Lucky Strike Entertainment Corporation

Fiscal 2026 revenue increased 4% to $1.245 billion, adjusted EBITDA was $333 million, and same-store sales were down 0.2%, which management said was a 3.5-point improvement versus the prior year and its best comp performance since fiscal 2023. Ex-California comps were up 0.9%; retail bowling and shoe revenue comped up 2.9%; leagues grew 3.6%; and food comped up 8%. CapEx was reduced 19% to $114 million from $141 million last year and $194 million two years ago. For FY2027, management guided to adjusted EBITDA of $340 million to $360 million and said CapEx will be $90 million. They also said free cash flow at the midpoint should be around $50 million, excluding asset sales, and the goal is to pay down the revolver by June.

Tom Shannon’s message was that the business is improving underneath noisy headline comps. He repeatedly framed the year as one of deliberate investment in marketing, water parks, technology, and leadership, while stressing that the weak June was caused by the World Cup and not by consumer deterioration. His tone was confident but measured: he called the FY2027 guide conservative, said the company is still in an investment year, and highlighted green shoots across bowling, leagues, events, and water parks.

Bobby Lavan emphasized the financial discipline story: CapEx fell to $114 million in fiscal 2026 and is budgeted at $90 million for fiscal 2027, with a longer-term expectation of $70 million to $80 million after rebranding work is done. He said the company raised marketing spend from $17 million to $30 million, but engagement has not been strong enough, so future spending will need to clear a higher ROI bar. On cash flow, he said the FY2027 midpoint should produce about $50 million of free cash flow, excluding asset sales, and that the company intends to use cash to pay down the revolver by June.

Analysts focused on whether FY2027 EBITDA guidance implies margin pressure versus the company’s 30% long-term target, and Lavan said higher marketing spend and ongoing investment in systems, water parks, and organization explain the near-term gap. Questions also centered on same-store sales cadence, and management said July was still affected by the World Cup, August is improving, and the company expects plus 1% to plus 3% comps over the year. On events, Lavan said the business has been restructured into a hybrid model and that December backlog is tracking up $10 million versus down $30 million a year ago, calling December a key proof point.