Lucky Strike Entertainment (NYSE:LUCK) shares dropped 10.98% in pre-market trading on Thursday after the location-based entertainment operator reported fiscal fourth-quarter 2026 revenue below Wall Street expectations.
Revenue for the quarter ended June 28, 2026 reached $303.9 million, compared with the analyst consensus of $311.59 million. Sales increased 0.9% from $301.2 million in the corresponding period last year.
The company nevertheless recorded a substantial improvement in its quarterly bottom line, narrowing its net loss to $26.2 million from $74.7 million in the fourth quarter of fiscal 2025.
Same-store revenue affected by temporary disruption
Same-store revenue declined 2.5% compared with the prior-year quarter, with management pointing to unusual consumer behaviour during June as a significant factor behind the softer performance.
CEO Thomas Shannon attributed some of the weakness to the World Cup and its impact on entertainment spending patterns.
“June temporarily interrupted that progress. The first World Cup on American soil in a generation drew millions of consumers to their screens on nights they would typically be out, resulting in sharply negative comps for the month.”
Shannon said trends improved immediately following the World Cup Final, while leagues, food and events continued to demonstrate positive momentum, providing management with confidence in the underlying health of the business.
Full-year revenue increases
For fiscal 2026, Lucky Strike generated revenue of $1.25 billion, representing growth of 3.7% from the previous year.
The company recorded a full-year net loss of $35.8 million, compared with a $10.0 million loss in fiscal 2025. Adjusted EBITDA totalled $333.2 million, down from $367.7 million in the previous fiscal year.
While the fourth-quarter performance came in below market expectations, the annual revenue increase demonstrated continued top-line growth across the business.
Fiscal 2027 outlook exceeds revenue expectations
Looking ahead, Lucky Strike expects fiscal 2027 revenue of between $1.28 billion and $1.31 billion. The midpoint of the range, at $1.295 billion, is above the current analyst consensus of $1.25 billion.
The company also forecasts adjusted EBITDA of between $340 million and $360 million, while capital expenditure is expected to total approximately $90 million.
Management’s outlook suggests an expectation for renewed growth following the temporary pressures experienced during the fourth quarter.
Lucky Strike maintains shareholder returns
Lucky Strike also declared a quarterly dividend of $0.06 per share, payable on September 22, 2026.
Although the fourth-quarter revenue miss prompted a sharp initial reaction in the shares, the narrower quarterly net loss, improving post-World Cup trends and fiscal 2027 revenue guidance above analyst expectations provide investors with several indicators to monitor as the company moves into the new financial year.