LUCK Stock Forecast & Price Target

Lucky Strike Entertainment Corp is benefiting from a successful strategy of enhancing food and beverage offerings, evidenced by a 2.5% year-over-year increase in same-store food sales in F4Q25, significantly outpacing the overall comparable store average. The company is on track to achieve its goal of 100 Lucky Strike-branded bowling centers by year-end, with promising results seen in re-branded venues, particularly those in California, where increased visitation and pricing power have been observed. Additionally, strong momentum in season pass sales, with a 37% increase in annual units sold, is expected to further boost customer engagement and spending across non-bowling categories, supporting a positive outlook for the company's financial performance.

Lucky Strike Entertainment Corp is facing significant challenges, as evidenced by a 4.1% year-over-year decline in same-store sales, particularly impacted by poor performance in regions heavily reliant on tech corporate events. Additionally, management's decision to increase marketing expenditures to 2-3% of revenues from previous levels under 1% indicates a necessary but potentially burdensome shift to boost brand visibility, which may strain financial resources amidst ongoing operational difficulties. Furthermore, the company is lowering its fiscal year 2026 EBITDA estimates due to anticipated performance drag from its recent acquisition in California, a market that accounted for over half of its EBITDA headwind this quarter.