Lucky Strike Q2 revenue misses expectations

Overview

• Location-based entertainment firm's Q2 revenue rose 2.3% yr/yr but missed analyst expectations

• Company reported a net loss of $12.7 mln versus prior year net income of $28.3 mln

Outlook

• Lucky Strike reaffirms fiscal year 2026 revenue guidance of $1,260 mln to $1,310 mln

• Company expects adjusted EBITDA between $375 mln and $415 mln for fiscal year 2026

• Lucky Strike anticipates significant margin expansion in summer peak season

Result Drivers

• SAME STORE SALES - Positive growth in same store sales driven by walk-in retail, league play, and improved event sales, according to CEO Thomas Shannon

• COST MANAGEMENT - Disciplined capital allocation reduced capital expenditures, strengthening free cash flow

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the leisure & recreation peer group is "buy"

• Wall Street's median 12-month price target for Lucky Strike Entertainment Corp is $14.00, about 93.9% above its February 3 closing price of $7.22

• The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 254 three months ago

Press Release: ID:nBw9bmPzHa

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