LUCK Stock Forecast & Price Target

Lucky Strike Entertainment Corp has demonstrated a successful strategy by enhancing its food and beverage quality, resulting in a 2.5% year-over-year increase in same-store food sales for F4Q25, which significantly outperformed overall sector averages. The company is also actively pursuing its goal of converting Bowlero locations to Lucky Strike-branded centers, with a target of 100 conversions by year-end, focusing particularly on areas in California where increased engagement is anticipated. Additionally, the strong momentum from season pass sales, which saw a 37% annual increase in FY25, alongside the continued improvement in food and beverage offerings, positions Lucky Strike for a favorable outlook as it enters F1Q26.

Lucky Strike Entertainment Corp faces a negative outlook due to declining same-store sales, which were down 4.1% year-over-year, primarily driven by pressures in the California market that significantly impacted EBITDA. Furthermore, the company is adjusting its FY26 and long-term EBITDA estimates downward due to the anticipated delays associated with the acquisition of the largest water park in California, alongside rising marketing expenses aimed at improving brand presence after historically low investments. The company's performance is further constrained by its heavy reliance on tech corporates in the Events business, which experienced a decline in the most recent quarter, raising concerns about revenue stability in the near term.