Lucky Strike Entertainment (LUCK)
NYSE:LUCK
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Lucky Strike Entertainment
(NYSE:LUCK)
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Rating:51Neutral
Price Target:
$7.50
▼(-13.49% Downside)
Action:ReiteratedDate:02/21/26
The score is held back primarily by elevated financial risk (high debt with negative equity) and inconsistent net profitability despite decent operating margins and improved free cash flow. Technicals are mixed with only modest momentum, while valuation is limited by losses (negative P/E) with partial support from the dividend. The earnings call adds moderate support via reiterated guidance and expected seasonal EBITDA upside, but execution and cost-control risks remain meaningful.
Positive Factors
Strong cash generation
Consistent positive operating cash flow and a return to positive free cash flow provide durable internal funding for operations, capex and selective acquisitions. This reduces short-term reliance on external financing and supports reinvestment and deleveraging if cash generation is maintained.
Negative Factors
Elevated balance-sheet leverage
Very high debt and negative equity materially weaken capital structure and constrain financial flexibility. This increases refinancing and covenant risk, making the company vulnerable to rate moves or profit shocks and limiting capacity for large organic growth investments without external recapitalization.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent positive operating cash flow and a return to positive free cash flow provide durable internal funding for operations, capex and selective acquisitions. This reduces short-term reliance on external financing and supports reinvestment and deleveraging if cash generation is maintained.
Read all positive factors
Lucky Strike Entertainment (LUCK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.19B
Dividend Yield2.51%
Average Volume (3M)249.23K
Price to Earnings (P/E)―
Beta (1Y)1.27
Revenue Growth3.88%
EPS Growth34.36%
CountryUS
Employees11,374
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)-0.11
Shares Outstanding79,185,110
10 Day Avg. Volume437,260
30 Day Avg. Volume249,232
Financial Highlights & Ratios
PEG Ratio1.62
Price to Book (P/B)-7.47
Price to Sales (P/S)1.07
P/FCF Ratio35.40
Enterprise Value/Market Cap4.12
Enterprise Value/Revenue3.96
Enterprise Value/Gross Profit11.99
Enterprise Value/Ebitda14.68
Forecast
1Y Price Target
$10.67Price Target Upside23.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.01
Revenue Forecast (FY)$1.27B
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 entertainme...
How the Company Makes Money
Lucky Strike Entertainment generates revenue primarily from in-venue consumer spending. Key revenue streams include (1) bowling and other paid attractions or games offered at its entertainment venues, where guests pay per game/session or via packa...
Lucky Strike Entertainment Key Performance Indicators (KPIs)
Lucky Strike Entertainment Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed cautious optimism: management reported modest revenue growth and multiple operational wins (marketing momentum, retail and digital growth, promising water park and Boomers performance, successful rollouts like server tablets and rebrands). However, profitability was pressured by incremental labor and marketing spend that did not always deliver immediate ROI, and weather and lingering corporate events weakness created near-term headwinds. Management emphasized a shift to more targeted investments, expects significant seasonal EBITDA lift from water parks in summer quarters, and expressed confidence in achieving guidance if execution on cost optimization and summer performance holds.Positive Updates
Modest Same-Store Sales and Revenue Growth
Same-store sales comp finished December at +0.3% and total revenue grew +2.3% for the quarter, driven by strength in retail and leagues.
Negative Updates
Profitability Pressure from Incremental Labor
Center payroll increased by ~$6M year-over-year, with incremental labor weighing on margins; management acknowledged some added service labor did not deliver expected ROI and will be optimized.
Read all updates
Q2-2026 Updates
Positive
Negative
Modest Same-Store Sales and Revenue Growth
Same-store sales comp finished December at +0.3% and total revenue grew +2.3% for the quarter, driven by strength in retail and leagues.
