As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the leisure facilities industry, including Lucky Strike (NYSE: LUCK) and its peers.
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 Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1.4% below.
In light of this news, share prices of the companies have held steady as they are up 2.6% on average since the latest earnings results.
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 $301.2 million, up 6.1% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates.
Lucky Strike achieved the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2.6% since reporting and currently trades at $10.40.
Is now the time to buy Lucky Strike? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $1.40 billion, up 35.6% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS and adjusted operating income estimates.
AMC Entertainment achieved the fastest revenue growth among its peers. The market seems content with the results as the stock is up 1.5% since reporting. It currently trades at $2.98.
Is now the time to buy AMC Entertainment? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $557.4 million, flat year on year, falling short of analysts’ expectations by 0.9%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
As expected, the stock is down 20.6% since the results and currently trades at $19.22.
Read our full analysis of Dave & Buster’s results here.
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 $7.01 billion, up 16.3% year on year. This number surpassed analysts’ expectations by 3.4%. Overall, it was an exceptional quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
Live Nation scored the biggest analyst estimates beat among its peers. The stock is up 10% since reporting and currently trades at $163.54.
Read our full, actionable report on Live Nation here, it’s free.
Planet Fitness (NYSE: PLNT)
Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE: PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.
Planet Fitness reported revenues of $340.9 million, up 13.3% year on year. This result beat analysts’ expectations by 2.5%. It was a very strong quarter as it also logged an impressive beat of analysts’ adjusted operating income and same-store sales estimates.
The stock is down 3.9% since reporting and currently trades at $105.15.
Read our full, actionable report on Planet Fitness here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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