LUCK Stock Forecast & Price Target

Lucky Strike Entertainment Corp is demonstrating a positive outlook supported by an increase in same-store food sales, which grew by 2.5% year-over-year in F4Q25, indicating successful investments in food and beverage quality. Management is on track to achieve its target of 100 Lucky Strike-branded bowling centers by year-end, with promising conversion results including an increase in visitation and pricing power, notably in California, which is anticipated to drive further engagement. Additionally, robust sales growth in season pass offerings, with a 37% increase in units sold in FY25, alongside enhancements in food and beverage sales, positions the company favorably for ongoing revenue growth and improved customer experiences.

The financial outlook for Lucky Strike Entertainment Corp is negative due to significant challenges within its core market, particularly as the company remains highly dependent on tech corporates in the Events business, which experienced a decline in performance. The same-store sales demonstrated a year-over-year decrease of 4.1%, with management acknowledging that while there was a positive inflection at the end of the fiscal year, the current trend paints a troubling picture for revenue stability. Additionally, the company's underinvestment in marketing, with expenditures totaling less than 1% of revenues in FY25, is poised to increase but may not sufficiently counterbalance the anticipated drag on EBITDA resulting from the recent acquisition of a major water park in California and ongoing pressures in this key region.