Lucky Strike Entertainment Corporation (NYSE:LUCK) Q2 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlights several negative factors: a decline in revenue and adjusted EBITDA, reduced capital expenditures, and macroeconomic uncertainties affecting consumer behavior. The Q&A reveals concerns about same-store sales and management's unclear responses on key issues. Despite a positive EPS growth, the absence of a share repurchase program and lack of strong guidance further weigh on sentiment. Overall, the cautious outlook and potential risks suggest a negative stock price reaction.
Key Financial Performance
Earnings Per Share (EPS) $0.16, up from $0.06 year-over-year.
Total Revenue $300.1 million, down 1.8% from $305.7 million year-over-year due to one less week of holiday events and a push of New Year’s into the next quarter.
Adjusted EBITDA $98.8 million, down from $103.1 million year-over-year, attributed to same-store sales being a $19 million drag.
Same-store Sales Down 6.2% year-over-year, impacted by the late Thanksgiving and fewer holiday events.
Capital Expenditures (CapEx) $53 million, down $30 million year-to-date from the previous year.
Liquidity $397 million, with $81 million in cash and nothing drawn on the revolver.
Net Debt $1.2 billion, with a bank credit facility net leverage ratio of 2.9x.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
New Product Offerings: Introduced a new retail food and beverage menu, which has been well received, leading to an increase in food and beverage revenue attachment to bowling revenue from $0.76 to $0.80.
New Games: Rolled out dynamic pricing and added new games for the Arcade business.
Market Expansion: Opened four new Lucky Strike centers: two in Denver, one in Beverly Hills, and one in Ladera Ranch, California, with Beverly Hills and Ladera Ranch generating over $1 million in revenue within their first 30 days.
Rebranding Efforts: Began rebranding of centers to Lucky Strike, with four centers changed to date and plans to reach 75 centers by year-end.
Operational Efficiencies: Optimized payroll resulting in a double-digit reduction in payroll hours across many centers and tightened capital expenditures by 33% year-over-year.
Technology Implementation: Rolled out handheld tablets for servers to improve efficiency and reduce payroll and benefits costs by 9% year-over-year.
Strategic Shift: Investing in incremental marketing channels and improving corporate events operating structure to attract new business.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Macroeconomic Uncertainty: The company faced heightened macroeconomic uncertainty during the quarter, which affected its corporate events business.
Calendar Shifts: The timing of Thanksgiving and New Year’s Eve events negatively impacted the holiday schedule, shortening it by about one-third.
Corporate Events Business: Concerns over the election outcome led to the corporate events business being on hold at the beginning of the quarter.
Supply Chain Challenges: The company experienced a drag in revenue due to external factors such as wildfires in LA, which affected expected benefits from school winter break.
Competitive Pressures: Despite a strong performance in food and amusements, the overall revenue was down, indicating competitive pressures in the entertainment sector.
Economic Factors: The company is taking a cautious view of its guidance for the rest of the year due to ongoing macroeconomic uncertainties.
Capital Expenditure Risks: Capital expenditures were reduced by 33% year-over-year, indicating a cautious approach to spending amid economic uncertainty.
Debt Levels: The company has a net debt of $1.2 billion, which could pose risks if revenue does not improve as expected.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Capital Expenditures Reduction: Tightened capital expenditures, driving down spending by 33% year-over-year in this quarter.
New Center Openings: Opened four new Lucky Strike centers, generating over $1 million in revenue within their first 30 days of operation.
Rebranding Initiative: Began rebranding of centers to Lucky Strike with four centers changed to date.
Food and Beverage Initiatives: Launched a new retail F&B menu, resulting in increased food and beverage revenue attachment to bowling revenue.
Technology Implementation: Rolled out handheld tablets for servers to improve efficiency and upsell opportunities.
Revenue Expectations: Expect to maintain full year guidance range for fiscal 2025 despite macroeconomic uncertainty.
Capital Expenditures: Spent $53 million in capital expenditures, down $30 million year-to-date from the previous year.
EBITDA Projections: Expect continued improvement in EBITDA from new centers and initiatives in Boomers and Raging Waves.
Cautious Outlook: Taking a cautious view of guidance for the rest of the year due to macroeconomic uncertainty.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Share Repurchase Program: None
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Can you elaborate on the heightened macroeconomic uncertainty you cited? What are you seeing at walk-in retail versus corporate events?
A:There’s a lot of uncertainty in the macro-economic environment, particularly with the political climate. Consumers are in a wait-and-see mode, leading to a trade down from premium products, especially in alcohol. Food sales are performing well, but alcohol sales are lagging. The team is working on promotions to drive foot traffic.
