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Bowlero (BOWL) Expands Portfolio With Lucky Strike Acquisition
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Bowlero Corp. (BOWL - Free Report) recently announced the acquisition of Lucky Strike Entertainment, LLC. The approximately $90 million all-cash transaction expands the company’s bowling center portfolio in North America.
Per the agreement, 14 Lucky Strike bowling centers will be integrated into the company’s profile. This brings its domestic presence to 345 centers across 36 states. These newly acquired centers, boasting a dynamic ambiance, upscale menus, exclusive event spaces, billiards, and first-class amusements, are poised to thrive within its portfolio. This strategic move firmly establishes Bowlero in the heart of major U.S. cities, including Boston, Denver, Chicago, Los Angeles, Philadelphia, San Francisco, and Honolulu.
Bowlero plans to bring its proven and successful operating approach to the world-class Lucky Strike brand and its extensive portfolio. The company remains committed to enhancing its financial strength of these assets and innovation to maximize business growth and shareholder value.
Focus on Acquisitions
The company remains focused on identifying attractive locations for new Bowlero centers, with seven leases currently inked. Four of these leases are already in the construction phase within Marquee Markets. Bowlero recently unveiled its latest center in San Jose, California, in the Westfield Valley Fair Mall. Additionally, at the end of August, the company acquired the co-located Mavrix and Octane Properties in Scottsdale, Arizona, for a total of $33.5 million.
In fiscal 2023, the company acquired 16 bowling entertainment centers, bringing the company’s total center count to 328.
Bowlero is expected to close two more acquisitions in the coming month. With a combined purchase price of over $130 million (including Lucky Strike), the acquisitions are expected to add approximately $100 million in annualized revenues.
For fiscal year 2024, the company expects significant reinvestment in the business, including, over $160 million for acquisitions, $40 million for new builds, and $75 million for conversions.
Image Source: Zacks Investment Research
In the past three months, shares of BOWL have declined 6.5% in the past three months compared with the industry’s 6.8% fall.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 28.5%, on average. The stock has surged 93.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests growth of 55.1% and 182.1%, respectively, from the year-ago period’s levels.
Hilton Worldwide Holdings Inc. (HLT - Free Report) flaunts a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 12.5%, on average. The stock has gained 16.5% in the past year.
The Zacks Consensus Estimate for HLT’s 2023 sales and EPS suggests increases of 14.8% and 23.7%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 42.6%, on average. The stock has gained 25.2% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates growth of 44.5% and 117.9%, respectively, from the year-ago period’s levels.
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Bowlero (BOWL) Expands Portfolio With Lucky Strike Acquisition
Bowlero Corp. (BOWL - Free Report) recently announced the acquisition of Lucky Strike Entertainment, LLC. The approximately $90 million all-cash transaction expands the company’s bowling center portfolio in North America.
Per the agreement, 14 Lucky Strike bowling centers will be integrated into the company’s profile. This brings its domestic presence to 345 centers across 36 states. These newly acquired centers, boasting a dynamic ambiance, upscale menus, exclusive event spaces, billiards, and first-class amusements, are poised to thrive within its portfolio. This strategic move firmly establishes Bowlero in the heart of major U.S. cities, including Boston, Denver, Chicago, Los Angeles, Philadelphia, San Francisco, and Honolulu.
Bowlero plans to bring its proven and successful operating approach to the world-class Lucky Strike brand and its extensive portfolio. The company remains committed to enhancing its financial strength of these assets and innovation to maximize business growth and shareholder value.
Focus on Acquisitions
The company remains focused on identifying attractive locations for new Bowlero centers, with seven leases currently inked. Four of these leases are already in the construction phase within Marquee Markets. Bowlero recently unveiled its latest center in San Jose, California, in the Westfield Valley Fair Mall. Additionally, at the end of August, the company acquired the co-located Mavrix and Octane Properties in Scottsdale, Arizona, for a total of $33.5 million.
In fiscal 2023, the company acquired 16 bowling entertainment centers, bringing the company’s total center count to 328.
Bowlero is expected to close two more acquisitions in the coming month. With a combined purchase price of over $130 million (including Lucky Strike), the acquisitions are expected to add approximately $100 million in annualized revenues.
For fiscal year 2024, the company expects significant reinvestment in the business, including, over $160 million for acquisitions, $40 million for new builds, and $75 million for conversions.
Image Source: Zacks Investment Research
In the past three months, shares of BOWL have declined 6.5% in the past three months compared with the industry’s 6.8% fall.
Zacks Rank & Key Picks
Bowlero currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer Discretionary sector are:
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 28.5%, on average. The stock has surged 93.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests growth of 55.1% and 182.1%, respectively, from the year-ago period’s levels.
Hilton Worldwide Holdings Inc. (HLT - Free Report) flaunts a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 12.5%, on average. The stock has gained 16.5% in the past year.
The Zacks Consensus Estimate for HLT’s 2023 sales and EPS suggests increases of 14.8% and 23.7%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 42.6%, on average. The stock has gained 25.2% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates growth of 44.5% and 117.9%, respectively, from the year-ago period’s levels.