On June 27, 2024, Pinstripes Holdings Inc (PNST, Financial) released its 8-K filing detailing its financial results for the fiscal fourth quarter and fiscal year ended April 28, 2024. Pinstripes Holdings Inc is an experiential dining and entertainment concept combining exceptional Italian-American cuisine with bowling, bocce, and private events. The company operates 13 restaurants across the USA, each featuring large-format locations with extensive indoor and outdoor spaces.
Performance Overview
Pinstripes Holdings Inc reported a total revenue increase of 5.9% to $36.2 million for the fourth quarter of fiscal 2024, compared to the prior year. However, the company faced an operating loss of $10.7 million, up from $7.4 million in the previous year, and a net loss of $8.7 million, slightly improved from a net loss of $8.8 million in the prior year period. The company's performance is crucial as it reflects its ability to manage costs and drive revenue growth in a competitive industry.
Financial Achievements and Challenges
Despite the revenue growth, Pinstripes Holdings Inc faced several challenges. The company's operating loss increased due to higher pre-opening expenses and general and administrative costs associated with becoming a public company. Additionally, the Venue-Level EBITDA margin for mature venues improved by 309 basis points to 11.4%, showcasing the potential profitability of established locations.
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 |
|---|---|---|
| Total Revenue | $36.2 million | $34.2 million |
| Operating Loss | $10.7 million | $7.4 million |
| Net Loss | $8.7 million | $8.8 million |
Balance Sheet and Cash Flow
As of April 28, 2024, Pinstripes Holdings Inc reported total assets of $167.3 million, up from $130.9 million in the previous year. The company's cash and cash equivalents increased to $13.2 million from $8.4 million. However, total liabilities also rose to $236.5 million from $192.5 million, reflecting increased long-term notes payable and operating lease liabilities.
Key Metrics and Analysis
Pinstripes Holdings Inc's same-store sales increased by 0.4% in Q4 2024, indicating stable customer retention. However, the company's adjusted EBITDA was $(5.4) million, compared to $(2.4) million in the prior year, highlighting the need for improved cost management. The company's focus on expanding its venue count and enhancing mature venue profitability is critical for future growth.
"We’ve had an exciting and productive six months since becoming a public company at the beginning of the year. We are pleased with the continued progress across our business, including the strong opening of two new venues in New Jersey and Florida," stated Dale Schwartz, Founder and CEO.
Fiscal 2025 Guidance
Looking ahead, Pinstripes Holdings Inc provided guidance for fiscal 2025, including low single-digit same-store sales growth, four new venue openings, and an adjusted EBITDA of $19.0-21.0 million. The company also identified approximately $10 million in annual cost savings opportunities, which are expected to improve mature store contribution margins by approximately 500 basis points.
For more detailed financial information and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Pinstripes Holdings Inc for further details.
