Lucky Strike Entertainment Corporation (LUCK): A Bear Case Theory
We came across a bearish thesis on Lucky Strike Entertainment Corporation on The Lion's Roar - Outside the Box Investments' Substack by Dominick D'Angelo. In this article, we will summarize the bears' thesis on LUCK. Lucky Strike Entertainment Corporation's share was trading at $9.48 as of June 24th. LUCK's trailing and forward P/E ratios were 24.12 and 63.29, respectively, according to Yahoo Finance.
Pixabay/Public Domain
Lucky Strike Entertainment (LUCK) continues to underwhelm investors, with Q3 results and operational trends highlighting significant underlying issues. The company pulled full-year guidance just two months before year-end, driven by weakness in its corporate events business and further confirmed by similar softness at TopGolf.
Same-store sales were down 5.6% in the quarter, with January impacted by California wildfires and corporate pullbacks, February by macro uncertainty and weather, and March showing no rebound. Retail traffic was flat, leagues saw low single-digit growth, and the events business declined by double digits. Despite easier comps in Q3 and Q4, overall traffic fell ~8.5% YoY, undermining the viability of LUCK's high fixed-cost model.
The F&B business, once a bright spot due to menu premiumization, is now losing steam, with beverage sales particularly weak. The bowling pricing tailwind is also fading as prior benefits are lapped, compounding pressure. Yet, there are early signs of management discipline: cost reductions are materializing (labor costs down 7.3% YoY), and capital allocation is shifting toward high-ROI projects and deleveraging instead of buybacks. The company's summer pass initiative shows some momentum, with 2025 sales likely reaching $11M, but it still accounts for less than 1% of revenue.
While insider ownership and dividend mechanics provide liquidity flexibility, there's increasing pressure to cut the dividend to redirect capital to debt paydown. Without stabilization in same-store sales and improved traffic, LUCK may need to raise funds externally in 2026. The business remains fragile, with upside capped until core operations regain their footing.
Previously, we covered a on Xponential Fitness, Inc. (XPOF) by Inflexio Research in February 2025, which highlighted the company's franchise-driven growth and turnaround strategy. The company's stock price has depreciated by approximately 2.68% since our coverage. This is because the thesis didn't play out as expected. Dominick D'Angelo shares a contrarian view in his bearish thesis on Lucky Strike Entertainment.
Lucky Strike Entertainment Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held LUCK at the end of the first quarter, which was 16 in the previous quarter. While we acknowledge the risk and potential of LUCK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
39 minutes ago
- Bloomberg
SoftBank Unit Plans First Dollar Bond Sale in $500 Million Deal
SoftBank Group Corp. 's telecommunications unit plans to make its first offering of US dollar-denominated bonds, with Morgan Stanley and others acting as lead managers, in a deal aiming to raise about $500 million. SoftBank Corp. 's global investor roadshows began on June 26, with meetings planned in Asia, Europe, and the US, said people familiar with the situation.
Associated Press
an hour ago
- Associated Press
ROSEN, TOP RANKED INVESTOR COUNSEL, Encourages Krispy Kreme, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action
New York, New York--(Newsfile Corp. - June 25, 2025) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Krispy Kreme, Inc. (NASDAQ: DNUT) between February 25, 2025 and May 7, 2025, both dates inclusive (the 'Class Period'), of the important July 15, 2025 lead plaintiff deadline. SO WHAT: If you purchased Krispy Kreme securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. WHAT TO DO NEXT: To join the Krispy Kreme class action, go to or call Phillip Kim, Esq. at 866-767-3653 or email [email protected] for more information. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than July 15, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers. DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that: (1) demand for Krispy Kreme products declined materially at McDonald's locations after the initial marketing launch; (2) demand at McDonald's locations was a driver of declining average sales per door per week; (3) the partnership with McDonald's was not profitable; (4) the foregoing posed a substantial risk to maintaining the partnership with McDonald's; (5) as a result, Krispy Kreme would pause expansion into new McDonald's locations; and (6) as a result of the foregoing, defendants' positive statements about Krispy Kreme's business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages. To join the Krispy Kreme class action, go to or call Phillip Kim, Esq. at 866-767-3653 or email [email protected] for more information. No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. Follow us for updates on LinkedIn: on Twitter: or on Facebook: Attorney Advertising. Prior results do not guarantee a similar outcome. ------------------------------- Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 [email protected] To view the source version of this press release, please visit
Associated Press
an hour ago
- Associated Press
Energize Builders Expands Services With Custom Deck Construction Across Los Angeles
Los Angeles, CA - June 25, 2025 - Energize Builders, a respected Los Angeles-based construction and remodeling company, is proud to announce the launch of its dedicated deck construction services for homeowners across Southern California. Known for more than a decade of excellence in residential remodeling and new construction, the company now offers professionally designed and built custom decks to enhance outdoor living spaces. This new service reflects Energize Builders' commitment to full-spectrum home improvement, bringing the same level of craftsmanship, planning, and client collaboration to exterior projects as they do to interior remodels and full home builds. Meeting Demand for Outdoor Living Solutions As more homeowners in Los Angeles look to maximize their usable space, custom deck construction has become one of the most requested services. Whether for entertaining, dining, or quiet relaxation, a well-built deck adds both function and value to a property, especially in the year-round mild climate of Southern California. Energize Builders designs each deck to suit the home's existing style and the layout of the outdoor space. Every project is tailored, not just in size and shape, but in the features clients care about most. Options include: 'Outdoor living has become just as important as what's inside the home,' said Alik Konovalenko, owner of Energize Builders. 'We've seen growing demand from homeowners who want to create spaces that are both practical and enjoyable. Our deck construction service is a natural extension of what we already do—designing and building spaces that improve how people live.' Tailored Design and Expert Construction Energize Builders approaches every deck project with a detailed, on-site consultation to understand the client's goals, the property layout, and any unique site conditions. This allows the team to recommend the right materials, design, and structural approach from the start. Once the vision is clear, the company manages all stages of the project—from design and permitting to final construction—while keeping homeowners informed throughout the process. The team works within city and county building requirements and ensures every structure meets safety standards. A Trusted Name in Los Angeles Home Construction With over ten years of experience in custom home remodeling, new construction, and designer-led renovations, Energize Builders brings a consistent level of quality to every job, interior or exterior. The addition of deck construction builds on this foundation, offering homeowners another reliable service under one trusted roof. The company continues to serve neighborhoods across Los Angeles, including Malibu, Palisades, and Studio City, with a team that understands the unique requirements of hillside properties, urban lots, and coastal homes. 'It's not just about adding a deck—it is about creating outdoor environments that feel like a natural extension of the home,' added Konovalenko. 'We handle the details so clients can enjoy the results.' About Energize Builders Founded by Alik Konovalenko, Energize Builders is a family-owned construction company serving the greater Los Angeles area. The company specializes in: Energize Builders is known for its hands-on service, attention to detail, and long-standing relationships with both clients and design professionals. From kitchens and bathrooms to full-home renovations and now outdoor decks, the team delivers quality work that reflects each homeowner's lifestyle and vision. To learn more about deck construction in Los Angeles or to request a consultation, visit: Media Contact Company Name: Energize Builders Inc Contact Person: Alik Konovalenko Email: Send Email Phone: +1 310-963-1567 Address:13910 Fiji Way Ste 270, Marina del Rey City: Los Angeles State: CA 90292 Country: United States Website: Press Release Distributed by To view the original version on ABNewswire visit: Energize Builders Expands Services With Custom Deck Construction Across Los Angeles
