Positive corporate events and strategic expansions offer potential upside, but valuation and mixed technical signals suggest caution.
Positive Factors
Corporate Strategy
The corporate rebranding from Bowlero to Lucky Strike Entertainment reflects the ongoing diversification of the business, aiming to become the leading family entertainment operator in the country.
Operational Efficiency
Technology and training enhancements such as the introduction of tablets for servers and AI-curated training aim to drive greater efficiency and enhance the selling culture.
Negative Factors
Market Sentiment
LUCK shares have remained under pressure as softer corporate demand has impacted comps over recent quarters.
Revenue Challenges
LUCK's March foot traffic slightly down year-over-year, indicating ongoing challenges in attracting visitors.

Lucky Strike Entertainment (LUCK) vs. SPDR S&P 500 ETF (SPY)

Lucky Strike Entertainment Business Overview & Revenue Model

Company DescriptionLucky Strike Entertainment (LUCK) is a prominent chain of entertainment venues offering a unique blend of bowling, dining, and nightlife experiences. It operates in the leisure and entertainment sector, providing customers with innovative social spaces that feature state-of-the-art bowling lanes, a full-service restaurant and bar, and a variety of other entertainment options, including arcade games and live performances. With locations across major cities in the United States, Lucky Strike aims to deliver a high-energy, immersive entertainment experience for individuals, groups, and corporate events.
How the Company Makes MoneyLucky 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 Earnings Call Summary

Earnings Call Date:Aug 28, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with strategic growth through acquisitions and innovative offerings, despite some challenges in same-store sales and specific segments. The company's strong liquidity and aggressive expansion plans suggest confidence in future growth.
Q4-2025 Updates
Positive Updates
Revenue Growth and Strategic Acquisitions
Revenue grew 4% despite challenges, and the company saw double-digit total revenue growth year-over-year in July. Notable acquisitions include two iconic water parks and three family entertainment centers, expanding their leadership in bowling, water parks, and family entertainment.
Successful Season Pass Program
The season pass program grew to over 260,000 members, generating more than $13.4 million in revenue, up from $8.5 million last year.
Innovative Food and Beverage Offerings
Food revenue delivered a positive 2.5% same-store comps. The new craft lemonade sold 135,000 units, generating nearly $800,000 in sales.
Acquisition of Real Estate
Acquired real estate underlying 58 locations for $306 million, maximizing flexibility for capital structure and location footprint.
Strong Liquidity Position
Liquidity remained strong at $342 million, with $60 million in cash and a net debt of $1.3 billion.
Negative Updates
Same-Store Sales Decline
Same-store sales declined by 4.1%, with California contributing $6 million to the decline.
Challenges in Corporate Events Business
Faced high single-digit decline in the events business, with expectations for improvement as comps become easier.
Negative Alcohol Sales Comps
Alcohol comps were negative 2.7%, although they showed improvement.
Company Guidance
In the Fourth Quarter 2025 earnings call for Lucky Strike Entertainment, the company provided guidance for fiscal year 2026, highlighting expectations of total revenue growth between 5% and 9%, translating to $1.26 billion to $1.31 billion. Adjusted EBITDA is projected to be in the range of $375 million to $415 million. The company reported a robust liquidity position with $342 million, including $60 million in cash, and a net debt of $1.3 billion. The net leverage ratio stood at 2.9x. The company also discussed its recent strategic acquisitions, including two iconic water parks, aiming to enhance its location-based entertainment platform. Efforts are being made to optimize its capital structure, with an emphasis on marketing and hospitality initiatives to support sustained growth.

