Sales increased by 16%, primarily due to acquisitions. Management expects similar "same store sales" for the next year, and the operating margin stands at 19%.
 
Despite the lack of organic growth, Bowlero remains ambitious. With 328 centers, it's the leading American operator, far ahead of its closest competitor with six times fewer centers. This leaves ample room for consolidation.
 
Reports suggest there are 500 to 1,000 centers in the potential acquisition pipeline, along with 200 new-build opportunities. Additionally, half of Bowlero's centers are awaiting renovation, which will likely lead to higher access rates once completed.
 
After being listed on the NYSE at $10 per share post-pandemic, Bowlero is currently channeling all its operating cash flow, and more, towards renovations, openings, and acquisitions. This has resulted in significant debt, exceeding its market capitalization at $2 billion.
 
The key question is whether these growth investments will yield promised returns of 30% to 40%, which remains challenging to confirm at this stage.
 
Excluding growth investments and assuming all other factors remain constant, Bowlero is expected to generate an annual cash profit or "free cash flow" of approximately $150 million.
 
Relative to a stock market valuation of $3.9 billion, the company is valued at a high multiple of 26 times its cash profit. In essence, the market is currently placing trust in management's commitments.