Bowlero Stock Crashes After Weak Q3 Results & Updated Guidance
Monday, 6 May 2024, 16:17
A slow start led to a weak quarter
In Q3, Bowlero's revenue increased by 7% year over year to $338 million; new units drove growth while same-store sales declined by 2.1% due to bad weather in January.
Revised guidance and stock impact
Management updated fiscal 2024 guidance to the lower end of expectations, affecting both revenue growth and adjusted EBITDA margins, leading to an 18% drop in stock value.
Investment considerations
While Bowlero shows potential value in adjusted EBITDA and shareholder-friendly actions, its move beyond core competencies and industry challenges warrant careful investment decisions.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.