Lucky Strike revenue rises 4% to $1.245 billion as capex falls 19%
The bowling and entertainment operator reported $333 million in adjusted EBITDA and cut capital expenditures by 19%, though a historic summer of at-home sports viewership temporarily stalled same-store sales growth.
Lucky Strike Entertainment reported fourth-quarter revenue of $1.245 billion, a 4% increase, alongside $333 million in adjusted EBITDA for the period ending June 29, 2026. The company also reduced capital expenditures by 19% to $114 million, continuing a two-year trend of scaling back investment.
Same-store sales declined 0.2% for the full year, though this marked a 3.5-point improvement from the prior year. Chief Executive Thomas Shannon attributed a fourth-quarter slowdown to unprecedented at-home sports viewership, specifically the World Cup and the New York Knicks' NBA championship run. June same-store sales fell 7% as millions of consumers stayed home to watch the tournaments.
Despite macro uncertainty and a weak lower-income consumer, management highlighted broadening operational improvements and cost discipline. A $6 million payroll overrun in the second quarter became a tailwind in the fourth quarter, while excluding California, the company's comp sales grew 0.9%. Shannon noted that the company replaced leadership in its weakest market and overhauled its corporate sales organization in the state.
The company's water park division, which expanded to five directly managed locations following the $45 million acquisition of Raging Waters Los Angeles, generated $56 million in trailing 12-month revenue and $22 million in EBITDA. This compares to $23 million in revenue and $11 million in EBITDA the prior year, though the segment faced weather headwinds.
Management acknowledged that doubled working media spending failed to deliver expected returns, warning that future marketing investments will face stricter return thresholds. The company also reported strong performance from its counterseasonal Boomers Parks, which delivered $11 million in EBITDA, nearly double the prior year.
Looking ahead, Lucky Strike guided for fiscal 2027 adjusted EBITDA between $340 million and $360 million. Management described the guidance as deliberately conservative, reflecting prudence regarding the broader economic environment. The company emphasized that this range does not indicate a change in its underlying operational trajectory.
