LUCK Stock Forecast & Price Target

Lucky Strike Entertainment Corp has demonstrated a positive financial trajectory, highlighted by a 2.5% year-over-year increase in same-store food sales as of F4Q25, attributed to ongoing investments in food and beverage quality. The company's efforts to transition Bowlero locations to Lucky Strike-branded centers have shown promising results, with a robust increase in visitation and pricing power at rebranded venues, particularly in California, which is expected to enhance engagement in that region. Additionally, the impressive growth in season pass sales, which rose by 37% in FY25, alongside the continuous uptake of food and beverage offerings, suggests a strong momentum heading into the upcoming fiscal periods.

Lucky Strike Entertainment Corp is facing a challenging financial outlook due to a significant reliance on the tech events sector, which experienced a high single-digit percentage decline in the fourth quarter of fiscal year 2025. Additionally, the company reported a same-store sales drop of 4.1% year-over-year, with California contributing heavily to this downturn and presenting a substantial EBITDA headwind. The planned increase in marketing expenses from below industry benchmarks to 2% to 3% of revenues aims to address these issues but introduces further concerns about profitability amidst an already struggling income environment.