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Lucky Strike Entertainment Corporation (LUCK)
:LUCK
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Lucky Strike Entertainment (LUCK) AI Stock Analysis

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LUCK

Lucky Strike Entertainment

(NYSE:LUCK)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
$8.00
▲(0.88% Upside)
Lucky Strike Entertainment's overall stock score is primarily impacted by its financial performance, which reveals significant challenges with high leverage and negative profitability. However, the positive sentiment from the earnings call, highlighting revenue and EBITDA growth, provides some optimism. The technical indicators suggest a bearish trend, and the valuation metrics reflect the company's current financial struggles. The dividend yield offers a slight positive aspect for income-focused investors.
Positive Factors
Revenue and EBITDA Growth
The strong revenue and EBITDA growth indicate robust financial performance, suggesting the company is effectively expanding its market presence and improving operational efficiency.
Strategic Acquisitions
These acquisitions are expected to generate above-average returns, enhancing the company's market position and diversifying its entertainment offerings.
Online Booking Success
The growth in online bookings reflects increasing customer engagement and digital sales effectiveness, which is crucial for long-term competitiveness in the digital age.
Negative Factors
High Leverage
High leverage poses financial risk and potential solvency issues, limiting the company's ability to invest in growth opportunities and weather economic downturns.
Decline in Offline Events Business
The decline in offline events impacts overall revenue and highlights challenges in adapting to changing consumer preferences and economic conditions.
Negative Profitability
Negative profitability indicates operational challenges and the need for cost management improvements to ensure long-term financial sustainability.

Lucky Strike Entertainment (LUCK) vs. SPDR S&P 500 ETF (SPY)

Lucky Strike Entertainment Business Overview & Revenue Model

Company DescriptionLucky Strike Entertainment (LUCK) is a diversified entertainment company specializing in the development, production, and distribution of gaming and entertainment content. The company operates in various sectors, including online gaming, mobile applications, and traditional entertainment platforms, focusing on delivering innovative experiences to a wide audience. LUCK's core products encompass a range of interactive games, virtual reality experiences, and multimedia entertainment solutions designed to engage users and enhance their entertainment options.
How the Company Makes MoneyLucky Strike Entertainment generates revenue through multiple channels. The primary revenue stream comes from in-game purchases and microtransactions within its gaming platforms, allowing players to buy virtual goods and enhancements. Additionally, LUCK earns income from subscription services that offer premium content and exclusive access to new game releases. The company also partners with advertising networks to monetize its free-to-play games through ad placements, providing an additional revenue source. Strategic collaborations with other entertainment firms and technology companies further enhance its earnings through co-productions and licensing deals, expanding its market reach and audience engagement.

Lucky Strike Entertainment Earnings Call Summary

Earnings Call Date:Nov 04, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and EBITDA growth, strategic acquisitions, and successful cost management. However, challenges in the offline events business and regional difficulties in California and Washington were noted. The overall picture indicates robust growth with some areas needing attention.
Q1-2026 Updates
Positive Updates
Revenue and EBITDA Growth
Total revenue grew 12% and adjusted EBITDA was up 15% in the first quarter of 2026, indicating strong financial performance.
Strategic Acquisitions
Acquired two profitable water parks and three family entertainment centers, expected to generate above-average returns, broadening leadership in the entertainment sector.
Online Booking Success
Double-digit growth in the online booking funnel, signaling increasing customer engagement and digital sales effectiveness.
Cost Management and Capital Efficiency
CapEx reduced from $42 million to $26 million year-over-year, reflecting improved capital allocation and procurement efficiency.
Real Estate Investment
Acquired land and buildings for 58 locations for $306 million, enhancing flexibility and reducing future rent exposure.
Strong Performance in Retail and Leagues
Retail revenue up 1.4% and league revenue up 2.1%, with October showing the strongest month of the year for events.
Adjusted EBITDA Margin Expansion
Achieved a 70 basis point expansion in adjusted EBITDA margin, with expectations of further improvements in upcoming quarters.
Negative Updates
Decline in Offline Events Business
Offline events business, mostly corporate event bookings, down 11%, negatively impacting total comps.
Challenges in California and Washington
Significant challenges in California and Washington due to Silicon Valley layoffs, affecting corporate events business.
Flat Same-Store Sales
Same-store sales were nearly flat at negative 0.4%, indicating challenges in maintaining growth across existing venues.
Company Guidance
During the Lucky Strike Entertainment First Quarter 2026 earnings call, key metrics highlighted included a 12% growth in total revenue and a 15% increase in adjusted EBITDA. The same-store sales were nearly flat at -0.4%, with retail revenue up 1.4% and league revenue up 2.1%. Online booking funnel growth was reported at double digits, while offline events saw an 11% decline, impacting total comps by approximately 160 basis points. Capital expenditure for the quarter was reduced to $26 million, a decrease from $42 million the previous year. A strategic real estate investment of $306 million was made to acquire the land and buildings for 58 locations, and a $1.7 billion refinancing was completed, extending debt maturities to 2032 with a 7% weighted average cost of capital. The company expanded by acquiring two water parks and three family entertainment centers, expecting the $90 million transaction to yield favorable returns by next summer. The integration of new leadership positions was also emphasized, with the introduction of a Chief Revenue Officer and a Vice President of Field Training, aiming to enhance service and culture.

