Lucky Strike Entertainment Corp

Lucky Strike is a scaled location-based entertainment operator with top-decile operating and cash-flow margins, but a net loss and heavily leveraged, negative-equity balance sheet temper the grade.

Strengths

• Operating margin in the 88th pct with strong OCF margin (76.5th) and positive FCF ($36M, 75th pct)
• Scaled portfolio of 360+ venues with diversified bowling, F&B, amusement, and water-park revenue and 4% top-line growth

Risks

• Net loss (-0.8% margin) driven by ~$196M interest expense; current ratio 0.58 and deeply negative book equity (debt/equity -4.35)
• Same-store revenue down 3.7% with discretionary-spending and long-term lease exposure

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Negative equityNegative book equity (debt/equity -4.35)
• Net lossNet loss (net margin -0.8%)
• Weak liquidityCurrent ratio 0.58 (<1)