LUCK Stock Forecast & Price Target

Lucky Strike Entertainment Corp. demonstrates a promising financial trajectory, marked by a 2.5% year-over-year increase in same-store food sales for the fourth quarter of fiscal 2025, indicating the effectiveness of recent investments in food and beverage enhancements. The ongoing conversion of Bowlero locations to Lucky Strike branding is expected to bolster visitation and pricing power, particularly in California, where the majority of conversions remain. Additionally, the significant growth in season pass sales—up 37% in fiscal year 2025—suggests increased customer engagement, which may further elevate non-bowling revenue streams, including food and beverage sales.

Lucky Strike Entertainment Corp is facing a challenging financial outlook due to a significant reliance on the technology sector for its Events business, which registered a high single-digit percentage decline in the fourth quarter of fiscal year 2025. The company's same-store sales also experienced a 4.1% year-over-year decline, contributing to an $11 million EBITDA headwind, particularly pronounced in California, which has been significantly affected by this downturn. Additionally, while management plans to increase marketing expenditures from below 1% to 2%-3% of revenues to better align with industry standards, this shift comes at a time when overall EBITDA estimates for fiscal year 2026 are being lowered, indicating a potential drag on financial performance in the near term.