Golf has seen a resurgence in popularity in the last few years. With remote work increasing due to the COVID-19 pandemic, more people now have the free time to spend a few hours on the course. In fact, first-time golfers hit an all-time high of 3.2 million in 2021, even higher than the 2.4 million in 2000, when Tiger Woods was attracting people to the sport.
All these new golfers have benefited companies like Callaway Golf (NYSE: ELY) , which owns its namesake equipment company, Topgolf driving ranges, and the TravisMathew apparel brand. Here are three reasons Callaway can drive great returns for your portfolio this decade.
Callaway acquired Topgolf in early 2021 for $2.6 billion, issuing approximately 90 million shares to fund the purchase. Management is excited about Topgolf's future because of the greenfield expansion opportunity ahead of it. The driving range and entertainment concept will have only 81 owned locations and five licensed locations open globally at the end of 2022, but management thinks there is an opportunity to eventually have 450 locations in cities around the world.
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This Stock Could Drive Great Returns for Your Portfolio