Lucky Strike Entertainment Financial Statement Overview

Summary
Lucky Strike Entertainment shows strong revenue growth and operational cash flow generation, but profitability and financial stability are areas of concern. The negative equity position and high leverage present significant risks, despite efficient revenue and operational improvements.
Income Statement
72
Positive
Lucky Strike Entertainment has shown significant revenue growth, with revenue increasing from $395.2M in 2021 to $1.18B in TTM. The gross profit margin in TTM stands at 35.5%, indicating efficient cost management. However, the net profit margin is weak at 0.2% in TTM, due to high expenses relative to revenue. Despite a positive trajectory in revenue growth, profitability remains a concern.
Balance Sheet
45
Neutral
The company has a negative stockholders' equity of -$86.4M as of TTM, indicating financial instability. The debt-to-equity ratio is concerning due to the negative equity. Although the company has managed to grow its assets over time, high leverage remains a significant risk.
Cash Flow
60
Neutral
Operating cash flow remains positive at $161.5M in TTM, indicating decent operational efficiency. However, free cash flow is negative at -$3.26M, reflecting high capital expenditures. While the operating cash flow to net income ratio is robust, sustaining free cash flow generation is critical.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.18B1.15B1.06B911.71M395.23M520.43M
Gross Profit420.69M314.18M342.41M301.73M20.98M77.17M
EBITDA320.54M211.42M218.06M170.79M53.21M87.25M
Net Income2.52M-83.58M82.05M-29.93M-126.46M-90.89M
Balance Sheet
Total Assets3.20B3.11B2.84B1.85B1.78B1.78B
Cash, Cash Equivalents and Short-Term Investments79.09M66.97M195.63M132.24M187.09M140.71M
Total Debt2.59B2.41B2.26B1.27B1.25B1.20B
Total Liabilities3.28B3.16B2.54B1.66B1.45B1.33B
Stockholders Equity-86.40M-49.85M299.55M192.32M330.12M443.81M
Cash Flow
Free Cash Flow-3.26M-39.75M68.25M12.87M15.04M-100.89M
Operating Cash Flow161.50M154.83M217.79M177.67M58.23M18.82M
Investing Cash Flow-266.11M-385.66M-253.22M-220.34M-46.68M-129.40M
Financing Cash Flow-28.20M102.16M98.96M-12.14M34.80M137.26M

Lucky Strike Entertainment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.67
Price Trends
50DMA
9.98
Positive
100DMA
9.46
Positive
200DMA
10.05
Positive
Market Momentum
MACD
0.18
Negative
RSI
58.00
Neutral
STOCH
72.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUCK, the sentiment is Positive. The current price of 10.67 is above the 20-day moving average (MA) of 10.03, above the 50-day MA of 9.98, and above the 200-day MA of 10.05, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 58.00 is Neutral, neither overbought nor oversold. The STOCH value of 72.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LUCK.

Lucky Strike Entertainment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$2.34B33.0813.16%0.70%8.51%31.24%
68
Neutral
$2.91B17.0723.49%3.63%-2.60%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
57
Neutral
$1.48B-108.04%2.09%6.65%-111.16%
57
Neutral
$1.82B-46.53%-2.35%-7104.57%
52
Neutral
$421.61M22.27%-3.02%-517.53%
50
Neutral
$3.09B58.47%-7.76%79.66%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LUCK
Lucky Strike Entertainment
10.51
-0.40
-3.67%
MODG
Topgolf Callaway Brands
9.76
-0.28
-2.79%
YETI
Yeti Holdings
36.19
-4.18
-10.35%
OSW
OneSpaWorld Holdings
22.92
7.38
47.49%
PTON
Peloton Interactive
7.58
2.95
63.71%
XPOF
Xponential Fitness
8.54
-4.59
-34.96%

Lucky Strike Entertainment Corporate Events

Private Placements and Financing
Lucky Strike Entertainment Expands Credit Agreement by $50M
Neutral
Jul 16, 2025

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.

The most recent analyst rating on (LUCK) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Lucky Strike Secures $230M for Major Acquisition
Positive
Jul 10, 2025

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.

The most recent analyst rating on (LUCK) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Lucky Strike Appoints New Board Members for Growth
Positive
Jun 23, 2025

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.

The most recent analyst rating on (LUCK) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Lucky Strike Surpasses 200,000 Summer Season Pass Members
Positive
Jun 16, 2025

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.

The most recent analyst rating on (LUCK) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Lucky Strike Extends CFO’s Employment Agreement
Neutral
May 8, 2025

On May 7, 2025, Lucky Strike Entertainment extended the employment agreement of its CFO, Robert Lavan, until May 2027, with an increased annual salary of $725,000. The company reported a slight revenue increase of 0.7% to $339.9 million for the third quarter of fiscal year 2025, despite a decrease in same-store revenue and net income. The company acquired additional entertainment centers and water parks, expanding its operational locations to 367. It is focusing on strategic initiatives like the Summer Season Pass program to boost traffic and is maintaining a disciplined approach to expense management amid economic uncertainties.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2025