Overview

• U.S. location-based entertainment firm's fiscal Q3 revenue rose 0.7% but missed analyst expectations

• Adjusted EBITDA for fiscal Q3 declined from prior year

• Company repurchased 1.1 mln shares and acquired a water park during the quarter

Outlook

• Lucky Strike sees fiscal yr 2026 revenue of $1,250 mln to $1,260 mln

• Company expects fiscal yr 2026 adjusted EBITDA of $345 mln to $350 mln

• Labor and cost optimization actions expected to deliver benefits from Q4 2026 onward

Result Drivers

• WEATHER AND MACRO HEADWINDS - Co said two major winter storms and a decline in consumer sentiment after Middle East conflict escalation hurt traffic and discretionary spending

• ELEVATED PAYROLL COSTS - Co experienced higher payroll expenses early in the qtr, which were addressed through labor optimization actions by mid-February

• AI AND COST OPTIMIZATION - Co said ongoing AI and centralized operational tools have improved efficiency and are expected to deliver further cost savings

Company press release: ID:nBw3d6JMPa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• Wall Street's median 12-month price target for Lucky Strike Entertainment Corp is $11.00, about 41.9% above its May 5 closing price of $7.75

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 50 three months ago

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