The FTSE 250 is home to loads of stocks offering generous levels of passive income. These include a very wide range of businesses, with a growing number of them having global operations.

One name that will be familiar to many readers is Hollywood Bowl (LSE:BOWL). As the UK’s number one tenpin bowling operator, it’s a popular choice for fun family days out.

Let’s take a look at why I think this FTSE 250 stock could be worth considering as part of a diversified income portfolio.

Still expanding

As well as operating 77 centres across the UK, Hollywood Bowl now has 15 locations in Canada under the Splitsville brand. They’re typically located in prime, out-of-town leisure and retail parks where there’s high footfall and free parking.

In FY25, which ended in September, revenue increased 8.8% to £250.7m, with statutory post-tax profit up 15.7% to £34.6m. The firm opened a record five new sites in the UK and two in Canada, with 12 refurbishments.

Spend per game rose 9.8%, including 14.8% in Canada. This shows that Hollywood Bowl is successfully replicating the UK business model in North America, including offering food and drinks, as well as other activities like e-darts, mini-golf, pool tables and go-karting in select locations. Amusements grew 15.1%, boosted by cashless options.

Management said it’s introducing the ability to wear your own footwear while playing in Canada. I seem to remember those rented bowling shoes were never the comfiest (and certainly not cool), so this might attract more people, including younger groups on dates.

The company continues to buy back shares, which should boost the earnings per share (EPS) metric over time, and finished September with a net cash balance of £15.2m.

We delivered a fourth consecutive year of record revenue and adjusted EBITDA, against a backdrop of industry-wide challenges...This performance demonstrates the resilience of our model and the enduring appeal of bowling for consumers.
CEO Stephen Burns.

Tough backdrop

Last year, Hollywood Bowl paid a dividend of 13.3p per share. City analysts expect the payout to edge up 6% next year to 14p, giving a 12-month forecast dividend yield of 5.2%.

This means anyone investing £5,000 in shares could expect approximately £260 in annual passive income. For context, the average FTSE 250 stock yields roughly 3.2%.

Of course, the dividend forecast might not be met, especially if trading conditions worsen between now and then. Like-for-likes sales growth has been quite modest (up just 1.1% last year).

And while Hollywood Bowl offers good value for money, enabling a family of four to go bowling for just £26 at peak times, falling inflation and interest rates could also make competition like theme parks and zoos more affordable.

The future looks bright

Looking ahead, I’m optimistic Hollywood Bowl can grow into a larger company. And I see no reason why it couldn’t expand to further overseas markets in future, including in Europe. After all, affordable family days out doing fun activities should be popular wherever.

It has a pipeline of four new centres this year, with ambitious plans for 130 locations by 2035. Of these, 35 will be in Canada, which already accounts for 15% of group revenues.

The stock is down 25% since May 2024, leaving it on a cheap-looking forward earnings multiple of 11.3.