Lucky Strike’s third quarter results reflected a mix of steady customer engagement and shifting business dynamics. Management attributed the period’s performance to ongoing strength in core walk-in retail and league bowling, which saw increased participation and food and beverage sales. CEO Thomas Shannon pointed to “encouraging momentum in our online booking funnel” and highlighted the impact of disciplined cost management and capital allocation. However, softness in corporate events bookings weighed on overall same-store sales, a trend the company believes is beginning to improve based on October results.
Is now the time to buy LUCK? Find out in our full research report (it’s free for active Edge members).
Lucky Strike (LUCK) Q3 CY2025 Highlights:
- Revenue: $292.3 million vs analyst estimates of $282.9 million (12.3% year-on-year growth, 3.3% beat)
- EPS (GAAP): -$0.12 vs analyst estimates of -$0.15 (18.7% beat)
- Adjusted EBITDA: $72.65 million vs analyst estimates of $70.68 million (24.9% margin, 2.8% beat)
- The company reconfirmed its revenue guidance for the full year of $1.29 billion at the midpoint
- EBITDA guidance for the full year is $395 million at the midpoint, above analyst estimates of $390.2 million
- Operating Margin: 9.7%, up from 5% in the same quarter last year
- Same-Store Sales were flat year on year, in line with the same quarter last year
- Market Capitalization: $1.11 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Lucky Strike’s Q3 Earnings Call
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Matthew Boss (JPMorgan Chase & Co): asked about the drivers of flat same-store sales and signs of recovery in events. President Lev Ekster and CFO Robert Lavan detailed strength in league and retail segments, and noted October’s strong event bookings as an early positive sign.
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Steven Wieczynski (Stifel): questioned the cadence of same-store sales and headwinds for the remainder of the year. Lavan explained that inorganic growth from acquisitions will have the largest impact in the first and fourth quarters, while same-store sales are expected to improve gradually.
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Randal Konik (Jefferies): requested an update on the rebranding progress and its economic impact. Ekster described higher food and beverage attachment rates and stronger results at rebranded flagship locations, with further upside as more conversions are completed.
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Jason Tilchen (Canaccord Genuity): inquired about walk-in retail trends and the performance of newly acquired water parks. Lavan noted positive retail comps in October and shared learnings from integrating water park operations, including the importance of premium value offerings and cross-marketing.
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Michael Kupinski (NOBLE Capital Markets): asked about food and beverage growth compared to bowling revenue at Lucky Strike versus Bowlero locations. Ekster and Lavan emphasized that improved menus and staffing are driving attachment, and that there is significant additional upside as more locations convert to the new brand.
Catalysts in Upcoming Quarters
Going forward, the StockStory team will track (1) the pace of additional Lucky Strike rebrand conversions and resulting changes in food and beverage sales, (2) operational and financial performance of the newly integrated water parks and family entertainment centers, and (3) sustained improvement in corporate events bookings, particularly in markets impacted by tech industry softness. Execution on marketing campaigns and further menu innovation will also be important indicators of momentum.
Lucky Strike currently trades at $7.93, down from $8.07 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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