Lucky Strike Entertainment (LUCK) Q1 2027 Earnings Report

The call was broadly positive. Revenue grew, same-store trends improved sequentially, event and league businesses were positive, water park EBITDA increased by $9 million, marketing efficiency improved, costs were controlled, and fiscal 2027 EBITDA guidance was reaffirmed. These positives were partially offset by a 2.6% cumulative same-store revenue decline, flat adjusted EBITDA, lower alcohol and consumer-event sales, elevated leverage, and the suspension of the quarterly dividend.

Management is reaffirming fiscal 2027 adjusted EBITDA guidance of $340 million to $360 million, expects to spend roughly $90 million of CapEx this year compared with $114 million last year and $194 million at the peak, and endeavors to put roughly $100 million towards debt reduction over the next year, which at the midpoint of our EBITDA guidance would bring leverage down to about 5x from 5.5x last year's adjusted EBITDA. The quarterly dividend is suspended, bringing up about $35 million of cash a year, while noncore asset sales are intended to help pay down a few hundred million of debt. Fall recurring revenue league business looks to be up 3% to 4%, October through December event bookings are tracking up on a comparative basis, led by corporate events, corporate parties are up double digits, and ambitious sales increases are targeted for next season's water-park pass sales and pricing.