Lucky Strike Q1 2027 Revenue Rises as Same-Store Sales Fall

Lucky Strike (LUCK) reported fiscal first-quarter 2027 revenue of $302.6 million, up 3.5% from $292.3 million a year earlier, as acquired locations contributed to growth while same-store revenue declined. The company’s GAAP net loss widened, and adjusted EBITDA was nearly unchanged as margins narrowed.

For the three months ended September 27, 2026, same-store revenue fell 2.6% to $272.3 million across a comparable base of 360 locations. Acquired revenue increased to $27.6 million from $6.5 million in the year-earlier quarter, while total location revenue rose 4.8% to $299.9 million.

The GAAP net loss widened to $25.7 million, or an 8.5% margin, from $13.8 million, or 4.7%, in the prior-year period. Adjusted EBITDA slipped to $72.1 million from $72.7 million, with the adjusted EBITDA margin declining to 23.8% from 24.9%. Operating income remained approximately $28 million.

Location performance and portfolio expansion

Adjusted location revenue excluding service fees was about $300 million, compared with $289 million a year earlier. Retail revenue increased to $218 million from $212 million, while events revenue rose to $59 million from $55 million. League and tournament revenue was $23 million in both periods.

Adjusted location EBITDA increased to $105 million from $103 million, although the related margin declined to 35% from 36%. Adjusted location gross profit rose to $194 million from $185 million, with the margin improving to 65% from 64%. Lucky Strike operated 366 locations as of November 2026.

The company is broadening its portfolio beyond bowling through family entertainment centers and water parks, including the Boomers platform. It said the expanded mix increases non-bowling revenue and helps reduce traditional seasonality by adding summer sales. For fiscal 2026, bowling represented 45% of revenue, food and beverage accounted for 35%, and amusement and other activities contributed 20%.

Rebranding and capital spending

Lucky Strike said its rebranding program was 84% complete, with 182 of 217 planned locations converted and 35 remaining. The company plans to retire the Bowlero brand by early to mid-2027.

Capital expenditures are expected to total $90 million in fiscal 2027, down from $114 million in fiscal 2026 and $194 million in fiscal 2024. Management continues to target long-term EBITDA margins above 30%, based partly on the expectation that locations opened or acquired since 2022 will move closer to the economics of the mature fleet. The presentation indicated that these newer centers currently have four-wall EBITDA margins of about 30%, compared with 42% for pre-2022 locations, leaving an estimated 500 to more than 1,000 basis points of potential margin improvement.

The company also identified 75 owned properties with more than $700 million of potential value, based on assumed sale-leaseback multiples, which it said could provide strategic and financial flexibility.

Risks and uncertainties

Lucky Strike cautioned that its outlook depends on factors including consumer preferences and discretionary spending, competition, execution of its expansion and rebranding plans, and the performance of acquired locations. The company also cited substantial indebtedness, limits on future liquidity, long-term non-cancellable leases, inflation, interest rates, economic conditions, employee retention, litigation and cybersecurity risks.

The company’s fiscal 2027 guidance measures other than revenue are presented on a non-GAAP basis without reconciliations because management said certain GAAP items, including acquisition-related expenses and share-based compensation, cannot be predicted with reasonable certainty.