Lucky Strike Entertainment Posts Modest Growth, Signals Turnaround in Events Business
Lucky Strike Entertainment (NYSE: BOWL) pointed to a fragile but positive shift in its performance during its fiscal second-quarter earnings call. After quarters of pressure, management highlighted a return to modest comparable sales growth and, more notably, the first green shoots in its beleaguered events business.
For the period ended December 28, 2025, the company, which operates one of North America's largest bowling and entertainment networks, reported a same-store sales increase of 0.3% and total revenue growth of 2.3%. "We are beginning to see the results of our strategic recalibration," stated Founder and CEO Thomas Shannon. He emphasized that the events segment, a persistent weak spot, ended the quarter "nearly flat," marking its best performance in years.
The improvement, however, came at a cost. Executives acknowledged "deliberate investments" in labor and marketing during the quarter, which drove traffic but also weighed on profitability. CFO Bobby Lavan detailed several year-over-year cost headwinds, including a 6% rise in payroll and a 4% increase in marketing spend. In response, the company is pivoting to a more disciplined financial approach, vowing future investments will be "more targeted" and held to a higher return threshold.
A key lever in the events turnaround has been pricing strategy. After two years of "chasing price" with discounts, the company has implemented dynamic pricing systems. "We brought the events business all the way back largely through price rather than volume," Lavan explained, noting the segment returned to organic growth in January and February.
The company's brand consolidation plan remains on track. President Lev Ekster reported completing 30 rebrandings from Bowlero to Lucky Strike in the quarter, with the full transition expected by year-end. The move to a simplified two-brand portfolio (Lucky Strike and the legacy AMF brand) aims to boost national marketing efficiency. A refreshed look for the century-old AMF brand is also planned for later this year.
Looking ahead, management is banking on its recent acquisitions to provide a seasonal earnings lift. The January purchase of Raging Waters, California's largest water park, is expected to contribute meaningfully to EBITDA in the coming summer quarters. Combined with other water parks and family entertainment centers, these assets are poised to diversify revenue streams. However, weather remains a wild card; severe snowstorms already dented revenue by an estimated $7 million across December and January.
Analyst & Investor Commentary:
"The flat events number is the real story here. After being a millstone for so long, even stabilization is a win. The dynamic pricing pivot seems to be working, and the seasonal asset strategy could finally provide the earnings diversification they've needed." – Michael R. Chen, Senior Analyst at Horizon Capital Advisors
"A 0.3% comp is nothing to celebrate. It shows fundamental demand is still weak. They're touting a 'turnaround' built on cutting discounts and hoping for good weather at water parks. This feels like rearranging deck chairs. Where's the organic growth engine?" – Sarah J. Feldstein, Managing Partner at Feldstein Capital Partners (sharper, more critical tone)
"The rebranding and portfolio simplification is a smart, long-term play for marketing clarity. The capital investments in the new FEC [Family Entertainment Center] assets are already showing impressive returns, like the 25% revenue pop at Boomers. Execution this summer will be critical." – David Park, Retail & Leisure Sector Fund Manager