Lucky Strike Entertainment Financial Statement Overview

Summary
Lucky Strike Entertainment faces significant financial challenges, with high leverage and negative profitability impacting its financial stability. While there is some revenue growth and operational efficiency, the negative equity and declining cash flows pose substantial risks. The company needs to address its leverage and improve profitability to enhance its financial health.
Income Statement
45
Neutral
Lucky Strike Entertainment shows moderate revenue growth with a TTM growth rate of 2.67%. However, the company is struggling with profitability, as indicated by a negative net profit margin of -3.80% in the TTM. The gross profit margin is relatively healthy at 37.16%, but the negative net income suggests operational challenges. The EBIT and EBITDA margins are positive, indicating some operational efficiency, but the overall profitability remains a concern.
Balance Sheet
30
Negative
The balance sheet reveals significant financial leverage, with a negative debt-to-equity ratio due to negative stockholders' equity. This indicates high financial risk and potential solvency issues. The return on equity is positive at 36.87%, but this is skewed by the negative equity. The equity ratio is also negative, highlighting the company's reliance on debt financing.
Cash Flow
40
Negative
Cash flow analysis shows a decline in free cash flow growth by -55.70% in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.73, suggesting that cash flow generation is not fully supporting net income. The free cash flow to net income ratio is low at 0.11, further emphasizing cash flow challenges.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.23B1.20B1.15B1.06B911.71M395.23M
Gross Profit458.35M447.08M314.18M342.41M301.73M20.98M
EBITDA355.89M394.71M211.42M218.06M170.79M53.21M
Net Income-46.91M-10.02M-83.58M82.05M-29.93M-126.46M
Balance Sheet
Total Assets3.20B3.16B3.11B2.84B1.85B1.78B
Cash, Cash Equivalents and Short-Term Investments79.09M59.69M66.97M195.63M132.24M187.09M
Total Debt2.59B2.63B2.41B2.26B1.27B1.25B
Total Liabilities3.28B3.33B3.16B2.54B1.66B1.45B
Stockholders Equity-86.40M-171.35M-49.85M299.55M192.32M330.12M
Cash Flow
Free Cash Flow16.02M36.16M-39.75M68.25M12.87M15.04M
Operating Cash Flow141.40M177.22M154.83M217.79M177.67M58.23M
Investing Cash Flow-495.53M-220.31M-385.66M-253.22M-220.34M-46.68M
Financing Cash Flow346.34M35.86M102.16M98.96M-12.14M34.80M

Lucky Strike Entertainment Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.93
Price Trends
50DMA
9.41
Negative
100DMA
9.68
Negative
200DMA
9.63
Negative
Market Momentum
MACD
-0.45
Negative
RSI
31.51
Neutral
STOCH
25.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUCK, the sentiment is Negative. The current price of 7.93 is below the 20-day moving average (MA) of 8.50, below the 50-day MA of 9.41, and below the 200-day MA of 9.63, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 31.51 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LUCK.

Lucky Strike Entertainment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$2.23B30.9013.53%0.69%7.27%45.12%
68
Neutral
$2.82B18.8821.77%1.56%-17.21%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
58
Neutral
$1.95B-46.95%-3.58%-12720.97%
48
Neutral
$3.12B-8.74%74.66%
46
Neutral
$1.12B2.72%3.88%34.36%
41
Neutral
$311.58M-3.55%-111.90%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LUCK
Lucky Strike Entertainment
7.93
-3.78
-32.28%
MODG
Topgolf Callaway Brands
10.55
1.11
11.76%
YETI
Yeti Holdings
36.51
-4.87
-11.77%
OSW
OneSpaWorld Holdings
21.85
2.70
14.10%
PTON
Peloton Interactive
7.44
-0.87
-10.47%
XPOF
Xponential Fitness
6.40
-9.30
-59.24%

Lucky Strike Entertainment Corporate Events

Bowlero Corp. Reports Robust Q1 2026 Earnings
Nov 6, 2025

Bowlero Corp. Class A recently held its earnings call, revealing a generally positive sentiment with notable achievements in revenue and EBITDA growth. The company has successfully navigated strategic acquisitions and cost management, although it faces challenges in its offline events business and regional difficulties in California and Washington. Overall, the call painted a picture of robust growth with certain areas requiring attention.

