Pinstripes Holdings Inc.

For fiscal third quarter, total revenue increased 10.4% to $35.5 million from $32.2 million a year ago. Food and beverage revenue rose 10.5% and recreation revenue rose 10.3%. Venue-level EBITDA margin was 19.2%, down 20 basis points year over year, and adjusted EBITDA was $2.7 million, the company’s best corporate profitability quarter in two years. G&A declined to $4.8 million from $5.3 million. As of January 5, 2025, cash and cash equivalents were $2.4 million and debt outstanding was $114 million. For Q4, management said comps improved from the early-quarter negative mid- to high-teens to the down 7% range in Q3, weather has been a factor in January and February, and they expect easier comparisons in Q4; they also said mature-venue margins could expand above Q3 and new locations should remain profitable in the same general range.

Dale Schwartz said the quarter showed profitability improvements beginning to come through, citing strong venue-level EBITDA margins, a meaningful improvement in new-store profitability, and the best corporate profitability in two years. He framed the company’s focus around three priorities: improving comp growth, driving profitability at both the venue and corporate level, and opening high-quality locations within current funding capacity. He also emphasized that pricing will remain generally stable, with only selective dynamic pricing and promotions, and said the company is pleased with the Walnut Creek opening and with the maturing new stores.

Tony Querciagrossa highlighted the reported financials: revenue of $35.5 million, venue-level EBITDA margin of 19.2%, G&A of $4.8 million, cash of $2.4 million, and debt of $114 million. He said cost efficiencies offset some sales deleverage, with labor and benefits down 60 basis points to 33.1% and food and beverage cost down 10 basis points to 15.5%, while occupancy and other operating expenses rose. He also noted that mature stores generated average contribution margins of 21.6%, down 30 basis points year over year, and that the company is seeing the rest of the annualized savings flow through in future quarters.

Analysts focused on the path of same-store sales, cost savings, pricing, unit growth, and Q4 margin outlook. Management said Q3 comps moved from double-digit declines early in the quarter to negative 7.7% by the end, with events improving and some marketing/promotional activity creating about a 300-basis-point headwind that has since been adjusted. On pricing, they do not plan material increases on private events or open play, and on unit growth they said Coral Gables is still planned for Q4 and Jacksonville is still planned later in the calendar year, but additional openings depend on financing.