Did Lucky Strike beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Lucky Strike next quarter?

What is Lucky Strike's gross profit margin?

What guidance did Lucky Strike's management provide for the next earnings period?

What does Lucky Strike do and what are its main business segments?

What factors drove the changes in Lucky Strike's revenue and profit?

What were the key takeaways from Lucky Strike's earnings call?

What were the key takeaways from Lucky Strike’s earnings call?

- **Revenue Growth Acceleration**: Q1 2026 total revenue up 12%, adjusted EBITDA +15%, driven by 1.4% same-store sales and 2% league revenue growth.
- **F&B Success Story**: F&B revenue up 10%, with $8.5M generated by "Pizza and Picture" combo and 5 consecutive weeks of record sales.
- **Strategic Rebranding**: 74 locations rebranded to Lucky Strike, with Times Square location seeing 36% retail growth post-rebrand.
- **Debt Optimization**: $1.7B refinancing at 7% WACC, reducing CapEx to $26M (down 38% YoY).
- **Geographic Focus**: Shifting to high-margin markets (NY, TX, FL) while managing California tech layoffs impact.
- **Organic Growth Priority**: $130M CapEx target, focusing on F&B innovation and event booking efficiency.
- **Water Park Expansion**: 1M+ guests added through acquisitions, with 10% F&B growth at Raging Waves.
- **League Engagement**: 3,000+ new league bowlers and exclusive menu items driving $1.3M platter sales.
- **Cost Discipline**: 70 basis points EBITDA margin expansion, with 600-800 basis points improvement expected in future quarters.


**【Management Opening Remarks】**
- CEO Thomas Shannon highlighted Q1 2026 total revenue growth of 12% and adjusted EBITDA up 15%, driven by 1.4% same-store sales growth and 2% league revenue increase. The company completed a $1.7 billion debt refinancing at a 7% weighted average cost of capital.
- CFO Robert Lavan emphasized disciplined capital allocation with Q1 CapEx of $26 million (down 38% YoY) and a $306 million real estate acquisition to reduce rental exposure. The company also acquired 5 water parks and family entertainment centers, adding 1 million+ annual guests.
- President Lev Ekster announced the rebranding of 74 locations to the Lucky Strike brand, with plans to complete 200 rebrands by 2026. Times Square location saw 36% retail revenue growth post-rebrand.

**【CEO Commentary】**
- Thomas Shannon highlighted the success of the food and beverage (F&B) strategy, with Q1 F&B revenue up 10% and 5 consecutive weeks of record F&B sales. The "Pizza and Picture" combo generated $8.5 million in 5 months.
- The company introduced platters for group dining and craft lemonade programs, driving attachment rates and NPS scores. League bowlers contributed $1.3 million in platter sales in 3 months.
- The events business saw a 160 basis point drag from corporate bookings but October was the strongest month in 1.5 years, with 5% growth in walk-in retail and 2% increase in average price per game.

**【CFO Financial Commentary】**
- Robert Lavan noted EBITDA margin expansion of 70 basis points, driven by operating leverage and $2.5 million in incremental marketing spend. Q1 was the lowest margin quarter, with 600-800 basis points of margin improvement expected in subsequent quarters.
- Same-store sales guidance for 2026 is 1-5%, with stronger inorganic growth in Q1 and Q4 from water park acquisitions. California and Washington face headwinds from tech layoffs, but New York, Texas, and Florida are performing well.
- The company expects to stay below $130 million CapEx guidance, focusing on organic growth and free cash flow generation. M&A activity will be opportunistic, with priority on internal initiatives like F&B innovation.

**【Q&A Highlights】**
- F&B attachment rates at Lucky Strike locations are 50% higher than Bowlero locations, with potential $125-150 million annual upside. League bowlers are responding to exclusive menu items, with 5 consecutive weeks of record F&B sales.
- The events business is transitioning to online booking (double-digit growth) and focusing on high-margin geographies like New York and Florida. The Summer Pass promotion drove $1.3 million in incremental revenue, and the Black Friday sale will prioritize marketing spend efficiency.
- Water park acquisitions in North Carolina and Los Angeles are performing above historical averages, with 10% F&B growth and alcohol sales at Raging Waves. Shipwreck and Big Destin locations are being renovated to match Lucky Strike standards.
- The company is testing BOA iced teas and dirty sodas, with plans to expand craft beverage offerings. Food quality improvements and staff training are driving 10% F&B growth without price increases.


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