Shares of Bowlero Corp. (NYSE: BOWL), one of the world's largest operators of bowling alleys and family entertainment centers, surged nearly 13.7% on November 4th following the company's impressive first quarter fiscal 2025 earnings report.
For the quarter ended September 29, 2024, Bowlero posted revenue of $260.2 million, up 14.4% year-over-year and beating Wall Street's expectations of $249.5 million. The company's total location revenue increased 17.5% compared to the prior year period, driven by heightened customer spending on food, beverages, and other experiential offerings.
Bowlero reported net income of $23.1 million, or $0.13 per share, compared to $18.2 million in Q1 2024. Adjusted EBITDA rose 21% to $62.9 million, with margins expanding 130 basis points to 24.2%. The strong profitability metrics reflect Bowlero's focus on operational efficiencies and disciplined expense management.
The company attributed its robust performance to successful acquisitions like Raging Waves and Boomers, along with the integration of the Boomers' purchasing organization, which helped manage inflationary pressures. Additionally, Bowlero's mobile ordering capabilities and revamped event catering menu contributed to the growth in food and beverage sales.
Based on the solid first-quarter results, Bowlero raised its full-year revenue guidance range for fiscal 2025 to $1.23 billion - $1.28 billion, up from the previous range of $1.22 billion - $1.28 billion.
The market reacted positively to Bowlero's strong performance, with analysts reiterating their "buy" ratings on the stock. Analyst Eric Wold from B.Riley Financial reiterated a Buy rating on Bowlero and maintained his price target, citing the company's growth opportunities and strategic expansions.
"Bowlero's impressive Q1 results and raised guidance underscore the company's ability to capitalize on consumer demand for experiential leisure activities," said Wold. "With a robust pipeline of new locations and successful acquisitions, Bowlero is well-positioned for continued growth in the coming quarters."
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