Lucky Strike Entertainment Corporation Q2 FY2026 earnings call

• Finished December with positive same-store sales comp (+0.3%) and total revenue growth (+2.3%), driven by retail, leagues, and improving events. - Invested in payroll, marketing, and activity levels but shifted to a more balanced approach focusing on same-store sales growth and EBITDA expansion. - Acquired Raging Waters in January, which will contribute EBITDA in Q2 and Q3. - Opened Lucky Strike Aliso Viejo in December with encouraging early results; plan to sunset Bolero and roll out refreshed AMF look later this year.

Retail and leagues contributed to a positive same-store sales comp of +0.3% and total revenue growth of +2.3%. The events business ended nearly flat for the quarter, its best showing in years. The acquisition of Raging Waters, the largest water park in California, will contribute meaningful EBITDA in the June and September quarters. Combined with other acquired properties, there's expected seasonal lift to earnings reflecting portfolio diversification.

• Remain confident in full-year guidance given in August, with investments becoming more targeted. - Anticipate significant EBITDA contribution from acquired water parks and family entertainment centers in summer months. - Focus on balanced approach of same-store sales growth and EBITDA expansion, with more targeted investments to meet higher return thresholds.

• Weather impact: Snowstorms in January and December affected revenue, with January snowstorm causing ~$5 million revenue hit. - Inefficient spending: Some labor and marketing investments didn't deliver expected ROI. - Dependence: Reliance on successful execution of dynamic pricing for events and effective marketing strategies for growth.

Q: Steven Wieczynski asks about EBITDA guidance and margin drag from corporate events.

A: Bobby Lavan states confidence in full-year guidance and mentions margin improvement in Q4 due to water park contributions.

Q: Matthew Boss inquires about Events business progress.

A: Bobby Lavan and Lev Ekster discuss dynamic pricing implementation and marketing investments driving traffic.

Q: Jason Tilchen asks about food and beverage sales.

A: Lev Ekster talks about retail comp, zero-proof program, server tablets improving check sizes.

Q: Ian Zaffino asks about unexpected investments.

A: Bobby Lavan discusses center payroll, marketing, and incremental activity investments and their returns.

Q: Eric Handler asks about water park operation changes.

A: Thomas Shannon mentions comprehensive facelifts and investments in water parks.

Q: Michael Kupinski asks about Raging Waves expansion.

A: Thomas Shannon discusses expansion plans, beer license, and food/beverage improvements.

Q: Gregory Miller asks about Lucky Strike conversions.

A: Thomas Shannon states no demographic difference and plans for marketing muscle behind Lucky Strike.

Q: Will (on behalf of Jeremy Hamblin) asks about comp cadence and weather impact.

A: Bobby Lavan breaks down comp cadence and details snowstorm revenue impact.