Read all positive updates
Company Guidance
Management reiterated they remain within the full‑year guidance range and expect to achieve it, pointing to a December same‑store sales comp of +0.3% and total revenue growth of +2.3%, with events nearly flat for the quarter and January showing “strong double‑digit” comps despite a ~$5M January snow hit (and ~$2M in December); center payroll was up $6M YoY, marketing spend up $4M YoY plus $1M for the marketing team, retail comp ~1.7% (retail food +10.9%, retail non‑alcoholic +26.2% or +$2M, retail alcohol -4.7%), online revenue +28% YoY, media impressions rose from ~340M to >1B (~+200%), search impressions +520% while CPMs fell 38%, booking conversions doubled, server tablets (125 locations) lifted average check ~7% and will be in 160 locations by March, Kraft Lemonades has a >$5M run rate, summer season passes were $13M last year and management expects to exceed that, acquisitions this year totaled ~$95M (including Raging Waters) and water parks/Boomers should provide meaningful EBITDA lifts in the June and September quarters with material margin expansion expected in Q4.Lucky Strike Entertainment Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
18
Very Negative
Cash Flow
61
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.24B | 1.20B | 1.15B | 1.06B | 911.71M | 395.23M |
| Gross Profit | 410.00M | 447.08M | 314.18M | 342.41M | 301.73M | 20.98M |
| EBITDA | 334.69M | 394.71M | 211.42M | 218.06M | 170.79M | 53.21M |
| Net Income | -87.88M | -10.02M | -83.58M | 82.05M | -29.93M | -126.46M |
Balance Sheet | ||||||
| Total Assets | 3.27B | 3.16B | 3.11B | 2.84B | 1.85B | 1.78B |
| Cash, Cash Equivalents and Short-Term Investments | 95.91M | 59.69M | 66.97M | 195.63M | 132.24M | 187.09M |
| Total Debt | 3.82B | 2.63B | 2.41B | 2.26B | 1.27B | 1.25B |
| Total Liabilities | 3.50B | 3.33B | 3.16B | 2.54B | 1.66B | 1.45B |
| Stockholders Equity | -233.02M | -171.35M | -49.85M | 299.55M | 192.32M | 330.12M |
Cash Flow | ||||||
| Free Cash Flow | 42.87M | 36.16M | -39.75M | 68.25M | 12.87M | 15.04M |
| Operating Cash Flow | 150.73M | 177.22M | 154.83M | 217.79M | 177.67M | 58.23M |
| Investing Cash Flow | -441.24M | -220.31M | -385.66M | -253.22M | -220.34M | -46.68M |
| Financing Cash Flow | 305.09M | 35.86M | 102.16M | 98.96M | -12.14M | 34.80M |
Lucky Strike Entertainment Technical Analysis
Positive
8.67
Price Trends
8.07
Positive
8.27
Positive
8.89
Negative
Market Momentum
0.11
Negative
59.80
Neutral
78.20
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 8.67 is above the 20-day moving average (MA) of 8.14, above the 50-day MA of 8.07, and below the 200-day MA of 8.89, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 78.20 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.50B | 29.88 | 13.18% | 0.79% | 7.27% | 45.12% | |
67 Neutral | $2.81B | 21.84 | 22.66% | ― | 1.56% | -17.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $2.02B | -16.60 | 12.90% | ― | -8.74% | 74.66% | |
51 Neutral | $1.19B | -24.17 | 60.90% | 2.51% | 3.88% | 34.36% | |
47 Neutral | $371.23M | -2.45 | ― | ― | -3.55% | -111.90% |
* Consumer Cyclical Sector Average
LUCK
Lucky Strike Entertainment
8.67
-0.21
-2.34%
YETI
Yeti Holdings
37.32
8.20
28.16%
OSW
OneSpaWorld Holdings
24.68
7.69
45.27%
PTON
Peloton Interactive
4.74
-0.84
-15.05%
XPOF
Xponential Fitness
7.58
0.23
3.13%
Lucky Strike Entertainment Corporate Events
Business Operations and StrategyExecutive/Board Changes
Lucky Strike Consolidates Leadership as CEO Becomes President
Neutral
Feb 19, 2026
On February 18, 2026, Lucky Strike Entertainment Corporation announced that President Lev Ekster resigned and will be succeeded by Chairman and Chief Executive Officer Thomas Shannon, who will now also serve as president. The leadership change con...
Financial Disclosures
Lucky Strike schedules Q2 fiscal results webcast
Neutral
Feb 4, 2026
Lucky Strike Entertainment, an operator in the entertainment sector offering experiential venues that combine bowling, dining, and events, continues to target urban lifestyle consumers seeking premium social experiences. On February 4, 2026, the c...
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.