Let’s dig into the relative performance of Lucky Strike (NYSE: LUCK) and its peers as we unravel the now-completed Q3 leisure facilities earnings season.

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 Q3. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 0.7% below.

Thankfully, share prices of the companies have been resilient as they are up 7.3% 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 $292.3 million, up 12.3% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Lucky Strike pulled off the highest full-year guidance raise of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $8.10.

Is now the time to buy Lucky Strike? Access our full analysis of the earnings results here, it’s free.

Best Q3: Callaway Golf Company (NYSE: CALY)

Formed between the merger of Callaway and Topgolf, Callaway Golf Company (NYSE: CALY) sells golf equipment and operates technology-driven golf entertainment venues.

Callaway Golf Company reported revenues of $934 million, down 7.8% year on year, outperforming analysts’ expectations by 2.3%. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 56.1% since reporting. It currently trades at $14.47.

Is now the time to buy Callaway Golf Company? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: United Parks & Resorts (NYSE: PRKS)

Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.

United Parks & Resorts reported revenues of $511.9 million, down 6.2% year on year, falling short of analysts’ expectations by 5.2%. It was a disappointing quarter as it posted a miss of analysts’ visitors estimates and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 22.5% since the results and currently trades at $35.82.

Read our full analysis of United Parks & Resorts’s results here.

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 $1.3 billion, down 3.6% year on year. This print beat analysts’ expectations by 6.3%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

AMC Entertainment scored the biggest analyst estimates beat among its peers. The stock is down 44.2% since reporting and currently trades at $1.40.

Read our full, actionable report on AMC Entertainment here, it’s free.

European Wax Center (NASDAQ: EWCZ)

Founded by two siblings, European Wax Center (NASDAQ: EWCZ) is a beauty and waxing salon chain specializing in professional wax services and skincare products.

European Wax Center reported revenues of $54.19 million, down 2.2% year on year. This result surpassed analysts’ expectations by 2.7%. It was a strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

European Wax Center had the weakest full-year guidance update among its peers. The stock is up 12.3% since reporting and currently trades at $4.10.

Read our full, actionable report on European Wax Center 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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