Lucky Strike Entertainment Reports Q1 2026 Results
Nov 5, 2025

Lucky Strike Entertainment, a leading operator in the location-based entertainment industry, offers a diverse range of experiences including bowling, amusements, and water parks across North America. In its first quarter of fiscal year 2026, Lucky Strike reported a 12.3% increase in total revenue to $292.3 million, despite a slight decrease in same-store revenue by 0.4%. The company faced a net loss of $13.8 million, contrasting with a net income of $23.1 million in the previous year, while adjusted EBITDA rose to $72.7 million from $62.9 million.

Business Operations and StrategyDividendsFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Lucky Strike Reports Q1 2026 Financial Results
Neutral
Nov 4, 2025

On November 4, 2025, Lucky Strike Entertainment reported its financial results for the first quarter of fiscal year 2026, which ended on September 28, 2025. The company saw a 12.3% increase in total revenue to $292.3 million, despite a net loss of $13.8 million compared to a net income of $23.1 million the previous year. The company expanded its footprint by acquiring three family entertainment centers and one water park, bringing its total locations to 369. Lucky Strike also announced a 9% increase in its quarterly cash dividend. The company refinanced its credit facility on September 22, 2025, extending the maturity of its debt and reducing interest rates, which strengthens its financial flexibility and supports long-term growth.

The most recent analyst rating on (LUCK) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.

Private Placements and Financing
Lucky Strike Entertainment Announces New Financial Obligation
Neutral
Sep 23, 2025

The news release from Lucky Strike Entertainment lacks sufficient information to provide a comprehensive summary. It only mentions that information from Item 1.01 is incorporated by reference into Item 2.03, without further context or details about the company’s operations or implications for stakeholders.

The most recent analyst rating on (LUCK) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.

Private Placements and Financing
Lucky Strike Announces $500M Notes Offering Pricing
Neutral
Sep 17, 2025

On September 16, 2025, Lucky Strike Entertainment announced the pricing of a $500 million senior secured notes offering and a $1,200 million tranche of term loans, both maturing in 2032. The proceeds will be used to refinance existing facilities and for general corporate purposes, potentially impacting the company’s financial structure and market positioning.

The most recent analyst rating on (LUCK) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.

Financial DisclosuresPrivate Placements and Financing
Lucky Strike Entertainment Announces Refinancing Initiative
Neutral
Sep 10, 2025

On September 10, 2025, Lucky Strike Entertainment Corporation reported positive same-store sales growth for July and August 2025 compared to the same months in 2024, with total revenue showing double-digit growth. However, these results are preliminary, unaudited, and subject to change, as they are based on internal reporting and not yet reviewed by an independent accounting firm. The company also announced a refinancing initiative involving a $700 million offering of new senior secured notes and a $1,000 million new term loan facility, aiming to repay existing debts and fund general corporate purposes. These financial maneuvers are contingent on market conditions and may not be completed as planned.

The most recent analyst rating on (LUCK) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.

Bowlero Corp. Earnings Call Highlights Strategic Growth
Sep 1, 2025

Bowlero Corp. Class A’s recent earnings call reflected a generally positive outlook, driven by strategic growth through acquisitions and innovative offerings. Despite facing some challenges in same-store sales and specific segments, the company demonstrated confidence in its future growth, supported by strong liquidity and aggressive expansion plans.

Lucky Strike Entertainment Reports Solid Fiscal Year 2025 Results
Aug 29, 2025

Lucky Strike Entertainment is a leading location-based entertainment company with a diverse portfolio that includes bowling, amusements, water parks, and family entertainment centers, operating over 360 locations across North America. The company recently reported its financial results for the fourth quarter and full fiscal year 2025, highlighting a total revenue growth of 6.1% in the fourth quarter and 4.0% for the full year. Despite a net loss, the company showed improvements in adjusted EBITDA and continued its expansion efforts.

Business Operations and StrategyFinancial Disclosures
Lucky Strike Entertainment Reports Q4 Revenue Growth
Positive
Aug 28, 2025

Lucky Strike Entertainment reported a 6.1% revenue growth in the fourth quarter of fiscal year 2025, ending June 29, 2025, despite a net loss increase to $74.7 million. The company expanded its locations to 370, with significant contributions from acquisitions and new builds, and highlighted the success of its revamped Summer Season Pass program, which drove record visitor numbers and revenue. The company remains focused on profitable growth and issued a positive revenue and EBITDA guidance for fiscal year 2026.

The most recent analyst rating on (LUCK) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.

Dividends
Lucky Strike Declares Quarterly Cash Dividend
Positive
Aug 19, 2025

On August 19, 2025, Lucky Strike Entertainment‘s Board of Directors declared a quarterly cash dividend of $0.055 per share, payable on September 12, 2025, to shareholders recorded by August 29, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and may impact its financial positioning by reinforcing investor confidence.

The most recent analyst rating on (LUCK) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Lucky Strike Entertainment stock, see the LUCK Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 07, 2025