Winners And Losers Of Q1: Lucky Strike (NYSE:LUCK) Vs The Rest Of The Leisure Facilities Stocks

Let’s dig into the relative performance of Lucky Strike (NYSE:LUCK) and its peers as we unravel the now-completed Q1 leisure facilities earnings season.

Leisure facilities companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted their spending from "things" to "experiences". Leisure facilities seek to benefit but must innovate to do so because of the industry's high competition and capital intensity.

The 11 leisure facilities stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.

Luckily, leisure facilities stocks have performed well with share prices up 18.5% on average since the latest earnings results.

Weakest Q1: Lucky Strike (NYSE:LUCK)

Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike (NYSE:LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.

Lucky Strike reported revenues of $339.9 million, flat year on year. This print fell short of analysts’ expectations by 5.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS and adjusted operating income estimates.

“In the quarter, our Retail and Leagues businesses remained stable, Food sales grew by high single digits, while our Corporate Events business declined as we navigate a period of corporate austerity. The softness in Corporate Events was most pronounced in tech-aligned markets, with California and Seattle accounting for the majority of the underperformance. We have seen encouraging signs of strength, with the Boston, New Jersey and Miami markets recently posting positive comps.,” said Founder, Chairman, and CEO Thomas Shannon.

Interestingly, the stock is up 8.1% since reporting and currently trades at $10.29.

Read our full report on Lucky Strike here, it’s free.

Best Q1: Live Nation (NYSE:LYV)

Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE:LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.

Live Nation reported revenues of $3.38 billion, down 11% year on year, falling short of analysts’ expectations by 2.8%. However, the business still had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 12.7% since reporting. It currently trades at $147.90.

Is now the time to buy Live Nation? Access our full analysis of the earnings results here, it’s free.

United Parks & Resorts (NYSE:PRKS)

Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE:PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.

United Parks & Resorts reported revenues of $286.9 million, down 3.5% year on year, falling short of analysts’ expectations by 2.4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.

The stock is flat since the results and currently trades at $47.30.

Read our full analysis of United Parks & Resorts’s results here.

Dave & Buster's (NASDAQ:PLAY)

Founded by a former game parlor and bar operator, Dave & Buster’s (NASDAQ:PLAY) operates a chain of arcades providing immersive entertainment experiences.

Dave & Buster's reported revenues of $567.7 million, down 3.5% year on year. This result met analysts’ expectations. More broadly, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and a slight miss of analysts’ same-store sales estimates.

The stock is up 26.9% since reporting and currently trades at $32.83.

Read our full, actionable report on Dave & Buster's here, it’s free.

AMC Entertainment (NYSE:AMC)

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE:AMC) operates movie theaters primarily in the US and Europe.

AMC Entertainment reported revenues of $862.5 million, down 9.3% year on year. This number came in 0.7% below analysts' expectations. Zooming out, it was actually a strong quarter as it produced an impressive beat of analysts’ EBITDA estimates.

The stock is up 21% since reporting and currently trades at $3.28.

Read our full, actionable report on AMC Entertainment here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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