What the changes say
- AI use in marketing, pricing, staffing and guest tools is newly identified as an operational, legal and competitive risk.
- Smaller-reporting-company disclosure accommodations may reduce investor comparability and information.
- Several ownership, intellectual-property-claims and tax-asset risks were removed.
- Public-company auditor attestation is now an existing compliance obligation, while supplier food-contamination risk is more explicit.
What changed since the prior 10-K
New
- NewRisks Related to Information Technology and Cybersecurity
Our use of artificial intelligence technologies, and our ability to keep pace with our competitors’ use of such technologies, presents operational, reputational, legal and competitive risks that could adversely affect our business
AI used for marketing, pricing, staffing, forecasting and guest tools may produce flawed outputs or create third-party, legal and reputational problems.
- NewRisks Related to the Location-Based Entertainment Industry
We are a “smaller reporting company,” and the scaled disclosure requirements available to us could make our securities less attractive to investors
Scaled smaller-reporting-company disclosures may give investors less information and make Lucky Strike harder to compare with other public companies.
Dropped
- DroppedRisks Related to the Location-Based Entertainment Industry
substantial expenses, divert the attention of management and adversely affect our revenue, financial condition and results of operations
- DroppedRisks Related to the Location-Based Entertainment Industry
due to the limitation caused by the 2004 ownership change. The Company has concluded it has not experienced an ownership change, as defined under Section 382 and 383, since July 2017
- DroppedRisks Related to the Location-Based Entertainment Industry
for stockholders to take certain actions, including electing directors who are not nominated by the current members of our board of directors or taking other corporate actions, including effecting changes in our management
- DroppedRisks Related to the Location-Based Entertainment Industry
be entitled to designate three directors to our board of directors and (ii) less than 15% but at least 5%, Mr. Shannon will be entitled to designate one director to our board of directors
Reworded
- 95% rewrittenRisks Related to Our Business and Industry
Index to Financial Statements
The displayed text shifts from supplier contamination, food safety and location-related publicity concerns to competition from streaming and delivery.
- 78% rewrittenRisks Related to the Location-Based Entertainment Industry
Delaware law and our organization documents contain certain provisions, including anti-takeover provisions that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts that stockholders may consider favorable
The risk now expressly includes stockholders electing directors, changing management and preferred-stock issuance as potential anti-takeover mechanisms.
- 78% rewrittenRisks Related to the Location-Based Entertainment Industry
The obligations associated with being a public company involve significant expenses and require significant resources and management attention, which may be diverted from our business operations
Independent auditor attestation over internal control is now described as required, rather than becoming required after losing emerging-growth-company status.
- 75% rewrittenRisks Related to Our Business and Industry
Unfavorable publicity or a failure to respond effectively to adverse publicity, could harm our business
The risk now specifically adds contamination caused by suppliers or their suppliers handling, storing or transporting ingredients.
- 61% rewrittenRisks Related to the Location-Based Entertainment Industry
Lucky Strike Entertainment’s founder and Chief Executive Officer and Atairos have certain board nomination rights that enable them to exercise substantial control over all corporate actions, which could limit your ability to influence the outcome of matters submitted to stockholders for a vote
The displayed prior-year and current-year text is substantively unchanged regarding Atairos and Mr. Shannon’s board nomination rights.
- 38% rewrittenRisks Related to the Location-Based Entertainment Industry
Failure to adequately protect our intellectual property could harm our business
The displayed prior-year and current-year text is unchanged regarding protection of trademarks, trade secrets and other intellectual property.
- 34% rewrittenRisks Related to Our Business and Industry
Changes in consumer buying patterns and economic slowdowns could negatively affect our results of operations
The current text omits the prior discussion of locations near high-density retail areas and dependence on visitor traffic.
- 31% rewrittenRisks Related to Our Business and Industry
We may not be able to compete favorably in the highly competitive out-of-home and home-based entertainment markets, which could have a material adverse effect on our business, results of operations or financial condition
No substantive change is visible in the displayed text; both versions describe competition from out-of-home venues and home entertainment.
