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Lucky Strike Entertainment links Q4 same-store sales dip to major sports viewership
The company cut capital expenditures 19% year-over-year to $114 million and set fiscal 2027 adjusted EBITDA guidance of $340 million to $360 million.
Lucky Strike Entertainment Corporation attributed a June same-store sales decline of 7% to an extraordinary stretch of at-home sports viewership, including the World Cup and NBA Finals, which disrupted typical weekend bowling patterns, according to Yahoo Finance’s earnings call summary.
The company reported a 3.5-point improvement in same-store sales comps versus the prior year, driven by strength in retail bowling, shoe revenue, and an 8% increase in food sales. Management said California remained its weakest market, with comps at minus 4% versus plus 1% for the rest of the company, leading to a leadership overhaul and a restructuring of the state’s corporate sales organization.
Lucky Strike said the integration of five directly managed water parks increased operational complexity but supported double-digit per capita spending growth through disciplined revenue management. In addition, management implemented significant cost actions in mid-January and turned a $6 million payroll overrun in Q2 into a payroll tailwind by the fourth quarter.
On capital and outlook, the company reduced capital expenditure 19% year-over-year to $114 million and provided fiscal 2027 adjusted EBITDA guidance of $340 million to $360 million, described as deliberately conservative due to macro uncertainty and potential weather volatility. Management expects full-year same-store sales growth of 1% to 3% and said it plans to further reduce capital expenditures to $90 million in fiscal 2027 and target $70 million to $80 million long term after its rebranding cycle ends, using water park season passes as weather insurance by selling them earlier in the season.