LUCK Stock Forecast & Price Target

Lucky Strike Entertainment Corp is experiencing a positive trend in financial performance, as evidenced by a reported 2.5% year-over-year increase in same-store food sales during F4Q25, highlighting the successful impact of investments in food and beverage quality. The company is advancing its strategy to convert Bowlero locations to Lucky Strike branded centers, with a target of reaching 100 locations by year-end, which should bolster visitation and enhance pricing power, particularly in competitive markets like California. Additionally, robust momentum in season pass sales, which increased by 37% in FY25, alongside improvements in non-bowling revenue streams, positions the company favorably for continued growth into F1Q26.

Lucky Strike Entertainment Corp faces a challenging financial outlook as demonstrated by a 4.1% year-over-year decline in same-store sales, particularly influenced by pressures in California, which accounted for over half of an $11 million EBITDA headwind during the fourth quarter of FY25. The company's overreliance on the tech corporate sector in the Events business, which also experienced a high single-digit percentage decline in F4Q25, adds additional risk to its revenue stability. Furthermore, management's intention to increase marketing spend from less than 1% to a target of 2% to 3% of revenues, in response to historically underperforming marketing efforts, will likely elevate costs without guaranteed immediate returns, thereby impacting future profitability projections.