LUCK Stock Forecast & Price Target

Lucky Strike Entertainment Corp has demonstrated solid financial performance driven by strategic investments in food and beverage quality, resulting in a 2.5% year-over-year increase in same-store food sales for F4Q25. The company's successful conversion of Bowlero locations to the Lucky Strike brand has led to increased visitation and pricing power, particularly in California, with a goal of reaching 100 locations by year-end. Additionally, the momentum from increased season pass sales, which rose by 37% in FY25, is anticipated to further boost visitation and spending across non-bowling categories, solidifying a positive outlook for the company's financial trajectory.

Lucky Strike Entertainment Corp's stock outlook is negatively influenced by a significant downturn in its core events business, which is highly dependent on tech corporates, resulting in a high single-digit percentage decline in the fourth quarter of fiscal 2025. The company reported a year-over-year same-store sales decrease of 4.1%, compounded by challenges in key markets, particularly California, which contributed substantially to the EBITDA headwind during the same period. Furthermore, projected increases in marketing expenditures, from under 1% to a target range of 2% to 3% of revenues, highlight past underinvestment and could further strain profitability as the company seeks to enhance brand presence.