Q3 2024 Bowlero Corp Earnings Call Transcript
Key Points
- Bowlero Corp reported a solid revenue growth of 8.8% in the third quarter, indicating strong business performance despite initial setbacks.
- The company successfully launched new premium menus in recently opened locations, enhancing food and beverage offerings which are expected to drive higher customer spend.
- Event revenue increased by 27% year-over-year, and league revenue was up by 9%, showing robust growth in these segments.
- Bowlero Corp made significant investments in traffic-driving initiatives which have started to show positive results, as evidenced by industry-leading same-store comp growth.
- The acquisition of Raging Waves, the largest water park in Illinois, presents new business opportunities and diversification into the location-based entertainment space.
- Same-store comp growth was negative at -2.1% for the quarter, primarily due to severe weather impacts in January.
- Adjusted EBITDA decreased to $122.8 million from $127.6 million in the previous year, reflecting higher operational costs and investments.
- The company faced underperformance relative to the third quarter guidance, mainly due to unexpected costs from investments aimed at driving foot traffic.
- Significant investments in the PBA and amusements resulted in a $2 million loss for the quarter, indicating challenges in achieving immediate profitability from these initiatives.
- Bowlero Corp adjusted its full-year guidance to the lower end of the previously disclosed range, suggesting some uncertainty in achieving initial financial targets.
Good morning, and welcome to Bowlero's Third Quarter 2024 Conference Call. (Operator Instructions)
I would now like to turn the call over to Bobby Lavan, Bowlero's Chief Financial Officer. Please go ahead.
Good morning to everyone on the call. This is Bobby Lavan, Bowlero's Chief Financial Officer. Welcome to our conference call to discuss Bowlero's third quarter 2024 earnings. This morning, we issued a press release announcing our financial results for the period ended March 31, 2024. A copy of the press release is available in the Investor Relations section of our website. Joining me on the call today are Thomas Shannon, our Founder, Chairman and Chief Executive; and Lev Ekster, our President.
I'd like to remind you that during today's conference call we may make certain forward-looking statements about the company's performance. Such forward-looking statements are not guarantees of future performance, and therefore, one should not place undue reliance on them. Forward-looking
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