- 26% rewrittenRisks Related to the Location-Based Entertainment Industry
Our ability to use net operating loss carryforwards and other tax attributes may be limited in connection with the Business Combination or other ownership changes
- 25% rewrittenRisks Related to the Location-Based Entertainment Industry
Our operations are susceptible to the changes in cost and availability of commodities and other products, which could negatively affect our operating results
- 21% rewrittenRisks Related to the Location-Based Entertainment Industry
We may be subject to securities litigation, which is expensive and could divert management attention
- 20% rewrittenRisks Related to Our Business and Industry
We face risks related to our substantial indebtedness and limitations on future sources of liquidity
All 36 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Business and Industry
- 01If we are unable to successfully design and execute our business strategy plan, including growing comparable location sales, our revenues and profitability may be adversely affected
- 02Changes in consumer buying patterns and economic slowdowns could negatively affect our results of operations34% rewritten
- 03We may not be able to compete favorably in the highly competitive out-of-home and home-based entertainment markets, which could have a material adverse effect on our business, results of operations or financial condition31% rewritten
- 04Index to Financial Statements95% rewritten
- 05Unfavorable publicity or a failure to respond effectively to adverse publicity, could harm our business75% rewritten
- 06We are subject to risks associated with leasing space subject to long-term, non-cancelable leases
- 07Our financial performance and the ability to implement successfully our strategic direction could be adversely affected if we fail to retain, or effectively respond, to a loss of key management
- 08We face risks related to our substantial indebtedness and limitations on future sources of liquidity20% rewritten
- 09Covenants in our debt agreements restrict our business and could limit our ability to implement our business plan
- 10The adoption or modification of laws and regulations relating to our business could limit or otherwise adversely affect the manner in which we conduct our business
Risks Related to Information Technology and Cybersecurity
- 11Information technology system failures or interruptions may impact our ability to effectively operate our business
- 12Cybersecurity breaches or other privacy or data security incidents that expose confidential customer, personal employee or other material, confidential information that is stored in our information systems or by third parties on our behalf may impact our business
- 13Our reliance on computer systems and software could expose us to material financial and reputational harm if any of those computer systems or software were subject to any material disruption or corruption
- 14Our use of artificial intelligence technologies, and our ability to keep pace with our competitors’ use of such technologies, presents operational, reputational, legal and competitive risks that could adversely affect our businessNew
Risks Related to the Location-Based Entertainment Industry
- 15Our success depends upon our ability to recruit and retain qualified location management and operating personnel while also controlling our labor costs
- 16We may be subject to increased labor and insurance costs
- 17Our revenues and operating results may fluctuate significantly due to various risks and unforeseen circumstances, including natural disasters, public health emergencies, acts of violence or terrorism, seasonality, weather, and other factors outside our control
- 18Our operations are susceptible to the changes in cost and availability of commodities and other products, which could negatively affect our operating results25% rewritten
- 19We may not be able to operate our locations or obtain/maintain licenses and permits necessary for such operation, in compliance with laws, regulations and other requirements, which could adversely affect our business, results of operations or financial condition
- 20We are subject to various federal, state, and local laws and regulations that govern numerous aspects of our business
- 21Litigation, including allegations of illegal, unfair or inconsistent employment practices, may adversely affect our business, results of operations or financial condition
- 22Failure to adequately protect our intellectual property could harm our business38% rewritten
- 23Changes in tax laws and resulting regulations could result in changes to our tax provisions and subject us to additional tax liabilities that could materially adversely affect our financial performance
- 24Our ability to use net operating loss carryforwards and other tax attributes may be limited in connection with the Business Combination or other ownership changes26% rewritten
- 25Our only significant assets are our ownership interests in our operating subsidiaries and such ownership may not be sufficient to pay dividends or make distributions or loans to enable us to pay any dividends on our common stock or satisfy our other financial obligations
- 26The price of our Class A common stock may be volatile
- 27We have discretion over payment of any cash dividends
- 28We may be subject to securities litigation, which is expensive and could divert management attention21% rewritten
- 29The obligations associated with being a public company involve significant expenses and require significant resources and management attention, which may be diverted from our business operations78% rewritten
- 30We are a “smaller reporting company,” and the scaled disclosure requirements available to us could make our securities less attractive to investorsNew
- 31Delaware law and our organization documents contain certain provisions, including anti-takeover provisions that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts that stockholders may consider favorable78% rewritten
- 32Our certificate of incorporation contains a provision renouncing our interest and expectancy in certain corporate opportunities
- 33We cannot predict the impact that our dual class structure may have on the stock price of our Class A common stock
- 34In addition, pursuant to the Stockholders Agreement (as defined below), Mr. Shannon and Atairos have board designation rights and Atairos also has certain consent rights as described below
- 35Lucky Strike Entertainment’s founder and Chief Executive Officer and Atairos have certain board nomination rights that enable them to exercise substantial control over all corporate actions, which could limit your ability to influence the outcome of matters submitted to stockholders for a vote61% rewritten
- 36We are a “controlled company” within the meaning of the rules of the New York Stock Exchange (“NYSE”). As a result, we qualify for exemptions from certain corporate governance requirements that would otherwise provide protection to stockholders of other companies
Other Lucky Strike Entertainment 10-Ks
- FY2025 10-K risk factors38 risks5 new2 dropped13 reworded
Lucky Strike Entertainment expanded disclosures regarding intellectual property infringement claims and regulatory compliance burdens in online commerce.
Filed Aug 28, 2025 - FY2024 10-K risk factors35 risks
This filing reflects Lucky Strike's debut risk assessment, dominated by consumer discretionary spending reliance, high debt leverage, and operational lease exposures.
Filed Sep 05, 2024
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.