- The company is the largest bowling center operator in the US and it has the best EBITDA margin and free cash flow conversion rate in the industry.
- I think that Bowlero has a good moat, thanks to its strong brand, economies of scale, geographic positioning, and revenue stream diversification.
- The company’s results have already surpassed pre-COVID-19 levels and adjusted EBITDA came in at $66.8 million in Q2 FY22.
- I view Bowlero as a speculative buy as it has net debt of $1.34 billion, and a return of lockdowns could put significant pressure on its financials.
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Bowlero Is A Perfect Strike And I'm Bullish