Lucky Strike Entertainment Corporation

In the March quarter, Lucky Strike reported total revenue of $342.2 million versus $339.9 million in the prior-year period. Same-store sales comp was +0.2%, with January up 5.5%, February up 1%, and March down 7%; management said two winter storms cost about 250 basis points of comp. They also said the business saw an effective revenue flattening in the most recent period and that West Coast markets were notably weaker, while the rest of the company excluding the West Coast comped +1.9%. For fiscal 2026, the company now expects total revenue growth of +4% to +5%, adjusted EBITDA of approximately $345 million to $350 million, and capital expenditures of approximately $120 million. Management also said gross capital expenditures are down roughly $30 million year over year.

Thomas Shannon framed the quarter as a case study in resilience: the business absorbed severe weather, gasoline spikes, and a consumer-confidence shock, yet still delivered a positive comp. He emphasized that the company is taking “substantial and immediate action” on costs, using AI through Orca to reduce labor, streamline operations, and improve cash generation. Shannon was upbeat on the long-term model, pointing to a lower breakeven comp level, expanding waterpark EBITDA, and a future step-down in CapEx as conversions finish.

Robert Lavan focused on the financial cadence and the path to cash flow improvement. He said SG&A came down materially after about $6 million of annualized cuts in February, and that labor optimization is still rolling through over the next few quarters rather than all at once. He also said the company is not constrained by a leverage covenant, is not 40% drawn on the revolver, expects revolver balances to come down meaningfully in the September quarter, and is aiming to keep net debt flat while lifting free cash flow per share from $1.53 to over $2 in the next 12 months.

Analysts pressed management on whether the war and gas-price spike really pressured Lucky Strike more than other leisure companies, and management said the hit was broad, especially in West Coast markets, with a rapid rebound afterward. Questions also focused on whether April’s flat performance is the baseline and whether waterparks, pricing, and events can offset consumer softness; management said April improved week by week and that summer should benefit from people staying closer to home. On events, management said corporate bookings have rebounded outside California, social events are improving, and AI may soften some corporate demand but also creates efficiency and operational benefits for Lucky Strike.