Pinstripes Holdings, Inc. Reports Fiscal 2025 Second Quarter Results
Pinstripes Holdings, Inc. (“Pinstripes” or “the Company”) (NYSE: PNST), a prominent dining and entertainment brand featuring a unique blend of bistro-style dining, bowling, and bocce, has announced its financial results for the second fiscal quarter.
During this quarter, Pinstripes witnessed a revenue upsurge of 7.5% compared to the previous year, totaling $26.5 million. The growth was primarily attributed to an 8.6% rise in food and beverage sales, which amounted to $21.1 million, alongside a 3.6% increase in recreation revenues, reaching $5.4 million.
Challenges Faced
Despite the revenue increase, the Company reported an operating loss of $7.9 million, influenced by pre-opening expenses totaling $1.6 million. This marks a slight increase in operating loss from $7.2 million in the prior year, with the overall loss comprising 29.7% of total revenue compared to 29.3% in the previous period.
Net Loss Overview
Pinstripes experienced a net loss of $9.3 million, a significant increase from a $7.3 million net loss during the same quarter last year. This decline reflects various operational challenges, emphasizing the need for strategic adjustments moving forward.
Operational Highlights
Pinstripes faced a decline in same-store sales, which dropped by 9.4% compared to the previous year. Additional metrics included a Venue-Level EBITDA of $1.3 million, with a margin of 5.0%, reflecting a decrease of 162 basis points from the preceding year due to inefficiencies in ramping up four new locations.
Strategic Developments
Dale Schwartz, the Founder and CEO stated, “We are effectively refining our cost structure, implementing annualized savings of $15 million at both the store and corporate levels. Moreover, several localized marketing campaigns are being launched to enhance brand visibility and sales across all venues. We are optimistic about our latest venue opening and continue to focus on expanding our footprint.”
Schwartz continued, “Our primary focus remains on fortifying our balance sheet and pursuing additional capital to support our operations and future expansion plans. The unique combination of dining and entertainment venues we offer positions us strongly for long-term shareholder value.”
Quarterly Financial Performance Review
The total revenue for this quarter was recorded at $26.5 million, surpassing the $24.6 million reported in the previous fiscal quarter. The year-to-date analysis indicates that the introduction of four new locations yielded a consistent revenue stream despite slight declines at older venues.
When examining the food and beverage costs, they represented 17.5% of total revenues for this quarter, showing minimal change from 17.4% during the same period last year. Store labor and benefits accounted for 38.9% of total sales, which is noticeably higher than the previous year's 37.9%, primarily due to the additional labor force required for newly opened stores.
Financial Outlook
As of the end of the quarter, the Company had cash and cash equivalents of $3.2 million, significantly down from $13.2 million at the end of the previous quarter. Despite this decline, the Company anticipates an uptick in cash flow in the upcoming months as the holiday season approaches and sales volumes are projected to rise considerably.
Upcoming Conference Call
Pinstripes Holdings will host a conference call to discuss these financial results in detail, facilitating a platform for investors and analysts to engage with the leadership team, which includes Dale Schwartz and Tony Querciagrossa, CFO. The call emphasizes transparency and aims to enhance stakeholders' understanding of the Company’s financial health and strategic direction.
About Pinstripes Holdings, Inc.
Pinstripes Holdings, Inc. is known for its exceptional venues that blend delightful dining experiences with recreational activities. Pinstripes offers a variety of multi-generational activities, accommodating both small gatherings and large events. To learn more about their offerings, visit the official site.
Frequently Asked Questions
1. What were the total revenues for Pinstripes in Q2 2025?
The total revenues for the second quarter of fiscal 2025 were $26.5 million.
2. How did Pinstripes perform in terms of net loss?
Pinstripes reported a net loss of $9.3 million for the second quarter, an increase from the $7.3 million loss in the previous year.
3. What were the major factors affecting the operating loss?
The operating loss was affected by pre-opening expenses and ongoing operational challenges, including less efficient scaling of new locations.
4. What steps are being taken to improve profitability?
The Company is focusing on cost-saving measures amounting to $15 million annually and launching localized marketing campaigns to increase sales.
5. Is there a conference call scheduled for discussing these results?
Yes, Pinstripes will host a conference call to discuss its financial results with stakeholders.
