If your long holiday weekend included a day out to a Bowlero (BOWL) bowling alley and entertainment complex, I hope you savored it. It may not be around much longer. The location will probably still be there, but it will be rebranded as Bowlero looks to change its name and shake up its strategy. Investors approved, sending shares up 2.5%.
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Bowlero had been on a bit of a tear, reports note, acquiring major bowling alley chains, including the Lucky Strike brand last year, noted a report from The Wall Street Journal. But with no more such chains in existence, Bowlero began to wonder what it could do next. And then, it revealed the plan: it would change its name to Lucky Strike Entertainment, change its ticker symbol to LUCK starting December 12, and start marketing the changes.
Bowlero is a bit too on-the-nose for what it wants to become. Bowlero is clearly bowling-focused, but Lucky Strike will be a lot more than bowling. It plans to ramp-up the entertainment center concept and even branch out into water parks.
If You Rebrand it, Will they Come?
There is a larger problem lurking in the background: disposable income. Bowling and fun center visits are a discretionary purchase. And with years of inflation still gripping the U.S., and the world beyond, the time may not be the best for a huge new push into fun centers.
The third quarter for Bowlero proved as much. The company did have a strong performance, but there were concerns from the broader segment like at Dave & Busters (PLAY) and TopGolf. The environment is challenging, even if Bowlero is managing to keep its head above water. Will that change under a Trump administration? Perhaps, suggesting short-term weakness and maybe a buying opportunity for investors.
Is Bowlero a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BOWL stock based on nine Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 19.42% rally in its share price over the past year, the average BOWL price target of $17.35 per share implies 37.92% upside potential.
