Bowlero Corp. Reports 14% Revenue Growth, 27% Net Income Increase in Q3 2024

Bowlero Corp. reported a strong financial performance for the three months ended September 29, 2024, with total revenues reaching $260.2 million, a 14% increase from $227.4 million in the same period last year. This growth was attributed to the successful Summer Pass promotion and enhanced food and beverage offerings across all locations. Same-store revenues also showed a slight increase, rising to $217.5 million from $216.6 million year-over-year.

Total costs and expenses for the quarter were $247.2 million, an 11% increase from $222.0 million in the prior year. The rise in costs was primarily driven by higher location operating costs, which increased by 18% due to growth from acquisitions and new lease agreements. Payroll and benefits costs rose by 7%, reflecting additional staffing for new locations, while food and beverage costs increased by 23% due to higher sales volumes and inflation.

Bowlero's operating income for the quarter was $12.9 million, significantly up from $5.4 million in the previous year, while income before income tax benefit rose 55% to $13.2 million from $8.5 million. The company reported net income of $23.1 million, a 27% increase from $18.2 million in the prior year, with net income attributable to common stockholders also rising to $19.6 million from $15.2 million. Basic and diluted net income per share for common stockholders increased to $0.13 from $0.09.

The company’s cash and cash equivalents decreased to $38.4 million from $67.0 million at the end of the previous quarter. However, net cash provided by operating activities surged to $29.4 million, an 83% increase compared to $16.1 million in the prior year. Net cash used in investing activities fell significantly to $(39.9) million from $(176.6) million, primarily due to reduced acquisition activity.

Bowlero also increased its revolving credit facility commitment to $335 million, up from $285 million, and plans to open four new locations in prime markets during the second quarter of fiscal year 2025. The company remains classified as an emerging growth company under the JOBS Act, allowing it to delay adopting certain new accounting standards.

Overall, Bowlero's strategic focus on enhancing customer experience and expanding its footprint appears to be yielding positive results, as evidenced by the notable increases in revenue and profitability.