Lucky Strike Suspends Its Dividend After The Stock Hits a Record Low

Lucky Strike Entertainment, the company that owns the Professional Bowlers Association and runs 366 bowling and entertainment locations across North America, has suspended its quarterly dividend.

The decision came with its first quarter results for fiscal year 2027, released on November 5, which showed a net loss of $25.7 million, almost double the $13.8 million loss from the same quarter a year earlier.

The company, which traded as Bowlero Corp. until its rebrand in December 2024, is listed on the New York Stock Exchange as LUCK. Its shares fell to the lowest price since it went public in December 2021.

What Lucky Strike reported for the quarter

Revenue went up while the loss got bigger. Total revenue for the quarter ended September 27, 2026 rose 3.5% to $302.6 million, but same-store revenue, which only counts locations open in both years, fell 2.6% to $272.3 million.

Most of the growth came from places the company did not run a year ago. Revenue from acquired locations was $27.6 million, up from $6.5 million, helped by what CEO Thomas Shannon called the company's "first full summer with two new water parks".

Adjusted EBITDA, the measure the company uses for its yearly targets, was almost flat at $72.1 million against $72.7 million.

Bowling revenue fell, while food and beverage and amusement grew.

According to the release, the drop came from retail bowling, the walk-in customers who book a lane for an evening, and from alcohol sales. Food and non-alcoholic drinks grew.

Why the dividend was suspended

The board said the cash it keeps will be directed toward accelerating the Company's deleveraging plan. Lucky Strike had $1.82 billion in bank debt and loans at the end of the quarter and $37.9 million in cash. Its net debt was $1.78 billion, up from $1.77 billion three months earlier, and it had drawn $112 million on its $425 million revolving credit line.

Shannon described the move as a decision about where the next dollar goes, not a change in their view of the long-term earnings power of the business. The board said it will keep reviewing the dividend as part of its capital planning. The company also kept its full-year guidance: revenue of $1.28 billion to $1.31 billion, adjusted EBITDA of $340 million to $360 million and about $90 million of capital spending, roughly half of its fiscal 2024 peak.