Q:Can you break down the composition of same-center sales between traffic and ticket this quarter?
A:Traffic was flat overall, but the event side saw a decline. Price increases were offset by lower alcohol sales, leading to a mixed performance in same-center sales.
Q:How should we think about same-store sales in the next two quarters?
A:January is expected to be down due to the impact of wildfires, but we expect the rest of the year to be up. We are cautious about revenue due to macro uncertainties.
Q:What makes Lucky Strike different from other entertainment options?
A:Lucky Strike is a unique concept with a focus on hospitality and experience. We are converting Bowlero locations to Lucky Strike, enhancing the customer experience with better service and amenities.
Q:Can you provide an update on the rebranding progress?
A:The rebranding process has started, with several locations already converted. We expect to complete many more conversions this year, which should drive traffic and revenue.
Q:Can you elaborate on the corporate event operating structure improvements?
A:We are focusing on enhancing food offerings and engaging event coordinators more effectively to drive corporate event bookings.
Q:Can you provide more color on the margins in the second half?
A:Margins are expected to improve due to reduced payroll costs and operational efficiencies. We anticipate a significant lift in revenue from seasonal businesses.
Q:How much of your food and beverage sales come from alcohol?
A:Alcohol sales are lagging compared to food, but we are introducing promotions to drive alcohol sales and improve overall F&B performance.
Q:What are your thoughts on labor efficiencies?
A:We are optimizing payroll based on data and adjusting staffing levels to match demand. Technology, like server tablets, is also being introduced to improve efficiency.
Q:What is your exposure to tariffs?
A:We have limited exposure to tariffs, primarily related to amusement merchandise from China. Our main concern is the impact of tariffs on consumer sentiment.
Q:What are your expectations for same-store sales trends?
A:We expect total growth for the year, but same-store sales may be flat or slightly down in the near term due to various factors.
Q:Can you discuss your buyback decision and cash flow expectations?
A:We are balancing buybacks with cash generated from operations and focusing on M&A and rebranding as key initiatives.
Q:How do you reconcile premiumizing your product with the trade down in consumer spending?
A:Premiumization refers to improving the quality of our offerings, not necessarily increasing prices. We aim to provide better quality food that aligns with current consumer trends.
Q:Review of Unclear Management Responses
A:Management appeared to avoid giving a direct answer regarding the long-term impact of macroeconomic uncertainties on corporate events, as well as the specifics of how they plan to drive same-store sales growth amidst these challenges. Additionally, there was a lack of clarity on the exact financial impact of the wildfires on overall performance.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Beverly Hills
Chief
FB
New
attachment
bowling
center
change
channel
check
class
conference
consumer
digit
efficiency
entertainment
expectation
factor
food
line
location
menu
noise
offering
payroll
press release
product
result
risk
tablet server
technology
today Founder
uncertainty event
website today
LUCK Transcript
Lucky Strike Entertainment Corporation (LUCK) Q1 2026 Earnings Call Transcript
Positive11-4
The earnings call summary and Q&A indicate strong financial metrics, with revenue and EBITDA growth, successful product innovations, and strategic acquisitions. Despite some regional challenges, the overall sentiment is positive, with optimistic guidance and effective marketing strategies. The acquisition of entertainment properties and the focus on organic growth further bolster the outlook. The absence of negative factors like guidance refusal or secondary offerings supports a positive sentiment, though not strong enough for a 'Strong positive' rating.
Lucky Strike Entertainment Corporation (LUCK) Q4 2025 Earnings Call Transcript
Positive8-28
The earnings call shows a positive sentiment due to the reinstatement of guidance, expected double-digit growth, and strategic acquisitions. Despite some weaknesses in California, the company is optimistic about future performance, particularly with water parks and FECs. Marketing investments are showing results, and the company is confident in its business trajectory. However, the lack of specific financial details in some responses and the filing of a shelf registration could be a concern. Overall, the strategic focus and positive guidance suggest a positive stock price movement.
Lucky Strike Entertainment Corporation (NYSE:LUCK) Q2 2025 Earnings Call Transcript
Unknown2-6
The earnings call highlights several negative factors: a decline in revenue and adjusted EBITDA, reduced capital expenditures, and macroeconomic uncertainties affecting consumer behavior. The Q&A reveals concerns about same-store sales and management's unclear responses on key issues. Despite a positive EPS growth, the absence of a share repurchase program and lack of strong guidance further weigh on sentiment. Overall, the cautious outlook and potential risks suggest a negative stock price reaction.
LUCK Slides
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
