From The Motley Fool · Motley Fool Transcribing · · 2m
Lucky Strike Q1 2027 Earnings Report
Lucky Strike reports 3.5% revenue growth with water parks driving expansion despite retail decline.
In brief
Lucky Strike reports 3.5% revenue growth with water parks driving expansion despite retail decline. Lucky Strike's Q1 2027 revenue rose 3.5% to $302.6 million as water parks generated $25 million EBITDA, but same-store revenue fell 2.6% due to reduced alcohol sales and retail traffic. Originally reported by The Motley…
Q1 2027 Results
Lucky Strike reported Q1 2027 revenue of $302.6 million, a 3.5% increase driven by water parks and brand conversions.
Water Park Performance
Water parks generated $25 million EBITDA, up $9 million from prior year due to Raging Waters and Emerald Point ownership.
Same-Store Revenue
Same-store revenue decreased 2.6% reflecting pressure on retail walk-in bowling and alcohol sales.
Net Loss
The company reported a net loss of $25.7 million with an 8.5% loss margin compared to 4.7% in Q1 2026.
Capital Expenditures
Capital expenditures dropped 17% to $21.5 million, the lowest quarterly spend in five years.
Debt and Leverage
Total debt stood at $1.817 billion with a leverage ratio of 5.5 times last year's adjusted EBITDA.
Dividend Suspension
The Board suspended the quarterly dividend to retain $35 million annually for debt reduction.
Fiscal 2027 Guidance
Management reaffirmed revenue guidance of $1.28 billion to $1.31 billion and adjusted EBITDA of $340 million to $360 million.
Event Sales Growth
Event sales grew 3% supported by six consecutive months of revenue at or above prior year levels through October.
Payroll Efficiency
Payroll hours decreased 5% at comparable centers, reducing labor costs by $1 million.
League Revenue
League revenue is projected to grow 3% to 4% for the fall season despite a one-week delay in start dates.
California Performance
California's performance gap narrowed from 6 percentage points in July to less than 2 percentage points in September.
Marketing ROI
Marketing ROI improved to 3.2 times from 2.7 times with a 22% increase in web sessions.
Cash Position
Cash position remained at $38 million, essentially unchanged from the end of the previous fiscal year.
Deleveraging Target
The company aims to retire $100 million of debt over the next year through free cash flow and asset sales.
Beverage Strategy
The company is redesigning its beverage program to include zero-proof alcohol and simpler food options.
The essence
Lucky Strike's Q1 2027 revenue rose 3.5% to $302.6 million as water parks generated $25 million EBITDA, but same-store revenue fell 2.6% due to reduced alcohol sales and retail traffic.
