Pinstripes Holdings Reports $26.5M Revenue with Increased Net Loss in Latest Quarter

Pinstripes Holdings, Inc. reported a total revenue of $26.5 million for the twelve weeks ended October 13, 2024, marking a 7.5% increase from $24.6 million in the same period last year. The growth was primarily driven by an increase in food and beverage revenues, which rose by 8.6% to $21.1 million, and recreation revenues, which increased by 3.6% to $5.4 million. However, the company also experienced a net loss of $9.3 million, a 27.8% increase from a loss of $7.3 million in the prior year, attributed to rising costs in labor, occupancy, and general administrative expenses.

In comparison to the previous fiscal period, Pinstripes saw significant changes in its financial performance. The operating loss for the twelve weeks increased to $7.9 million from $7.2 million, while interest expenses surged by 156.7% to $4.9 million, reflecting the impact of increased long-term debt. The company’s accumulated deficit also widened to $145.1 million as of October 13, 2024, compared to $125.8 million at the end of the previous fiscal year.

Strategically, Pinstripes has been expanding its footprint, operating 17 locations across ten states and Washington D.C. as of the reporting date. The company has focused on a disciplined growth strategy, with no new store openings during the current quarter but plans for future expansions. The average unit volume (AUV) for the fiscal year ended April 28, 2024, remained steady at $8.6 million, indicating stable performance at existing locations. The company has also been actively managing its operational costs, with a notable decrease in pre-opening expenses from $3.0 million to $1.6 million year-over-year.

Operationally, the company reported a total employee count of approximately 1,700, reflecting its commitment to maintaining a robust workforce to support its operations. Engagement metrics showed that while the number of customers at existing locations has seen some decline, the overall revenue growth indicates a successful integration of new locations into the business model. The company continues to monitor market conditions and customer preferences to adapt its offerings accordingly.

Looking ahead, Pinstripes Holdings expressed concerns regarding its ability to continue as a going concern, citing substantial doubt about meeting its obligations within the next year. The company is exploring additional financing options and capital raises to alleviate these concerns. Management has indicated that while they have historically been successful in raising capital, future efforts may be challenged by current market conditions and the company's financial performance. The outlook remains cautious as the company navigates these challenges while aiming for growth through new store openings and improved operational efficiencies.